PNB Housing Finance Limited , a leading housing finance company in India, has announced an upgrade to its Net Interest Margin (NIM) forecast for the fiscal year 2025-26 (FY26), signaling an improved outlook for the company's profitability metrics. The announcement came during a recent conference call update, where the company also shared its impressive first-quarter results for FY26.

Upgraded NIM Forecast

The company's decision to revise its NIM forecast upwards for FY26 reflects growing confidence in its ability to maintain and potentially improve its profitability. Net Interest Margin, a key metric for financial institutions, represents the difference between the interest income generated from lending activities and the interest paid out to depositors, relative to the amounts of their interest-earning assets.

Strong Q1 FY26 Performance

PNB Housing Finance's optimism is backed by solid financial performance in the first quarter of FY26:

• Net Profit: The company reported a consolidated net profit of ₹533.50 crore for Q1 FY26, marking a significant 23% year-on-year increase from ₹432.81 crore in Q1 FY25.

• Net Interest Income: NII grew by 17% year-on-year to ₹760 crore in Q1 FY26, compared to ₹651 crore in the same quarter last year.

• Net Interest Margin: The company maintained a healthy NIM of 3.74% in Q1 FY26, slightly higher than the 3.65% reported in Q1 FY25.

Asset Quality Improvement

PNB Housing Finance also demonstrated improvements in its asset quality:

• Gross Non-Performing Assets (GNPA): The GNPA ratio decreased to 1.06% as of June 30, 2025, down from 1.35% a year ago.

• Net Non-Performing Assets (NNPA): The NNPA ratio improved to 0.69% from 0.92% in the same period last year.

Loan Book Growth and Business Expansion

The company's loan book showed robust growth:

Management Commentary

Girish Kousgi, Managing Director & CEO of PNB Housing Finance, commented on the company's performance: "The Company's focus on high-yielding business led to 30% YoY disbursement growth in the Affordable and Emerging markets segment during the quarter contributing 50% in the retail disbursement. Our asset quality continues to improve with GNPA of 1.06% as on June 30, 2025. While maintaining a balance between growth and profitability, our ROA stood at 2.57% annualised for FY 25-26. As we look forward, we are confident of our ability to achieve our stated guidance for the fiscal year."

The upgraded NIM forecast, coupled with strong Q1 FY26 results, positions PNB Housing Finance for potentially improved financial performance in the coming quarters. Investors and market observers will be keenly watching the company's ability to sustain this growth trajectory and deliver on its upgraded profitability outlook for FY26.

PNB Housing Finance Limited , one of India's leading housing finance companies, has reported robust growth in its retail loan segment for the first quarter of the fiscal year 2025-26 (Q1 FY26). The company's financial results, released on July 21, 2025, showcase significant improvements across various business segments, particularly in retail loans and affordable housing.

Retail Loan Growth and Segment Performance

PNB Housing achieved an impressive 18% year-on-year (YoY) growth in its retail loan assets, which stood at ₹76,923.00 crore as of June 30, 2025. This growth was primarily driven by the company's focus on high-yielding segments:

• The affordable housing segment witnessed a remarkable 143% YoY growth, with loan assets reaching ₹5,744.00 crore.
• The emerging markets segment grew by 20% YoY, with loan assets of ₹22,701.00 crore.
• The prime segment saw a 10% YoY increase, with loan assets of ₹48,478.00 crore.

Disbursements and Profitability

Retail disbursements for Q1 FY26 grew by 14% YoY to ₹4,980.00 crore. Notably, the affordable housing and emerging markets segments contributed 50% of the total retail disbursements, highlighting the company's strategic focus on these high-yield areas.

The company's profitability also showed significant improvement:

• Net profit increased by 23% YoY to ₹534.00 crore.
• Net Interest Income grew by 17% YoY to ₹760.00 crore.
• Pre-provision operating profit grew by 17% YoY to ₹632.00 crore.

Asset Quality and Financial Ratios

PNB Housing Finance demonstrated improved asset quality:

• Gross Non-Performing Assets (GNPA) declined to 1.06% as of June 30, 2025, compared to 1.35% a year ago.
• Net Non-Performing Assets (NNPA) stood at 0.69%.

Key financial ratios also showed positive trends:

• Net Interest Margin (NIM) improved to 3.74% in Q1 FY26 from 3.65% in Q1 FY25.
• Return on Assets (ROA) increased to 2.57% (annualized) for Q1 FY26.

Expansion and Strategic Focus

The company has expanded its presence to 356 locations, including 200 branches for the affordable segment and 80 for the emerging markets segment. This expansion aligns with PNB Housing's strategy to focus on high-yielding business segments.

Management Commentary

Girish Kousgi, Managing Director & CEO of PNB Housing Finance, commented on the performance: "The Company's focus on high-yielding business led to 30% YoY disbursement growth in the Affordable and Emerging markets segment during the quarter, contributing 50% in the retail disbursement. Our asset quality continues to improve with GNPA of 1.06% as on June 30, 2025. While maintaining a balance between growth and profitability, our ROA stood at 2.57% annualised for FY 25-26. As we look forward, we are confident of our ability to achieve our stated guidance for the fiscal year."

Conclusion

PNB Housing Finance's Q1 FY26 results demonstrate the company's successful execution of its strategy to focus on retail loans, particularly in the high-yield affordable housing and emerging markets segments. With improved asset quality, expanded presence, and strong financial performance, the company appears well-positioned for continued growth in the coming quarters.