State-owned natural gas major GAIL (India) Limited on Friday reported a more than twofold increase in standalone net profit to Rs 4,650 crore for the second quarter of financial year 2026-27, supported by improved performance in its natural gas marketing business and higher operational volumes.
The company's standalone revenue from operations rose to Rs 45,924 crore during the July-September quarter, compared with Rs 35,031 crore in the corresponding period last year. Net profit increased from Rs 2,217 crore a year earlier, registering growth of nearly 110 per cent.
The company's board also granted in-principle approval for an initial public offering (IPO) of its wholly owned subsidiary, GAIL Gas Limited, involving the potential dilution of up to 25 per cent of its equity holding.
๐ค๐๐ฎ๐ฟ๐๐ฒ๐ฟ๐น๐ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ, ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐ ๐ฟ๐ถ๐๐ฒ
According to the company's financial results, standalone revenue increased from Rs 38,981 crore in the preceding quarter to Rs 45,924 crore in the September quarter. Profit after tax rose from Rs 4,292 crore to Rs 4,650 crore during the same period.
Profit before tax stood at Rs 5,838 crore, compared with Rs 5,773 crore in the first quarter of FY27. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at approximately Rs 6,412 crore, while its operating margin was around 14 per cent.
For the first half of FY27, GAIL reported standalone revenue from operations of Rs 84,905 crore, compared with Rs 69,824 crore in the corresponding period of the previous financial year.
Its first-half profit before tax more than doubled to Rs 11,611 crore from Rs 5,357 crore, while profit after tax increased to Rs 8,943 crore from Rs 4,104 crore.
On a consolidated basis, the company's second-quarter net profit rose approximately 139 per cent year-on-year to Rs 4,720 crore, while revenue from operations increased to Rs 47,301 crore.
๐๐ผ๐ฎ๐ฟ๐ฑ ๐ฎ๐ฝ๐ฝ๐ฟ๐ผ๐๐ฒ๐ ๐๐๐๐ ๐๐ฎ๐ ๐๐ฃ๐ข
In a significant corporate development, GAIL's board approved a proposal to list GAIL Gas Limited on Indian stock exchanges through an IPO.
The proposed public issue could involve dilution of up to 25 per cent of GAIL's equity stake in the subsidiary. However, the company clarified that the approval was preliminary and that the final structure would be determined after further evaluation.
GAIL Gas will submit a detailed proposal based on recommendations from book-running lead managers, covering valuation, the proposed price band, the extent of stake dilution and other terms of the offering.
The parent company's board will subsequently examine the recommendations and approve the final transaction structure before making the necessary regulatory disclosures.
๐ฆ๐ถ๐ ๐ฐ๐ถ๐๐ ๐ด๐ฎ๐ ๐ป๐ฒ๐๐๐ผ๐ฟ๐ธ๐ ๐๐ผ ๐ฏ๐ฒ ๐๐ฟ๐ฎ๐ป๐๐ณ๐ฒ๐ฟ๐ฟ๐ฒ๐ฑ
The board separately approved the transfer of six city gas distribution geographical areas from GAIL to its wholly owned subsidiary, GAIL Gas Limited.
The identified areas are Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Khordha. The transfer will be carried out through a slump sale under a Business Transfer Agreement on a going-concern basis.
The proposed transaction is scheduled to take effect from January 1, 2027, consolidating these city gas distribution operations under GAIL Gas ahead of its proposed public listing.
The move forms part of the company's efforts to reorganise its city gas distribution business and strengthen the subsidiary's operational portfolio.
๐๐ฎ๐ ๐๐ฟ๐ฎ๐ป๐๐บ๐ถ๐๐๐ถ๐ผ๐ป, ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด ๐๐ผ๐น๐๐บ๐ฒ๐ ๐ถ๐บ๐ฝ๐ฟ๐ผ๐๐ฒ
GAIL reported higher operational volumes across several business segments during the quarter. Natural gas transmission increased to 130.10 million metric standard cubic metres per day (MMSCMD), compared with 122.36 MMSCMD in the preceding quarter.
Natural gas marketing volumes rose to 97.23 MMSCMD from 93.82 MMSCMD, while liquefied hydrocarbon production increased to 256 thousand metric tonnes (TMT) from 232 TMT.
Polymer production rose sharply to 204 TMT from 51 TMT, while LPG transmission increased to 1,130 TMT from 1,077 TMT.
The company said its transmission and natural gas marketing operations remained resilient despite geopolitical challenges, supported by improved volumes across major business segments.
๐๐ฎ๐ฝ๐ถ๐๐ฎ๐น ๐ฒ๐ ๐ฝ๐ฒ๐ป๐ฑ๐ถ๐๐๐ฟ๐ฒ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต๐ฒ๐ ๐ฅ๐ ๐ณ,๐ฒ๐ฌ๐ฌ ๐ฐ๐ฟ๐ผ๐ฟ๐ฒ
GAIL incurred capital expenditure of approximately Rs 7,600 crore during the first half of FY27, including Rs 1,425 crore in the second quarter, against its planned annual capital expenditure of around Rs 12,900 crore.
The investments are intended to support infrastructure development, capacity expansion and the company's long-term growth plans.
GAIL Chairman and Managing Director Deepak Gupta said the company's performance reflected the resilience of its operations amid a challenging geopolitical environment.
He emphasised the company's focus on meeting customer requirements, maintaining uninterrupted supplies, improving operational efficiency and strengthening business resilience while creating long-term value for stakeholders.
GAIL shares closed at Rs 167.91 on Friday, gaining approximately 1.6 per cent, as investors assessed the quarterly results and the proposed listing of GAIL Gas.