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Informist, Monday, Apr. 20, 2026

By Aaryan Khanna

NEW DELHI – PNB Gilts Ltd.'s profit after tax for the March quarter slumped on year as the primary dealer reported a net loss on securities, against a healthy net gain in the year-ago period. A sharp rise in the non-banking finance company's interest income helped the bottom line remain in the black.

India's only listed primary dealership posted a net profit of INR 129.92 million, down from INR 750.20 million a year ago and INR 539.06 million a quarter ago. Its total revenue from operations fell marginally on quarter but rose 1.3% on year to INR 4.24 billion. The primary dealership's business is that of a market maker in the fixed income market.

The net loss on securities, both realised and unrealised, was INR 725.28 million in the March quarter. In the December quarter, the net loss on this account was INR 148.25 million, while there was a net gain of INR 589.19 million in the March quarter last year. These were likely due to marked-to-market losses on its bond holdings. In Jan-Mar, the 10-year benchmark gilt yield rose 44 basis points to 7.03%.

The saving grace was that PNB Gilts reported an 18.3% on-year rise in its interest income at INR 4.22 billion, which helped offset the loss on securities. Dividend income was minuscule while fees and commission income fell 27.8% to INR 24.28 million in the March quarter.

Meanwhile, total expenses grew nearly 15% sequentially and over 28% on year to INR 4.10 billion. In addition to the net loss on securities, PNB Gilts also reported an annual doubling of employee benefit expenses to INR 73.37 million. However, finance costs were up only 2.9% at INR 3.16 billion from the same period a year ago, and down on quarter.

For financial year 2025-26 (Apr-Mar), PNB Gilts' net profit fell 22% on year to INR 1.82 billion despite 100 basis points of repo rate cuts and additional liquidity infusion by the RBI, including over INR 8 trillion of government bond purchases. Total revenue from operations grew only 1.4% on year to INR 16.99 billion. 

Along with the results, the board of PNB Gilts also approved final dividend of INR 2 per share Monday. Shares of the New Delhi-based company ended 0.9% lower at INR 74.25 on the National Stock Exchange Monday. The earnings were released towards the end of market hours.  End

Edited by Avishek Dutta

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