Brick by Brick, Profit by Profit: PNB Housing Q1 Earnings Rise on Solid Loan Growth

PNB Housing Finance has delivered a robust start to the financial year, reporting stellar growth in key metrics for the June quarter (Q1 FY26). The housing finance heavyweight posted a consolidated net profit of ₹5.34 billion, marking a 23% year-on-year surge, propelled by strong demand for home loans and expanding market share in the affordable housing and emerging markets segments.

 

Key Highlights

Consolidated Revenue: 

₹20.76 billion from operations—a 14% YoY rise, reflecting continued expansion in its retail loan book and increased disbursement activity.

Net Profit After Tax (PAT): 

₹5.34 billion for the June quarter, up from ₹4.33 billion a year ago, on the back of robust loan growth and improved margins.

 

Loan Book Growth:

Asset Quality Improvement:

Gross non-performing assets (GNPA) declined to 1.06% from 1.35% a year earlier, indicating stronger asset quality and recoveries.

 

NIM and Spreads:

Net interest margin stood at 3.74% for the quarter, with spreads on loans improving to 2.23%, supported by a declining cost of borrowings.

 

Cut in Corporate Lending:

Corporate loan book reduced by 56% YoY as the company sharpened its focus on retail, affordable, and emerging market segments.

 

Retail Disbursements:

Retail disbursements grew 14% YoY, driven by a 30% uptick in affordable housing and 32% in emerging markets.

 

Strong Capital Ratios:

Capital risk adequacy ratio stands at a healthy 29.68%, ensuring headroom for future growth.

 

Outlook

Management highlighted their commitment to high-yielding segments, and strong fundamentals point to sustained momentum for the rest of the fiscal year. Shares ended the day higher, reflecting investor optimism on consistent performance.

 

Source: Reuters, CNBC-TV18, Economic Times