Financial Highlights for FY25
Bajaj Housing Finance Limited (BHFL) has reported a robust financial performance for FY25, with net profit surging by 25% to reach Rs 2,163 crore, up from Rs 1,731 crore in FY24. The company’s total income saw an impressive rise, growing by 26% year-on-year (YoY) to Rs 9,576 crore, signaling a solid growth trajectory. The increase in net profit and total income is a result of strong loan disbursements, an expanded loan book, and prudent financial management. In FY25, net interest income (NII) grew by 20%, touching Rs 3,007 crore, highlighting the company’s capability to generate significant revenue from its core lending operations.
The substantial increase in net profit reflects the company’s well-executed strategy of expanding its lending portfolio and managing costs effectively. This growth comes despite the challenges posed by external factors such as global economic pressures and fluctuating market conditions. BHFL’s strong performance is indicative of its resilience in the face of such challenges, demonstrating that it is well-positioned for future growth.
Highlights:
Net Profit Growth: 25% increase in FY25, reaching Rs 2,163 crore.
Total Income: Grew by 26% YoY to Rs 9,576 crore.
Net Interest Income: Increased by 20% to Rs 3,007 crore.
Impressive Quarterly Performance in Q4 FY25
Bajaj Housing Finance delivered an outstanding performance in the fourth quarter of FY25 (Q4 FY25), with net profit surging by 54% YoY to reach Rs 587 crore, compared to Rs 381 crore in Q4 FY24. This strong performance was driven by a combination of factors, including higher loan disbursements, increased fee income, and efficient cost management. The company’s ability to generate substantial profits even in a competitive market showcases its operational efficiency and strategic focus on growing its lending business.
The company’s revenue from operations in Q4 FY25 also saw a remarkable increase, rising by 26% YoY to Rs 2,508 crore, up from Rs 1,996 crore in the same quarter last year. This increase in revenue reflects the company’s ability to capitalize on favorable market conditions, expand its customer base, and strengthen its product offerings. The growth in revenue from operations further underscores the company’s ability to consistently generate income from its core business activities, solidifying its position as a leading player in the housing finance sector.
Highlights:
Net Profit for Q4 FY25: 54% increase, reaching Rs 587 crore.
Revenue from Operations: Grew by 26% YoY to Rs 2,508 crore.
Strong Loan Disbursements and Fee Income: Key contributors to quarterly growth.
Robust Asset Growth and Strong Capital Position
Bajaj Housing Finance witnessed impressive growth in its loan assets and capital position during FY25. The company’s loan assets grew by 25% YoY, amounting to Rs 99,513 crore as of March 31, 2025. This growth is a testament to the company’s ability to expand its customer base and capture a larger share of the housing finance market. Furthermore, assets under management (AUM) saw a significant increase of 26%, reaching Rs 1,14,684 crore. This growth in AUM highlights the company’s success in not only expanding its loan book but also in managing its portfolio effectively.
In terms of capital adequacy, Bajaj Housing Finance ended the year with a solid capital adequacy ratio of 28.24%. This ratio is a critical indicator of the company’s financial strength, providing a buffer against potential risks and ensuring that it meets regulatory requirements. The strong capital position is vital for the company’s long-term growth and stability, allowing it to maintain financial flexibility and pursue new opportunities.
Highlights:
Loan Assets Growth: 25% increase YoY to Rs 99,513 crore.
Assets Under Management (AUM): Expanded by 26% to Rs 1,14,684 crore.
Capital Adequacy Ratio: Ended the year at a strong 28.24%.
Impressive Increase in Interest Income and Operating Profit
For Q4 FY25, Bajaj Housing Finance reported a significant 24% increase in interest income, which amounted to Rs 2,374 crore, up from Rs 1,915 crore in the same quarter of FY24. This rise in interest income is indicative of the company’s ability to generate more revenue from its loan portfolio, even amid fluctuating market conditions. The increase in interest income reflects the growth in the company’s lending activities and the effective management of its assets.
Operating profit also showed impressive growth, surging by 43% YoY to Rs 750 crore, compared to Rs 524 crore in Q4 FY24. This growth in operating profit is a result of the company’s ability to optimize its cost structure, improve efficiency, and leverage its strong market position. The surge in operating profit highlights Bajaj Housing Finance’s solid operational capabilities and its ability to generate strong returns from its business operations.
Highlights:
Interest Income Growth: 24% YoY increase to Rs 2,374 crore.
Operating Profit Surge: 43% increase to Rs 750 crore in Q4 FY25.
Strong Revenue Generation: Indication of effective asset management.
Effective Cost Management and Low NPA Levels
Despite rising finance costs, Bajaj Housing Finance successfully managed its operating costs, demonstrating its operational efficiency. The company’s finance costs for Q4 FY25 climbed to Rs 1,551 crore, a 21% increase from Rs 1,279 crore in the same quarter last year. However, the company was able to offset these rising costs by increasing its revenue from operations and optimizing its expense structure. This shows the company’s strong financial management and its ability to adapt to changing market conditions.
The company’s asset quality remained strong, with gross non-performing assets (NPAs) contained at a low 0.29% and net NPAs at just 0.11%. These low NPA levels reflect the company’s strong credit risk management and prudent lending practices. Bajaj Housing Finance’s ability to maintain such low levels of NPAs is a testament to its effective risk management framework and its focus on maintaining the quality of its loan portfolio.
Highlights:
Finance Costs: Increased by 21%, but effectively managed through cost optimization.
Asset Quality: Gross NPAs at 0.29% and net NPAs at 0.11%.
Risk Management: Strong focus on maintaining low NPA levels.
