Bajaj Housing Finance Limited released its updated investor presentation for FY2026, highlighting its position as the second-largest housing finance company in India. The company reported consistent AUM growth of 29% over the FY21-FY26 period, reaching ₹1,40,706 crore. With a focus on scale, low-risk orientation, and digital transformation, the company aims to reach a 5% market share in incremental home loan originations while maintaining high operational efficiency and asset quality.
Consistent Growth and Financial Performance
Bajaj Housing Finance has demonstrated a strong operational trajectory, with its Assets Under Management (AUM) growing at a 58% CAGR since inception and 29% CAGR between FY21 and FY26. For the fiscal year ending March 2026, the company reported an AUM of ₹1,40,706 crore and a profit after tax of ₹2,560 crore, representing a 41% CAGR over the same period. The company also noted an improved Opex to NTI ratio, which dropped from 74.6% to 19.7%, underscoring its commitment to operational efficiency.
Strategic Pillars for Sustainability
The company’s strategy is built upon five pillars: maintaining a scalable balance sheet, a low-risk business model, delivering reasonable returns, providing a full mortgage product suite, and ensuring a diversified borrowing mix. By focusing on prime home loans and lease rental discounting as anchor products, Bajaj Housing Finance maintains a low GNPA of 27 bps, significantly lower than industry peers.
Expansion and Digital Transformation
To capture future growth in an industry expected to expand at a 14-16% CAGR until FY28, the company is implementing a dual-segment strategy: deepening presence in the prime segment and widening reach in near-prime and affordable segments. This is supported by an omnichannel sourcing strategy and advanced digital integration, including a 94% penetration rate in its digital customer onboarding journey and 96% adoption of e-agreements, ensuring a seamless, paperless experience for borrowers.
Future Outlook
Looking ahead, the company aims to increase its incremental market share to 5%. Its long-term strategy involves optimizing product mixes with 2-3% flexibility to manage risk-adjusted returns and continuing the digitization of its processes to achieve an Opex to NTI target of 14-15%. The company remains committed to its role as a large mortgage player, leveraging its 9,400+ project network and deep developer relationships.
Source: BSE
