PNB Housing Finance Q4 Result Review: On Track To Achieve FY27 Business Goals; ICICI Securities Maintains Buy

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ICICI Securities Report

PNB Housing Finance Ltd.’s Q4 FY25 and FY25 financial performance reflects management’s successful execution of revamped business strategy with retail loan growth at 18% YoY in FY25 exceeding guidance of 17%, gross non-performing loan touching 1% as on Mar’25, benign credit cost (as indicated it continued to benefit from strong recovery of Rs 3.3 billion in FY25) and affordable housing crossing Rs 50 billion AUM in Mar’25.

FY25 performance also indicates it is steadily moving towards meeting its FY27 business goals –

1. scaling retail loans to Rs 1 trillion with 15% affordable housing + 25% emerging segment + 50% prime housing,

2. NIM at ~4% (3.75% as on Mar’25) and

3. RoE in mid-teens (12.2% in FY25).

More importantly, while scaling retail loan book, it focused on quality and the same reflected in loans originated in past 12 months and 24 months having - 30+ / 90+ dpd at 0.13% / 0.03% for 12 months and 0.48% / 0.14% for 24 months.

Maintain Buy with an unchanged target price of Rs 1,200, valuing the stock at 1.6 times price-to-book value Sep’26E (earlier: 1.75x PBV Sep’25E).

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