PNB Q4FY26 results: Profit up 14%, shares rise 3%

Stock reaction: PNB outperforms Nifty early trade

Punjab National Bank (PNB) shares climbed about 3.5% to an intraday high of ₹111.74 on the NSE after the lender reported its March 2026 quarter (Q4FY26) results. Around 09:40 AM, the stock traded at ₹110, up about 2% versus the previous close of ₹107.89. The benchmark Nifty50 was up 0.54% at 24,161.50 at the same time.

The day’s move came against a weak year-to-date performance for the stock. PNB was down 12.6% on a year-to-date basis, compared with an 8% decline in the Nifty50, based on the figures cited.

Q4FY26 profitability: net profit rises, but core income softens

PNB reported net profit of ₹5,225 crore in Q4FY26, up 14% year-on-year from ₹4,567 crore. The earnings performance was better than expected for some analysts, but not all.

Net interest income (NII) slipped 3.5% year-on-year to ₹10,380 crore from ₹10,756 crore. That decline in NII, alongside a weaker margin print, became the key point of debate in analyst notes following the results.

For the full FY26, PNB reported net profit of ₹16,904 crore, up 3.7%, as per the data provided.

Margins in focus: domestic NIM falls sharply year-on-year

PNB reported a domestic net interest margin (NIM) of 2.61% for Q4FY26, compared with 2.96% in the same quarter of the previous fiscal. Brokerages tracking the stock flagged margin contraction as a pressure point even as bottom-line numbers were supported by lower provisions and operating expenses.

The article also cited a sequential margin decline of 5 basis points, as noted by Motilal Oswal Financial Services (MOFSL). With margins typically driving the sustainability of earnings for lenders, the NIM trajectory is likely to remain a central metric for investors tracking PNB.

Provisions and costs: key support to quarterly earnings

Provisions in Q4FY26 stood at ₹424 crore, down from ₹1,150 crore in the October to December quarter. However, provisions were higher than ₹360 crore in the year-ago period.

MOFSL attributed the lower provisioning to a reversal of standard provisions. It also pointed to lower operating expenses due to a reversal in AS-15-related expenses, which helped the reported earnings.

Asset quality improves: GNPA and NNPA trend lower

On asset quality, PNB reported gross NPAs at 2.95% versus 3.95% in the year-ago period. Net NPAs stood at 0.29%, improving from 0.32%.

MOFSL said asset quality trends stayed healthy, while also noting a slight uptick in slippages due to seasonality. The report did not provide absolute slippage figures, but the direction of commentary was that headline asset quality remained stable.

Business mix and balance sheet: deposits, retail credit, CASA

The bank’s total term deposits grew 10.9% year-on-year to ₹11.01 trillion (₹1,101,000 crore) as of March 31, 2026. Total retail credit increased 8.3% year-on-year to ₹2.81 trillion (₹281,000 crore).

PNB’s CASA ratio improved to 73.7% in Q4FY26 from 71.28% in the year-ago period. The article also said the bank recommended a dividend of ₹3 per share for FY26, which it described as 150% of the ₹2 face value.

What brokerages said: MOFSL vs Emkay on the quarter

MOFSL described Q4FY26 as a mixed quarter, with earnings beating estimates on the back of lower provisions and operating expenses, even as margins declined. It retained a ‘Buy’ rating with a target price of ₹135, valuing the stock at about 0.9x September 2027E adjusted book value. MOFSL also cited management guidance for FY27 loan growth of about 12-13%, and guidance for RoA of over 1% in FY27 with credit costs expected below 0.4%. MOFSL’s FY27 estimates included RoA of about 1.0% and RoE of about 14.8%.

Emkay Global Financial Services, however, said PNB reported an earnings miss, highlighting continued margin contraction and lower treasury gains as key drags. It also cited moderate credit growth of 13.7% year-on-year and 2.4% sequentially.

Floating provisions and ECL buffer ahead of April 2027

Emkay noted that PNB created floating provisions of ₹270 crore to absorb the expected credit loss (ECL) impact from April 2027. This took the cumulative buffer to ₹2,050 crore, which the report pegged at around 0.2% of loans.

Management commentary cited in the article said credit growth could remain range-bound in FY27, and that the bank saw no immediate stress from the West Asia conflict while anticipating potential government support.

Key numbers at a glance

Market impact: valuation targets and what investors are pricing in

Both MOFSL and Emkay kept ‘Buy’ ratings, but the market’s focus remained on margins and the growth outlook. Both brokerages cited a target price of ₹135, implying upside from the levels referenced in the report (₹110 around 09:40 AM), if the thesis on stable asset quality and improving profitability holds.

Emkay cut its target price to ₹135 from ₹150 and trimmed earnings estimates by 5-7%, while still calling valuations attractive at its stated multiple of 0.9x FY28E adjusted book value.

Other datapoints cited: scheduled date, market cap and technical levels

The text also stated that PNB is scheduled to announce its Q4 FY26 financial results on May 12, 2026, alongside other snapshot metrics. As of April 2026, it cited the stock trading around ₹102 with market capitalisation of ₹117,000 crore, a 52-week range of ₹90 to ₹142, and a trailing P/E of about 8x.

Separately, the article included provisional business figures for Q4FY26, stating global business grew 10.79% year-on-year to ₹29,728.96 crore, advances rose 12.97% to ₹12,614.20 crore, deposits increased 9.25% to ₹17,114.76 crore, and the global CD ratio stood at 73.70%.

Conclusion

PNB’s Q4FY26 results triggered a positive stock reaction, supported by a higher net profit and improved asset quality metrics, even as domestic NIM and NII declined. Brokerages differed on whether the quarter was a beat or a miss, but both highlighted margin pressure as the key swing factor and maintained a ₹135 target price. Investors are likely to track FY27 guidance around loan growth, RoA, and credit costs, along with how the bank executes its stated plan to rebalance the loan mix toward retail, agriculture, and MSME.