Lower interest spreads lead to lower return ratios. Sure, Bajaj Housing has a lower spread, and the business model has less risk by virtue of being a mortgage lender. However, its return on assets (RoA) at 2.5% for Q2FY25 is much lower than parent Bajaj Finance’s RoA of 5% plus seen in Q1FY25.

Bajaj Housing Finance's net profit for Q2 FY25 rose by 21% to Rs 546 crore, with revenue from operations up by 26% to Rs 2,410 crore. Assets under management grew by 26%, while loan losses and provisions declined significantly.

The housing finance company maintained its AUM momentum with 26% growth this quarter. Shares of Bajaj Housing Finance ended at ₹136.55, down by ₹2.75, or 1.97%, on the BSE.

Bajaj Housing Finance reports robust growth in NII, AUM, revenue, and profit, showcasing strong financial performance and market leadership.

Bajaj Housing Finance shares have seen a consistent decline since their listing. Over the past week, the stock dropped 9.48%, extending its losses to 14.70% over the last month. Since its debut, the stock has fallen by 17.

Bajaj Housing Finance Ltd, the recently listed home loans provider of Bajaj Group, is set to announce its earnings for the second quarter of FY25 today, October 21.

Bajaj Finance is projected to report a net interest income of Rs 8,810-9,187 crore and profit after tax of Rs 4,030-6,083 crore for Q2FY25, reflecting significant year-on-year growth.

Investors will be watching the performance of players like Bajaj Housing Finance, Gravita India, Cyient DLM, Union Bank of India, City Union Bank, Mahindra Logistics, among others.