PNB Housing Finance shares end 4% higher after Q4 earnings, brokerages bullish

Shares of PNB Housing Finance closed with over 4 per cent gains amid market volatility after rallying 10 per cent in early trade on Tuesday following 25 per cent increase in net profit to ₹550 crore in the March quarter.

Net interest income grew 16.2 per cent to ₹734 crore at the end of the fourth quarter ended March 2025 and net interest margin (NIM) increased to 3.75 per cent, as compared to 3.65 per cent in Q4 FY24.

Girish Kousgi, Managing Director & CEO of PNB Housing Finance Ltd, said, “During the Financial Year 2024-25, the company delivered strong performance across multiple parameters and surpassed its stated guidance for the year on growth, asset quality and profitability. The retail loan asset grew by 18.2 per cent y-o-y to ₹74,802 crore as on March 31, 2025, supported by growth in the affordable and emerging markets segment.”

“On the back of strong business and financial performance, the RoA increased by 35 bps for FY24-25,” Kousgi added.

Brokerages cheer the strong quarter and expect recoveries to continue over FY26.

Motilal Oswal mentioned that the healthy performance in Q4 and FY25 was driven by robust execution leading to healthy loan growth, asset quality improvement, margin expansion, and strong profitability. The brokerage has reiterated buy at a target price of ₹1,230.

However, the inability to drive NIM expansion amid aggressive competition in mortgages and subsequent seasoning in affordable or emerging loan book impacting asset quality and credit costs could pose as risks.

HDFC Securities has maintained add rating at a revised target price of ₹1,025. The Q4 earnings were ahead of estimates due to lower-than-expected provisioning and higher other income, in addition to healthy loan growth amid weak overall demand. HDFC Securities analysts have raised FY26/FY27 earnings estimates by 3.5/1.4 per cent.

Shares of PNB Housing ended 4.45 per cent positive on the BSE at ₹1,030.65, after hitting an intraday high of ₹1085.40.

Published on April 29, 2025