PNBGILTS - PNB Gilts

📊 NSE: PNBGILTS 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 11:03

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 6.3% YoY to INR 1,675.98 Cr in FY25. Segmental growth: Interest income (INR 1,511.90 Cr, -0.4% YoY), Net gain on securities (INR 154.76 Cr, +208% YoY), and Fees and commission income (INR 9.20 Cr, +15% YoY).

Profitability Margins

Net Profit Margin improved significantly from 4.4% in FY24 to 13.9% in FY25. Return on Networth (RONW) increased from 5.4% in FY24 to 16.2% in FY25. Annualized RONW for H1 FY26 stood at 14.4%.

EBITDA Margin

Total income net of interest expense grew 119.3% YoY to INR 364 Cr in FY25. PAT for FY25 was INR 233 Cr, a 237.7% increase from INR 69 Cr in FY24.

Credit Rating & Borrowing

The company maintains a CRISIL A1+ rating. Borrowing costs are reflected in finance costs of INR 1,312.41 Cr for FY25, which decreased 7% YoY from INR 1,411.32 Cr.

⚙️ Operational Drivers

Raw Materials

Borrowed Capital (Call money, Repo, RBI Refinance) represents the primary input cost, with finance costs accounting for 78.3% of total revenue.

Import Sources

Not applicable for financial services.

Key Suppliers

The Reserve Bank of India (RBI) provides liquidity support (INR 1,848 Cr as of Sep 2025) and PNB provides overdraft facilities (INR 2,500 Cr).

Capacity Expansion

Networth grew 6.3% from INR 1,545 Cr in March 2025 to INR 1,642 Cr in September 2025, enhancing the capacity to hold and trade securities.

Raw Material Costs

Finance costs were INR 1,312.41 Cr in FY25, representing 78.3% of revenue. Costs decreased 7% YoY due to optimized borrowing strategies.

Manufacturing Efficiency

Not applicable for financial services.

Logistics & Distribution

Not applicable for financial services.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is launching forex operations to diversify its income profile and reduce dependence on the core Primary Dealership business. It is also expanding Debt Capital Market (DCM) services, acting as an arranger for private placements.

Products & Services

Government Securities (G-Secs), Treasury Bills (T-bills), Debt Capital Market (DCM) services, and private placement of debt.

Brand Portfolio

PNB Gilts.

New Products/Services

Forex operations are in the process of being launched to add diversity to the earnings profile.

Market Share & Ranking

One of the largest standalone primary dealerships (PDs) in India.

Strategic Alliances

Wholly owned subsidiary of Punjab National Bank (PNB), which holds a 74.07% stake.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward income diversification (Forex, DCM) to mitigate the volatility inherent in core G-Sec trading.

Competitive Landscape

Competes with other standalone primary dealers and bank-owned primary dealership desks.

Competitive Moat

Moat is derived from the PNB brand name, strong parent support, and a large absolute networth of INR 1,642 Cr which provides a buffer against market shocks.

Macro Economic Sensitivity

Highly sensitive to interest rate movements; average networth coverage for a 100 bps change in interest rates was 3.7 times in H1 FY2026.

Consumer Behavior

Not applicable for this sector.

Geopolitical Risks

Macroeconomic uncertainty and global interest rate trends impact the valuation of unquoted and thinly traded investments.

⚖️ Regulatory & Governance

Industry Regulations

Governed by RBI Master Directions for NBFC-Scale Based Regulation 2023 and specific Primary Dealer directives regarding asset classification and valuation.

Environmental Compliance

The company reported no unspent amount for CSR activities for the financial year.

Taxation Policy Impact

Current tax liabilities (net) stood at INR 126.94 Lakhs as of March 31, 2025.

Legal Contingencies

The company has disclosed the impact of pending litigations on its financial position and made provisions for material foreseeable losses on derivative contracts.