PNB Home Financing | Photo credit: cueapi
Shares of PNB Housing Finance will be in focus today after a 24 percent rise in net profit in Q2FY26.
The housing finance company reported a net profit of ₹581.59 crore in the quarter under review, against ₹469.68 crore in the same quarter of the previous year.
According to the balance sheet, total revenues for the quarter rose to ₹2,130.60 crore from ₹1,879.66 crore a year ago. Interest income for the quarter was higher at ₹2,017.45 crore, compared to ₹1,780.31 crore in the year-ago period.
Net interest income (NII) rose 14 per cent to ₹765 crore from ₹669 crore in the previous year quarter. Meanwhile, NIM declined marginally year-on-year from 3.68 percent to 3.67 percent.
Gross non-performing assets (NPAs) fell to 1.04 per cent in Q2FY26 from 1.24 per cent in Q2FY25, and the capital adequacy ratio stood at 29.80 per cent as on September 30, of which Tier I capital stands at 29.21 per cent.
Commenting on the performance, Jatul Anand, Executive Director, PNB Housing said, “Retail assets grew 17 per cent YoY for FY25 and reached ₹79,439 crore as on September 30, 2025. We disbursed close to ₹6,000 crore, delivering 20 per cent sequential growth over Q1 FY26. Our continued emphasis on the affordable and emerging market segment has enabled us to maintain competitive spreads. This segment now makes up 38 percent of the retail loan portfolio.”
UBS, Bernstein, Motilal and JM Financial maintain their purchase
Brokers remain bullish on PNB Housing Finance and maintain their Buy ratings on the stock.
UBS has set a target price of ₹1,200 per share and Bernstein has set a target price of ₹1,020 per share. Domestic brokerages Motilal Oswal set the target price at ₹1,080 per share, and JM Financial at ₹1,150.
Motilal Oswal noted in its report that the company shared that the board-led CEO selection process is underway, and a formal disclosure is expected soon.
Management reiterated that the company’s core mortgage strategy remains solid, and no significant strategic changes are expected under the new CEO.
The brokerage also pointed to the inability to drive NIM expansion in FY27 amid aggressive competition in mortgage lending, subsequent shake-up in the affordable/emerging loan portfolio leading to deterioration in asset quality and higher credit costs, and delay or difficulty in appointing a suitable successor to the CEO position as the most important risks.
HDFC Securities has maintained the rating at a target price of ₹1,140, and marginally revised earnings estimates for FY26e-27 to account for lower credit costs.
Shares of PNB Housing Finance were trading flat at ₹919.10 at 11:30 am.
Published on October 28, 2025
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