PNB Housing Finance Limited , a prominent player in India's housing finance sector, has announced an upgraded Net Interest Margin (NIM) forecast for the fiscal year 2025-26 (FY26), signaling improved profitability expectations. The company revealed this positive outlook during a recent conference call update, alongside its robust financial performance for the first quarter of FY26.

Q1 FY26 Financial Highlights

PNB Housing Finance reported impressive results for the quarter ended June 30, 2025:

• Net Profit After Tax increased by 23% year-on-year to ₹534.00 crore.
• Net Interest Income grew by 17% year-on-year to ₹760.00 crore.
• Net Interest Margin stood at 3.74%, compared to 3.65% in Q1 FY25.
• Gross Non-Performing Assets (GNPA) improved to 1.06% from 1.35% a year ago.

Retail Loan Growth and Asset Quality Improvement

The company's focus on retail lending has yielded positive results:

Notably, the Affordable Housing and Emerging Markets segments now constitute 37% of the Retail Loan Asset.

Strategic Focus on High-Yielding Segments

PNB Housing Finance has strategically emphasized growth in high-yielding segments:

• The Affordable Housing segment loan asset stood at ₹5,744.00 crore, registering a remarkable 143% growth year-on-year.
• The Emerging Markets segment loan asset reached ₹22,701.00 crore, growing by 20% year-on-year.
• Combined, these segments contributed 50% to the retail disbursement in Q1 FY26.

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."

Outlook and NIM Forecast Upgrade

The upgraded Net Interest Margin forecast for FY26 reflects the company's optimism about its future profitability. This positive outlook is supported by the strong performance in Q1 FY26, where the NIM already showed improvement, reaching 3.74% compared to 3.65% in the same quarter last year.

PNB Housing Finance's strategic focus on high-yielding segments, coupled with improved asset quality and strong growth in retail loans, positions the company well for sustained profitability in the coming quarters. The management's confidence in achieving its stated guidance further underscores the positive trajectory of the company's financial performance.

As PNB Housing Finance continues to navigate the dynamic housing finance landscape, investors and stakeholders will be keenly watching how this upgraded NIM forecast translates into actual performance throughout FY26.

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.