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PNB Housing Finance Share Price: Investors are keeping a close watch on PNB Housing Finance Limited shares after the company reported a 24 per cent increase in net profit for the quarter ended September 2025. As of 12 pm, the stock of the housing finance company was trading at Rs 932 apiece, up by 0.43 per cent.

PNB Housing Finance's net interest income (NII) rose 13.3 per cent to Rs 2,131 crore, and profit after tax (PAT) increased 24 per cent year-on-year (YoY) to Rs 582 crore from Rs 470 crore.

The net interest margin (NIM) stood at 3.67 per cent, slightly lower than last year’s 3.68 per cent, indicating marginal compression in lending spreads.

Morgan Stanley has maintained its 'overweight' rating on PNB Housing Finance with a target price of Rs 1,170, signalling a significant upside of 25 per cent from the current market price.

Bernstein has maintained its 'market perform' rating on PNB Housing Finance with a target price of Rs 1,020. The brokerage highlighted that Q2 FY26 earnings per share (EPS) rose 24 per cent YoY, driven by strong retail growth and recoveries, though gains were partly offset by higher operating expenses and margin compression.

Assets under management (AuM) grew 12 per cent YoY, with the affordable and emerging segments expanding around 25 per cent, while the company has guided for FY26 loan growth of 17-18 per cent.

The net interest margin (NIM) dipped 7 basis points (bps) quarter-on-quarter (QoQ) to 3.67 per cent, as yields declined to 9.95 per cent despite lower funding costs.

Slippages in the affordable book rose approximately 30 bps QoQ, with management projecting FY26 NIM in the 3.6 to 3.7 per cent range.

Bernstein also noted that a CEO appointment update is expected soon, which could influence investor sentiment.

UBS has maintained its 'buy' rating on PNB Housing Finance with a target price of Rs 1,200, reflecting confidence in the company’s steady quarter results.

The brokerage noted that the emerging and affordable segments now comprise 38 per cent of the loan book, highlighting PNB Housing’s focus on high-growth areas.

During the quarter, the company reduced its base rate by 10 bps while the cost of funds declined nearly 15 bps in H1. The company has maintained NIM guidance of 3.7 per cent for FY26.

The slight increase in GNPA in the affordable book was largely due to book seasoning and remains well below peer levels. Monsoon-related delays affected disbursements temporarily, expected to normalise in H2.

The brokerage noted that the write-off pool remained around Rs 10 billion, providing visibility for low credit costs in the coming quarters. Additionally, an ECL write-back of Rs 700 million on a standard wholesale account led to a net write-back of 55 bps for the quarter, further supporting profitability.

According to the brokerage, the market is also awaiting a CEO appointment update, which could influence future sentiment.

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