Understanding PNB Housing Finance’s Impressive Q2 Performance
PNB Housing Finance delivered robust Q2 FY26 results on October 26, 2025, with net profit jumping 24% year-over-year to Rs 582 crore. This strong profit growth makes PNB Housing Finance a stock worth monitoring closely. The company’s total income grew 13% to Rs 2,131 crore, while net interest income surged 14% to Rs 765 crore, demonstrating solid operational strength. PNB Housing Finance’s focus on affordable housing segments is delivering results.
Key Growth Drivers Behind PNB Housing Finance Surge
The affordable and emerging markets segment is driving PNB Housing Finance’s exceptional performance. Disbursements in affordable housing jumped 30.7% year-over-year to Rs 823 crore, while emerging markets grew 23% year-over-year. These segments now contribute 50% of total retail disbursements, showing strong strategic execution from PNB Housing Finance. Retail loan assets grew 17% to Rs 79,439 crore, positioning PNB Housing Finance for sustained growth.
Asset Quality and Financial Strength Supporting PNB Housing Finance
PNB Housing Finance demonstrates excellent asset quality, with gross NPAs improving to 1.04% from 1.24% year-over-year. This improvement signals disciplined risk management. The capital adequacy ratio stands robust at 29.80%, with Tier I capital at 29.21%. PNB Housing Finance’s net profit margin reached 27.30%, reflecting operational efficiency. These metrics make PNB Housing Finance an attractive investment for risk-conscious investors.
Investment Decision: Should You Buy, Sell, or Hold PNB Housing Finance?
Brokerages maintain optimistic views on PNB Housing Finance stock. Nirmal Bang upgraded its target to Rs 1,100 (28.8% upside), while Motilal Oswal targets Rs 1,080. These targets suggest meaningful upside potential for PNB Housing Finance investors. The company maintains 17-18% growth guidance for FY26 and targets Rs 1.25 lakh crore loan book by FY27. Analysts recommend a BUY rating for PNB Housing Finance, making it attractive for long-term wealth creation.
DISCLAIMER
This article is for educational and informational purposes only. It is not intended as investment advice, and should not be considered a recommendation to buy, sell, or hold any securities. All information provided is based on publicly available data. Before making any investment decision, please consult with a qualified financial advisor and conduct your own research. Market risks and uncertainties may impact stock performance.