PNB Housing Finance Q2FY26 Profit Rises 23.8% YoY to ₹582 Crore; Retail Loan Asset Grows 17%

New Delhi, October 28, 2025: For the quarter ending September 30, 2025 (Q2FY26), PNB Housing Finance Ltd (NSE: PNBHOUSING, BSE: 540173) reported a consolidated net profit of ₹582 crore, a 23.8% year-on-year increase from a profit of ₹470 crore in Q2FY25. Profit increased 9% sequentially, compared to ₹533 crore in the preceding quarter, aided by higher disbursements and steady retail loan growth.

Key Financial Highlights

Net interest income for the quarter was at ₹765 crore, a 14.4% increase compared to ₹669 crore for the same period last year and marginally up from ₹760 crore for Q1FY26. Pre-provision operating profit was at ₹646 crore, a 15.6% increase year-on-year compared to pre-provision operating profit of ₹559 crore in Q2FY25.

Gross non-performing assets improved to 1.04%, down from Q2FY25 gross non-performing assets of 1.24% and Q1FY26 gross non-performing assets of 1.06%. The capital adequacy ratio stood at 29.80%, up from 29.13% a year earlier.

Return on assets stood at 2.73% (annualized) for the quarter. Return on equity for H1FY26 was 12.77%. Net Interest Margin remained steady at 3.67% with spreads improving to 2.26% from 2.21% in the prior year.

Business Performance

Retail loan assets rose 17% year-on-year to ₹79,439 crore, forming 99.6% of the total loan book. The Affordable and Emerging Markets segment posted strong 34% YoY growth, accounting for 38% of retail assets.

Total disbursements for the quarter stood at ₹5,995 crore, up 12.2% year-on-year and 20.4% sequentially. Of this, disbursements in the Affordable segment reached ₹823 crore, up 30.7% YoY and 7.6% QoQ. The Emerging Markets segment reported ₹2,122 crore, growing 23% YoY and 22.2% QoQ. Together, these segments contributed 50% of total retail disbursements.

These two segments accounted for 50% of total retail disbursements. The company recovered ₹59 crore from previously written-off accounts during the quarter. Total Assets Under Management (AUM) rose 12.3% YoY to ₹83,879 crore, while total loan assets increased to ₹79,771 crore as of September 30, 2025.

Asset Quality and Capital Position

Gross NPA declined to 1.04%, while Net NPA stood at 0.69%, indicating steady improvement in portfolio quality. The Capital Risk Adequacy Ratio (CRAR) was healthy at 29.80%, with Tier-I capital at 29.21%.

Management Commentary

Executive Director Jatul Anand stated that despite leadership transitions, the company delivered strong performance across all parameters, reflecting its robust culture and disciplined execution. He highlighted that focus on the Affordable and Emerging Markets segment helped sustain competitive spreads and improve asset quality.

“Our retail asset base grew by 17% YoY, reaching ₹79,439 crore. We disbursed nearly ₹6,000 crore in Q2, a 20% sequential increase. Gross NPA improved to 1.04%, demonstrating portfolio resilience,” Anand said, adding that the company aims to accelerate retail growth and maintain industry-leading asset quality in FY26.

Share Price Update 

Following the Q2FY26 results, the share price of PNB Housing Finance Ltd was trading at ₹921.55, a 0.65% dip as of 10:50 AM. Shares of PNB Housing Finance Ltd opened at ₹927.60 and traded between a high of ₹929.80 and a low of ₹885.90 during the session. The company’s market capitalization stands at ₹23,930 crore. PNB Housing Finance Ltd shares have gained 1.48% in the year-to-date, dipped 6.65% in the last six months, and gained 5.43% in the previous 5 days.

PNB Housing Finance Ltd, promoted by Punjab National Bank, is a deposit-taking housing finance company listed on both BSE and NSE. It primarily serves the organized mass housing segment, offering loans for home purchase, construction, and renovation, along with loans against property and non-residential premises.

REF: https://nsearchives.nseindia.com/corporate/PNBHOUSING_27102025185254_PressRelease_1_Final_sd.pdf

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