PNB Housing Finance shares rallied over 5% after the company reported a strong set of consolidated results for the quarter ended March 31, 2026, supported by healthy profit growth, improving asset quality, and steady expansion in its loan book.
The company posted a net profit of ₹655.80 crore in Q4 FY26, marking a rise of 19.2% year-on-year and 26.03% sequentially, reflecting sustained earnings momentum. Net interest income (NII) grew 11% to ₹808 crore compared to ₹728 crore in the same quarter last year, driven by a larger loan book and stable spreads despite elevated funding costs. Earnings per share (EPS) stood at ₹25.17, registering strong growth both on a quarterly and annual basis.
Revenue for the quarter came in at ₹2,171.91 crore, increasing 2.42% quarter-on-quarter and 6.63% year-on-year, indicating consistent topline expansion. The performance highlights the company’s ability to maintain growth in a challenging macro environment marked by elevated interest rates and global uncertainties.
A key highlight of the quarter was the significant improvement in asset quality. Gross non-performing assets (GNPA) declined to 0.93% from 1.04% in Q3 FY26, while net NPA (NNPA) improved to 0.57% from 0.68% sequentially. The drop in GNPA below the 1% mark stands out as a major positive, signalling strengthening credit quality and improved risk management during a volatile economic phase.
The company’s loan book continued to expand at a healthy pace, rising to ₹86,433.37 crore from ₹74,645.32 crore a year earlier, translating into growth of nearly 15.8%. This growth was supported by strong disbursement momentum in the affordable and mid-income housing segments. Net worth increased to ₹19,219.13 crore, reflecting the accumulation of profits and a stronger balance sheet position.
Liquidity also improved, with cash and cash equivalents rising to ₹2,483.06 crore compared to ₹2,062.50 crore in the previous year, providing a comfortable buffer to support ongoing lending activity.
Operating cash flow showed a net outflow of ₹8,983.55 crore, which aligns with the company’s aggressive loan growth strategy rather than indicating any operational weakness. The outflow primarily reflects capital deployment into new loan originations. This expansion was largely funded through financing inflows of ₹8,719.78 crore raised via borrowings and debt securities, while investing activities contributed inflows of ₹684.33 crore.
The reliance on market borrowings remains a structural aspect of the housing finance business, particularly in a high interest rate environment where finance costs stood at ₹1,246.08 crore for the quarter. While this continues to exert pressure on margins, the growth in NII suggests that the company is managing its funding costs effectively.
In addition to the strong financial performance, the board of PNB Housing Finance has recommended a final dividend of ₹8 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting.