Bajaj Housing Finance Q2 FY27 Profit Rises 18%

Q2 FY27 earnings at a glance

Bajaj Housing Finance reported profit after tax of ₹757 crore for the second quarter of FY27, up 18% year on year from ₹643 crore. The housing financier also recorded a 25% year-on-year increase in assets under management, or AUM, to ₹1.58 lakh crore. The result marked the company crossing the ₹1.5 lakh crore AUM milestone. Net interest income rose 10% year on year to ₹1,055 crore. Net total income increased 15% to ₹1,254 crore. Profit before tax grew 18% to ₹980 crore. The reported figures indicate continued loan-book expansion alongside stable credit metrics. The company released its Q2 FY27 results on October 16, 2026.

Loan book crosses ₹1.5 lakh crore

AUM stood at ₹1.58 lakh crore as of September 30, 2026. The quarterly AUM addition was close to ₹8,580 crore, compared with ₹6,329 crore in the corresponding quarter a year earlier. Loan assets increased 24% year on year to ₹1,39,862 crore. Disbursements increased 25% year on year during the quarter. This pace was in line with overall AUM growth. The company said growth was supported by a diversified loan book. Crossing ₹1.5 lakh crore is a significant operating milestone for the lender. It also provides context for the increase in income and profitability during the quarter.

Quarterly financial performance

The company reported revenue of ₹3,250 crore, according to the supplied quarterly data. Revenue was up 6.12% sequentially and 17.99% year on year. Gross profit stood at ₹2,975 crore, rising 5.63% quarter on quarter and 19.49% year on year. Net profit was reported at ₹756 crore in the quarterly data, while the results summary stated PAT of ₹757 crore. The one-crore difference appears to reflect rounding in the reported figures. For the year-on-year comparison, the company reported PAT growth of 18% from ₹643 crore. Pre-provisioning operating profit rose 16% year on year to ₹1,015 crore from ₹876 crore. These measures show that income and operating profit increased alongside the expanding loan portfolio.

Key Q2 FY27 metrics

Asset quality remains stable

Asset quality remained broadly stable during the quarter. Gross non-performing assets, or GNPA, stood at 29 basis points. Net non-performing assets, or NNPA, stood at 12 basis points. Both measures were in line with the preceding quarter, according to the earnings-call material. Stable asset quality is relevant for a housing finance company because credit costs can affect profitability as the loan book grows. The company did not report a change in these ratios in the supplied results information. The Q2 performance therefore combined faster AUM growth with unchanged reported bad-loan indicators. Investors will continue to track these metrics as disbursements increase.

Returns and operating efficiency

Bajaj Housing Finance reported return on assets, or ROA, of 2.2% for the quarter. Return on equity, or ROE, improved to 12.7%. The operating expenditure-to-net total income ratio improved to 19.1% from 19.7% in Q2 FY26. This indicates lower operating costs relative to net total income than a year earlier. The company also reported a pre-provisioning operating profit of ₹1,015 crore. The reported improvement in operating efficiency came alongside a 15% increase in net total income. These indicators are part of the company’s reported profitability profile for the quarter. They do not, by themselves, indicate future performance.

Distribution network and Sambhav loans

The company’s operational network stood at 223 branches across 182 locations. Its Sambhav loans business crossed a monthly disbursal run rate of ₹500 crore during the quarter. Management described this as one of two significant milestones, alongside crossing ₹1.5 lakh crore in AUM. Branch reach and loan-disbursal activity are important operating measures for a housing lender. The supplied material does not provide a split of AUM by product or geography. It also does not specify the contribution of Sambhav loans to total AUM. Still, the reported run rate indicates increased activity within that loan programme. The company said overall quarterly performance was positive across growth, asset quality and profitability.

Capital position and regulatory criterion

Capital adequacy stood at 21.24% as of September 30, 2026. The company’s principal business criteria stood at 60.49%, against a regulatory criterion of 60%. Capital adequacy measures the capital available to absorb risks in relation to regulatory requirements. The principal business criterion is another relevant compliance measure for housing finance operations. Bajaj Housing Finance was marginally above the stated 60% threshold on this metric. The supplied material does not provide comparative capital adequacy figures from a prior period. It also does not report any regulatory action or exception. The disclosed ratios provide context for the company’s financial and compliance position at the end of the quarter.

AUM guidance maintained

Management maintained its FY27 AUM growth guidance at 21% to 23%, according to the supplied earnings-call material. The Q2 AUM growth rate was 25% year on year. The maintained guidance is lower than the quarterly growth rate and represents management’s stated outlook for the full year. No separate earnings-call transcript was published with the investor presentation cited in the results summary. Therefore, reported quarterly data should be distinguished from management guidance and commentary contained in the supplied call material. The company’s reported results show stronger AUM growth than the stated FY27 guidance range for the quarter. However, the company has not changed the full-year guidance in the information provided.

What the Q2 results mean for investors

The Q2 FY27 result was led by growth in lending activity, reflected in higher disbursements and a 25% increase in AUM. PAT growth of 18% to ₹757 crore was supported by higher net interest income and net total income. The gap between AUM growth and PAT growth is part of the reported quarterly financial outcome. Stable GNPA and NNPA ratios suggest that reported asset quality did not weaken during the quarter. Improved operating expenditure relative to net total income also supported the company’s operating performance. Capital adequacy of 21.24% adds context to its reported balance-sheet position. Investors will assess subsequent results for progress on the 21% to 23% FY27 AUM growth guidance and continued asset-quality stability. The next confirmed update will be the company’s subsequent earnings disclosure or investor communication.

Conclusion

Bajaj Housing Finance delivered an 18% year-on-year increase in Q2 FY27 PAT to ₹757 crore while AUM rose 25% to ₹1.58 lakh crore. The company also reported higher disbursements, improved operating efficiency and stable bad-loan ratios. Its quarterly performance came as AUM crossed the ₹1.5 lakh crore mark. Management has maintained FY27 AUM growth guidance of 21% to 23%. Future disclosures will show whether loan growth, profitability and asset quality remain aligned with the reported Q2 trends.