This article first appeared on GuruFocus .
-
Revenue:INR34,030 crore in Q3 FY26, down from INR34,972 crore in Q2 FY26.
-
Profit Before Tax (PBT):INR2,030 crore in Q3 FY26, down from INR2,823 crore in Q2 FY26.
-
Profit After Tax (PAT):INR1,603 crore in Q3 FY26, down from INR2,217 crore in Q2 FY26.
-
Natural Gas Transmission Volume:125.45 MMSCMD in Q3 FY26, up from 123.59 MMSCMD in Q2 FY26.
-
Gas Marketing Volume:103.98 MMSCMD in Q3 FY26, down from 105.49 MMSCMD in Q2 FY26.
-
Polymer Production:219 TMT in Q3 FY26, nearly flat compared to 220 TMT in Q2 FY26.
-
LHC Production:199 TMT in Q3 FY26, down from 221 TMT in Q2 FY26.
-
LPG Transmission:1,188 TMT in Q3 FY26, up from 1,167 TMT in Q2 FY26.
-
Interim Dividend:Declared at INR5 per share for FY25-26.
-
CapEx:INR2,186 crore in Q3 FY26, with INR804 crore on pipeline and INR455 crore on operational CapEx.
-
GAIL Gas Turnover:INR3,292 crore in Q3 FY26, up from INR3,235 crore in Q2 FY26.
-
GAIL Gas PAT:INR106 crore in Q3 FY26, down from INR111 crore in Q2 FY26.
-
New CNG Stations:2 new stations added, totaling 215 CNG stations.
-
New DPNG Connections:15,990 new connections added, totaling 4.64 lakh connections.
Release Date: February 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
GAIL (India) Ltd ( GAILF ) reported a recovery in natural gas transmission volumes, driven by increased consumption in the fertilizer, refinery, and CGD sectors.
-
The company secured additional tie-ups with CGD customers, resulting in new agreements for approximately two MMSCMD.
-
GAIL (India) Ltd ( GAILF ) has been proactive in expanding its clean energy portfolio, with significant projects in wind and solar energy underway.
-
The company declared an interim dividend of INR5 per share, reflecting a 50% payout of the face value for the financial year '25-'26.
-
GAIL (India) Ltd ( GAILF ) is actively pursuing strategic growth opportunities in renewable energy and compressed biogas, with plans to establish multiple CBG plants across India.
Negative Points
-
GAIL (India) Ltd ( GAILF ) experienced a decline in profit before tax and profit after tax compared to the previous quarter, attributed to increased input gas costs and exchange rate fluctuations.
-
The company's polymer production segment reported a loss due to rising input gas costs, rupee depreciation, and declining polymer prices.
-
The LHC segment faced challenges with reduced PBT due to lower crude prices and a reduction in domestic gas allocation.
-
GAIL (India) Ltd ( GAILF ) is facing regulatory challenges with the interim natural gas pipeline tariff revision, leading to a review petition for further increases.
-
The company's gas marketing margins are under pressure due to volatility in global gas prices, particularly with Henry Hub-linked contracts.
Q & A Highlights
Q: How do you see the volume ramp-up for FY27 and '28 in the transmission business, and what are the global gas supply dynamics? A: Rakesh Jain, CFO, stated that GAIL expects to achieve 134 to 135 MMSCMD in FY27, up from 124 to 125 MMSCMD in FY26. This growth is anticipated due to natural growth in CGD, recovery of lost power volumes, and new refinery volumes. Global gas supply is expected to be abundant, with new capacities coming online, leading to competitive pricing.
Q: Are the new gas contracts primarily Brent-linked, or is there a mix of pricing baskets? A: Rakesh Jain explained that GAIL evaluates offers based on competitiveness rather than geography or index. Currently, Brent-linked contracts are more competitive than Henry Hub-linked contracts, but GAIL maintains a mix of both in its portfolio.
Q: What is the timeline and expected return for the proposed fertilizer plants along the MNJPL corridor? A: Rakesh Jain mentioned that the timeline is approximately three years from Board approval, with an assured return based on policy guidelines. The project is subject to government policy on energy and subsidies, with a projected equity IRR of 12%.
Q: How is GAIL managing the impact of volatile Henry Hub prices on its petrochemical business? A: Rakesh Jain acknowledged the challenge posed by higher Henry Hub prices but noted that GAIL is exploring optimization measures, such as marketing gas internationally or sourcing spot or crude-linked gas. Despite the challenges, GAIL plans to maintain plant operations to preserve customer relationships and energy efficiency.
Q: What is the status of GAIL's ethane sourcing strategy? A: Rakesh Jain stated that GAIL is working on sourcing ethane and is laying a pipeline from Vijaipur to Pata. The company is evaluating terminals at Hazira, Dahej, and Dabhol for ethane import, with a preference for using its own Dabhol terminal, subject to viability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
