**PNB Housing Finance Delivers Record Quarter with Sub-1% NPAs** **Key highlights** • Record retail disbursements of ₹9,020 crore in Q4FY26, marking an all-time high with 32% year-over-year growth. • Historic milestone achieved with gross NPAs falling below 1% for the first time ever at 0.93%. • Assets under management crossed ₹90,000 crore threshold, reaching ₹90,921 crore with 13% annual growth. • Net profit surged 19% to ₹656 crore in Q4FY26, driving return on equity to 13.94%. **Opening Paragraph** PNB Housing Finance capped FY26 with its strongest quarterly performance yet, demonstrating the housing finance company's ability to scale operations while maintaining superior asset quality. The quarter represented a convergence of record business volumes and operational excellence, with the company achieving its first-ever sub-1% gross NPA ratio alongside all-time high disbursements. This performance underscores the effectiveness of the company's strategic focus on high-yield segments and geographic diversification. **Disbursement Momentum Reaches New Heights** The company's retail disbursement engine fired on all cylinders during Q4FY26, delivering ₹9,020 crore compared to ₹6,854 crore in the same quarter last year. This 32% year-over-year surge was broad-based across segments, with prime housing loans contributing ₹4,750 crore, emerging markets adding ₹3,021 crore, and affordable housing generating ₹1,249 crore. The quarter-on-quarter acceleration was even more pronounced at 45%, indicating strong momentum heading into the new financial year. For the full year FY26, total retail disbursements reached ₹26,213 crore, representing 19% growth over the previous year. **Strategic Portfolio Mix Drives Yield Optimization** The company's deliberate focus on higher-yielding segments continues to reshape its portfolio composition, with affordable and emerging markets segments now representing 40% of total loan assets. These segments contributed 47% of total retail disbursements during Q4FY26, reflecting the company's strategic emphasis on markets that offer superior risk-adjusted returns. The emerging markets segment delivered incremental yields of 9.23%, maintaining a 31 basis point premium over the prime segment. This portfolio strategy is supported by an extensive branch network of 393 locations, with 80% focused on affordable and emerging markets. **Asset Quality Reaches Industry-Leading Standards** PNB Housing Finance achieved a watershed moment in Q4FY26 by recording gross NPAs of 0.93%, marking the first time in the company's history that this metric fell below 1%. Net NPAs compressed further to 0.57%, representing an 11 basis point quarterly improvement. The corporate loan portfolio maintained zero NPAs, while recovery efforts generated ₹167 crore during the quarter. This asset quality performance positions the company well ahead of industry benchmarks, with ICRA data showing affordable housing finance company delinquencies at significantly higher levels. **Profitability Scales with Operational Leverage** Net profit for Q4FY26 reached ₹656 crore, up 19% from ₹550 crore in the corresponding quarter last year, driving return on equity to 13.94%. Net interest income expanded 11% year-over-year to ₹813 crore, benefiting from both volume growth and stable spreads. The company maintained disciplined cost management with operating expenses growing 17% to ₹248 crore, primarily driven by strategic investments in branch expansion and technology infrastructure. For the full year FY26, net profit grew 18% to ₹2,291 crore, translating to earnings per share of ₹88. **Capital Position Supports Continued Expansion** The company's balance sheet strength provides a solid foundation for sustained growth, with capital adequacy ratio standing at 27.26% and book value per share increasing 14% to ₹738. Total borrowings of ₹71,199 crore maintain a diversified funding profile, with term loans comprising 39.2% and deposits contributing 25.3%. The cost of borrowing continued its downward trajectory to 7.35%, reflecting improved funding mix and market conditions. Management recommended a dividend of ₹8 per equity share for FY26, demonstrating confidence in the company's cash generation capabilities. **The Bigger Picture** PNB Housing Finance appears to have hit its stride as a scaled housing finance platform, successfully balancing aggressive growth with prudent risk management. The company's strategic positioning in high-growth, high-yield segments, combined with best-in-class asset quality metrics, suggests a business model that can sustain profitable expansion. With ample capital buffers and a proven execution track record, the company is well-positioned to capitalize on India's housing finance opportunity while maintaining its operational excellence standards.