PNB Housing Finance Limited , one of India's leading housing finance companies, has unveiled ambitious strategic targets for fiscal year 2027 (FY27) while reporting robust financial results for the second quarter of FY26. The company aims to achieve a loan book of ₹1.25 lakh crore and a return on equity of 18% by FY27, signaling a strong growth trajectory and focus on profitability.

Strategic Targets and Growth Focus

PNB Housing Finance has outlined a clear strategy to drive growth, with a particular emphasis on its affordable and emerging markets segments. The company plans to grow these segments at a 20% compound annual growth rate (CAGR), underlining its commitment to expanding its presence in high-potential markets.

Q2 FY26 Financial Highlights

The company's financial performance for Q2 FY26 reflects its strong market position and effective strategy execution:

• Net profit increased by 23.8% year-over-year to ₹582.00 crore
• Net Interest Income grew by 14.4% year-over-year to ₹765.00 crore
• Retail Loan Asset grew by 17% year-over-year to ₹79,439.00 crore
• Gross Non-Performing Assets (GNPA) improved to 1.04% from 1.24% in the previous year

Focus on Affordable and Emerging Markets

PNB Housing Finance's strategic focus on affordable and emerging markets segments is yielding positive results:

• The Affordable and Emerging Markets segment grew by 34% year-over-year
• This segment now contributes 38% to the Retail Loan Asset
• Disbursements in these segments grew by 30.7% and 23.0% year-over-year, respectively

Asset Quality and Profitability

The company has maintained a strong focus on asset quality while improving profitability:

• Return on Assets (ROA) improved to 2.73% in Q2 FY26 (annualized)
• Capital Risk Adequacy Ratio stood at 29.80% as of September 30, 2025
• The company recovered ₹59.00 crore from the total written-off pool in Q2 FY26

Management Commentary

Commenting on the performance, Mr. 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. Our strategic focus continues to drive profitable growth. The Retail Asset grew by 17% YoY for FY25 reaching to ₹79,439 crore as on 30th Sept 2025."

He further added, "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."

Outlook

PNB Housing Finance's strategic targets for FY27, coupled with its strong Q2 FY26 performance, indicate a positive outlook for the company. The focus on affordable and emerging markets segments, along with efforts to maintain asset quality and improve profitability, positions the company well for sustainable growth in the coming years.

As the company continues to execute its growth strategy and navigate the dynamic housing finance landscape, investors and stakeholders will be keenly watching its progress towards achieving the ambitious FY27 targets.

Note: All financial figures are based on consolidated results as per Indian Accounting Standards (IndAS).

PNB Housing Finance , a prominent player in India's housing finance sector, has reported a significant increase in its financial performance for the second quarter. The company's net profit saw a substantial year-over-year growth, rising from Rs 470 crore to Rs 582 crore, marking a 24% increase.

Financial Highlights

Key Takeaways

Profit and Income Growth

• Net profit increased by 24%, indicating improved profitability.
• Total income grew by 13.40%, suggesting robust demand for housing finance products and services.
• Interest income rose by 13.30%, contributing significantly to overall income growth.
• Net interest income increased by 14%, reflecting improved lending operations.

Financial Metrics

• Net interest margin remained relatively stable at 3.67% compared to 3.68% in the previous year's second quarter.
• Gross NPAs declined to 1.04% from 1.24% at the end of the previous year's corresponding quarter, indicating better asset management.

Business Focus

• The Affordable and Emerging Market segments contributed 50% of total retail disbursements.

Capital Position

• The company maintained a capital adequacy ratio of 29.80%, with Tier I capital at 29.21%.

PNB Housing Finance's performance comes amid a dynamic housing finance sector in India, where factors such as urbanization, government initiatives for affordable housing, and a growing middle class continue to drive demand for home loans.

The company's focus on the Affordable and Emerging Markets segments appears to be contributing significantly to its retail business.

While these results are encouraging, it's important for investors and stakeholders to consider broader market conditions, regulatory environment, and long-term trends in the housing finance sector when evaluating the company's prospects.