Bajaj Housing Finance Q1 preview: PAT may jump up to 21% YoY, NII to surge up to 28%

Bajaj Housing Finance is set to announce its Q1 earnings on Wednesday, with the company expected to report strong double-digit year-on-year growth in net profit. Profit after tax (PAT) is estimated to rise 19%–21% year-on-year to Rs 574–584 crore in the April–June quarter, according to estimates by Kotak Institutional Equities and PhillipCapital.

The Bajaj Finance-promoted company is also likely to report 24%–28% year-on-year growth in net interest income (NII), placing the topline between Rs 827 crore and Rs 851 crore.

Kotak Institutional Equities

Kotak estimates the company’s PAT at Rs 574 crore for the quarter, a 19% YoY increase and a 2.1% sequential rise. NII is projected at Rs 827 crore, up 24.4% YoY and 0.5% QoQ.

Pre-provision operating profit (PPoP) may stand at Rs 767 crore, rising 19.8% YoY and 2.3% QoQ.

Net interest margin (NIM) is expected at 3.2%, marginally down by 1 basis point YoY and 15 basis points QoQ.

Provisions are likely at Rs 29 crore, showing a sharp 192.7% YoY rise, but declining 0.7% sequentially.

In its preview note, Kotak said, “Bajaj Housing reported 5% QoQ AUM growth in Q1FY26, lower than the 5.6%–6.2% growth seen in the previous four quarters. NIM will likely compress 14 bps QoQ to 3.2% as lending rate cuts are only partially offset by benefits on the liabilities side. Around 30% of borrowings are linked to EBLR.”

Operating expense growth is expected to remain moderate at 9% YoY, resulting in a 9 bps YoY decline in the cost-to-AAUM ratio to 0.6% in Q1FY26E. “We estimate a credit cost of 10 bps (vs. 11 bps in Q4FY25 and 13 bps in Q3FY25),” Kotak added.

PhillipCapital

PhillipCapital expects PAT to grow 21.1% YoY to Rs 584 crore, while declining marginally by 0.4% QoQ. Revenue for the quarter is estimated at Rs 851 crore, up 28% YoY and 3.4% QoQ.

EBITDA is seen at Rs 810 crore, up 26.6% YoY and 8.2% QoQ, driven by operating leverage and improved efficiencies.

NIM for the period is pegged at 2.89%, an improvement of 7 basis points YoY, but down 6 basis points QoQ.

“We expect AUM to grow over 25% YoY, with credit costs remaining benign,” PhillipCapital said.

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