PNB Housing Finance reports ₹617 crore Q2 FY27 profit

PNB Housing Finance Limited reported profit after tax of ₹617 crore for the second quarter of FY27, up 6% year on year, as overall disbursements rose 60% to ₹9,609 crore and its loan book grew 19% to ₹95,079 crore at September 30, 2026. The quarter also showed improved spread and asset quality.

What did PNB Housing Finance report for Q2 FY27?

PNB Housing Finance reported a 6% year-on-year increase in quarterly profit after tax to ₹617 crore. The company also disclosed revenue of ₹2,423 crore, gross profit of ₹2,210 crore and net profit of ₹616 crore in the earnings data. The earnings-call presentation cited profit after tax of ₹617 crore, reflecting rounding in the reported figures.

The company described the quarter as a landmark period, led by disbursement growth across its businesses. Overall disbursements increased 60% year on year to ₹9,609 crore, including a pool buyout of ₹838 crore. Retail disbursements reached an all-time high of ₹9,250 crore, up 54% from a year earlier.

The reported performance covers the quarter and half-year ended September 30, 2026. Management discussed the results on October 28, 2026, in an earnings call led by Managing Director and Chief Executive Officer Ajai Kumar Shukla, along with the investor relations and corporate planning team.

How did loan growth and disbursements support the quarter?

Loan growth and disbursements supported the quarter, with the overall loan book reaching ₹95,079 crore as of September 30, 2026. The 19% year-on-year expansion was in line with the company’s stated guidance and was driven by higher disbursements.

The retail portfolio was the principal contributor to new lending. Within retail, the affordable business recorded a 40% year-on-year rise in disbursements to ₹1,149 crore. The emerging markets business delivered disbursements of ₹2,882 crore, up 36% year on year, while prime business disbursements rose 44% to ₹4,380 crore.

Corporate disbursements stood at ₹360 crore in Q2 FY27, compared with ₹215 crore in the preceding quarter. The company’s reported overall disbursement number includes the ₹838 crore pool buyout, which formed part of the quarter’s funding activity.

These figures indicate that growth was spread across affordable, emerging markets, prime and corporate segments. The reported retail disbursement level was the highest disclosed by the company, while the loan-book increase shows that higher originations translated into a larger outstanding portfolio.

What changed in PNB Housing Finance's margins and asset quality?

PNB Housing Finance reported improvement in both spread and asset quality during the quarter. Spread increased to 2.43% in Q2 FY27 from 2.12% in Q1 FY27. Gross non-performing assets improved to 0.91%, compared with 0.95% in the prior quarter.

The company said its cost of borrowing improved by 5 basis points sequentially to 7.31%. Incremental cost of borrowing declined by 15 basis points to 7.26%. These movements were cited alongside the improvement in spread, a key measure of the difference between lending yields and funding costs.

PNB Housing Finance also recovered ₹75 crore from its written-off pool during the quarter. This resulted in a negative credit cost of 19 basis points. The company reported return on assets of 2.53% and return on equity of 12.33% for Q2 FY27.

Capital ratios remained above the levels disclosed in the prior results update. Capital adequacy ratio stood at 27.03% and the Tier 1 capital ratio was 26.62% as of September 30, 2026. Management also said CRISIL had upgraded the company’s credit rating to AAA with a stable outlook.

Why do the Q2 FY27 figures matter for investors and the housing finance sector?

The Q2 FY27 figures matter because they combine faster loan growth with an improvement in reported spread and gross non-performing assets. For investors, the results provide measurable indicators across loan originations, portfolio expansion, funding cost, profitability and credit quality rather than relying on a single earnings metric.

The 60% rise in disbursements was substantially faster than the 19% increase in the loan book. This reflects a strong quarter for new lending activity, while the outstanding portfolio grew at a lower rate. The company’s segment-level data also shows contributions from multiple lending categories, including affordable housing and emerging markets.

For the housing finance industry, borrowing costs, spreads and asset quality are closely watched because they influence lending economics and portfolio performance. PNB Housing Finance reported a sequential decline in its cost of borrowing alongside a higher spread, while the gross non-performing asset ratio moved below 1%.

The Q2 results do not provide a new financial target or outlook in the disclosed call excerpts. However, the loan-book growth was described by management as being in line with guidance, and the company’s capital position provides the reported balance-sheet context for its lending operations.

Conclusion

PNB Housing Finance delivered Q2 FY27 profit after tax of ₹617 crore, supported by 60% growth in overall disbursements and a 19% expansion in its loan book. The quarter also included a higher spread, lower gross non-performing assets, lower reported borrowing costs and recovery from the written-off pool.

Investors will watch whether retail, affordable, emerging markets and prime disbursement momentum continues, and whether the company sustains its reported spread and asset-quality levels. The company has said the earnings-call transcript will be uploaded on its website, following the October 28, 2026 discussion of its quarterly and half-year results.