PNB Housing Finance shares surged 11% to their day's high following the company's impressive Q4 FY26 results, with the stock hitting an intraday high of ₹974 on Tuesday. According to reports from LiveMint, the rally was driven by strong quarterly performance across key profitability and asset quality metrics. The company reported net profit of ₹656 crore, representing a 19% year-on-year increase from ₹500 crore in the corresponding period last year, supported by improved operating leverage. The company also announced a final dividend of ₹8 per equity share for the financial year ended March 31, 2026. Total income increased 6.6% to ₹2,172 crore in Q4 FY26, compared with ₹2,037 crore in the year-ago quarter, while net interest income (NII) grew around 11% YoY to ₹810 crore, broadly in line with estimates.
The company's profitability showed significant improvement with profit after tax (PAT) rising 19% year-on-year to ₹656 crore, supported by better operating leverage. As reported by LiveMint, return on assets (ROA) strengthened to 2.89%, compared with 2.40% in the preceding quarter, reflecting better operating leverage and balance sheet efficiency. Gross non-performing assets (GNPA) improved to 0.93% from 1.04% quarter-on-quarter, showing continued strengthening on both sequential and annual bases, with the company achieving a significant milestone with Gross NPA reducing to sub-1% levels. Net NPAs declined to 0.57% from 0.68% in the previous quarter, showing continued strengthening on both sequential and annual bases, with credit costs remaining in negative territory at -0.80% versus -0.19% in the previous quarter. The company reported recoveries from written-off pool of ₹332 crore in FY26, resulting in a negative credit cost of -0.45%.
Loan assets grew to ₹90,921 crore, registering 13% year-on-year growth, indicating sustained demand in the housing finance segment. According to LiveMint, retail loan assets grew 16% to ₹86,946 crore, representing 99.5% of total loan assets, while the company resumed corporate lending after a gap of around four years, disbursing ₹335 crore to builders marking a re-entry into the corporate lending segment. Retail disbursements clocked an all-time high of ₹9,020 crore in the quarter under review, contributing significantly to overall growth momentum. Overall disbursements increased by 36% YoY and 50% QoQ to ₹9,355 crore, including ₹335 crore from corporate lending. Net interest margin (NIM) dipped slightly to 3.69% in Q4 FY26 against 3.75% in the year ago period, while credit cost saw a reversal of 83 basis points.
For the full financial year FY26, net profit stood at ₹2,291 crore, compared with ₹1,936 crore in the previous fiscal, reflecting a growth of 18%. As reported by LiveMint, other income declined about 10% YoY to ₹120 crore, while operating expenses rose 17% YoY to ₹250 crore. Despite reporting strong Q4 FY26 results with net profit of ₹656 crore representing a 19.2% year-on-year increase, PNB Housing Finance's stock closed 1.84% lower at ₹906.75 on Monday, adding to its year-to-date and 12-month declines. The company's trailing twelve-month P/E ratio stands at approximately 10.72, which appears high compared to LIC Housing Finance's sub-6 P/E ratio, despite PNB Housing Finance's growth in retail and affordable segments. This valuation gap suggests investors may be expecting slower future earnings or are concerned about competition in the housing finance sector.
