Profit rose 14.06% YoY as tax rate jumped; stock fell 4.50% in five sessions
Standalone operating margin recovered for a third straight quarter, while management outlined expansion beyond the top six markets and into wider LAP segments.
Filed 04 May 2026, 18:55 IST · after market close · Bajaj Housing Finance Ltd (BAJAJHFL)
Key takeaways
- Standalone net profit rose 14.06% YoY to Rs 669.19 cr, but the 4.23-percentage-point rise in the tax rate limited the benefit of 15.74% revenue growth.
- Operating margin was broadly stable YoY as expenses grew 15.95%, faster than revenue, narrowing the margin by 0.02 percentage points.
- The stock fell 4.50% over five sessions after the results, versus a 1.53% median absolute move across its six previous result reactions.
Price around the results
Revenue growth slowed sequentially but stayed firm YoY
Standalone revenue grew 15.74% YoY, while the sequential increase was only 0.58%, indicating a moderation in quarterly momentum. Operating profit rose 15.71% YoY, broadly tracking revenue growth. Pre-tax profit grew faster at 20.30% YoY despite interest expense rising 13.61%.
Costs contained sequentially, but tax diluted profit growth
Quarter-on-quarter, revenue grew 0.58% while expenses declined 0.19%, allowing operating margin to widen by 0.07 percentage points. Year-on-year, expenses grew 15.95%, faster than revenue, which reduced operating margin by 0.02 percentage points. The tax rate rose from 18.49% to 22.72% YoY, while other income contributed only 0.01% of pre-tax profit, so reported earnings were not dependent on non-operating income.
Margin recovery continued for a third quarter
Operating margin increased from 90.65% in Q1FY26 to 90.83% in Q2FY26, 90.89% in Q3FY26 and 90.96% in Q4FY26. Bajaj Housing Finance's margin was 31.55 percentage points above the 59.41% median for 52 Financial Services peers that had reported the quarter.
Management outlined wider geographic and LAP expansion
Management said the home-loans industry is expected to grow at a 14-16% CAGR through FY28. The company said it plans to expand beyond the top six markets and extend LAP offerings to near-prime and affordable customer segments. Management also reported that the company's market share had risen from 1.0% in FY20 to 1.6% in FY25.
Post-results decline was weaker than the stock's usual reaction
The stock fell 1.87% on the initial reaction day and 4.50% after five sessions; its five-session performance relative to the market was -5.49%. This was a more negative reaction than the stock's typical post-results move, with four rises and two declines across six previous reactions and a 1.53% median absolute move.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,903 cr | ₹2,886 cr | +0.58% | +15.74% |
| Other income | ₹0 cr | ₹-13 cr | — | +50.00% |
| Expenses | ₹262 cr | ₹263 cr | -0.19% | +15.95% |
| Operating profit | ₹2,640 cr | ₹2,623 cr | +0.65% | +15.71% |
| Operating margin (%) | 90.96% | 90.89% | — | — |
| Interest | ₹1,762 cr | ₹1,734 cr | +1.64% | +13.61% |
| Depreciation | ₹13 cr | ₹12 cr | +4.16% | +12.89% |
| Profit before tax | ₹866 cr | ₹865 cr | +0.15% | +20.30% |
| Tax | ₹197 cr | ₹200 cr | -1.48% | +47.81% |
| Net profit | ₹669 cr | ₹665 cr | +0.65% | +14.06% |
| EPS (₹) | ₹0.80 | ₹0.80 | +0.00% | +14.29% |
Operating margin of 90.96% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.87% | -1.46% |
| Next session | -3.36% | — |
| 5 sessions | -4.50% | -5.49% |
| 15 sessions | -9.25% | — |
| 30 sessions | -9.04% | — |
Volume on the results session was 1.57× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The home loans industry is expected to grow at a 14-16% CAGR through FY28.
Expansion
- The company plans to expand its presence beyond the top six markets.
- The company plans to expand LAP to near-prime and affordable customer segments.
Competition
- BHFL's market share increased from 1.0% in FY20 to 1.6% in FY25.
What to watch
- Whether operating margin remains at or above 90.96% after its three-quarter recovery.
- Whether expenses continue to trail sequential revenue growth, following -0.19% expense growth against +0.58% revenue growth.
- Whether the tax rate moves from 22.72% as the company pursues the reported expansion beyond the top six markets and into near-prime and affordable LAP.