Bajaj Housing Finance Q4 Results: Bajaj Group Firm's Net Profit Soars 53% - Check Earnings Details

Bajaj Housing Finance Q4 Results 2025: Bajaj Housing Finance Ltd. reported a solid financial performance for the fourth quarter and the financial year ended March 31, 2025. 

The company’s Profit After Tax (PAT) rose to Rs 586.68 crore in Q4 FY25, up from Rs 381.34 crore in the same quarter last year. This marks a significant increase of Rs 205.34 crore, or 53.85% year-on-year.

Bajaj Housing Finance: Assets Under Management 

The growth was driven by strong performance across key areas like Assets Under Management (AUM), profitability, and asset quality. AUM for the quarter grew by 26%, reaching Rs 6,370 crore compared to Rs 5,442 crore in Q4 FY24 and Rs 5,745 crore in Q3 FY25. Disbursals also increased by 25%, rising from Rs 11,393 crore in Q4 FY24 to Rs 14,254 crore in Q4 FY25. The company’s home loan segment made up 56.2% of the total portfolio, reflecting a well-diversified portfolio composition.

Bajaj Housing Finance: Gross NPA

Asset quality remained stable and healthy, with Gross Non-Performing Assets (GNPA) at 0.29% and Net NPA at 0.11%, both consistent with the previous quarter. Loan loss to average loan assets improved to 0.12%, down from 0.18% in Q4 FY24. Stage 2 assets stood at Rs 321 crore (0.32%), and Stage-3 Provision Coverage Ratio (PCR) was 60.3% as of March 31, 2025.

The company maintained a strong liquidity position with a buffer of Rs 2,394 crore and a Liquidity Coverage Ratio (LCR) of 191%, well above the regulatory requirement of 100%. Bajaj Housing Finance’s Capital Adequacy Ratio (CAR) also remained strong at 28.24%, against the minimum regulatory requirement of 15%. Out of this, Tier-1 capital stood at 27.72%.

Also Read: Bajaj Housing Finance Q4 Net Profit Soars 53% - Check Earnings Details

Bajaj Housing Finance: Operating Expenses

Operating efficiencies improved notably. Operating expenses to Net Total Income (Opex to NTI) came down to 21.7% in Q4 FY25 from 27.1% in Q4 FY24. For the full year, this ratio stood at 20.8%, compared to 24.0% in FY24. These improvements reflect the company’s ongoing efforts to enhance operational productivity.

Bajaj Housing Finance continues to focus on digital transformation. The company’s new digital initiatives—like e-agreements and online customer onboarding—achieved strong adoption, with 93% and 80% penetration, respectively, as of March 2025. The company ended the year with 1,977 employees.

Bajaj Housing Finance: Return on Assets

Return on Assets (ROA) for Q4 FY25 remained steady at 2.4% (annualised), while Return on Equity (ROE) stood at 12.1%. The slightly moderated ROE was due to capital raised through a rights issue in April 2024 and an IPO in September 2024. As of March 2025, the company had a net worth of Rs 19,932 crore, a leverage ratio of 5.2x, and a debt-to-equity ratio of 4.1x.

During the quarter, Bajaj Housing Finance also re-evaluated its tax position and reversed tax provisions amounting to Rs 34.22 crore, which included Rs 24.44 crore from previous years and Rs 9.78 crore in FY25. This one-time tax adjustment further strengthened the company's bottom line for the quarter.