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PNB Housing Finance Q1 FY27 Results: Net Profit Up 4%, Loan Book Grows 15%, Shares Rally 5%
On Wednesday, PNB Housing Finance Ltd. shares surged as much as 5% on the BSE, reaching an intraday high of ₹1,138. The rally followed the company’s June‑quarter earnings, which were released on Monday.
The company reported a 4.3% year‑on‑year rise in net profit to ₹557 crore, up from ₹534 crore in the same period last year. Profit before tax increased 4.4% to ₹718 crore, while total income grew about 9% to ₹2,265 crore. Operating expenses rose 11% to ₹1,547 crore.
Net interest margin (NIM) for the quarter fell 24 basis points to 3.5% from 3.74% a year earlier, reflecting tighter funding costs. Gross non‑performing assets (GNPA) improved by 11 basis points to 0.95% from 1.06% in FY26. The company recovered ₹67 crore from its written‑off pool during the quarter and clarified that a fraud reported in July 2026 involved a legacy account that had been fully written off in FY23.
Loan assets expanded 15% year‑on‑year to ₹89,670 crore, and the retail loan book grew 16% to ₹89,178 crore. Assets under management (AUM) stood at ₹93,021 crore at the end of June, a 13% increase. Disbursements grew 56% on a cheque handover basis; after the shift to cheque‑realisation‑based recognition effective Q1 FY27, reported disbursements grew 18% year‑on‑year.
The GNPA remained below 1% at 0.95%, slightly higher than the 0.93% recorded in Q4 FY26. The company’s capital risk adequacy ratio (CRAR) was 28.26% as of June 30, 2026, with Tier‑I capital at 27.87%. The net interest spread was 2.12% quarter‑on‑quarter, stable but 11 basis points lower year‑on‑year. Cost of borrowing edged up to 7.36% amid tighter liquidity conditions.
Return on assets (ROA) was 2.37% in Q1 FY27, down from 2.66% in FY26. The number of live loan accounts serviced by the company crossed 387,000 as of June 30, 2026. The average ticket size was ₹29 lakh for individual housing loans and ₹27 lakh for retail non‑housing loans.
In the Affordable and Emerging Markets segment, which contributed 46% of total retail disbursements and 41% of the retail loan book, disbursements grew 14% after adjusting for the accounting change. The segment’s asset quality indicators remained stable, with field collection efforts and technology‑enabled processes improving recovery efficiency.
Total sanctions in Q1 FY27 were ₹12,019 crore, a 52% increase over Q1 FY26. Individual housing loans accounted for 67% of the retail portfolio, and salaried customers comprised 59%.
Managing Director and CEO Ajai Shukla said the company had started FY27 on a steady note, with AUM up 13% and the retail loan book up 16% year‑on‑year. He highlighted that the Affordable and Emerging Markets segments continued to be key growth drivers, registering 27% growth and contributing 41% to the retail loan book. Asset quality remained strong, with GNPA at 0.95%, and recoveries from the written‑off pool supported profitability.
Shukla added that the company remains focused on strengthening its distribution network and digital capabilities. Ongoing digital transformation initiatives across sourcing, underwriting, servicing and collections are intended to enhance customer experience, improve operational efficiency and support scalable growth. He noted that the company’s strong capital position and prudent risk management practices position it well for sustainable growth and long‑term value creation.
The stock has gained 1.86% over the past month, 4.1% over the past year and 40.52% over the last three years.
The latest earnings report confirms that PNB Housing Finance has maintained solid asset quality while expanding its loan book and AUM. The company’s NIM compression and rising cost of borrowing reflect broader market liquidity conditions, but its recovery of written‑off amounts and disciplined risk management provide a buffer. Investors will watch the upcoming quarterly results for further guidance on margin trends, loan growth, and the impact of the company’s digital initiatives.
The company reported a 4.3% year‑on‑year rise in net profit to ₹557 crore, up from ₹534 crore in the same period last year. Profit before tax increased 4.4% to ₹718 crore, while total income grew about 9% to ₹2,265 crore. Operating expenses rose 11% to ₹1,547 crore.
Net interest margin (NIM) for the quarter fell 24 basis points to 3.5% from 3.74% a year earlier, reflecting tighter funding costs. Gross non‑performing assets (GNPA) improved by 11 basis points to 0.95% from 1.06% in FY26. The company recovered ₹67 crore from its written‑off pool during the quarter and clarified that a fraud reported in July 2026 involved a legacy account that had been fully written off in FY23.
Loan assets expanded 15% year‑on‑year to ₹89,670 crore, and the retail loan book grew 16% to ₹89,178 crore. Assets under management (AUM) stood at ₹93,021 crore at the end of June, a 13% increase. Disbursements grew 56% on a cheque handover basis; after the shift to cheque‑realisation‑based recognition effective Q1 FY27, reported disbursements grew 18% year‑on‑year.
The GNPA remained below 1% at 0.95%, slightly higher than the 0.93% recorded in Q4 FY26. The company’s capital risk adequacy ratio (CRAR) was 28.26% as of June 30, 2026, with Tier‑I capital at 27.87%. The net interest spread was 2.12% quarter‑on‑quarter, stable but 11 basis points lower year‑on‑year. Cost of borrowing edged up to 7.36% amid tighter liquidity conditions.
Return on assets (ROA) was 2.37% in Q1 FY27, down from 2.66% in FY26. The number of live loan accounts serviced by the company crossed 387,000 as of June 30, 2026. The average ticket size was ₹29 lakh for individual housing loans and ₹27 lakh for retail non‑housing loans.
In the Affordable and Emerging Markets segment, which contributed 46% of total retail disbursements and 41% of the retail loan book, disbursements grew 14% after adjusting for the accounting change. The segment’s asset quality indicators remained stable, with field collection efforts and technology‑enabled processes improving recovery efficiency.
Total sanctions in Q1 FY27 were ₹12,019 crore, a 52% increase over Q1 FY26. Individual housing loans accounted for 67% of the retail portfolio, and salaried customers comprised 59%.
Managing Director and CEO Ajai Shukla said the company had started FY27 on a steady note, with AUM up 13% and the retail loan book up 16% year‑on‑year. He highlighted that the Affordable and Emerging Markets segments continued to be key growth drivers, registering 27% growth and contributing 41% to the retail loan book. Asset quality remained strong, with GNPA at 0.95%, and recoveries from the written‑off pool supported profitability.
Shukla added that the company remains focused on strengthening its distribution network and digital capabilities. Ongoing digital transformation initiatives across sourcing, underwriting, servicing and collections are intended to enhance customer experience, improve operational efficiency and support scalable growth. He noted that the company’s strong capital position and prudent risk management practices position it well for sustainable growth and long‑term value creation.
The stock has gained 1.86% over the past month, 4.1% over the past year and 40.52% over the last three years.
The latest earnings report confirms that PNB Housing Finance has maintained solid asset quality while expanding its loan book and AUM. The company’s NIM compression and rising cost of borrowing reflect broader market liquidity conditions, but its recovery of written‑off amounts and disciplined risk management provide a buffer. Investors will watch the upcoming quarterly results for further guidance on margin trends, loan growth, and the impact of the company’s digital initiatives.
