PNBHOUSING's Q2 FY27 numbers came in strong, with revenue of Rs. 2,423.15 Cr (+13.88% YoY) and PAT growth of +6.01% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,423.15 Cr (+13.88% YoY) |
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| PAT (Q2) | Rs. 616.55 Cr (+6.01% YoY) |
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| EPS (Q2) | Rs. 23.65 (+5.87% YoY) |
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| Market cap | Rs. 28,375.47 Cr |
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| CMP | Rs. 1,088.00 |
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Quarter Snapshot
PNB Housing delivered 13.88% revenue growth and 15.84% PPOP growth with GNPA improving to 0.91% and a sixth consecutive quarter of net impairment write-back, keeping all stated FY27 targets (Rs.1,00,000 cr loan book, ~1% GNPA, negative credit cost) on track. Reported PAT growth of 6.01% understates the 17.13% credit-cost-neutral growth, as the shrinking write-back is the only drag. Key watch items are the fading recovery tailwind (credit cost guided to normalize to +20-30 bps), deposit contraction, and rising leverage at 3.93x debt/equity.
Key Investment Insights
Key Positives
- Loans grew 17.99% YoY to Rs.94,124.48 cr; needs only +6.24% over H2 to cross the guided Rs.1,00,000 cr milestone
- GNPA improved to 0.91% (from 0.95% QoQ) and NNPA to 0.55% (from 0.58%); provision coverage rose to 39.98%
- PPOP grew 15.84% YoY to Rs.749.05 cr; H1 PPOP up 12.53% YoY
- Net impairment reversal of Rs.47.56 cr — sixth consecutive quarter of net write-back, consistent with guidance of negative credit cost for FY27
- Fees and commission income grew 35.69% YoY to Rs.130.51 cr
- Finance cost grew slower than interest income both YoY (+11.66% vs +13.47%) and QoQ (+5.68% vs +7.05%)
- Credit-cost-neutral PAT grew 17.13% YoY vs 6.01% reported; the reported lag is entirely the shrinking write-back
- Effective tax rate declined 84 bps YoY to 22.60%
Risk Factors
- Impairment write-back shrank to Rs.47.56 cr from Rs.113.18 cr YoY; management guides credit cost normalizing to +20–30 bps as recoveries fade
- Deposit book contracted in H1 (Rs.17,704.04 cr vs Rs.18,055.39 cr) while borrowings grew 11.80%, raising funding-mix reliance on market borrowings
- Cost-to-income rose 63 bps YoY to 25.78%; employee benefits expense up 27.23% YoY after Labour Codes compensation restructuring
- Leverage rising: debt/equity at 3.93 with borrowings +11.80% H1 vs net worth +5.36%, a flagged NIM drag
- Rs.421.81 cr fraud account (Happy Home Corporation) remains fully provided with no recovery update in the filing