PNB Housing Finance Q4 Results: Net Profit Surges 14% on Strong Retail Disbursements; Declares Dividend

PNB Housing Finance Ltd, a leading housing finance company in India, announced its Q4 results for the fiscal year 2026, reporting a significant 14.39% year-on-year (YoY) rise in net profit to ₹648.7 crore. In the corresponding quarter of the previous fiscal, the company's net profit stood at ₹567 crore.

Net interest income (NII), which is the difference between the interest income from lending activities and the interest paid to depositors, increased by 8.2% to ₹796 crore, up from ₹736 crore in the same quarter of FY25.

The company's assets under management (AUM) crossed ₹90,000 crore, reaching ₹90,921 crore as of FY26, marking a 13% YoY growth. Retail loan assets grew by 16% YoY to ₹86,946 crore as of March 31, 2026, making up 99.5% of the total loan asset base. The affordable and emerging markets segment expanded by 28% YoY and accounted for 40% of the retail loan asset portfolio.

Overall disbursements in Q4FY26 increased by 36% YoY and 50% quarter-on-quarter (QoQ) to ₹9,355 crore, including ₹335 crore from the re-entry into the corporate lending segment. Retail disbursements hit an all-time high of ₹9,020 crore during the quarter. Net profit for Q4FY26 rose 19% YoY to ₹656 crore, while FY26 net profit increased 18% to ₹2,291 crore, driven by improved operating leverage.

Spreads during the quarter moderated by 10 basis points sequentially to 2.12% due to a 25 basis point reduction in yield to 9.47%, reflecting lower incremental yield compared to book yield. The cost of borrowing improved by 15 basis points sequentially to 7.35%. The net interest margin increased by 6 basis points to 3.69% in Q4FY26, up from 3.63% in the previous quarter.

Asset quality showed marked improvement, with gross non-performing assets (GNPA) declining to 0.93% as of March 31, 2026. Recoveries from the written-off pool of ₹332 crore in FY26 resulted in a negative credit cost of -0.45%. The return on assets (RoA) improved by 10 basis points YoY to 2.66%, and the return on equity (RoE) rose by 54 basis points to 12.73%.

The total number of branches increased to 393 as of March 31, 2026, with 37 new branches added during FY26. The capital adequacy ratio stood at 27.26%, with Tier I capital at 26.89%.

The board recommended a dividend of ₹8 per equity share of face value ₹10 for FY26, subject to shareholder approval at the ensuing annual general meeting.

Ajai Shukla, Managing Director and CEO of PNB Housing Finance, commented, 'FY2025-26 marked a year of resilient and balanced growth for the Company, reflecting the strength of our strategy and focused approach. We delivered a healthy expansion in our retail loan portfolio, along with sustaining robust asset quality and profitability.'

'The continued focus on disciplined collections and portfolio management resulted in GNPA improving to sub-1% levels. Our return on assets improved during the year, supported by strong financial performance and prudent management practices.'

Shares of PNB Housing Finance Ltd ended at ₹905.80, down by ₹18.60, or 2.01%, on the BSE on April 20, 2026.