PNB Gilts shares jumped nearly 12% on Tuesday, October 13, after the company reported a net profit of ₹44.84 crore for Q2 FY27. This marks a strong recovery from the loss of ₹45.35 crore seen last year. Many investors reacted positively, even though profits fell compared to the previous quarter.

PNB Gilts shares surged nearly 12% after reporting a net profit of ₹44.84 crore for Q2 FY27, recovering from a loss of ₹45.35 crore in the same quarter last year, despite a 44.4% sequential decline from Q1.

Shares of PNB Gilts Ltd. surged nearly 12% on Tuesday, October 13, after the company turned profitable in the September quarter, reporting a net profit of ₹44.84 crore for Q2FY27, compared to a net loss of ₹45.35 crore in the corresponding quarter last year.

Revenue from operations declined 1.6% year-on-year (YoY) to ₹436.3 crore, compared with ₹443.4 crore in the year-ago period. Profit before tax stood at ₹60.24 crore, compared with a loss of ₹53.24 crore in Q2FY26.

Sequentially, PNB Gilts' net profit declined 44.4% from ₹80.70 crore in Q1 FY27. Total income fell 4% quarter-on-quarter (QoQ) to ₹436.59 crore from ₹454.72 crore, while profit before tax declined 44.4% to ₹60.24 crore from ₹108.26 crore.

Net interest income (NII) stood at ₹92.17 crore in Q2FY27, compared with ₹102.69 crore in the previous quarter and ₹96.24 crore in the year-ago period. The company reported a net loss of ₹17.71 crore on fair value changes during the September quarter, compared with a net gain of ₹18.23 crore in Q1 FY27. In Q2 FY26, it had reported a net loss of ₹140.03 crore on fair value changes.

For the first half of FY27, PNB Gilts reported a net profit of ₹125.53 crore, up around 9.4% from ₹114.72 crore in the corresponding period last year. Total income rose to ₹873.60 crore from ₹866.83 crore, while profit before tax increased to ₹168.50 crore from ₹159.77 crore.

PNB Gilts is a standalone primary dealer that operates in government securities and fixed-income markets, with its income influenced by interest-rate cycles and market conditions.

Shares of the company jumped as much as 11.7% following the result announcement on Tuesday, recording an intraday high of ₹79. The stock is now trading 7.8% higher at ₹76.2. The stock is still down over 6% on a year-to-date basis.