Transcript of earnings conference call held in respect of the financial results for the quarter ended 31 March 2026
BAJAJHFL · price
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Bajaj Housing Finance reported strong Q4 FY26 with AUM crossing INR140,000 crores (23% growth), PAT of INR669 crores (+14% YoY, +20% excluding one-time tax benefit). NIM compressed 12 bps sequentially to 3.8% due to 14 bps yield decline from competitive acquisition pricing and portfolio mix shift toward lower-margin products (LRD grew 44%, LAP 24% vs home loans 18%). Asset quality remained stable with GNPA at 27 bps and NNPA at 11 bps. Credit cost normalized at 19 bps after Stage 2 provisioning strengthening. Cost of funds improved 60 bps YoY to 7.3%. Management indicated Q1 will be largely stable but expects full-year margin compression partially offset by opex efficiency and lower loan losses, guiding to ~10 bps ROA compression to ~2.2% from current 2.3%. Full year guidance to be provided with Q1 results. Sambhav (near prime/affordable) book reached ~INR9,000 crores with ~70-30 affordable to near prime mix.
NIM compression and margin pressure concerns persist amid intense competition from PSU banks, though management's proactive Stage 2 provisioning and operational efficiency improvements provide some buffer. Guidance for 10 bps ROA compression signals continued headwinds from competitive pricing and higher-cost incremental lending.