Housing Finance company PNB Housing Finance announced Q2FY26 results Net profit increased by 23.8% YoY and 9.0% QoQ to Rs 582 crore. Pre-provision Operating profit grew by 15.6% YoY to Rs 646 crore driven by positive operating leverage. Net Interest Income grew by 14.4% YoY and 0.6% QoQ to Rs 765 crore. Operating expenditure increased by 7.6% YoY and 0.6% QoQ to Rs 217 crore. Yield at 9.95% in Q2FY26 as compared to 9.99 % in Q1FY26 and 10.05% in Q2FY25. Cost of Borrowing is at 7.69% in Q2FY26 as compared to 7.76% in Q1FY26 and 7.84% in Q2FY25. Spread on loans is at 2.26 % in Q2FY26 as compared to 2.23% in Q1FY26 and 2.21% in Q2FY25. Net Interest Margin stood at 3.67% in Q2FY26 as compared to 3.74% in Q1FY26 and 3.68% in Q2FY25. Gross Margin, net of acquisition cost, stood at 4.05% in Q2FY26. With recovery from the overall written off pool, Credit Cost was -53 bps in Q2FY26 as compared to -27bps in Q1FY26 and -24 bps in Q2FY25 The disbursements during Q2FY26 grew by 12.2% YoY and 20.4% QoQ to Rs 5,995 crore. Disbursement in Affordable and Emerging Markets segment grew YoY by 30.7% and 23.0% respectively, contributing 50% of the total retail disbursements. Loan Asset grew by 14.8% YoY and 2.6% QoQ to Rs 79,771 crore as on 30th Sept 2025. Retail loans grew by 16.9% YoY and 3.3% QoQ to Rs 79,439 crore as on 30th Sept 2025. Within Retail, affordable Loan Asset grew by 120.8% YoY to Rs 6,531 crore, Emerging Markets Loan Asset grew by 20.8% YoY to Rs 23,994 crore and Prime segment grew by 8.3% YoY to Rs 48,914 crore as on 30th Sept 2025. Corporate loan book was at Rs 332 crore as on 30th Sept 2025, reduced by 78.3% as compared to 30th Sept 2024. Asset under Management (AUM) grew by 12.3% YoY and 2.2% QoQ to Rs 83,879 crore as on 30th Sept 2025 Asset Quality: Gross Non-Performing Assets stood at 1.04 % as on 30th Sept 2025 as compared to 1.24 % as on 30th Sept 2024 and 1.06% as on 30 th Jun 2025. Retail GNPA is 1.05% as on 30th Sept 2025 as compared to 1.27% as on 30th Sept 2024 and 1.07% as on 30th Jun 2025. Corporate GNPA stands NIL since 30th Jun 2025 till now. Net NPA stood at 0.69% as on 30th Sep 2025. NNPA in Retail segment is at 0.69% Capital to Risk Asset Ratio (CRAR): The Company’s CRAR stood at 29.80% as on 30th Sept 2025, of which Tier I capital is 29.21% and Tier II is 0.59% as compared 29.13% as on 30th Sept 2024, of which Tier I capital was 28.06% and Tier II was 1.07%. Jatul Anand, Executive Director, said: “Despite the challenges posed by leadership transitions, we have delivered a strong and resilient performance across all key metrics this quarter. This outcome reflects the strength of our organizational culture—anchored in responsible leadership, collective ownership, and unwavering commitment—which enables us to maintain momentum and deliver results without disruption. Our strategic focus continues to drive profitable growth. The Retail Asset grew by 17% YoY for FY25 reaching to Rs 79,439 crore as on 30th Sept 2025. We disbursed almost Rs 6,000 crore delivering a sequential growth of 20% vs Q1FY26. Our continued emphasis on the Affordable and Emerging Markets segment has enabled us to sustain competitive spreads. This segment now constitutes 38% of the Retail Loan Asset portfolio. Our spreads improved to 2.26% in Q2FY26, up from 2.23% in Q1FY26 reflecting disciplined pricing and portfolio mix optimization. The portfolio asset quality continues to improve with Gross NPA at 1.04% as on 30th Sept 2025. Looking ahead to FY26, we are focused on accelerating retail growth and expanding our Affordable and Emerging Markets segment footprint. Our goal is to enhance customer experience, strengthen risk frameworks, and maintain industry-leading asset quality while delivering sustainable returns. With a strong leadership team and a culture that never loses momentum, we are confident of creating long-term value for all stakeholders.” Result PDF
Conference Call with PNB Housing Finance Management and Analysts on Q2FY26 Performance and Outlook. Listen to the full earnings transcript.