PNB Housing Finance Sees Target Hike to Rs 1350 by ICICI Securities

PNB Housing Finance Posts Strong Q4FY26 Results, Upgrades Stock to BUY

PNB Housing Finance (PNBHF) has demonstrated a sustained operational turnaround in its Q4FY26 results, with a return on equity (RoE) of 14%. The company has successfully navigated a period of leadership transition, validating its resilience in FY26 with superior execution and a robust franchise.

The initial concerns around the sustainability of business momentum following the management rejig in October 2025 were alleviated by the new leadership, with Mr. Ajai Shukla taking charge as Managing Director and CEO in December 2025. The new leadership has ensured business continuity and upheld the core strategy of scaling the affordable and near-prime segments, which accounted for approximately 48% of Q4FY26 retail disbursements. Additionally, PNBHF has made a strategic re-entry into developer financing, with an INR 3 billion disbursement.

With its operational building blocks now firmly in place, PNBHF is targeting gross loan growth at more than 20% in FY27. This growth trajectory is expected to drive the company's future performance and further solidify its position in the market.

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We have upgraded the stock to BUY (earlier Add) with a revised target price of INR 1,350 (prior: INR 990), valuing the stock at 1.5x price-to-book (P/B) ratio for September 2027 estimates (prior: 1.2x P/B ratio for FY27 estimates).