PNB Housing Finance Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript PNB Housing Finance Ltd filed with BSE on 07 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
PNB Housing Finance reported Q1 FY27 disbursement growth of 18% year-on-year to Rs 5,882 crore following a shift in recognition from cheque handover to cheque realisation basis, while on a comparable cheque handover basis disbursements grew 56% year-on-year. The overall loan book grew 15% year-on-year to Rs 89,670 crore, with the retail portfolio up 16% to Rs 89,178 crore and Affordable and Emerging Markets segments growing 27% year-on-year. Profit after tax grew 4% year-on-year to Rs 557 crore, with gross NPA at 0.95%, spread stable at 2.12%, and NIM moderating 19 bps quarter-on-quarter to 3.50%.
Numbers mentioned
Disbursement: INR5,882 crores (Q1 FY27)
p. 4
“Post the one-time impact of this transition, disbursement for Q1 FY27 grew at 18% Y-o-Y at INR5,882 crores.”
Ajai Kumar Shukla, page 4 of the filed PDF · View the filing
Loan book: INR 89,670 crores (as on 30th June 2026)
p. 4
“Overall loan book grew by 15% Y-o-Y to INR 89,670 crores as on 30th June 2026.”
Ajai Kumar Shukla, page 4 of the filed PDF · View the filing
Retail loan portfolio: INR 89,178 crore (as on 30th June 2026)
p. 4
“While the retail loan portfolio increased by 16% Y-o-Y to INR 89,178 crore, the Affordable and Emerging market segment continue to be our key growth engine, growing 27% Y-o-Y and contributing 41% of retail portfolio.”
Ajai Kumar Shukla, page 4 of the filed PDF · View the filing
Gross NPA: 0.95% (Q1 FY27)
p. 5
“Gross NPA remains less than 1%, which is 0.95%.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Spread: 2.12% (Q1 FY27)
p. 5
“As far as margin is concerned, our spread remained stable sequentially at 2.12%, while NIM moderated by 19 bps Q-on-Q to 3.50%, out of which 12 bps is attributable to increase in leverage and 7 bps in true-up impact of Q4 FY26.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Portfolio yield: 9.48% (Q1 FY27)
p. 5
“Our portfolio yield improved marginally to 9.48% for Q1 FY27.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Cost of borrowing: 7.36% (Q1 FY27)
p. 5
“Marginal increase in cost of borrowing to 7.36% during Q1 financial year '27 compared with 7.35% in previous quarter.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Profit after tax: INR 557 crores (Q1 FY27)
p. 6
“As far as profitability is concerned, as a result, profit after tax for the quarter grew by 4% Y-o-Y to INR 557 crores, leading to ROA of 2.37% and ROE of 11.44%.”
Ajai Kumar Shukla, page 6 of the filed PDF · View the filing
Capital adequacy ratio: 28.26% (as of June '26)
p. 6
“Our capital position remains strong with a capital adequacy ratio of 28.26% and Tier 1 capital ratio of 27.87% as of June '26.”
Ajai Kumar Shukla, page 6 of the filed PDF · View the filing
Recoveries from written-off pool: INR67 crores (Q1 FY27)
p. 5
“Recoveries remained healthy at INR67 crores from written-off pool, resulting in a negative credit cost of 12 basis points during the quarter.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Operating expenses: INR 237 crores (Q1 FY27)
p. 7
“Operating expenses increased 10% year-on-year to INR 237 crores from INR 216 crores in Q1 last year, primarily due to manpower addition and annual compensation revisions.”
Vinay Gupta, page 7 of the filed PDF · View the filing
Pre-provision operating profit: INR 689 crores (Q1 FY27)
p. 7
“Supported by healthy operating leverage, our pre-provision operating profit also grew 9% year-on-year to INR 689 crores.”
Vinay Gupta, page 7 of the filed PDF · View the filing
Net worth: INR 19,800 crores (Q1 FY27)
p. 7
“Our net worth is at INR 19,800 crores, with book value now increasing to around INR 760.”
Vinay Gupta, page 7 of the filed PDF · View the filing
BT-in share: 4.4% (Q1 FY27)
p. 16
“BT-in has slightly reduced. It is 4.4% in Q1 FY27 from 5% in Q1 FY26.”
