Tag Bajaj Housing Finance

Bajaj Housing Finance Ltd
Bajaj Housing Finance Q4 Results: Net Interest Income Up 31%, Profit Up 54% YoY

Business and Industry Overview: 

Bajaj Housing Finance Limited (BHFL) is a major housing finance company in India. It was started in 2008 and is a part of Bajaj Finance Limited. BHFL gives different types of loans, like home loans, loans against property, and balance transfer loans. It also helps developers with loans for building homes and commercial buildings. The company is doing well financially. In Q4 FY2025, its net profit grew by 54%. BHFL also had a successful IPO in September 2024. It raised ₹7,000 crore, and the stock price more than doubled, giving it a market value of about $16 billion. BHFL makes it easy for customers to get loans. People can apply online, manage their accounts, and get pre-approved loan offers. The company is strong in the housing finance market in India because it offers good loan products and services. 

Latest Stock News: 

Bajaj Housing Finance had a great result in the fourth quarter of FY25, which made its stock price go up. On April 23, 2025, the stock jumped by 4.5%, reaching ₹137 per share. This happened after the company announced its profit for the quarter had grown by 54% compared to last year. The profit reached ₹587 crore, up from ₹381 crore in the same quarter last year. The company’s income from loans also increased by 31%, going up to ₹823 crore, compared to ₹629 crore in the previous year’s quarter. Because of these good results, Bajaj Housing Finance’s stock has gone up by 3.6% this year, while the Nifty 50 index has only risen by 2%. This shows that Bajaj Housing Finance has been doing better than many other companies in the market. However, not all experts are excited about the future of the stock. HSBC, a global bank, has a “Reduce” rating on the stock, which means they think the price may not go up much. They have set a target price of ₹100 per share, which is much lower than the current price. Even though some experts are cautious, the strong results for the fourth quarter have made the stock popular with investors. 

Segmental information: 

  1. Home Loans: BHFL helps people buy homes by giving them loans. These loans are for buying new houses or apartments. 
     
  1. Loans Against Property (LAP): BHFL gives loans to people and businesses by using their property as security. These loans can be used for things like business growth or home repairs. 
     
  1. Balance Transfer Loans: BHFL allows people to move their home loans from other banks or companies to Bajaj Housing Finance. They can get better rates and terms. 
     
  1. Loans for Developers: BHFL gives loans to builders and developers. These loans help them build new homes or commercial buildings. 
     
  1. Lease Rental Discounting (LRD): BHFL gives loans to property owners who earn rent from their buildings. The rent payments are used as security for the loan. 

Subsidiary information: 

Bajaj Housing Finance Limited (BHFL) used to be fully owned by Bajaj Finance Limited. But after its IPO (Initial Public Offering) in September 2024, it is no longer fully owned by Bajaj Finance. The IPO was a big success, with many people buying shares of the company. However, Bajaj Finance still owns a large part of BHFL. This helps BHFL because it can use Bajaj Finance’s customer base and financial knowledge. Bajaj Finance continues to guide BHFL’s business plans. BHFL offers different types of loans, like home loans, loans against property, and loans based on rental income from properties. It helps both individuals and businesses with their loan needs, such as buying or fixing homes and offices. Even though BHFL is not fully owned by Bajaj Finance anymore, the two companies still work closely together. 

Q4 Highlights: 

  • Net Profit: The company’s profit was ₹587 crore, which is 54% more than last year’s ₹381 crore. 
     
  • Net Interest Income (NII): It increased by 31%, reaching ₹823 crore from ₹629 crore last year. 
  • Assets Under Management (AUM): This grew by 26%, reaching ₹1.14 lakh crore. 
  • Loan Disbursements: The company gave out ₹14,250 crore in loans, a 25% increase from ₹11,393 crore last year. 
  • Operating Profit: It went up by 43%, reaching ₹750 crore from ₹523 crore last year. 
  • Revenue from Operations: This grew by 26%, reaching ₹2,508 crore from ₹1,996 crore last year. 
  • Gross Non-Performing Assets (NPA): Stayed low at 0.29%, showing good asset quality. 
  • Net NPA: It was 0.11%, with a 60% coverage ratio for provisions. 

Financial Summary: 

Amount in ₹ Crore Q4 FY24 Q4 FY25 FY24 FY25 
Revenue 1,996 2,508 7,617 9,576 
Expenses 219 226 721 785 
EBITDA 498 731 2,201 2,811 
OPM 25% 29% 29% 29% 
Other Income 0 0 0 0 
Net Profit 381.00 587 1,731 2,163 
NPM 19.09 23.41 22.73 22.59 
EPS 0.57 0.7 2.58 2.6