1. At a Glance – The “Too Clean to Be True?” Snapshot
If balance sheets could talk, Bajaj Housing Finance (BHFL) would whisper politely, “Beta, tension mat lo.”
This is a housing finance company that shows up to earnings season like a CA topper — pressed shirt, perfect hair, zero backlogs.
As of Q3 FY26, BHFL is sitting on a ₹1,33,412 crore AUM, posting ₹664.9 crore quarterly PAT, and casually flexing a GNPA of just 0.26% when peers are still arguing with recovery agents. Market cap stands tall at ~₹74,800 crore, stock trades near ₹90, and valuation says 30x earnings — because obviously, markets don’t like cheap things when they’re clean.
But here’s the spicy bit: despite falling ~22% in one year, the business itself hasn’t slipped even once. Profits up 23% YoY, AUM growing, margins stable, and credit costs behaving like obedient kids in front of grandparents.
So the real question isn’t “Is this company good?”
It’s “How much perfection are you willing to pay for?”
Let’s dissect this mortgage monster, one EMI at a time.
2. Introduction – The Bajaj Family’s Quiet Assassin
Bajaj Housing Finance is not the loud cousin at the wedding. That role belongs to Bajaj Finance.
BHFL is the one silently managing everyone’s home loans while the DJ plays “Aaj Blue Hai Pani Pani.”
Founded in 2008, registered with NHB in 2015, and 100% owned by Bajaj Finance Ltd, BHFL has grown into India’s 2nd largest Housing Finance Company in less than a decade of serious mortgage operations. No drama. No wild acquisitions. Just boring, beautiful compounding.
The strategy is painfully simple:
- Lend mostly to salaried borrowers
- Stick to prime geographies
- Keep ticket sizes sensible
- Avoid real estate cowboys who say “sir approval bas next month”
Result?
A loan book that looks like it was stress-tested by RBI governors during insomnia.
Yet the market is confused.
On one hand, this is the cleanest HFC in the country.
On the other, it trades at
2x–6x the P/E of PSU peers.
Is this premium justified? Or is BHFL becoming the “safe but expensive” darling?
Time to open the loan file.
3. Business Model – WTF Do They Even Do?
Think of BHFL as the mortgage department of Bajaj Finance, but without the personal loan chaos.
AUM Mix (Q3 FY26):
- Home Loans – 57.5%
Salaried, high CIBIL (>750), boring but gold-standard borrowers. - Lease Rental Discounting (LRD) – 19.5%
Commercial landlords pledging rental cash flows. High quality, low tantrums. - Developer Financing – 12%
The risky cousin, but tightly controlled and priced higher. - Loans Against Property (LAP) – 10%
Secured, slightly spicier yields.
Customer Profile
- 81.7% customers = home loan borrowers
- 87.5% salaried (highest among large HFCs)
- 75.5% AUM from CIBIL >750
Translation:
These are people who panic if their credit card bill is delayed by one day.
Ticket Size
- Home loan: ₹4.6 million
- LAP: ₹5.9 million
No ₹30 lakh builders, no ₹20 crore Instagram entrepreneurs. Middle-class India with salary slips and Form 16.
Would you rather lend to this crowd or chase yield?
BHFL chose sanity.
4. Financials Overview – The Numbers That Don’t Misbehave
Result Type Detected: Quarterly Results (Q3 FY26)
Performance Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | QoQ (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 2,886 | 2,449 | 2,755 | 17.9% | 4.8% |
| Financing Profit | 890 | 723 | 844 | 23.1% | 5.4% |
| PAT | 665 | 548 | 643 | 21.3% | 3.4% |
| EPS (₹) | 0.80 | 0.66 | 0.77 | 21.2% | 3.9% |
Annualised EPS (Q3 rule):
Average of Q1,
