PNB Housing Finance Reports Strong Q1 FY26 Results with 23% PAT Growth, Healthy Loan Book Expansion
The announcement details the company's financial performance for Q1 FY26, including key metrics like PAT, loan book growth, asset quality, and margins. This information is crucial for investors to assess the company's health and future prospects. Management's guidance on future strategy and financial targets provides significant forward-looking insights, making the impact high.
The company reported strong growth in PAT (23% YoY), significant retail loan book expansion (18.1% YoY), improved asset quality (NPA reduced), and stable NIM. Management provided positive guidance for future NIM and ROA, along with aggressive growth plans for the high-yielding Affordable and Emerging segments. The positive commentary on the PMAY 2.0 scheme also contributes to a positive outlook.
PNB Housing Finance Limited announced its Q1 FY26 results, highlighting strong financial and operational performance: * The company reported a Profit After Tax (PAT) of ₹534 crore for Q1 FY26, a significant increase of 23% year-on-year (YoY). * Return on Assets (ROA) improved to 2.57% on an annualized basis, with Return on Equity (ROE) at 12.39%. * The Retail loan book grew by 18.1% YoY to ₹76,923 crore as of 30 June 2025. The total loan book stood at ₹77,732 crore. * Disbursements in the overall Retail segment grew by 14% YoY to ₹4,980 crore. Affordable and Emerging Market segments saw robust growth in disbursements, up 30% YoY and 32% YoY respectively, reflecting the company's focus on high-yielding business. * The Gross Non-Performing Asset (NPA) improved to 1.06% as of 30 June 2025, down from 1.08% on 31 March 2025 and 1.35% on 30 June 2024. The company recovered ₹57 crore from the written-off pool during the quarter. * Net Interest Margin (NIM) remained stable at 3.74% for the quarter. The company expects NIM to be around 3.7% for FY26. * Cost of borrowing declined by 8 basis points (bps) to 7.76% in Q1 FY26, leading to a 10 bps reduction in PNBHFR effective from 1 July 2025. * Operating expenses grew by 12% YoY to ₹216 crore, which is lower than the Retail loan book growth, indicating positive operating leverage. * The Affordable business (Roshni) loan book grew 143% YoY to ₹5,744 crore, with disbursements of ₹765 crore (up 30% YoY) at incremental yields of 12.1%. Affordable segment NPA is impressively low at 0.3%, with bounce rates at 11%. The company plans to close FY26 with the Affordable loan book approaching ₹9,500 crore. * The company's branch network is 356 branches, with 200 in the Affordable segment. PNB Housing plans to add 40 to 50 branches annually, capitalizing on opportunities in Tier-2 and Tier-3 cities. * Management indicated that the PMAY 2.0 scheme is attractive and will propel growth in the Affordable segment, providing benefits like customer retention, delinquency control, and access to affordable funding. * Mr. Girish Kousgi, MD & CEO, stated that the company aims to maintain an ROA of 2.5% beyond FY27 and plans to take NIM to about 4% to 4.1% by increasing origination from Affordable and Emerging segments and introducing a new Loan Against Property vertical. He expects the peak NPA for the Affordable book to be around 1% to 1.1%.
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PNB Housing Finance Limited filed this with the NSE as a statutory disclosure, categorised under results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by PNB Housing Finance Limited. Read the original for the full detail.