GAIL (India) Ltd
GAIL (India) Ltd
Energy F&OIncorporated in 1984, GAIL, a Government of India undertaking, is an integrated natural gas company in India. It owns over 11,500 km of natural gas pipelines, over 2300 km of LPG pipelines, six LPG gas-processing units and a petrochemicals facility. It also has a joint-venture interest in Petronet LNG Ltd, Ratnagiri Gas and Power Pvt Ltd, and in the CGD business in several cities. GAIL has wholly owned subsidiaries in Singapore and the US for expanding its presence outside India in the segments of LNG, petrochemical trading and shale gas assets.
GAIL trades at a reasonable P/E of 15.3x with strong analyst support (80.65% buy ratings), but TTM profit decline of -29% and weakening ROE at 9% last year signal near-term earnings headwinds. The 2.83% dividend yield and healthy 41.3% payout ratio provide downside support while investors await a recovery in gas volumes and margins.
Key Fundamentals
LargecapGasEnergyTechnical Indicators
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 41.3%
Weaknesses
1- Company has a low return on equity of 11.8% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoGAIL trades at a reasonable P/E of 15.3x with strong analyst support (80.65% buy ratings), but TTM profit decline of -29% and weakening ROE at 9% last year signal near-term earnings headwinds. The 2.83% dividend yield and healthy 41.3% payout ratio provide downside support while investors await a recovery in gas volumes and margins.
- Strong analyst consensus with 80.65% buy ratings (25 out of 31 analysts recommending buy)
- Attractive valuation at P/B of 1.3x for a large-cap PSU with Rs 1,15,229 Cr market cap, indicating limited downside from book value
- Healthy dividend yield of 2.83% backed by consistent 41.3% payout ratio provides steady income
- Reasonable P/E of 15.3x compared to energy sector peers, suggesting the stock is not overvalued despite earnings pressure
- Solid long-term compounded profit growth of 15% over 10 years demonstrates durable earnings power across cycles
- 3-year stock CAGR of 19% shows strong medium-term wealth creation despite recent -4% one-year correction
- 5-year compounded sales growth of 20% reflects structural expansion in India's gas transmission and distribution infrastructure
- TTM compounded profit growth at -29% signals sharp near-term earnings deterioration
- Last year ROE fell to 9% from a 3-year average of 12%, indicating declining capital efficiency
- Flat TTM sales growth at 0% suggests volume and pricing headwinds in the gas business
- 3-year compounded sales growth at -1% indicates revenue stagnation over the medium term
- Low 3-year average ROE of 11.8% (as flagged by screener) is subpar for a capital-intensive utility
- 1-year stock return of -4% reflects market skepticism about near-term earnings recovery
- 5-year compounded profit growth of only 4% lags the 10-year average of 15%, showing deceleration in earnings momentum
- As a PSU, GAIL faces regulatory and government policy risks that can compress margins unpredictably
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Q4 profit drops 41% YoY Jun 16
Consolidated net profit fell 40.9% to ₹1,481.46 crore in Q4 FY26 vs ₹2,505.61 crore YoY. PBT declined 39.3% to ₹1,966.37 crore on consolidated basis.
- Stock down 12.5% in one year Jun 16
GAIL shares have declined 12.51% over the last one year, significantly underperforming the broader market despite recent short-term recovery.
- Revenue dips 2.3% YoY Jun 16
Consolidated revenue from operations fell 2.3% YoY to ₹35,705.49 crore in Q4 FY26, indicating tepid topline growth.
- Shares surge 5% three sessions Jun 16
GAIL stock rose 5.11% to ₹168.98 on Jun 16, marking a third consecutive session of gains with volume at 263.45 lakh shares vs 98.02 lakh monthly average.
- 100% stake in Konkan LNG Jun 10
GAIL acquired full 100% ownership of Konkan LNG after NCLT approved a capital reduction scheme cancelling 14.81 crore shares.
- Gas and CGD segments growing Jun 16
Natural gas marketing revenue rose 11.7% YoY to ₹2,904.36 crore and city gas distribution grew 17.7% to ₹1,966.81 crore in Q4 FY26.
- Strong dividend payout at 52% Jun 16
Board recommended ₹0.50 final dividend per share for FY26 in addition to ₹5 interim dividend, taking total payout ratio to 51.90%.
- Pipeline and renewables expansion Jun 16
GAIL added approximately 2,000 km of pipeline network during FY26, achieved highest-ever LPG transmission of 4.6 MMTPA, and is investing in 700 MW solar and 178 MW wind capacity.
- ₹59 crore block trade on NSE Jun 19
Institutional block trade of ~34.07 lakh shares at ₹174.10 per share worth ₹59.32 crore executed outside regular order book on NSE.
- ₹16 crore block trade on NSE May 26
Block trade of ~9.68 lakh shares at ₹168.38 per share worth ₹16.30 crore on NSE, indicating institutional activity.
