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Informist, Sunday, Apr. 26, 2026

By Kabir Sharma

MUMBAI – Bajaj Housing Finance Ltd. is likely to report a  strong growth in its financials in the March quarter, supported by healthy loan expansion, stable spreads, and controlled credit costs, though margins may see some pressure, according to brokerage estimates.

The average of estimates from four brokerages pegs the company's net interest income at INR 9.97 billion, up 21% on year, and net profit at INR 6.91 billion, up almost 18% on year. The highest estimate for net profit is INR 7.06 billion from JM Financial and the lowest INR 6.67 billion from ICICI Securities Ltd. Bajaj Housing Finance had reported net profit of INR 6.65 billion for the December quarter, up over 21% on year. Net interest income of the lender was up 19% at INR 9.63 billion in the December quarter.

Loan growth is expected to remain robust, with assets under management projected to rise 5.5% sequentially and 23% year-on-year, driven by sustained demand in the housing finance segment. Analysts said the growth trajectory remains healthy, although the pace is now normalising after a strong run in previous quarters. The assets under management were INR 1.33 trillion as of Dec. 31.

On margins, estimates remain mixed. Kotak Securities expects spreads to remain broadly stable at 2.1%, as a 15-basis-point decline in cost of borrowings is likely to be offset by a moderation in lending yields. In contrast, Motilal Oswal Financial Services sees net interest margins declining around 10 basis points sequentially to 3.25%, highlighting some pressure from competitive dynamics and yield softening. The net interest margin of the housing financier was 4%, unchanged from a year ago.

Operating expenses are expected to trend higher, with Kotak estimating a 14% year-on-year increase, which would push the cost-to-average assets under management ratio to around 0.69%, still within the recent range of 0.67–0.75%. The rise in costs is attributed to continued investments in distribution and scaling of operations.

Asset quality is expected to remain stable, with credit costs seen in the range of 14–15 basis points, broadly in line with the recent trend of low and benign credit losses. 

Analysts highlighted key things to watch out for will include management commentary on NIM trajectory, sustainability of loan growth, and funding cost trends. Investors will also watch for any signal on competitive intensity in the housing finance space and the impact of interest rate movements on spreads.

Of the four brokerage reports on the company available with Informist, three have 'buy' or equivalent recommendation on the stock, with an average target price of INR 99 per share. This is over 11% higher than the current market price. One brokerage has a 'hold' or equivalent recommendation on the stock with an average target price of INR 100 per share.

Following are the March quarter earnings estimates for Bajaj Housing Finance from four brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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