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

Executive summary

• Retail loan book grew 18.2% year-over-year, with total loan assets reaching INR 76,765 crore as of March 2025; disbursements rose 25% YoY to INR 21,972 crore, driven by affordable and emerging segments.

• Affordable and emerging market segments now comprise 26% of retail loan assets, up from 21% last year; these segments contributed 36% of retail disbursement.

• Asset quality improved, with gross NPA at 1.08% and net NPA at 0.69% as of March 31, 2025.

• Net profit after tax rose 28.4% year-over-year to INR 1,936 crore for FY25.

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

Financial highlights

• Net interest margin improved to 3.75% in Q4 FY25 from 3.7% in Q3; NIM for FY25 at 3.70%.

• Net interest income increased 9.3% YoY to INR 2,750 crore; gross income up 12.3% YoY to INR 3,140 crore.

• Pre-provision operating profit grew 14% YoY to INR 646 crore; operating profit for FY25 was INR 2,327 crore, up 9.5% YoY.

• Cost of borrowing declined by 15 bps YoY to 7.86%; average cost of borrowing at 7.84% for Q4 FY25.

• Book value per share increased to INR 649 from INR 577 YoY.

Outlook and guidance

• FY26 guidance: 18% retail loan growth, 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%.

• Continued branch expansion, digital transformation, and focus on operational efficiency.

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

• By FY27, affordable and emerging segments targeted to reach 40% of the mix.