Bajaj Housing Finance reported a 21 per cent year-on-year (y-o-y) rise in Q2 FY25 net profit reaching ₹546 crore, up from ₹451 crore a year ago. In its recently-concluded IPO, Bajaj had raised ₹6,560 crore, in September 2024.
Net interest income (NII) of Bajaj Housing Finance saw a 13 per cent year-on-year rise, amounting to ₹713 crore, compared to ₹632 crore in Q2 FY24, reflecting the company’s strong lending growth, and demand for housing finance.
Bajaj Housing Finance’s assets under management (AUM) grew 26 per cent year-on-year to ₹1.02 lakh crore as of September 30, 2024, up from ₹81,215 crore a year ago. The company maintained strong asset quality, with gross non-performing assets (NPA) at 0.29 per cent and net NPA at 0.12 per cent. The provision coverage ratio on stage 3 assets stood at 58 per cent.
For the second quarter of FY25, Bajaj Housing Finance’s revenue from operations surged to ₹2,410.15 crore, up from ₹1,911.49 crore in the same period last year. The increase was driven by higher interest income, fees, and net gains on fair value changes. The company’s profit before tax grew by 23 per cent, reaching ₹707.59 crore, compared to ₹575 crore in Q2 FY24
The half-year results also showed impressive growth. Revenue from operations for the first half of FY25 stood at ₹4,618.80 crore, up from ₹3,674.74 crore in H1 FY24. The company’s profit after tax for the half-year was ₹1,028.21 crore, a 13 per cent increase compared to ₹912.91 crore in the same period last year.
Operational efficiency
Operational efficiency also improved, with expenses as a percentage of net total income reducing from 22.1 per cent in Q2 FY24 to 20.5 per cent in Q2 FY25. The company’s capital adequacy ratio stood at a healthy 28.98 per cent, reflecting strong capitalisation to support future growth.
This strong financial performance reaffirms Bajaj Housing Finance’s position as a leading player, in the housing finance sector, poised for continued growth amid rising demand, and favourable market conditions.