Ajai Kumar Shukla, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Overall loan book growth — 18% to 20% · FY27
stated firmly by Ajai Kumar Shukla
p. 6
“Maintaining full year guidance of 18% to 20% overall book growth.”
Ajai Kumar Shukla, page 6 of the filed PDF · View the filing
Affordable loan book growth — 50% to 60% · FY27
stated firmly by Ajai Kumar Shukla
p. 6
“Also maintaining growth guidance of 50% to 60% in Affordable loan book.”
Ajai Kumar Shukla, page 6 of the filed PDF · View the filing
NIM — H2 FY27
stated as an aspiration by Vinay Gupta
p. 7
“Going forward, we feel NIM has largely bottomed out and should start improving from second half of this financial year.”
Vinay Gupta, page 7 of the filed PDF · View the filing
Affordable and Emerging Markets contribution to retail portfolio — 45% · end of FY27
stated firmly by Ajai Kumar Shukla
p. 4
“We remain on track to increase the contribution to 45% by the end of FY27.”
Ajai Kumar Shukla, page 4 of the filed PDF · View the filing
Affordable and Emerging Markets contribution to overall book — 50% · FY28
stated as an aspiration by Ajai Kumar Shukla
p. 13
“So the team is strengthened in Affordable and Emerging also, and that is why we are very much confident that my Emerging and Affordable should contribute 45% of my overall book in FY27, and 50% in FY28.”
Ajai Kumar Shukla, page 13 of the filed PDF · View the filing
Construction finance portfolio share — 3% of overall book · FY27
stated firmly by Ajai Kumar Shukla
p. 8
“So construction finance portfolio, as I said earlier also, we will restrict it to 3% of my overall book in FY27, which will help us in overall improvement in margin.”
Ajai Kumar Shukla, page 8 of the filed PDF · View the filing
ROA — around 2.4% · FY27
stated firmly by Vinay Gupta
p. 10
“So as we guided, I think on a long-term basis we are expected to settle around 2.3% kind of a ROA, 2.3% to 2.35%. And for this year, I think it should be in the range of 2.4%.”
Vinay Gupta, page 10 of the filed PDF · View the filing
ROA — around 2.3% · FY28
stated as an aspiration by Vinay Gupta
p. 12
“Next year, this credit cost normalizing, we expect it to be around 2.3%.”
Vinay Gupta, page 12 of the filed PDF · View the filing
Credit cost — negative · FY27
stated conditionally by Vinay Gupta
p. 9
“We still have line of sight on good recoveries quarter-on-quarter this year at least. So this year we should be able to maintain the negative credit cost.”
Vinay Gupta, page 9 of the filed PDF · View the filing
Rating upgrade benefit on cost of borrowing — around 10 basis points
stated conditionally by Vinay Gupta
p. 15
“Yes, around 10 basis points at least should come in, Gaurav.”
Vinay Gupta, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said margin, yield and cost of funds have bottomed out and mix shift toward Affordable/Emerging should support margins over medium to long term.
Answered by Ajai Kumar Shukla
Asked by Viral Shah: Does the medium-term thesis of gradual NIM expansion via book mix change still hold over a 2-year horizon?
p. 7
“margin have bottomed out and yield is also bottomed out. And cost of fund also, we strongly believe that it has also bottomed out.”
Ajai Kumar Shukla, page 7 of the filed PDF · View the filing
Management said the team is focused on beating the guidance.
Answered by Ajai Kumar Shukla
Asked by Viral Shah: Given the strong gross disbursement number, is the 18-20% loan growth guidance conservative?
p. 8
“our team is focusing on better growth than what we have given guidance.”
Ajai Kumar Shukla, page 8 of the filed PDF · View the filing
CFO explained average leverage rose more than period-end numbers suggest, plus a flow-through effect from high Q4 disbursements realized in Q1 and lower investment yields.
Answered by Vinay Gupta
Asked by Sameer Bhise: What explains the leverage impact on NIM this quarter given debt-to-equity moved only slightly?
p. 9
“on an average our leverage has gone up from 3.6 to 3.75.”
