PNB Housing Finance delivered impressive Q4 FY26 results, with net profit rising 19% to ₹656 crore compared to ₹500 crore in the year-ago period, backed by improvement in operating leverage. The company's annual net profit for FY26 stood at ₹2,291 crore over ₹1,936 crore in the preceding fiscal, reflecting an 18% growth. As per ET Now, the brokerage Motilal Oswal Securities Limited maintains a buy call with a target price of ₹1,275 versus the previous ₹1,260, citing the company's strategic pivots and calibrated shift towards affordable/emerging segment opportunities.
The company's assets under management expanded 13% year-on-year to ₹90,921 crore, with retail loan assets growing 16% to ₹86,946 crore. According to ET Now, the affordable and emerging markets segment grew by 28% year-on-year and contributed 40% to retail loan assets. The company resumed corporate lending after a gap of around four years, disbursing ₹335 crore to builders and achieving an all-time high retail disbursement of ₹9,020 crore in the quarter. The net interest margin for the quarter dipped slightly to 3.69% against 3.75% in the year-ago period, while the gross non-performing assets ratio improved to 0.93% from 1.08% a year back.
As per Motilal Oswal's latest research report dated June 5, 2026, PNB Housing Finance is entering the next phase of its transformation, leveraging its retail franchise, distribution network, and improving operating infrastructure to accelerate growth in higher-yielding affordable and emerging segments. The company targets raising the affordable and emerging segment share from ~39% to ~45% by end-FY27 and ~50% within the next two years, driven by faster growth in these segments rather than sacrificing its prime housing portfolio. The brokerage models an AUM CAGR of ~19% over FY26–28E, with growth expected through improving branch productivity, expanding affordable housing sourcing, and calibrated entry into micro-housing - a higher-yielding segment that could meaningfully support margins over the medium term.
According to The Times of India, Motilal Oswal Wealth Management Research Desk has recommended Shriram Finance, Cummins India, and PNB Housing Finance as top stock picks for the week starting June 8, 2026. The brokerage has set a target price of ₹1,175 for Shriram Finance with an upside potential of 27% from its current market price of ₹923. For Cummins India, the target is ₹6,600 with an upside of 14% from its current market price of ₹5,794. PNB Housing Finance has been recommended with a target price of ₹1,275.
According to ET Now, PNB Housing Finance shares were trading 1.20% higher at ₹1,009.95 compared to the previous closing price of ₹998.00 at the time of reporting. The company's board proposed a final dividend of ₹8 per share for the fiscal year ending March 31, having a face value of ₹10 a piece. The brokerage's bullish stance is supported by the company's successful execution of strategic pivots, calibrated shift towards affordable/emerging segment opportunities, and strengthening of the affordable and emerging housing franchise through incremental cost of business improvements. As per Motilal Oswal's latest report, the stock trades at 1.3x FY27 P/B with an estimated loan/PAT CAGR of 19%/12% over FY26–28 and RoA/RoE of ~2.3%/12.6% in FY28.
