Bajaj Housing Finance Share Price Falls After Q1 Results — Should You Buy, Sell Or Hold?

Shares of Bajaj Housing Finance Ltd. are trading with cuts of up to 1% on intraday trade after the housing finance company reported its first quarter earnings for the fiscal year ending March 2025 on Wednesday.

Bajaj Housing Finance shares trade at Rs. 121.18, which amounts to a fall of almost 1%. Since its listing in September 2024, the stock has fallen over 25%.

The stock reaction comes on the back of Bajaj Housing Finance's June quarter earnings, where the company reported a 21% rise in standalone net profit in the first quarter of fiscal 2026.

Bajaj Housing Finance's net profit stood at Rs 583.3 crore, according to an exchange filing on Wednesday, meeting Bloomberg analysts' estimates of Rs 568 crore.

Numbers were largely in line for the housing finance company, while asset quality remained stable as well.

The management, however, has guided FY26 margins to moderate by 15-20 basis points while admitting that high competition and pricing pressure have led to lower growth.

Bajaj Housing Finance believes the second half of the calendar year could see better growth and lower pricing disruption.

• Total income up 18.6% at Rs 2,618.45 crore versus Rs 2,208.73 crore (Bloomberg estimate: Rs 1,018 crore).

• Net profit up 20.9% at Rs 583.3 crore versus Rs 482.61 crore (Estimate: Rs 568 crore).

• NII up 33% at Rs 887 versus Rs 665 crore.

Goldman Sachs maintained a 'Sell' call on Bajaj Housing Finance in the wake of its June quarter earnings, with an unchanged target price of Rs. 89.

The brokerage labelled Bajaj Housing Finance's Q1 numbers an 'operational miss,' noting that guidance on growth was lowered due to competitive market intensity.

Goldman Sachs believes the stock price of Bajaj Housing Finance reflects investor expectations of a prolonged and strong growth cycle, which could be at risk if strong competition persists within the housing finance space.