Vinay Gupta, page 9 of the filed PDF · View the filing
Management said negative credit cost should be maintained for the year given continued recoveries.
Answered by Vinay Gupta
Asked by Sameer Bhise: Will credit cost turn positive in H2 and how will ROA trend?
p. 9
“this year I think we should continue to remain negative. We still have line of sight on good recoveries quarter-on-quarter this year at least.”
Vinay Gupta, page 9 of the filed PDF · View the filing
CFO explained Q4's shorter quarter caused an artificial lift in NIM due to monthly annualisation, which normalized in Q1.
Answered by Vinay Gupta
Asked by Abhijit Tibrewal: Can you explain the Q4 true-up and its impact on NIM?
p. 10
“Q4 being a shorter quarter, only 90 days, so we get the benefit in NIM because there the annualization happens based on monthly annualization.”
Vinay Gupta, page 10 of the filed PDF · View the filing
CFO attributed the flat yield to a falling repo rate environment during the year and said future yield improvement will come from mix change now that rates are not expected to fall further.
Answered by Vinay Gupta
Asked by Renish: Why hasn't the mix shift toward non-home loan and Affordable shown up in asset yield over the last year?
p. 11
“our incremental yields have gone down in line with the industry trend. So hence you did not see that kind of a transition impact on the overall book yield.”
Vinay Gupta, page 11 of the filed PDF · View the filing
MD said delinquency in Prime and Emerging actually improved sequentially due to a seasoned underwriting and monitoring team.
Answered by Ajai Kumar Shukla
Asked by Gaurav Khandelwal: Does the shift towards self-employed segment increase risk and future credit cost?
p. 15
“my delinquency in Prime and Emerging has improved from last quarter because team is a very seasoned underwriting team.”
Ajai Kumar Shukla, page 15 of the filed PDF · View the filing
MD said no recovery has been factored in for this year as the legal and buyer process is still underway.
Answered by Ajai Kumar Shukla
Asked by Gaurav Khandelwal: How much recovery is expected from the fraud-classified account in FY27?
p. 16
“we have not factored in any recovery this year because this entire legal process may take a time.”
Ajai Kumar Shukla, page 16 of the filed PDF · View the filing
CFO clarified fee income is based on committed disbursements and unaffected, and that lower interest income from the change impacts absolute income but not yield.
Answered by Vinay Gupta
Asked by Harshit Toshniwal: Does the disbursement recognition change affect fee income or NIM mathematically?
p. 17
“the change in disbursement recognition will not have any impact because we still continue to get that amount or fee based on the committed disbursements.”
Vinay Gupta, page 17 of the filed PDF · View the filing
Risks flagged
Geopolitical tension in West Asia and volatile crude oil prices creating a cautious growth outlook
p. 3
“However, geopolitical tension in West Asia, volatile crude oil prices and uncertainty around the monsoon led to a slightly more cautious growth outlook.”
Ajai Kumar Shukla, page 3 of the filed PDF · View the filing
RBI revised down FY27 GDP growth forecast citing energy costs, supply chain disruptions and weaker external demand
p. 4
“Further, RBI revised its FY27 GDP growth forecast from 6.9% to 6.66% in its June 2026 policy review, reflecting concerns around higher energy costs, supply chain disruptions and weaker external demand.”
Ajai Kumar Shukla, page 4 of the filed PDF · View the filing
US-Iran conflict causing higher crude prices, market volatility and tighter liquidity
p. 4
“The quarter was also characterized by heightened global uncertainty arising from the U.S.-Iran conflict, which led to higher crude oil prices, increased market volatility and tighter liquidity conditions.”
Ajai Kumar Shukla, page 4 of the filed PDF · View the filing
Rising incremental cost of borrowing due to tighter liquidity and market volatility
p. 5
“Incremental cost of borrowing increased by 18 bps, primarily due to higher tighter liquidity condition and volatility in financial markets.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Legacy account classified as fraud during the quarter
p. 5
“During the quarter, legacy account was classified as fraud.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Cyclical increase in 30+ and 90+ delinquency buckets
p. 5
“Minor increase seen in 30+ and 90+ is cyclical in nature and are expected to come down in Q2.”
Ajai Kumar Shukla, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.