Bajaj Housing Finance Ltd (BHFL) is a fast-growing non-deposit-taking housing finance company and a wholly owned subsidiary of Bajaj Finance Ltd. It focuses on home loans, loans against property, lease rental discounting, and developer financing. The company’s assets under management (AUM) crossed ₹1.20 lakh crore in FY2026, growing about 24% year-on-year, with strong profitability and excellent asset quality. Backed by its parent’s brand and capital support, BHFL has emerged as a major player in India’s mortgage lending space. As urbanisation and affordable housing demand rise, the company is well-positioned for long-term growth. This article explores Bajaj Housing Finance’s business model, recent performance, growth drivers, and challenges, followed by scenario-based share price targets for 2026, 2027, 2028, 2030, 2040, and 2050.
Table of Contents
Bajaj Housing Finance Ltd, established in 2015, operates as a housing finance company registered with the National Housing Bank. It began lending operations in FY2018, offering mortgage and property-based credit products. The company’s product portfolio includes home loans, loans against property, lease rental discounting (LRD), and developer financing.
As a subsidiary of Bajaj Finance Ltd, BHFL benefits from the strong brand reputation, financial strength, and distribution network of its parent company. For investors, it’s an appealing business because it combines steady housing demand with strong execution and conservative risk management. This article reviews the company’s fundamentals, growth potential, and risk profile—along with long-term scenario-based share price targets extending to 2050.
Company Overview
Business Description:
Bajaj Housing Finance provides a comprehensive range of property financing solutions—serving salaried individuals, self-employed borrowers, and developers. Its offerings include home purchase loans, home improvement loans, loans against property, and construction finance.
Key Highlights:
- Parent Company: Bajaj Finance Ltd (100% ownership)
- Regulatory Category: Upper Layer NBFC under RBI’s scale-based regulation
- Presence: 200+ branches across 20 states and multiple Union Territories
- Headquarters: Pune, Maharashtra
Snapshot of Key Financial Metrics:
| Metric | FY2026 Estimate | Remarks |
|---|---|---|
| AUM | ~₹1.20 lakh crore | 24% YoY growth |
| Net Interest Income | ₹887 crore (Q1 FY26) | 33% YoY increase |
| Profit After Tax | ₹583 crore (Q1 FY26) | 21% YoY rise |
| Gross NPA | 0.30% | Strong asset quality |
| Net NPA | 0.13% | Excellent credit control |
| Credit Rating | AAA/Stable | Reflects high creditworthiness |
These numbers reflect robust business growth and disciplined risk management.
Historical Financial Performance
| Financial Year | AUM (₹ Crore) | YoY Growth | PAT (₹ Crore) | GNPA | NNPA |
|---|---|---|---|---|---|
| FY2023 | 83,000 | 31% | 1,600 | 0.36% | 0.18% |
| FY2024 | 97,000 | 26% | 1,950 | 0.32% | 0.14% |
| FY2025 | 1,15,000 | 22% | 2,300 | 0.30% | 0.13% |
| FY2026* | 1,20,000 | 24% | 2,450 | 0.30% | 0.13% |
(*FY2026 data is indicative based on current trends.)
Insights:
- The company has grown AUM at a healthy pace of around 25–30% annually.
- Profitability is rising steadily due to better cost control and scale benefits.
- Asset quality is one of the best in the housing finance industry.
- Return ratios are improving but still moderate due to high competition and initial expansion costs.
Key Growth Drivers
- 1. Rising Housing Demand:
India’s housing sector continues to expand, driven by urbanisation, affordability programs, and a younger workforce seeking home ownership. - 2. Strong Parent Support:
BHFL leverages Bajaj Finance’s brand, technology, and funding access, giving it a significant competitive edge. - 3. Diversified Product Mix:
A balanced loan portfolio—home loans, LAP, and developer financing—helps reduce concentration risk. - 4. Digital Transformation:
Advanced digital platforms improve customer experience and reduce loan processing time. - 5. Expanding Market Reach:
Penetration in Tier 2 and Tier 3 cities opens a large untapped customer base.
Risks & Challenges
- Margin Pressure:
Intense competition among housing finance companies may limit net interest margins. - Interest Rate Risk:
Rising borrowing costs can affect spreads and profitability. - Real Estate Slowdown:
Economic or regulatory disruptions in the housing market could affect disbursements. - Funding Dependence:
As a non-deposit-taking NBFC, BHFL relies heavily on borrowings for growth. - Execution Risk:
Rapid scaling must be matched with prudent risk control and credit underwriting.
Scenario-Based Share Price Forecasts
| Year | Bear Case | Base Case | Bull Case | Key Assumptions |
|---|---|---|---|---|
| 2026 | ₹120 | ₹180 | ₹260 | Steady growth, margin stability |
| 2027 | ₹150 | ₹240 | ₹350 | Strong AUM growth, cost efficiency |
| 2028 | ₹200 | ₹330 | ₹480 | Diversified loan book, better margins |
| 2030 | ₹300 | ₹500 | ₹750 | Leadership in housing finance, high returns |
| 2040 | ₹700 | ₹1,200 | ₹1,800 | Pan-India dominance, improved profitability |
| 2050 | ₹1,200 | ₹2,500 | ₹4,000 | Diversified financial giant, global standards |
These are illustrative estimates for educational purposes, not investment recommendations.
Year-Wise Share Price Narratives
Bajaj Housing Finance Share Price Target 2026
By 2026, moderate growth in home loans and improved cost control could push the share toward ₹180 in the base case. A strong bull scenario of ₹260 assumes better margins and faster loan growth.
Bajaj Housing Finance Share Price Target 2027
In 2027, BHFL may benefit from affordable housing demand and steady loan expansion. The base case target is ₹240, while a bull case of ₹350 assumes continued AUM growth above 25% and stable credit quality.
Bajaj Housing Finance Share Price Target 2028
By 2028, if the company enhances digital lending, expands to new regions, and sustains low NPAs, the stock could move toward ₹330 in the base case or ₹480 in a bullish scenario.
Bajaj Housing Finance Share Price Target 2030
By 2030, with strong balance-sheet growth, improved ROE, and wider distribution, BHFL’s base case target could reach ₹500, with a bull case near ₹750, assuming leadership in housing credit.
Bajaj Housing Finance Share Price Target 2040
In 2040, BHFL could emerge as one of India’s top housing finance institutions. The base scenario of ₹1,200 assumes consistent compounding, while the bull case of ₹1,800 reflects major market leadership.
Bajaj Housing Finance Share Price Target 2050
Looking to 2050, if Bajaj Housing Finance evolves into a diversified mortgage and property finance powerhouse, its stock could potentially reach ₹2,500 (base case) or ₹4,000 (bull case), driven by decades of sustainable expansion.
Future Outlook & Strategy
- Scale AUM across affordable housing and self-employed borrower segments.
- Strengthen digital processes to reduce turnaround times.
- Maintain excellent asset quality and liquidity buffers.
- Expand into semi-urban and rural housing markets.
- Focus on improving ROE and maintaining AAA credit strength.
FAQs
1. What does Bajaj Housing Finance Ltd do?
It provides home loans, loans against property, lease rental discounting, and developer finance solutions.
2. Is it a good long-term investment?
Yes, it has strong growth potential backed by Bajaj Finance, but investors should monitor competition, margins, and asset quality.
3. What is the share price target for 2030?
The base case target for 2030 is around ₹500, with a bullish projection of ₹750.
4. What are the major risks?
High competition, interest rate fluctuations, and dependence on borrowed funds are the key challenges.
5. How strong is the company’s asset quality?
Extremely strong, with GNPA at just 0.30% and NNPA at 0.13%.
6. What drives future growth?
Rising housing demand, digital innovation, and affordable housing initiatives.
Conclusion
Bajaj Housing Finance Ltd stands out as a high-growth, well-managed housing finance player supported by a strong parent company. Its performance shows consistent AUM expansion, low NPAs, and strong profitability. While competition and funding costs remain challenges, the long-term housing finance opportunity in India offers significant upside.
Based on scenario-based projections, BHFL’s share could range from ₹180 in 2026 (base case) to ₹2,500–₹4,000 by 2050, depending on execution and market conditions.
