PNB Gilts Q1FY26 Net Profit Surges 199% YoY to ₹160 Cr on Higher Treasury Gains

New Delhi, July 23, 2025 – PNB Gilts Ltd (NSE: PNBGILTS) reported a stellar performance for the quarter ended June 30, 2025 (Q1FY26), with a massive improvement in standalone net profit (increased by 199.50% year on year). The earnings were driven by strong gains on securities, and interest income also stabilized in the period.

PNB Gilts Share Price Movement

The company’s share price experienced a significant rally, reaching ₹106.39 at 3:15 PM (7.64% higher than the previous day’s close). The low-high range was between ₹97.09 and ₹109.50. The traded volume was higher than average (92 lakh shares traded during the day). The stock has a P/E ratio of 7.64 compared to the Industrial average of 28.06.

Financial Performance Analysis

In Q1FY26, the company reported a strong 28% YoY rise in total income to ₹563.37 crore, driven largely by a 402% jump in net gain on securities despite a slight 0.9% dip in interest income. Expenses fell 5.16% YoY to ₹350.40 crore, highlighting better cost control and operating efficiency. As a result, profit before tax surged 200% YoY to ₹213.01 crore, while net profit more than tripled to ₹160.07 crore, with EPS rising to ₹8.89 from ₹2.97 last year.

On a sequential basis, total income grew 34.5% and net profit rose 113%, showing momentum over Q4FY25. The sharp improvement in profitability was primarily driven by securities gains and stable cost management, which offset modest pressure on interest income. Overall, the company delivered a strong quarter with robust earnings growth and improved margins.

Key Profit Drivers

• Net gains on securities surged over 5x YoY to ₹156.69 crore, reflecting favourable treasury operations and market yields.
• Interest income remained stable at ₹403.85 crore, contributing the lion’s share of total revenue.
• Total expenses dropped 5.2% YoY, largely due to lower finance costs and commission expenses.

Strategic Announcements

• Final Dividend Record Date: September 10, 2025. The dividend, if declared at the upcoming AGM on September 17, will be paid within 30 days of declaration.
• Appointment of Secretarial Auditor: The Board approved the appointment of M/s Pranav Kumar & Associates for a 5-year term starting FY26, subject to shareholder approval at the AGM.

Exceptional Items

The quarter included an exceptional gain of ₹3.35 lakh related to recoveries from earlier written-off investments in SREI Equipment Finance Ltd.

Management Commentary

The company’s performance reflects a well-structured investment strategy aligned with interest rate trends. Continued focus on risk management, cost containment, and proactive trading helped deliver superior treasury income.

Company Overview

PNB Gilts Ltd is a listed, standalone primary dealer and a subsidiary of Punjab National Bank. It operates in government securities, money markets, and other fixed-income instruments, and is listed on both NSE and BSE.

REF:https://nsearchives.nseindia.com/corporate/PNBGILTSYS_23072025134913_stxresult.pdf

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