PNB Housing Finance reported a solid set of consolidated numbers for the quarter ended March 31, 2026, with net profit rising 19.2% year-on-year to ₹655.80 crore and net interest income growing 11% to ₹808 crore. The board has recommended a final dividend of ₹8 per share for FY26, subject to shareholder approval. Asset quality improved meaningfully on a sequential basis, with GNPA declining to 0.93% from 1.04% in Q3 FY26.
Q4 FY26 Consolidated Financials
Revenue for the quarter came in at ₹2,171.91 crore, up 2.42% quarter-on-quarter and 6.63% year-on-year. Net profit of ₹655.80 crore was up 26.03% sequentially and 19.16% on a year-on-year basis — a strong double-digit profit growth on both metrics. EPS for the quarter stood at ₹25.17, reflecting sequential improvement of 26.04% and year-on-year growth of 18.84%. NII grew from ₹728 crore in Q4 FY25 to ₹808 crore in Q4 FY26, reflecting the expanding loan book’s contribution to interest income net of funding costs.
Asset Quality — A Clear Positive
The most encouraging data point in the quarter is the improvement in asset quality. GNPA declined to 0.93% from 1.04% in the previous quarter — a meaningful 11 basis point sequential improvement that brings PNB Housing Finance’s gross NPA ratio to below 1% for what appears to be one of the first times in recent quarters. NNPA also improved to 0.57% from 0.68% sequentially. For a housing finance company navigating a rate cycle and macroeconomic uncertainty through the Iran war period, sub-1% GNPA is a strong credit quality signal and should be read as the standout metric of this quarter’s results.
Loan Book Growth and Balance Sheet
The loan book expanded significantly, rising to ₹86,433.37 crore from ₹74,645.32 crore year-on-year — growth of approximately 15.8% — reflecting continued strong disbursement momentum in the affordable and mid-segment housing finance space. Net worth increased to ₹19,219.13 crore, reflecting the accumulation of retained earnings alongside the profit growth.
Cash position improved to ₹2,483.06 crore from ₹2,062.50 crore year-on-year, providing adequate liquidity buffer.
Cash Flow and the Lending Growth Story
The operating cash flow showed a net outflow of ₹8,983.55 crore — a figure that requires context rather than alarm. For a housing finance company growing its loan book by over 15% annually, operating cash outflows are expected and reflect the deployment of capital into new loan originations rather than a deterioration in collections or profitability. Financing cash inflows of ₹8,719.78 crore from borrowings and debt securities funded the lending growth, while investing activities generated ₹684.33 crore of inflows
The dependence on market borrowings and debt securities to fund loan book growth remains a structural feature of the housing finance model — and a risk factor worth noting in an environment where interest rates remain elevated. Finance costs for the quarter stood at ₹1,246.08 crore, keeping pressure on spreads even as NII grew.
Dividend of ₹8 Per Share
The board has recommended a final dividend of ₹8 per equity share for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing AGM. The record date has not been specified in the available data.
Positives and Negatives at a Glance
The quarter’s clear positives are the strong profit growth on both sequential and annual bases, the GNPA improvement to below 1%, healthy loan book expansion and the total income growth trend. The areas to watch going forward are the elevated finance cost which remains a margin headwind, the high dependence on market borrowings as a funding source — which makes PNB Housing sensitive to any tightening in wholesale funding markets — and the broader housing finance sector’s sensitivity to interest rate cycles as the RBI navigates its own rate decisions through the current macroeconomic environment.
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