PNB Gilts Q4 FY26 Results: PAT Drops 83% to ₹12.99 Crore Due to ₹72.53 Crore Securities Loss — Core Interest Income Remains Strong, Dividend ₹2/Share

Tue Apr 21 2026

PNB Gilts Limited — the government securities primary dealer and subsidiary of Punjab National Bank — reported a sharp decline in Q4 FY26 net profit to ₹12.99 crore, down 82.68% year-on-year from ₹75.02 crore in Q4 FY25, and down 75.9% sequentially from ₹53.91 crore in Q3 FY26. The headline decline masks a more nuanced story: core interest income remained robust at ₹421.67 crore in Q4, reflecting a healthy sovereign and corporate bond portfolio. The PAT collapse was caused by a net loss on securities of ₹72.53 crore during the quarter — a mark-to-market and trading loss that directly dragged the bottom line.

For the full year FY26, PNB Gilts reported total income of ₹1,699.06 crore (marginally above FY25’s ₹1,676.28 crore), with interest income growing 11.7% to ₹1,689.03 crore — a strong core performance. FY26 full-year net profit came in at ₹181.62 crore, with basic EPS at ₹10.09 versus ₹12.95 in FY25. The board declared a final dividend of ₹2 per equity share (20% on face value of ₹10) for FY26.

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Table of Contents

PNB Gilts Q4 FY26 Financial Results

Metric	Q3 FY26	Q4 FY25 (Base)	Q4 FY26 (Actual)
Net Profit (PAT)	₹53.91 Cr	₹75.02 Cr	₹12.99 Cr (↓82.7% YoY)
Revenue from Ops	₹424 Cr	—	₹424.11 Cr
Interest Income	—	—	₹421.67 Cr
Net Loss on Securities	—	—	₹72.53 Cr (key drag)
FY26 Total Income	—	FY25: ₹1,676 Cr	₹1,699 Cr (+1.4%)
FY26 Int. Income	—	₹1,512 Cr	₹1,689 Cr (+11.7%)
FY26 PAT	—	FY25: ₹235 Cr	₹181.62 Cr (↓decline)
FY26 Basic EPS	—	₹12.95	₹10.09

Source: PNB Gilts audited results, Upstox live blog, EquityBulls, BSE/NSE filing April 20, 2026.

Understanding the Securities Loss: Interest Rate Risk

PNB Gilts operates as a Primary Dealer — its core business is market-making in government securities, maintaining a portfolio of sovereign bonds, and participating in RBI auctions. The business is intrinsically exposed to interest rate risk: when bond yields rise (prices fall), the portfolio generates mark-to-market losses. Conversely, when yields fall, the portfolio generates mark-to-market gains. In Q4 FY26, the securities portfolio suffered a ₹72.53 crore net loss — the primary driver of the PAT decline.

The RBI rate environment in Q4 FY26 has been one of measured easing, but any volatility or yield spikes in the longer end of the government bond curve directly impacts PNB Gilts’ trading portfolio. The core interest income of ₹421.67 crore in Q4 and ₹1,689 crore for FY26 demonstrates that the underlying carry business is healthy — it is the trading/MTM component that creates quarterly volatility. This is inherent to the primary dealer business model rather than an operational failure.

Conclusion

PNB Gilts’ Q4 FY26 results are a function of bond market dynamics rather than fundamental business deterioration. Core interest income grew 11.7% for the full year. The ₹72.53 crore securities loss in Q4 is the full explanation for the PAT decline. PNB Gilts is a niche, income-generating business — volatile quarter-to-quarter due to mark-to-market, but with a fundamentally healthy balance sheet backed by PNB parent. The ₹2/share dividend signals confidence in underlying cash generation.

For more Q4 FY26 results, visit Univest Blogs.

Frequently Asked Questions

1. What was PNB Gilts Q4 FY26 net profit?

₹12.99 crore — down 82.68% YoY from ₹75.02 crore in Q4 FY25, and down 75.9% QoQ from ₹53.91 crore in Q3 FY26.

2. Why did PNB Gilts Q4 profit fall so sharply?

A net loss on securities of ₹72.53 crore during Q4 FY26 — driven by bond price/yield movements in the government securities market — was the primary cause. Core interest income of ₹421.67 crore remained strong.

3. What is PNB Gilts FY26 annual profit?

₹181.62 crore with basic EPS of ₹10.09 — lower than FY25 due to Q4 securities losses. FY26 interest income grew 11.7% YoY to ₹1,689 crore.

4. What dividend did PNB Gilts declare?

Final dividend of ₹2 per equity share (20% on face value of ₹10) for FY26, subject to shareholder approval.

5. What is PNB Gilts’ business?

PNB Gilts is a Primary Dealer (PD) registered with the RBI, dealing primarily in government securities, treasury bills, and corporate bonds. It is a subsidiary of Punjab National Bank and participates in RBI auctions as a market maker.

6. Is the PNB Gilts PAT decline a one-time event?

Securities losses are inherently volatile for primary dealers — they depend on bond yield movements. Q4 FY26 saw an unfavourable mark-to-market environment. If the interest rate environment stabilises or yields decline in FY27, PNB Gilts’ profitability should recover.

7. When do TCS announce Q4 results?

TCS declared Q4 FY26 results on April 9, 2026.

8. Is PNB Gilts a good investment?

PNB Gilts is a specialised play on India’s government bond market. Core interest income is growing (11.7% YoY in FY26). The business is inherently volatile due to MTM; investors need to accept this cyclicality. The stock trades at modest valuations. Consult a SEBI-registered financial advisor before investing.

Disclaimer: Investment in the share market is subject to risk. This article is for informational and educational purposes only. All financial data sourced from publicly available NSE/BSE filings and news sources. Verify all numbers before investing. Consult a SEBI-registered advisor before making investment decisions.