PNB Housing Finance shares tumble 8% as Q3 misses street's estimates

PNB Housing Finance's total income for the quarter rose 9.1 per cent to ₹2,121 crore. Net profit increased 7.7 per cent year-on-year to ₹520 crore

Shares of PNB Housing Finance Ltd. tumbled nearly 8 per cent on Thursday after its earnings for the December quarter of the financial year 2025-26 (Q3-FY26) missed the street's estimates. 

 

The housing finance company's stock fell as much as 7.8 per cent during the day to ₹857.4 per share, the steepest decline since August 1, 2025. PNB Housing Finance stock pared losses to trade 7 per cent lower at ₹865.5 apiece, compared to a 0.25 per cent advance in Nifty 50 as of 10:55 AM. 

 

Shares of the company fell for the fifth straight session and currently trade at 8.7 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 9.3 per cent this year, compared to a 3 per cent decline in the benchmark Nifty 50. PNB Housing Finance has a total market capitalisation of ₹22,522.27 crore.   CATCH STOCK MARKET UPDATES TODAY LIVE

PNB Housing Finance Q3 results 

PNB Housing Finance's total income for the quarter rose 9.1 per cent to ₹2,121 crore. Net profit increased 7.7 per cent year-on-year (y-o-Y) to ₹520 crore, compared with ₹483 crore in the same period last year.

 

Operating expenses rose around 17 per cent Y-o-Y to approximately ₹240 crore, and were up 10 per cent sequentially. The increase included a one-time gratuity provision of ₹6 crore following the implementation of the new labour code.

 

The total loan book expanded by around 14 per cent Y-o-Y during the quarter. Retail loans grew about 16 per cent, while retail disbursements in the December quarter also rose 16 per cent from a year earlier.  ALSO READ | What to do with Eternal stock as Deepinder Goyal resigns? Tech view here

Analysts on PNB Housing Finance earnings

PNB Housing Finance has maintained stable asset quality, with credit costs remaining benign and supported by steady recoveries from the written-off pool, according to Motilal Oswal. The brokerage said commentary on the net interest margin trajectory, along with guidance on disbursements and loan growth, will be key monitorables going forward. 

 

Net interest margin declined around 4 basis points quarter-on-quarter (Q-o-Q) to 3.63 per cent, driven by a sharper moderation in yields compared with the benefit from a lower cost of borrowings in the portfolio. Motilal Oswal said it may revise its estimates and target price after the scheduled earnings call.  ALSO READ | Waaree Energies share price rises 13% on solid Q3; hold or book profit? 

The company reported a mixed performance in the third quarter, JM Financial said. The brokerage said the reported profit was about 5 per cent below its estimates, translating into an annualised return on assets of 2.4 per cent. 

 

The miss was largely driven by weaker disbursement and assets under management growth, along with elevated operating expenses. JM Financial added that, overall, asset quality trends during the quarter remained positive. 

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