Bajaj Housing Finance shares jump over 4% as profit zooms 54% YoY in Q4FY25

So far this year, the stock of Bajaj Finance's housing finance subsidiary rose 3.6 percent

Shares of Bajaj Housing Finance jumped 4.5 percent to Rs 137 per share on April 23 after the company reported a strong performance for the January to March quarter (Q4FY25).

So far this year, the stock of Bajaj Finance's housing finance subsidiary rose 3.6 percent, as compared to benchmark Nifty 50's 2 percent surge.

The company’s net profit rose by 54 percent year-on-year to Rs 587 crore in Q4FY25, compared to Rs 381 crore in the same period last year. Net interest income also saw a year-on-year increase of 31 percent, rising to Rs 823 crore in Q4FY25 from Rs 629 crore in Q4FY24.

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The company's asset quality remained steady, with gross and net Non-Performing Assets (NPAs) at 0.29 percent and 0.11 percent, respectively, at the end of the March quarter. In the previous quarter, gross and net NPAs were at 0.27 percent and 0.1 percent, respectively. The provisioning coverage ratio on stage 3 assets stood at 60 percent.

HSBC maintained a "Reduce" rating on Bajaj Housing Finance with a target price of Rs 100 per share. While Q4FY24 saw healthy growth in Assets Under Management (AUM), the firm highlighted that a high cost ratio and yield compression—caused by rising competition—acted as key drags.

HSBC expects earnings per share (EPS) growth to slow down due to pressure on AUM growth, compression in net interest margins (NIM), and the normalisation of credit costs. As a result, it has cut its EPS estimates for FY26 and FY27 by 2.8 to 3.1 percent.

Bajaj Housing Finance had already shared its provisional business updates for the March quarter earlier this month.

Gross disbursements for the quarter were reported at Rs 14,250 crore, which is higher than the Rs 11,393 crore disbursed during the same quarter last year.

The company's Assets Under Management (AUM) remained above the Rs 1 lakh crore mark during the quarter, growing by 26 percent from the year-ago period to Rs 1.14 lakh crore.

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