- Company Financials
- Focus on Affordable Housing and Emerging Housing
- Then, Why Did the Stock Fall?
- Final Takeaway
PNB Housing Finance shares fell sharply, over 17% today, even though the company posted strong quarterly results. The fall came after the company announced that its CEO is stepping down. In this blog, we explain what led to the share price drop, how the market reacted, and what the latest financial numbers say about the company.
1. CEO Resignation Led to Investor Concerns
On August 1, PNB Housing Finance announced that Managing Director and CEO Girish Kousgi will resign from his position on October 28, 2025. He cited personal career growth as the reason.
Even though the board said the company will continue with its current strategy and that the leadership change will be smooth, the sudden announcement made investors cautious. In financial companies like NBFCs, leadership changes often raise questions about how plans will be carried forward.
2. Share Price Fell Over 17% in a Day
The share price dropped by more than 17% during the day, reaching a four-month low of ₹808. Nearly ₹3,000 crore of market value was lost in just one trading session.
There was also a huge jump in trading volumes, over 2.9 crore shares were traded, which is about 30 times more than the 30-day average of around 10 lakh shares. This large volume added to the pressure on the stock.
Company Financials
While the stock fell due to the CEO news, the company’s recent financial performance has improved.
- Net profit for Q1 FY26 (April-June 2025) stood at ₹534 crore, up 23% compared to last year.
- Net interest income was ₹651 crore, showing a 17% increase.
- Loan disbursements rose by 13% to ₹4,980 crore.
- Net NPA (bad loans after provisions) came down to 0.69% from 0.92% a year ago.
- Gross NPA also improved to 1.06%, compared to 1.35% last year.
- Net interest margin (NIM) remained steady at 3.74%.
Focus on Affordable Housing and Emerging Housing
The company is slowly changing its loan portfolio to focus more on affordable and emerging housing segments.
At present, these types of loans make up around 50% of the total book. These loans usually give better returns and carry lower risk because they are more retail-focused and diversified.
Then, Why Did the Stock Fall?
Even though the company’s performance was improving, here’s why the stock came under pressure:
- The CEO’s resignation came without much notice, which created doubts about the near future.
- Investors are unsure who will carry forward the current plans and strategy.
- The broader market is also under pressure due to weak global trends and low FII flows.
- The sharp fall in price and rise in volume may have also led to automated and technical selling.
Final Takeaway
The sharp fall in PNB Housing Finance’s share price was mainly due to the unexpected leadership change, not due to poor performance. The company’s business continues to grow, profits are rising, and loan quality is improving.
If the leadership transition goes smoothly and the company sticks to its affordable housing strategy, long-term investors may see this fall as a buying opportunity.
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