PNB Housing Finance share price surged 11% on Tuesday, 21 April, after the company reported a strong performance for the fourth quarter, with net profit rising 19% YoY to ₹656 crore from ₹500 crore in the corresponding period last year, supported by improved operating leverage.
It also announced a final dividend of ₹8 per equity share of face value ₹10 for the financial year ended March 31, 2026.
Net interest income (NII) grew around 11% YoY to ₹810 crore, broadly in line with estimates. However, other income declined about 10% YoY to ₹120 crore, while operating expenses rose 17% YoY to ₹250 crore. The company’s total income increased 6.6% to ₹2,172 crore in Q4FY26, compared with ₹2,037 crore in the year-ago quarter.
Meanwhile, for the full year, net profit stood at ₹2,291 crore in FY26, compared with ₹1,936 crore in the previous fiscal, reflecting a growth of 18%.
Net interest margin (NIM) for the quarter dipped to 3.69% from 3.75% in the year-ago period. Asset quality strengthened during the quarter, with GNPA declining to 0.93% from 1.04% QoQ, and net NPA falling to 0.57% from 0.68%.
The mortgage lender’s assets under management (AUM) expanded 13% YoY to ₹90,921 crore. Its retail loan book grew 16% to ₹86,946 crore, while the company resumed corporate lending after a gap of around four years.
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Brokerages said PNB Housing Finance reported a better-than-expected performance in the March quarter, supported by provision write-backs, stable asset quality and steady loan growth.
According to Motilal Oswal, the company’s performance was aided by improving asset quality and benign credit costs, although higher operating expenses and weaker fee income remained areas of concern.
The brokerage maintained its ‘Buy’ rating on the stock and noted that profit after tax exceeded its estimates by 14%. The brokerage said PNB Housing Finance currently trades at 1.2x FY27E P/BV and delivered a stable quarterly performance, driven by improving asset quality and supportive credit cost trends.
It added that profitability remains partly constrained by elevated operating expenses and softer fee income, while the marginal uptick in NIM, supported by easing cost of funds, is encouraging but dependent on yield dynamics and growth momentum.
Moreover, JM Financial also maintained its ‘Buy’ rating on the stock, with a target price of ₹950 per share, implying an upside potential of nearly 3% from the previous closing price. The brokerage noted that profit after tax beat its estimates by nearly 20%, primarily driven by improving growth trends and elevated recoveries, which kept credit costs in negative territory at -0.80% compared with -0.19% in the previous quarter.
JM Financial further highlighted that the affordable segment showed sequential recovery, while the prime and emerging segments delivered strong growth momentum. Corporate segment disbursements were also restarted during the quarter, contributing around 4% to overall disbursements in line with management guidance.
PNB Housing Stock Performance
The NBFC stock surged as much as 11% to its day’s high of ₹1,006. It is now just 12% away from its 52-week high of ₹1,141.85, hit in June 2025. Meanwhile, it touched its 52-week low of ₹730 in March 2026.
The stock has been positive in the recent past, rising 24% in 1 month. However, it lost over 2% in the last 1 year. It has also given multibagger returns in the last 5 years, rallying around 240%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
