PNB Gilts Reports ₹453.5 Million Loss Despite ₹4.43 Billion Revenue In Q2

Revenue holds steady but profitability dips

PNB Gilts Ltd, a leading primary dealer in government securities, reported its financial results for the quarter ended September 2025. The company recorded total revenue from operations of ₹4.43 billion, reflecting stable performance in its core business. However, it posted a net loss of ₹453.5 million, marking a sharp reversal from previous quarters.

The loss was primarily driven by mark-to-market adjustments and subdued trading gains, as bond markets remained volatile due to shifting interest rate expectations and global economic uncertainty.

Market conditions weigh on performance

The September quarter saw heightened fluctuations in yields, impacting the valuation of PNB Gilts’ investment portfolio. Additionally, lower demand for government securities and cautious investor sentiment contributed to reduced profitability. The company continues to maintain a conservative risk profile and is focusing on optimizing its asset mix to navigate the challenging environment.

Key highlights from the September quarter

- Total revenue from operations stood at ₹4.43 billion  
- Net loss for Q2 FY26 amounted to ₹453.5 million  
- Loss attributed to market volatility and lower trading gains  
- Investment portfolio impacted by yield fluctuations  
- Company maintains conservative risk management approach  
- Focus remains on long-term stability and portfolio optimization

Strategic outlook and industry sentiment

Despite the quarterly setback, PNB Gilts remains a key player in the Indian debt market. The company is expected to benefit from future rate stabilization and increased government borrowing activity. Analysts suggest that the current headwinds are cyclical and that primary dealers like PNB Gilts will recover as market conditions normalize.

The management has reiterated its commitment to prudent financial practices and long-term value creation for stakeholders.

Sources: PNB Gilts Investor Relations, Rediff MoneyWiz, INDmoney