Bajaj Housing Finance Q1 preview: PAT may jump up to 21% YoY, NII to surge up to 28%
ADVERTISEMENT The Bajaj Finance-promoted company is also likely to report 24%–28% year-on-year growth in net interest income (NII), placing the topline between Rs 827 crore and Rs 851 crore.
Kotak estimates the company's PAT at Rs 574 crore for the quarter, a 19% YoY increase and a 2.1% sequential rise. NII is projected at Rs 827 crore, up 24.4% YoY and 0.5% QoQ.
Pre-provision operating profit (PPoP) may stand at Rs 767 crore, rising 19.8% YoY and 2.3% QoQ.Net interest margin (NIM) is expected at 3.2%, marginally down by 1 basis point YoY and 15 basis points QoQ.
ADVERTISEMENT Provisions are likely at Rs 29 crore, showing a sharp 192.7% YoY rise, but declining 0.7% sequentially.In its preview note, Kotak said, 'Bajaj Housing reported 5% QoQ AUM growth in Q1FY26, lower than the 5.6%–6.2% growth seen in the previous four quarters. NIM will likely compress 14 bps QoQ to 3.2% as lending rate cuts are only partially offset by benefits on the liabilities side. Around 30% of borrowings are linked to EBLR.'
ADVERTISEMENT Operating expense growth is expected to remain moderate at 9% YoY, resulting in a 9 bps YoY decline in the cost-to-AAUM ratio to 0.6% in Q1FY26E. 'We estimate a credit cost of 10 bps (vs. 11 bps in Q4FY25 and 13 bps in Q3FY25),' Kotak added.PhillipCapital expects PAT to grow 21.1% YoY to Rs 584 crore, while declining marginally by 0.4% QoQ. Revenue for the quarter is estimated at Rs 851 crore, up 28% YoY and 3.4% QoQ.
ADVERTISEMENT EBITDA is seen at Rs 810 crore, up 26.6% YoY and 8.2% QoQ, driven by operating leverage and improved efficiencies.NIM for the period is pegged at 2.89%, an improvement of 7 basis points YoY, but down 6 basis points QoQ.
ADVERTISEMENT 'We expect AUM to grow over 25% YoY, with credit costs remaining benign,' PhillipCapital said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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