Bajaj Housing Finance records 21% profit surge in Q2 FY25 as net interest income grows

Bajaj Housing Finance Ltd (BHFL) announced its Q2 FY25 financial results, showcasing a 21% jump in net profit, amounting to ₹546 crore. This surge is a notable improvement from ₹451 crore in the same quarter of the previous year, emphasizing the company’s strong performance in the housing finance sector. The company’s net interest income (NII) also rose significantly, increasing by 13% to ₹713 crore, up from ₹632 crore in the previous year’s corresponding period.

The company’s revenue from operations saw a 26% boost, reaching ₹2,410 crore. This growth was propelled by steady demand in the housing finance sector, particularly in affordable housing and mid-segment loans. This surge in revenue reflects Bajaj Housing Finance’s effective growth strategy, which focuses on expanding its customer base and diversifying its loan portfolio.

Additionally, the assets under management (AUM) increased to ₹1,02,569 crore, marking a 26% rise compared to ₹81,215 crore at the end of September 2023. This growth indicates the company’s ability to expand its loan book efficiently, despite a competitive market environment. BHFL’s focus on housing and infrastructure development has further bolstered its financial standing, making it one of the most significant players in the sector.

Stable Margins and Expert Insights

While the net interest margin (NIM) remained stable at 3.43%, the company managed to maintain a consistent margin despite rising competition and interest rate fluctuations. Experts in the field have commented that Bajaj Housing Finance’s robust financial performance is a result of its prudent lending strategies and diversified loan offerings. They also highlighted that the company’s focus on high-growth segments like affordable housing has allowed it to sustain profitability even amid fluctuating economic conditions.

Analysts have projected a stable outlook for the company, citing its efficient management and diversified portfolio as key factors driving its financial resilience. They believe that Bajaj Housing Finance’s strategy of maintaining high asset quality while expanding its footprint has enabled it to achieve consistent growth quarter after quarter.

Stock Market Reaction

The stock market responded cautiously ahead of the results announcement. Bajaj Housing Finance’s shares closed 1.82% lower at ₹136.80 per share, reflecting investor anticipation and the overall market sentiment. However, with the impressive Q2 figures, experts anticipate a positive reaction in subsequent trading sessions as investors respond to the company’s solid financial performance and growth potential.