PNB Housing Finance shares rally 5% after Q1 profit rises 4% YoY, loan assets jump 15%

According to an exchange filing, the company's profit before tax rose 4.4% YoY to Rs 718 crore from Rs 688 crore, while total income increased about 9% to Rs 2,265 crore. Expenses for the quarter rose 11% to Rs 1,547 crore.

The lender's net interest margin (NIM) for the quarter contracted 24 basis points to 3.5% from 3.74% in the year-ago period. Meanwhile, the gross non-performing assets (GNPA) ratio improved by 11 basis points to 0.95% from 1.06% a year earlier.

Also Read |PNB Housing Q1 profit rises 4% as loan book grows 15%

Loan assets expanded 15% year-on-year (YoY) to Rs 89,670 crore, while retail loan book grew 16% YoY to Rs 89,178 crore.

AUM) stood at Rs 93,021 crore at the end of June, reflecting a 13% YoY increase. Disbursements grew 56% YoY on a cheque handover basis. Following the shift to cheque realisation-based recognition effective Q1 FY27, reported disbursements grew 18% YoY.

Return on assets (ROA) stood at 2.37% in Q1 FY27, compared with 2.66% in FY26. The number of live loan accounts serviced by the company crossed 3.87 lakh as of June 30, 2026. The average ticket size stood at Rs 29 lakh for individual housing loans and Rs 27 lakh for retail non-housing loans.

**Retail business update **

The Affordable and Emerging Markets segment contributed 46% of total retail disbursements and 41% of the retail loan book. Retail disbursements grew 14% after adjusting for the accounting change and are expected to normalise from the next quarter.**Affordable segment update **

Asset quality indicators remained stable, with a slight uptick due to seasonality in Q1 FY27 compared with Q4 FY26. Enhanced field collection efforts, supported by coordinated legal action, along with omnichannel customer outreach and technology-enabled collection processes, continued to improve recovery efficiency, with all key metrics remaining better than industry benchmarks.The company also said total sanctions in Q1 FY27 stood at Rs 12,019 crore, registering a 52% growth over Q1 FY26. It maintained a balanced portfolio, with individual housing loans accounting for 67% of the retail portfolio and salaried customers comprising 59%.

“We have started FY27 on a steady note, with AUM growing 13% year-on-year to Rs 93,021 crore and our retail loan book growing 16% year-on-year. 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 continued to be strong, with GNPA at 0.95%, while healthy recoveries from the written-off pool supported our profitability,” said Ajai Shukla, Managing Director & CEO.

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“We remain focused on strengthening our distribution network and digital capabilities. Our ongoing digital transformation initiatives across sourcing, underwriting, servicing and collections are helping enhance customer experience, improve operational efficiency and support scalable growth. Backed by a strong capital position and prudent risk management practices, we remain well positioned to drive sustainable growth and create long-term value for our stakeholders,” Shukla added.

The stock has gained 1.86% over the past month, 4.1% over the past year and 40.52% over the last three years.

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