BHBajaj Housing Finance544252Earnings call transcript

Q2 FY27 call: AUM INR1.58 lakh crores, PAT INR757 crores, GNPA steady at 29 bps

Transcript of the Q2 FY27 earnings call (held 16 Oct 2026) is now on record.

By ScoutQuest · Sat 24 Oct 2026, 2:47 PM IST · 3 min read

AUM

INR1.58 lakh crores, up 25% Y-o-Y

PAT

INR757 crores vs INR643 crores, up 18%

GNPA / NNPA

GNPA 29 bps, NNPA 12 bps, both flat Q-o-Q

Quarter at a glance

• Disbursements rose 25% Y-o-Y to INR19,900 crores from INR15,900 crores in Q2 FY26.
• Total AUM stood at INR1.58 lakh crores, up 25% Y-o-Y. Quarterly AUM addition was close to INR8,580 crores against INR6,329 crores a year earlier.
• Profit after tax was INR757 crores against INR643 crores, an 18% rise; profit before tax was INR980 crores.
• Net interest margin was 3.7%, annualised return on assets 2.2% and return on equity 12.7%.
• Net total income grew 15% Y-o-Y to INR1,254 crores from INR1,090 crores.

Product mix and growth

• Home loans AUM grew 22% (20% in the previous quarter), loan against property 26%, lease rental discounting 39% and developer finance 13%, all Y-o-Y.
• Home loans formed 53.9% of the AUM mix. Sequentially, LRD rose 90 bps while developer finance eased 70 bps and home loans 20 bps.

Asset quality

• GNPA was flat sequentially at 29 bps and NNPA at 12 bps.
• Credit cost moderated 6 bps Y-o-Y to 10 bps from 16 bps.
• Stage 1 assets were 99.40 against 99.39, Stage 2 eased to 31 bps from 32 bps, and Stage 3 coverage was 59.8%.
• Product-level GNPA: home loans 36 bps (34 bps in Q1), LAP 61 bps, LRD 2 bps after one retail LRD account moved to NPA during the quarter, and developer finance 12 bps.

Costs, margins and borrowings

• Cost of funds fell 17 bps sequentially from 7.2% to close to 7%, mainly on conversion of fixed-rate NCDs into floating-rate instruments.
• Portfolio yield moderated 10 bps sequentially to 8.8% from 8.9%; gross spread improved 7 bps to 1.8% from 1.7%.
• Opex to net total income improved to 19.1% from 19.7% in Q2 FY26.
• Borrowing mix: money market 56%, bank lines 35%, NHB 9%. NCDs were 50.8%, up 430 bps sequentially, offsetting a 280 bps moderation in bank borrowings, 90 bps in commercial paper and 60 bps in NHB.

Capital and reach

• Capital adequacy was 21.24% and the principal business criteria stood at 60.49% as of 30 September 2026 against the 60% requirement.
• The network was 223 branches across 182 locations.

Sambhav affordable housing

• Monthly disbursement run rate crossed INR500 crores; Sambhav now forms 16% of overall home loan originations in Q2.
• Average ticket size was steady at INR28 lakhs; customers with a bureau score above 750 rose to 65% and salaried customers were 66% of the mix.

Half-year (H1 FY27)

• Net total income grew 16% to INR2,429 crores; opex rose 10% to INR470 crores.
• PBT and PAT both grew 20% to INR1,908 crores and INR1,472 crores.
• Opex to net total income was 19.3% against 20.4%, credit cost 8 bps, ROA 2.2% and ROE 12.6%.

Management commentary on strategy

• Converting fixed-rate NCDs into floating-rate instruments is a practice the company already followed and accelerated in Q2.
• Sambhav is described as progressing well, with the B2C team deepening penetration and new B2B and D2C sourcing channels shaping up.

What a retail investor can take away

• The quarter combined 25% growth in both disbursements and AUM with broadly steady bad loans.
• Lower cost of funds offset a softer portfolio yield, keeping margins close to the previous quarter.

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