1. At a Glance
A government bond dealer that’s suddenly flashing ₹160 crore quarterly profit like it’s Diwali bonus season. Stock at ₹107 with a P/E of just 5.7? Either it’s grossly undervalued or the market thinks bonds are more boring than watching paint dry.
2. Introduction with Hook
Imagine if your fixed deposit developed biceps and started doing Zumba on G-Secs. That’s PNB Gilts for you — the silent nerd from school who now runs a ₹1,924 Cr listed company that basically resells government debt with margins fatter than a wedding buffet.
- Q1 FY26 PAT: ₹160 Cr (up 199% YoY)
- OPM: A mind-melting 95%. That’s not a typo.
3. Business Model (WTF Do They Even Do?)
PNB Gilts is like that overqualified cousin who trades government securities instead of memes.
- Underwrites Govt. securities, T-Bills, SDLs, PSU Bonds, and other acronym-rich instruments.
- Trades in G-Secs, Corporate Bonds, and Money Market stuff like CDs and CPs.
- Think of them as a wholesaler of Indian debt, flipping paper for profit and advising clients how to avoid sinking like Yes Bank circa 2020.
Basically, a “Gilts Shop” with an NSE listing and a calculator fetish.
4. Financials Overview
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % |
|---|---|---|---|---|
| FY23 | 1,230 | 881 | -77 | 72% |
| FY24 | 1,577 | 1,522 | 69 | 97% |
| FY25 | 1,676 | 1,624 | 233 | 97% |
| TTM | 1,845 | 1,736 | 340 | 94% |
Highlights:
- OPM is tighter than bank locker access.
- Q1 FY26 alone delivered ₹160 Cr PAT — almost half of FY25’s full year.
- Margin of 95% means they basically spend on nothing except Excel sheets and a Bloomberg terminal.
5. Valuation
| Method | Assumption | FV Range (₹) |
|---|---|---|
| P/E | 6–8x FY26E EPS (~₹20) | ₹120 – ₹160 |
| P/BV | 1.25–1.5x Book Value (₹85.8) | ₹107 – ₹129 |
Translation:
If you think paying 20x for Zomato is cool, but 6x for a G-Sec trader is risky, you probably also buy pineapple on pizza.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 results 🔥: ₹160 Cr profit — they basically did a financial mic drop.
- AGM scheduled for Sept 17, 2025
- Dividend Record Date: Sept 10 — get in or cry later.
- Secretarial auditor appointed — yawn, but SEBI cares.
- Interest Income Booming: As bond yields dance like Bollywood extras.
- This ain’t a startup — but their growth graph says otherwise.
7. Balance Sheet
| Particulars (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Equity Capital | 180 | 180 |
| Reserves | 1,150 | 1,365 |
| Borrowings | 22,403 | 22,384 |
| Total Assets | 24,540 | 24,703 |
Punchlines:
- Debt isn’t Titanic-level, but the ship is definitely carrying containers full of G-Secs.
- Reserves keep compounding like that one uncle who keeps getting fatter but richer.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | -4,638 | -14 | +4,618 | -35 |
| FY24 | -2,875 | -1 | +3,159 | +283 |
| FY25 | -197 | -1 | -38 | -236 |
Analysis:
- Cash flow is like your freelancer friend: Busy working, but somehow always broke.
- Heavy bond trading = negative ops cash. But no stress, they keep flipping debt like pros.
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 16.1% |
| ROCE | 6.8% |
| P/E | 5.69 |
| PAT Margin | 18.4% |
| D/E | ~16x (because bonds, duh) |
Verdict:
ROE hotter than a Twitter fight on inflation.
But D/E would make most analysts faint.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | 1,230 Cr | 881 Cr | -77 Cr |
| FY24 | 1,577 Cr | 1,522 Cr | 69 Cr |
| FY25 | 1,676 Cr | 1,624 Cr | 233 Cr |
| Q1 FY26 | 563 Cr | 538 Cr | 160 Cr |
Growth Story:
- PAT grew 10% if you squint.
- But then exploded in Q1 FY26 like it found some old LIC policies maturing at once.
11. Peer Comparison
| Company | P/E | PAT (TTM Cr) | ROE % | CMP/BV |
|---|---|---|---|---|
| Jio Financial | 125 | 1,602 | 1.2% | 1.6 |
| Tata Inv Corp | 110 | 312 | 1.0% | 1.1 |
| Mah. Scooters | 88 | 194 | 0.6% | 0.6 |
| JSW Holdings | 123 | 195 | 0.7% | 0.7 |
| PNB Gilts | 5.7 | 340 | 16.1% | 1.25 |
Punchline:
Looks like the least drunk guest at a wedding full of finance bros. Cheap, sober, and shockingly profitable.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Stake |
|---|---|
| Promoters (PNB) | 74.07% |
| FIIs | 0.53% |
| Public | 25.40% |
- Stable promoter holding — as boring as an LIC ad.
- FII interest inching up like a cat stalking a milk bowl.
- 83,000+ shareholders — mostly income-tax-exempt aunties and bond nerds.
13. EduInvesting Verdict™
PNB Gilts is the rare government-backed, debt-slinging machine that’s now doing Netflix-style Q1 bangers. The stock is trading at 5.7x earnings and making real money, while others are busy burning VC funds.
A solid pit stop for yield hunters. But don’t expect Teslas or rockets here — it’s all about slow, steady compounding with a sovereign vibe.
Metadata:
Written by EduInvesting Team | 23 July 2025
Tags: PNB Gilts Ltd, Gilts, Bonds, Q1 FY26, Debt Market, EduInvesting Premium
