PNB Housing Finance Ltd. (NSE: PNBHOUSING), a registered housing finance company with National Housing Bank (NHB), reported a solid set of Q3 results for the quarter ended December 31, 2025, continuing its strategic pivot toward retail lending and delivering respectable year-over-year earnings growth despite ongoing competitive pressures in the housing finance sector.
Market Capitalization
According to the most recent market data available in January 2026, PNB Housing Finance Ltd. (NSE: PNBHOUSING) has a market capitalization of about ₹247 billion (₹24,700+ crore). Based on current share prices, this is the entire market value of all outstanding shares.
Key Financial Updates
The company posted a net profit after tax of ₹521 crore, representing a 10.6% year-over-year increase from ₹471 crore compared with the same period a year earlier.
Net interest income (NII) increased by 12.8% from ₹671 crore in Q3FY25 to ₹757 crore in Q3.
Total revenue from operations for the quarter stood at around ₹2,119 crore, with core interest income surpassing ₹2,019 crore, reflecting healthy increase in loan interest yields YoY.
Portfolio Composition & Segment Performance
One of the standout themes in PNB Housing’s Q3 performance continues to be its retail-focused portfolio strategy. Retail loan assets expanded by about 16% YoY to roughly ₹81,900 crore, making up the vast majority of total loan assets.
Emerging & Affordable Markets, combined, the affordable and emerging markets segments accounted for 39% of the retail loan book, underscoring the company’s emphasis on underserved housing segments.
Disbursements rose about 15-16% YoY, with total retail disbursements at ₹6,217 crore, half of which were channeled into affordable and emerging markets, reflecting the firm’s sustained focus on high-growth retail niches.
Asset Quality & Ratios
Gross NPA & Net NPA, remained resilient, with gross NPA around 1.04% and net NPA lower figures that compare favorably with many peers in the NBFC housing finance space.
Capital Position
As of December 31, 2025, the company’s capital-to-risk-weighted assets ratio was 29.46%, indicating a good capital position. The capital adequacy buffer was comfortable, with Tier I capital at 28.92% and Tier II capital at 0.55%.
Market Analysis & Outlook
Despite the robust underlying earnings growth, the company’s share price saw mixed reactions post-results, reflecting market sensitivity to margin and macro concerns in the NBFC lending space. Broader indices ended lower in session alongside earnings announcements, underscoring cautious investor sentiment.
Looking ahead into FY2026, the company’s strategic emphasis on retail loans, affordable housing, and Tier II/III city expansion is expected to support long-term asset growth and stable interest margins. However, competitive pressures from larger banks and other NBFCs, particularly in price-sensitive retail segments could continue to compress spreads and warrant close monitoring.