PNB Housing profit jumps as margin reaches a six-quarter high
Costs fell sharply despite higher interest expense year on year, while management flagged softer yields and spreads alongside record retail disbursements.
Filed 20 Apr 2026, 19:30 IST · after market close · PNB Housing Finance Ltd (PNBHOUSING)
Key takeaways
- Consolidated net profit rose 19.15% year on year and 26.03% sequentially, despite the tax rate increasing by 0.65 percentage points year on year.
- Operating margin widened 4.2 percentage points year on year to 97.61% as revenue grew 7.9% while expenses fell 60.93%.
- The stock gained 7.98% on the first trading day after results, far above its 1.61% median absolute move after the last eight result announcements.
Price around the results
Profit growth outpaced revenue in Q4FY26
PNB Housing Finance reported consolidated net profit growth of 19.15% year on year and 26.03% sequentially, against revenue growth of 7.9% and 2.95%, respectively. The main operating lever was a 60.93% year-on-year and 71.59% sequential fall in expenses, which lifted operating profit by 12.75% and 10.0%. Interest expense rose 5.77% year on year but fell 0.54% sequentially, while other income was negative and accounted for -1.13% of pre-tax profit.
Margin rebound followed Q3FY26 decline
Operating margin expanded 4.2 percentage points year on year and 6.26 percentage points sequentially because costs declined while revenue continued to grow. The margin moved from 95.88% in Q2FY26 to 91.35% in Q3FY26 before rebounding to 97.61% in Q4FY26, so the quarter reversed the previous decline rather than extending a multi-quarter slide. Across 52 reported Financial Services peers, PNB Housing's margin was 38.2 percentage points above the 59.41% median.
Retail scale-up came with lower yield and spread
Management said the company added 35 branches during the quarter, taking its network to 393, and that retail disbursement reached a record INR 9,020 crore. The company told analysts it had revived its Corporate segment, with INR 335 crore disbursed in Q4FY26, and said it recovered INR 167 crore from its written-off pool. Management also said average yield moderated to 9.47% from 9.72% in Q3FY26, while spread narrowed to 2.12% from 2.22%.
Post-results rally was unusually large for this stock
The stock rose 7.98% on the first trading day after the results, with a 15.09% gain after five sessions and a 17.22% gain after 15 sessions. That reaction was much larger than the 1.61% median absolute move across the last eight result announcements. The direction was consistent with the stock's history, which shows five gains and three declines, but the size of the move was unusual.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,182 cr | ₹2,119 cr | +2.95% | +7.90% |
| Other income | ₹-10 cr | ₹2 cr | — | — |
| Expenses | ₹52 cr | ₹183 cr | -71.59% | -60.93% |
| Operating profit | ₹2,129 cr | ₹1,936 cr | +10.00% | +12.75% |
| Operating margin (%) | 97.61% | 91.35% | — | — |
| Interest | ₹1,246 cr | ₹1,253 cr | -0.54% | +5.77% |
| Depreciation | ₹19 cr | ₹16 cr | +18.40% | +34.03% |
| Profit before tax | ₹855 cr | ₹668 cr | +27.85% | +20.16% |
| Tax | ₹199 cr | ₹148 cr | +34.25% | +23.61% |
| Net profit | ₹656 cr | ₹520 cr | +26.03% | +19.15% |
| EPS (₹) | ₹25.17 | ₹19.97 | +26.04% | +18.84% |
Operating margin of 97.61% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +7.98% | +7.11% |
| Next session | +9.21% | — |
| 5 sessions | +15.09% | +16.60% |
| 15 sessions | +17.22% | — |
| 30 sessions | +10.22% | — |
Volume on the results session was 17.45× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Retail disbursement reached an all-time high of INR 9,020 crore in Q4 FY26.
- The company recovered INR 167 crore in Q4 FY26 from its total written-off pool.
Expansion
- The company added 35 branches, taking its total network to 393 branches.
New initiatives
- The company revived its Corporate segment, disbursing INR 335 crore during Q4 FY26.
Problems & risks
- Average yield moderated to 9.47% in Q4 FY26 from 9.72% in Q3 FY26.
- Q4 FY26 spread declined to 2.12% from 2.22% in Q3 FY26.
What to watch
- Whether operating margin holds above 97.61% after the Q4FY26 rebound.
- Whether average yield moves back from 9.47% and spread from 2.12%.
- Whether retail disbursement remains near the Q4FY26 record of INR 9,020 crore.