Shares of PNB Housing Finance will be in focus today following a 24 per cent increase in the net profit in Q2FY26.
The housing finance company reported a net profit of ₹581.59 crore in the quarter under review as against ₹469.68 crore in the same quarter of the previous year.
According to the balance sheet, its total income for the quarter grew to ₹2,130.60 crore from ₹1,879.66 crore a year ago. The interest income for the quarter was higher at ₹2,017.45 crore as against ₹1,780.31 crore in the year-ago period.
The net interest income (NII) rose 14 per cent to ₹765 crore against ₹669 crore in the year-ago quarter. Meanwhile, the NIM moderated marginally y-o-y to 3.67 per cent from 3.68 per cent.
Gross non-performing assets (NPAs) dipped to 1.04 per cent in Q2FY26 from 1.24 per cent in Q2FY25, and the capital adequacy ratio stood at 29.80 per cent as of September 30, of which Tier I capital is 29.21 per cent.
Commenting on the performance, Jatul Anand, Executive Director, PNB Housing, said, “the retail asset grew by 17 per cent y-o-y for FY25 reaching to ₹79,439 crore as on September 30, 2025. We disbursed almost ₹6,000 crore delivering a sequential growth of 20 per cent vs Q1 FY26. Our continued emphasis on the affordable and emerging markets segment has enabled us to sustain competitive spreads. This segment now constitutes 38 per cent of the retail loan asset portfolio.”
UBS, Bernstein, Motilal and JM Financial maintains buy
Brokerages remain positive on PNB Housing Finance, maintaining their buy ratings on the stock.
UBS has set a target price of ₹1,200 per share and Bernstein assigned a target price of ₹1,020 per share. Domestic brokerages Motilal Oswal set the target price of ₹1,080 per share, and JM Financial at ₹1,150.
Motilal Oswal noted in its report that the company shared that the board-led CEO selection process is underway, with formal disclosure expected soon.
Management reiterated that the company’s core mortgage strategy remains firmly in place, with no significant strategic changes expected under the new CEO.
The brokerage also flagged the inability to drive NIM expansion in FY27 amid aggressive competition in mortgages, subsequent seasoning in the affordable/emerging loan book leading to asset quality deterioration and elevated credit costs, and delay or challenges in appointing a suitable successor for the CEO position as key risks.
HDFC Securities has maintained add rating at ₹1,140 target price, and revised FY26E-FY27 earnings estimates marginally to factor in lower credit costs.
Shares of PNB Housing Finance closed flat at ₹934.15 on the BSE.