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 forming 37% of the portfolio.

• Disbursements in affordable and emerging segments grew 30% and 32% year-over-year, respectively, with these segments contributing 50% of retail disbursements.

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

• Focus on high-yielding segments and digital transformation to drive operational efficiency.

• Board approved unaudited financial results for Q1 FY26, with no deviation in use of funds raised.

Financial highlights

• Net profit after tax for Q1 FY26 was INR 534 crores (consolidated: ₹533.50 crore), up 23% year-over-year; EPS (Basic) at 20.5.

• Net interest income rose 17% year-over-year to INR 760 crores; NIM stable at 3.74% in Q1 FY26.

• Gross NPA improved to 1.06% as of June 30, 2025; Net NPA at 0.69%.

• ROA at 2.57% (annualized), up 20 bps year-over-year; ROE at 12.4%.

• 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.

• Continued focus on high-yielding Affordable and Emerging Markets and digital initiatives.