PNB Housing Finance (PNBHOUSING) Q2 25/26 earnings summary

Executive summary

• Achieved strong Q2 and H1 FY26 results with robust loan book growth, improved disbursements, and asset quality improvements, despite leadership transition challenges.

• Retail loan book grew 17% year-on-year to INR 79,439 crore, with Affordable and Emerging Markets comprising 38% of the retail loan book.

• Affordable and Emerging Markets segments led growth, with affordable housing loan book up 121% year-on-year to INR 6,531 crore and disbursements up 31%.

• Gross NPA improved to 1.04% as of Q2 FY26, with strong recoveries and credit cost reversal.

• Audited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved and published, with statutory auditors issuing unmodified opinions.

Financial highlights

• Disbursements reached INR 5,995 crore in Q2, up 20% sequentially and 12% year-on-year; retail disbursements grew 12% year-over-year.

• Net interest income grew 14% year-on-year to INR 765 crore; interest income for Q2 FY26 was ₹2,017 crore, up 13% year-over-year.

• Net profit after tax rose 24% year-on-year to INR 582 crore in Q2 FY26; consolidated net profit after tax for Q2 FY26 was ₹581.59 crore.

• Return on assets improved to 2.73% in Q2 FY26; return on equity at 13.14%.

• NIM was 3.67% for Q2, slightly down from 3.74% in Q1.

Outlook and guidance

• Loan book growth guidance maintained at 17-18% for FY26.

• NIM expected to remain range-bound at 3.6%-3.7% for the rest of the year.

• Strategic focus remains on growing retail loan assets, especially in high-yielding Affordable and Emerging Markets, with continued branch expansion in Tier 2 and 3 cities.

• Emphasis on maintaining best-in-class asset quality and improving profitability metrics.

• No deviations or variations in the use of funds raised through equity or non-convertible debentures; all proceeds were used as disclosed.