PNB Housing Finance Another quarter of beat and raise

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

05 August 2026

PNB Housing Finance

Overweight

PNBH.NS, PNBHOUSI IN

Price (04 Aug 26):Rs1,080.00

Another quarter of beat and raise

▲Price Target (Sep-27):Rs1,200.00

Prior (Sep-27):Rs1,150.00

PNB Housing Finance delivered a strong 1Q print, with beats across

disbursements, loan spreads, non-II and opex (link to our First Take). Commentary

at the 1QFY27 briefing was upbeat (see details below). Management now guides

for a stronger disbursement growth (~60–70% q/q net in 2Q; affordable net ~2.5–

2.6x increase q/q), while retaining loan growth guidance of 18-20% y/y (with

potential for an overshoot), NIMs bottoming out, and fee income growth catching

up in line with disbursements. While 1Q affordable segment growth was slower

than expected, management expects the pace to pick up, aided by leadership

changes in the business. A key concern was the FY27 recovery impact from the

newly classified ‘fraud’ account, for which management clarified that it has not

built in any recoveries from this account during the year. Our FY27/28 EPS

estimates are largely unchanged, while we raise FY29E EPS by 6% (higher NIM

on mix shift, and lower credit costs of 20bps vs 25bps earlier). These changes are

driving a higher Sept-27 PT of Rs1200 (prev: Rs1150). PNB Housing Finance

remains our preference within HFCs. Stay OW.

India Financials and Property

Gaurav Khandelwal, CFA AC

(91-22) 6157-3575

J.P. Morgan India Private Limited, J.P. Morgan

Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

Harsh Wardhan Modi

(65) 6882-2450

J.P. Morgan Securities Singapore Private Limited/

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

Anuj Singla

(91-22) 6157-3590

J.P. Morgan India Private Limited, J.P. Morgan

Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

Style Exposure

Sources for: Style Exposure – J.P. Morgan Global Markets Strategy; all other tables are company data and J.P. Morgan estimates.