PNB Housing Finance shares jump 11% on Q4 earnings beat; MOFSL assigns 'Buy' call
Motilal Oswal Financial Services Ltd (MOFSL) said that the company's Q4 FY26 performance came in ahead of estimates, with PAT rising 19 per cent YoY to around Rs 660 crore, marking a 14 per cent beat.
- Apr 21, 2026,
- Updated Apr 21, 2026 9:51 AM IST
Shares of PNB Housing Finance Ltd surged 11.06 per cent in Tuesday's opening trade, hitting a high of Rs 1,006, after the company reported an earnings beat driven largely by provision write-backs.
Motilal Oswal Financial Services Ltd (MOFSL) said that the company's Q4 FY26 performance came in ahead of estimates, with PAT rising 19 per cent YoY to around Rs 660 crore, marking a 14 per cent beat. For FY26, PAT grew 18 per cent YoY to Rs 2,290 crore.
Net interest income (NII) rose about 11 per cent YoY to roughly Rs 810 crore, broadly in line with estimates. Other income declined around 10 per cent YoY to about Rs 120 crore, while operating expenses increased 17 per cent YoY to around Rs 250 crore, coming in about 7 per cent higher than MOFSL estimates.
Pre-provision operating profit (PPOP) grew about 5 per cent YoY to Rs 680 crore, in line with expectations. For FY26, PPOP rose around 11 per cent YoY to Rs 2,580 crore.
Credit costs turned favourable during the quarter, with net provision write-backs of around Rs 180 crore, compared with MOFSL's estimate of Rs 49 crore.
MOFSL noted that the total loan book grew about 15 per cent YoY and 6 per cent QoQ to around Rs 8,730 crore. Retail loans increased 16 per cent YoY and 6 per cent QoQ to Rs 8,690 crore as of March 2026.
Retail disbursements in Q4 FY26 rose 32 per cent YoY to around Rs 9,020 crore, while corporate disbursements stood at Rs 340 crore. The affordable and emerging market segment contributed around 47 per cent to retail disbursements. However, disbursements in the affordable segment declined 3 per cent YoY to about Rs 1,250 crore.
Repayments remained elevated, with annualised levels at around 20.5 per cent compared with 17 per cent in the previous year, primarily due to higher competitive intensity from banks.
The affordable and emerging loans segment now forms about 40 per cent of retail loan assets. As of March 2026, the affordable book stood at approximately Rs 8,150 crore, up around 61 per cent YoY.
MOFSL has assigned a 'Buy' call on PNB Housing Finance and said it will revisit its estimates and target price following the company's upcoming earnings call scheduled for later today.
Shares of PNB Housing Finance Ltd surged 11.06 per cent in Tuesday's opening trade, hitting a high of Rs 1,006, after the company reported an earnings beat driven largely by provision write-backs.
Motilal Oswal Financial Services Ltd (MOFSL) said that the company's Q4 FY26 performance came in ahead of estimates, with PAT rising 19 per cent YoY to around Rs 660 crore, marking a 14 per cent beat. For FY26, PAT grew 18 per cent YoY to Rs 2,290 crore.
Net interest income (NII) rose about 11 per cent YoY to roughly Rs 810 crore, broadly in line with estimates. Other income declined around 10 per cent YoY to about Rs 120 crore, while operating expenses increased 17 per cent YoY to around Rs 250 crore, coming in about 7 per cent higher than MOFSL estimates.
Pre-provision operating profit (PPOP) grew about 5 per cent YoY to Rs 680 crore, in line with expectations. For FY26, PPOP rose around 11 per cent YoY to Rs 2,580 crore.
Credit costs turned favourable during the quarter, with net provision write-backs of around Rs 180 crore, compared with MOFSL's estimate of Rs 49 crore.
MOFSL noted that the total loan book grew about 15 per cent YoY and 6 per cent QoQ to around Rs 8,730 crore. Retail loans increased 16 per cent YoY and 6 per cent QoQ to Rs 8,690 crore as of March 2026.
Retail disbursements in Q4 FY26 rose 32 per cent YoY to around Rs 9,020 crore, while corporate disbursements stood at Rs 340 crore. The affordable and emerging market segment contributed around 47 per cent to retail disbursements. However, disbursements in the affordable segment declined 3 per cent YoY to about Rs 1,250 crore.
Repayments remained elevated, with annualised levels at around 20.5 per cent compared with 17 per cent in the previous year, primarily due to higher competitive intensity from banks.
The affordable and emerging loans segment now forms about 40 per cent of retail loan assets. As of March 2026, the affordable book stood at approximately Rs 8,150 crore, up around 61 per cent YoY.
MOFSL has assigned a 'Buy' call on PNB Housing Finance and said it will revisit its estimates and target price following the company's upcoming earnings call scheduled for later today.