Bajaj Housing Finance lifts margin as standalone profit rises 22.63%
Costs fell despite higher interest expense, helping operating margin widen 1.74 percentage points YoY and 1.43 points sequentially.
Filed 29 Jul 2026, 15:57 IST · after market close · Bajaj Housing Finance Ltd (BAJAJHFL)
Key takeaways
- Standalone net profit rose +22.63% YoY as revenue grew +17.10% while expenses fell -4.70%.
- Operating margin widened 1.74 percentage points YoY to 92.39%, despite interest cost rising +17.59%.
- Operating margin was 29.38 percentage points above the 63.01% median of 31 reported Financial Services peers.
Price around the results
Profit growth outpaced interest-cost growth
Bajaj Housing Finance’s standalone net profit rose +22.63% YoY and +6.89% QoQ, supported by revenue growth of +17.10% YoY and +5.53% QoQ. Interest expense increased +17.59% YoY and +7.18% QoQ, but profit before tax still grew +22.70% YoY and +7.26% QoQ. Other income contributed 0.0% of pre-tax profit, so reported earnings were not supported by a material non-operating contribution.
Lower expenses drove the margin expansion
Expenses declined -4.70% YoY and -11.20% QoQ while revenue increased, allowing operating margin to widen 1.74 percentage points YoY and 1.43 percentage points sequentially. The tax rate was broadly stable, rising just 0.04 percentage points YoY and 0.26 percentage points QoQ, so the net-profit increase was not materially flattered by a lower tax rate. Depreciation rose +15.87% YoY, but remained a smaller cost item than interest.
Margin recovery extends into a fourth quarter
Operating margin has risen in each of the past four quarters, from 90.65% in Q1FY26 to 92.39% in Q1FY27, after dipping from 90.98% in Q4FY25 to 90.65%. The latest margin was 29.38 percentage points above the 63.01% median among 31 Financial Services peers that had reported. This places the company’s operating margin near the top of that peer set, at 30th from the bottom.
No immediate market reaction after the filing
The standalone results were filed after market close, so there is no immediate share-price reaction to assess. Across the past seven results, the stock rose after four and fell after three, with a median absolute move of 1.53%, indicating a mixed but generally limited historical reaction.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,063 cr | ₹2,903 cr | +5.53% | +17.10% |
| Other income | ₹0 cr | ₹0 cr | -66.67% | -98.91% |
| Expenses | ₹233 cr | ₹262 cr | -11.20% | -4.70% |
| Operating profit | ₹2,830 cr | ₹2,640 cr | +7.19% | +19.35% |
| Operating margin (%) | 92.39% | 90.96% | — | — |
| Interest | ₹1,888 cr | ₹1,762 cr | +7.18% | +17.59% |
| Depreciation | ₹13 cr | ₹13 cr | +2.64% | +15.87% |
| Profit before tax | ₹929 cr | ₹866 cr | +7.26% | +22.70% |
| Tax | ₹213 cr | ₹197 cr | +8.53% | +22.93% |
| Net profit | ₹715 cr | ₹669 cr | +6.89% | +22.63% |
| EPS (₹) | ₹0.86 | ₹0.80 | +7.50% | +22.86% |
Operating margin of 92.39% compares with a Financial Services sector median of 63.01% across 31 peers that have reported Q1FY27.
What to watch
- Whether operating margin stays above 92.39% after four consecutive quarter-on-quarter increases.
- Whether interest-cost growth moderates from +17.59% YoY.
- Whether expenses continue to decline from the -4.70% YoY rate reported this quarter.