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

Executive summary

• Durgapur Kolkata section of Jagdishpur–Haldia–Bokaro–Dhamra Pipeline commissioned, connecting Bengal Gas to the national grid and 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 was INR 34,792.45 crore, up from INR 33,691.63 crore in Q1 FY25; consolidated turnover was INR 35,428.81 crore, up from INR 34,821.89 crore in Q1 FY25.

• Standalone PAT for Q1 FY26 was INR 1,886.34 crore, down from INR 2,723.98 crore in Q1 FY25; consolidated PAT was INR 2,382.24 crore, down from INR 3,183.35 crore.

• EBITDA for Q1 FY26 was INR 3,626 crore standalone and INR 4,234 crore consolidated.

• One-off item of INR 133 crore in PBT due to differential settlement of unified tariff for previous periods.

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

Outlook and guidance

• Marketing margin guidance for FY26 maintained at INR 4,000–4,500 crore, with INR 994 crore earned in Q1.

• 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 reduce losses but unlikely to turn profitable in FY26.

• Capex plan for FY27 is INR 12,000 crore, with major allocations to pipelines, petrochemicals, and net zero initiatives.

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