PNB Housing Finance has started FY26 on a strong note—posting a healthy 23% jump in net profit compared to last year. The company also showed improvement in asset quality and key loan performance metrics, which usually signals good financial health.
But despite this solid performance, the stock took a sharp hit—dropping nearly 25% in just one week. Why? A sudden and unexpected exit of the company’s CEO sent shockwaves through the market, shaking investor confidence.
In this article, we break down everything you need to know: how the company performed financially, what caused the share price to fall so sharply, what the leadership change means, and whether long-term investors should be concerned or see this as an opportunity.
Share Price Performance (as of August 4, 2025, 11:05 AM IST)
- Price: ₹780.25, down 3.49% from ₹986.20 previous close
- Weekly Drop: ~23% in the past five sessions; ~25% over one month
- Driver: CEO Girish Kousgi’s resignation triggered heavy trading volumes; stock placed in the F&O ban list
Q1 FY26 Financial Performance
Profit & Income Growth
- Net Profit: ₹534 crore, up 23% YoY
- Total Income: ₹2,082 crore, up 13% YoY
- Net Interest Income (NII): ₹760 crore, up 17% YoY
- Net Interest Margin (NIM): 3.74%, improved from 3.65% last year
Asset Quality & Efficiency
- Gross NPA: Improved to 1.06% from 1.30%
- Borrowing Cost: Reduced to 7.76% YoY
- ROE: 11.5%
- Institutional Holding: Over 62%
Leadership Change & Market Sentiment
- CEO Resignation: Girish Kousgi stepped down effective October 28, 2025 citing personal reasons, causing investor nervousness
- F&O Ban: Extreme derivatives activity triggered NSE-imposed ban on fresh trading positions
- Interim Leadership: Jatul Anand named Executive Director, Prime Business; Valli Sekar appointed CBO, Affordable Segment
Strategic Outlook & Financial Position
- Loan Mix Shift: Pivoting toward affordable and emerging market home loans, targeting 50% of loan book by FY27 (currently 37%)
- Valuation: P/E ~10.3x, P/B ~1.25x
- Market Cap: Approx. ₹20,225 crore
- 52-Week Range: ₹746.70 – ₹1,202.20
Summary Table: Q1 FY26 @ a Glance
| Metric | Q1 FY26 | YoY Change |
|---|---|---|
| Share Price | ₹780.25 | ↓ around 23% |
| Net Profit | ₹534 crore | +23% |
| Total Income | ₹2,082 crore | +13% |
| Net Interest Income (NII) | ₹760 crore | +17% |
| Net Interest Margin (NIM) | 3.74% | +9bps |
| Gross NPA (%) | 1.06% | Improved |
| CEO Status | Girish Kousgi resigned | — |
FAQs
Q1. Why did PNB Housing’s stock fall despite strong earnings?
The market reaction was driven by the unexpected CEO resignation and the F&O trading ban, leading to sharp investor anxiety.
Q2. Is the company still financially stable?
Yes, Q1 results show robust profit growth, better margins, and improving asset quality despite volatility.
Q3. Who is leading operations after CEO exit?
Jatul Anand and Valli Sekar have been named interim leadership heads for key business verticals.
Q4. What is the strategic direction post-Q1?
The bank is increasing focus on affordable housing loans, which is expected to comprise 50% of its portfolio by FY27.
Q5. Should investors be concerned about long-term prospects?
While sentiment is weak in the near term, the fundamentals remain solid. Investors should monitor leadership transition and regulatory developments.
Conclusion
To sum it up, PNB Housing Finance delivered a solid quarter—growing its profits, income, and asset quality. On the surface, the business looks like it’s moving in the right direction. But the sudden leadership change and the trading restrictions that followed have clearly shaken investor confidence, leading to a sharp drop in the stock.
That said, the company’s renewed focus on affordable housing and its strong profitability offer a potential path to recovery—if the new leadership can bring back stability and keep the business on track. For long-term investors, this may be a stock worth keeping on the radar. But for now, it’s wise to wait and watch how the new management steers the company through this uncertain phase.
