Bajaj Housing Finance Q2 Results October 16, 2026: Profit Up 18% to ₹757 Crore as AUM Grows 25%

Bajaj Housing Finance Q2 results October 16 brought an 18% profit jump on the back of solid loan growth. The Bajaj Finance subsidiary reported profit after tax of ₹757 crore for the quarter ended September 30, 2026 (Q2 FY27), up from ₹643 crore a year earlier, while assets under management (AUM) grew 25%. The board met from 2 PM on Friday and the analyst call was lined up for 5:30 PM IST, according to the investor presentation filing, so Monday, October 19 is the first full trading session after the print. For the broader tape, see our stock market today India hub.

Bajaj Housing Finance Q2 results October 16: key figures

All of the numbers below come from the company’s board outcome and press release filed with BSE (₹ crore, year-on-year versus Q2 FY26):

• Profit after tax: ₹757 crore, up 18% from ₹643 crore. Profit before tax rose 18% to ₹980 crore from ₹833 crore.
• Net interest income (NII): ₹1,055 crore, up 10% from ₹956 crore.
• Net total income: ₹1,254 crore, up 15% from ₹1,090 crore.
• Disbursements: ₹19,935 crore, up 25% from ₹15,914 crore.
• AUM: ₹1,58,205 crore as of September 30, 2026, up 25% from ₹1,26,749 crore.
• Asset quality: gross NPA of 0.29% (0.26% a year earlier) and net NPA of 0.12% (unchanged), with a provision coverage ratio on stage 3 assets of about 60%.
• Returns and capital: annualised ROA of 2.2% (2.3% a year ago), annualised ROE of 12.7% (12.2%) and a capital adequacy ratio, including Tier II capital, of 21.24%.

Why profit outran interest income

AUM grew 25% but NII only 10%, and funding costs explain the gap. Interest income rose 17% to ₹3,052 crore, yet interest expenses climbed 20% to ₹1,997 crore and that held NII back. Fee and commission income plugged some of the hole, jumping 81% to ₹125 crore from ₹69 crore. By our arithmetic, fees were about 10% of net total income this quarter, up from about 6% a year earlier.

Costs and credit losses helped too. Operating expenses rose 12% to ₹239 crore — slower than income — so the cost-to-income ratio (operating expenses to net total income) eased to 19.1% from 19.7%. Loan losses and provisions fell to ₹35 crore from ₹43 crore. Put together, that is a clean case of operating leverage in results: pre-provision operating profit grew 16% to ₹1,015 crore, ahead of the 15% rise in net total income.

Sequentially, the half-year table lets us back out the June quarter. Subtract Q2 from H1 FY27 and profit after tax works out to ₹715 crore in Q1, so Q2 profit was roughly 6% higher quarter on quarter by our calculation.

Which books drove the loan growth

Home loans are still the core at ₹85,224 crore, up 22% and roughly 54% of AUM by our arithmetic. Lease rental discounting grew the fastest, up 39% to ₹37,988 crore, or about 24% of AUM. Loans against property rose 26% to ₹16,382 crore, while developer finance grew 13% to ₹16,904 crore. Management flagged that AUM had crossed the ₹1.5 lakh crore mark.

Share price reaction and what we make of it

The stock closed at ₹83.36 on the NSE on Friday, down ₹0.42 or 0.50% from ₹83.78, according to the NSE bhavcopy for October 16. The Economic Times reported that the shares are down 13.22% in 2026 so far, with a 52-week range of ₹72.65 to ₹112.40 and a market value of about ₹69,458 crore at Friday’s close.

For us, the quarter mixed steady growth, very low bad loans and better returns on equity with one clear pressure point: borrowing costs rose faster than lending income, so NII lagged well behind loan growth. Watch whether interest expenses cool in coming quarters and whether fee income keeps this pace. For a step-by-step framework, read how to analyse quarterly results of a company, and see our stock market closing report for October 16 for how Friday’s session wrapped up.

This article is a news summary for information only and is not investment advice. Please consult a SEBI-registered adviser before making investment decisions.