Bajaj Housing Finance Jumps 4% on 54% Surge in Q4FY25 Net Profit

On Thursday, the shares of Bajaj Housing Finance Limited (BHFL) of NSE surged by 4 percent, touching a day’s high of Rs. 136.96 per share after delivering a robust performance in the Q4FY25, showcasing strong growth.

The company reported a net profit of Rs. 587 crore for Q4FY25, marking a significant 54 percent increase compared to Rs. 381 crore in the same quarter last year. The rise in profitability was primarily driven by higher loan disbursements, increased fee income, and improved operational efficiencies. Finance costs increased by 21 percent to Rs. 1,551 crore from Rs. 1,279 crore in Q4FY24; comparably, the interest income has surged 24 percent to Rs. Rs. 2,374 crore, thus improving the net interest margin. The net interest income (NII) rose 31 percent year-on-year to Rs. 823 crore, up from Rs. 629 crore in Q4FY24, with a net interest margin (NIM) of 4 percent for this quarter. 

Total income for the quarter surged 34 percent to Rs. 958 crore from Rs. 717 crore a year ago, while total revenue from operations grew 26 percent to Rs. 2,508 crore, compared to Rs. 1,996 crore in Q4FY24. The operational efficiency improved, with the operating expenses to net total income ratio declining to 21.7 percent in Q4FY25 from 27.1 percent in Q4FY24.

The Assets Under Management (AUM) expanded by 26 percent year-on-year, reaching Rs. 1,14,684 crore as of March 31, 2025, up from Rs. 91,370 crore in the previous year’s quarter. The loan assets increased by 25 percent to Rs. 99,513 crore, indicating strong demand for home loans and its growing market share in the housing finance sector.

Asset quality remained stable with gross non-performing assets (GNPA) at a low 0.29 percent and net NPAs at 0.11 percent as of the quarter-end, which is slightly higher than the previous quarter YoY. Loan losses and provisions decreased to Rs. 30 crore in Q4 FY25 from Rs. 35 crore in the same quarter last year.

However, BHFL managed to maintain a stable cost of funds at 7.9 percent, consistent with the previous quarter, indicating effective liability management. The operating profit rose 43 percent to Rs. 750 crore, underscoring the company’s improved earnings capacity and operational strength.

For FY25, Bajaj Housing Finance posted a net profit of Rs. 2,163 crore, a 25 percent increase over Rs. 1,731 crore in FY24. Net interest income grew 20 percent year-on-year to Rs. 3,007 crore, while total income rose 23 percent to Rs. 3,597 crore. The operating expenses to net total income ratio improved to 20.8 percent from 24 percent in the prior year, reflecting ongoing efforts to improve operational efficiency. Loan losses and provisions for the full year increased to Rs. 80 crore from Rs. 61 crore in FY24, indicating some normalization and well-controlled. The provisioning coverage ratio on stage 3 assets stood at 60 percent for FY25, and it has been increasing the coverage yearly, demonstrating risk management against potential credit losses. BHFL ended FY25 with a strong capital adequacy ratio of 28.24 percent, providing a buffer to support future growth and absorb potential risks. Overall, the strong Q4 and full-year results highlight Bajaj Housing Finance’s ability to grow its loan book and profitability while maintaining its asset quality and operational efficiency.

In addition to BHFL’s financial performance, its parent company, Bajaj Finance Limited, has announced key corporate actions. The Board of Directors of Bajaj Finance will consider proposals at its upcoming meeting on April 29, 2025, which include a special interim dividend for FY25, a stock split of equity shares with a face value of Rs. 2 each, and a bonus share issue subject to necessary approvals. Upon the news, Bajaj Finance shares jumped 3.6 percent in the opening trade, touching the day’s high of Rs. 9,660 per share.