PNB Housing Finance (PNBHOUSING) Q4 24/25 earnings summary

Executive summary

• Retail loan book grew 18.2% year-over-year, reaching INR 76,765 crore as of March 2025, with affordable and emerging segments comprising 26% of retail loan assets and affordable segment up 183% year-over-year to INR 5,070 crore.

• Disbursements increased 26% year-over-year, with affordable/emerging segments contributing 40% in Q4 and total disbursements at INR 21,972 crore.

• Asset quality improved: Gross NPA at 1.08% and Net NPA at 0.69% as of March 2025.

• Profit after tax for FY25 rose 28.4% year-over-year to INR 1,936 crore; ROA improved to 2.55%.

• Board recommended a final dividend of INR 5 per equity share for FY25, subject to approval.

Financial highlights

• Net interest margin improved to 3.75% in Q4 FY25; annual NIM at 3.70%.

• Gross margin in Q4 was 4.27%, up from 4.1% in Q3, aided by higher disbursements and one-off tax refund interest.

• Net interest income up 9.3% year-over-year to INR 2,750 crore; non-fund income up 39.5%.

• Operating profit rose 9.5% year-over-year to INR 2,327 crore; pre-provision operating profit grew 14% to INR 646 crore.

• Cost of borrowing declined by 15 bps year-over-year to 7.86%.

Outlook and guidance

• FY26 guidance: retail loan growth of 18%, affordable loan book to reach INR 9,500 crore, corporate disbursement INR 1,500–2,000 crore.

• NIM expected to remain stable at 3.6–3.65%; ROA guided at 2.5–2.6%.

• Credit costs expected to remain negligible in FY26 due to continued recoveries.

• Focus on retail loan growth, especially in affordable and emerging markets, with continued branch expansion and digital transformation.

• By FY27, affordable and emerging segments targeted to reach 40% of the mix; retail loan book to hit INR 100,000 crore.