Bernstein has maintained its market weight rating on PNB Housing Finance with a target price of ₹1,010 per share after the company delivered a strong Q2FY26 performance, reporting 24% year-on-year EPS growth supported by a retail-led loan mix, healthy recoveries, and contained credit costs.
The brokerage said margin compression and higher non-employee operating expenses partially offset operational gains, though overall profitability remained robust. Recoveries continued to be strong, and slippages were largely contained despite some pressure in the affordable housing segment.
Bernstein noted that assets under management (AUM) growth remained healthy though slightly lower than previous years. The company maintained its strategic focus on the emerging and affordable segments, which together registered 25% year-on-year growth and now account for a meaningful portion of the loan book.
Management reiterated loan growth guidance of 17–18% for FY26, supported by improving liquidity, stable spreads, and controlled credit costs. Bernstein said PNB Housing’s execution remains steady, but valuation headroom appears limited following recent outperformance.
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