GAIL (India) (GAIL) Q1 25/26 earnings summary

Executive summary

• Commissioned Durgapur Kolkata section of Jagdishpur–Haldia–Bokaro–Dhamra Pipeline, connecting Bengal Gas and HPCS 3GA, enabling immediate CGD volume potential of 0.4 MMSCMD.

• Q1 FY26 saw continued growth in natural gas transmission and marketing volumes, with a focus on expanding LNG and renewables initiatives.

• Major demand for natural gas remains from fertilizer and city gas distribution sectors.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on July 28, 2025.

• No deviation or variation in the use of proceeds from listed non-convertible debentures; funds were used as intended.

Financial highlights

• Standalone Q1 FY26 turnover: INR 34,735 crore, nearly flat sequentially; consolidated turnover: INR 35,369 crore.

• Standalone net profit after tax for Q1 FY26 was INR 1,886 crore, down from INR 2,724 crore in Q1 FY25; consolidated PAT was INR 2,369 crore.

• One-off item: INR 133 crore gain from differential settlement of unified tariff, pertaining to previous periods.

• Exceptional income of INR 2,440.03 crore was recognized in the previous year due to a settlement with an LNG supplier.

• Gross margin and profitability showed stable performance compared to previous quarters.

Outlook and guidance

• Marketing margin guidance for FY26 maintained at INR 4,000–4,500 crore; Q1 achieved INR 994 crore.

• Gas transmission volume guidance revised downward to 127–128 MMSCMD for FY26, with expectation to rise to 135–136 MMSCMD in FY27.

• Petrochemical segment expected to remain under pressure; focus on reducing losses and approaching break-even.

• Management remains confident of recovering outstanding dues from Nagarjuna Fertilizers and Chemicals Limited, with no provision considered.

• No material impact is expected from ongoing legal and regulatory matters as per management and legal opinions.