1. At a Glance
Bajaj Housing Finance Ltd (BHFL) is the nerdy offspring of Bajaj Finance, and it’s doing everything — except paying dividends. Q1 FY26: Profit ₹583 Cr (+21%), AUM up 24%, NPAs as clean as freshly laundered jeans. P/E? A lofty 45. Book value? Cries in ₹24.
2. Introduction with Hook
Picture this: your rich uncle (Bajaj Finance) opens a housing finance startup in 2008. By 2024, that kid’s buying bungalows, flexing ₹1 lakh crore market cap, and sipping ROEs like they’re coconut water.
But here’s the kicker: the stock’s trading 5x book, doesn’t pay dividends, and your bank savings account is jealous of its growth.
3. Business Model (WTF Do They Even Do?)
They do mortgages. But with Bajaj-level steroid injections.
- Home Loans (retail, salaried, self-employed)
- Loans Against Property
- Lease Rental Discounting
- Developer Financing
- Working Capital Loans
Basically, they’ll finance anything with a roof — home, shop, or even your startup office with a beanbag.
Also: 100% owned by Bajaj Finance, which means muscle + brand + deep NBFC DNA.
4. Financials Overview
Q1 FY26:
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹2,616 Cr | +24% |
| Net Profit | ₹583 Cr | +21% |
| Financing Margin | 29% | Stable |
| EPS | ₹0.70 | Up |
| GNPA | 0.29% | Rock solid |
Last 12M PAT: ₹2,264 Cr
Last 12M Revenue: ₹9,983 Cr
ROE: 13.5%
ROA: 2.35%
They print money, not ink. And do it without risking defaults.
5. Valuation
Current Price: ₹122
Book Value: ₹24
P/E: 45x
P/B: 5.1x
Method 1: P/E
- FY25 PAT: ₹2,264 Cr
- Shares: 832.8 Cr
- EPS: ₹2.72
- Fair P/E Range: 25x–35x
- Fair Value: ₹68 – ₹95
Method 2: P/BV
- Book Value: ₹24
- Fair P/BV: 2.5x–3.5x
- Fair Value: ₹60 – ₹84
Conclusion: At ₹122, you’re buying Swiss watches at mall kiosk prices.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Earnings Beat: PAT +21%, AUM +24% — consistent like a train in Japan.
- IPO Watch: Speculation continues about a future Bajaj Housing listing separation drama.
- No Dividend Yet: Despite ₹2,264 Cr in profits, management still on a ‘saving mode’.
- NPAs Flat: GNPA = 0.29%, Net NPA = 0.11% — practically robotic.
No scams. No restructuring. Just clean numbers and a cleaner balance sheet.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹8,328 Cr |
| Reserves | ₹11,619 Cr |
| Borrowings | ₹82,072 Cr |
| Other Liabilities | ₹790 Cr |
| Total Assets | ₹1,02,809 Cr |
Leverage heavy, but interest income heavier. This NBFC’s motto: Why dilute when you can borrow and conquer?
8. Cash Flow – Sab Number Game Hai
| Year | CFO (Cr) | CFI (Cr) | CFF (Cr) | Net CF (Cr) |
|---|---|---|---|---|
| FY23 | ₹-14,332 | ₹-611 | ₹14,630 | ₹13 |
| FY24 | ₹-14,600 | ₹-555 | ₹15,125 | ₹32 |
| FY25 | ₹-17,075 | ₹-798 | ₹17,870 | ₹1 |
Cash flow from ops always red — not a bad thing in NBFCs. It means they’re lending. A lot.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 13.5% |
| ROA | 2.35% |
| GNPA | 0.29% |
| Net NPA | 0.11% |
| Interest Coverage | 1.9x |
ROE solid. GNPA cleaner than a SEBI audit. But P/BV is on Mount Everest without oxygen.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Net Profit |
|---|---|---|
| FY23 | ₹5,665 Cr | ₹1,258 Cr |
| FY24 | ₹7,617 Cr | ₹1,731 Cr |
| FY25 | ₹9,576 Cr | ₹2,163 Cr |
| TTM | ₹9,983 Cr | ₹2,264 Cr |
38% 5Y PAT CAGR. Feels like they’re compounding faster than your guilt on Zomato orders.
11. Peer Comparison
| Company | P/E | ROE | GNPA | PAT (TTM) |
|---|---|---|---|---|
| Bajaj HFL | 45.0 | 13.5% | 0.29% | ₹2,264 Cr |
| LIC Housing | 6.3 | 16.0% | ~0.7% | ₹5,442 Cr |
| PNB Housing | 13.6 | 12.3% | ~3.8% | ₹2,041 Cr |
| Aptus Value | 23.3 | 18.6% | 1.1% | ₹751 Cr |
Bajaj’s valuation is in La La Land, but quality metrics justify some of it. Aptus gives better return ratios, but lacks the same scale.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep ’24 | Jun ’25 |
|---|---|---|
| Promoters | 88.75% | 88.70% |
| FIIs | 1.68% | 1.04% |
| DIIs | 1.83% | 0.59% |
| Public | 7.63% | 9.61% |
Public float is slowly increasing. Promoters (Bajaj Finance) still firmly holding the wheel.
13. EduInvesting Verdict™
Bajaj Housing is the kind of stock where you pay premium to enter a premium showroom — but leave without a discount or a freebie.
Pros:
- Clean NPAs, healthy growth
- AUM scaling like a fintech on Red Bull
- Backed by the Bajaj brand
Cons:
- 5x book value — even Mukesh wouldn’t swipe that casually
- No dividends
- Borrowing-heavy cash flow
Final Word:
It’s like the Range Rover of HFCs — elite build, high horsepower, and pricey maintenance (read: valuation). Only step in if you enjoy luxury… and volatility.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Bajaj Housing Finance, NBFC, Q1FY26, Bajaj Finance, EduInvesting Premium
