PNB Housing Finance (PNBHOUSING) Q1 25/26 earnings summary

Executive summary

• Retail loan book grew 18.1% year-over-year to INR 76,923 crores as of June 30, 2025, with Affordable and Emerging Markets segments now comprising 37% of retail loans.

• Disbursements in Affordable and Emerging Markets grew 30% and 32% year-over-year, respectively, contributing 50% of total retail disbursements.

• Branch network expanded to 356, including 200 for Affordable and 80 for Emerging Markets segments.

• Asset quality improved, with gross NPA at 1.06% as of June 30, 2025, and net NPA at 0.69%.

• Net profit after tax for Q1 FY26 was INR 534 crore, up 23% year-over-year; ROA at 2.57%.

Financial highlights

• Net interest income for Q1 FY26 was INR 760 crore, up 17% year-over-year; NIM stable at 3.74%.

• Pre-provision operating profit up 17% year-over-year to INR 632 crores.

• PAT for Q1 FY26 at INR 534 crores, up 23% year-over-year.

• EPS (basic) for Q1 FY26 stood at 20.5, compared to 16.7 in Q1 FY25.

• Capital adequacy ratio at 29.7%, with Tier 1 at 28.96%.

Outlook and guidance

• NIM guidance for FY26 raised to 3.7%.

• Book growth targeted at 18% for FY26, with prime segment growth expected in single digits.

• ROE expected to reach 14-15% in three years as capital deployment improves.

• Plan to add 40-50 branches in FY26, focusing on tier 2 and 3 cities.

• Emphasis on maintaining best-in-class asset quality and leveraging digital transformation for efficiency.