PNB Housing Finance Share Drop Analyzed

Key Points

• Stock fell sharply due to earnings missing forecasts.
• Shares down 7.8%, biggest decline since August 2025.
• Overall, the stock is down 9.3% this year.
• Total income up 9.1%, profit increased 7.7%.
• Operating expenses rose, impacted by a one-time charge.
• Loan book grew 14% with retail loans up 16%.

PNB Housing Finance’s stock price dropped significantly on Thursday, falling nearly 8%. This happened because the company’s financial results for the three months leading up to December 2025 (Q3-FY26) weren’t as good as what investors were expecting. The stock price went down as much as 7.8% during the day, which is the largest drop since August 1st, 2025. It ended the day down 7%, while other stocks in the Nifty 50 index were going up.

The company’s stock had been falling for five days in a row. It was trading at ₹865.5 per share, which is lower than its value just a short time ago. Investors are looking at how much money the company is making and spending, and whether it’s growing its lending business.

The company’s total income increased by 9.1% to ₹2,121 crore. This means they made a little more money than they did last year. Their profit also went up by 7.7% to ₹520 crore, compared to ₹483 crore from the same time last year. This shows the company is doing reasonably well, but investors wanted more.

However, the company also had some extra costs. Operating expenses went up by about 17%, which is a lot. This was partly because they had to pay a one-time payment for employee benefits. This meant the company spent more money on things like salaries and running the business.

Despite these higher costs, the company was still able to grow its lending business. The total amount of loans they gave out went up by about 14%. This is good because it shows they’re lending more money to people and businesses. Retail loans, which are loans given to individuals, increased by 16%.

Analysts, like those at Motilal Oswal, say the company’s loans are generally in good shape. They’re recovering money from people who have trouble paying back loans. However, the company’s profit margin (how much money they make on each loan) went down a little. This is because interest rates on loans were slightly lower than before, which made the company’s profits smaller.

Other analysts, such as those at JM Financial, were a bit disappointed with the results. They said the company’s profit was 5% lower than what they expected. This means the company wasn’t as efficient as they thought it would be. Despite this, they noted that the company’s loan quality is still good.

“Strong financial performance is the foundation for long-term success.”