- New Finance Director appointed Jun 22
Satish Kumar Sinha appointed as Director (Finance) effective July 1, 2026, nominated by the Ministry of Petroleum and Natural Gas.
- Government Director appointed Jun 4
Kushagra Mittal appointed as Government Nominee Director effective June 4, 2026, with tenure until August 10, 2026.
- Projects Director charge extended May 27
Deepak Gupta's additional charge as Director (Projects) extended for six months effective June 1, 2026, pending regular appointment.
TL;DR: GAIL faces a significant earnings headwind with Q4 FY26 profit down ~41% YoY, but the stock is showing short-term momentum with a 5%+ surge and elevated institutional block trade activity. Growth in gas marketing and CGD segments, along with aggressive infrastructure expansion and a 52% dividend payout, signal operational resilience. The trend appears to be stabilizing after a weak year, though sustained recovery will depend on whether segment growth can offset broader margin pressures in upcoming quarters.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 33,207 | 32,789 | 32,986 | 34,698 | 32,756 | 34,738 | 33,889 | 36,835 | 36,440 | 35,311 | 35,537 | 35,173 | 35,577 |
| Expenses | 32,651 | 30,128 | 29,405 | 30,490 | 28,908 | 29,948 | 29,952 | 33,665 | 32,914 | 31,642 | 32,077 | 32,246 | 34,123 |
| Operating Profit | 556 | 2,660 | 3,580 | 4,208 | 3,849 | 4,790 | 3,937 | 3,169 | 3,526 | 3,669 | 3,460 | 2,927 | 1,453 |
| OPM % | 2% | 8% | 11% | 12% | 12% | 14% | 12% | 9% | 10% | 10% | 10% | 8% | 4% |
| Other Income | 871 | 529 | 595 | 915 | 651 | 685 | 643 | 3,211 | 674 | 566 | 516 | 683 | 1,250 |
| Interest | 107 | 185 | 200 | 176 | 159 | 209 | 188 | 169 | 174 | 213 | 234 | 254 | 263 |
| Depreciation | 631 | 722 | 837 | 872 | 1,241 | 1,152 | 922 | 939 | 786 | 993 | 1,177 | 1,192 | 474 |
| PBT | 689 | 2,283 | 3,138 | 4,075 | 3,099 | 4,114 | 3,470 | 5,272 | 3,240 | 3,029 | 2,565 | 2,165 | 1,966 |
| Tax % | 7% | 21% | 22% | 22% | 20% | 23% | 22% | 23% | 23% | 21% | 22% | 20% | 25% |
| Net Profit | 643 | 1,793 | 2,442 | 3,193 | 2,474 | 3,183 | 2,690 | 4,084 | 2,506 | 2,382 | 1,989 | 1,729 | 1,481 |
| EPS in Rs | 0.96 | 2.73 | 3.72 | 4.86 | 3.75 | 4.84 | 4.1 | 6.21 | 3.79 | 3.6 | 3 | 2.67 | 2.26 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 60,557 | 52,053 | 48,552 | 54,496 | 76,190 | 72,518 | 57,372 | 92,770 | 1,45,668 | 1,33,228 | 1,41,903 | 1,41,598 |
| Expenses | 54,926 | 47,517 | 42,531 | 46,695 | 66,252 | 63,495 | 50,127 | 77,608 | 1,38,168 | 1,18,914 | 1,26,410 | 1,30,088 |
| Operating Profit | 5,631 | 4,536 | 6,021 | 7,802 | 9,938 | 9,022 | 7,245 | 15,161 | 7,500 | 14,314 | 15,493 | 11,510 |
| OPM % | 9% | 9% | 12% | 14% | 13% | 12% | 13% | 16% | 5% | 11% | 11% | 8% |
| Other Income | 945 | 731 | 1,212 | 948 | 1,719 | 3,796 | 2,833 | 2,925 | 2,822 | 2,672 | 5,149 | 3,014 |
| Interest | 652 | 822 | 509 | 295 | 159 | 309 | 179 | 202 | 365 | 719 | 748 | 964 |
| Depreciation | 1,433 | 1,496 | 1,541 | 1,527 | 1,667 | 2,080 | 2,174 | 2,420 | 2,702 | 3,672 | 3,799 | 3,835 |
| PBT | 4,492 | 2,949 | 5,183 | 6,928 | 9,831 | 10,429 | 7,725 | 15,464 | 7,256 | 12,595 | 16,096 | 9,725 |
| Tax % | 32% | 37% | 35% | 31% | 33% | 9% | 20% | 20% | 23% | 21% | 23% | 22% |
| Net Profit | 3,160 | 1,874 | 3,374 | 4,805 | 6,553 | 9,515 | 6,143 | 12,304 | 5,596 | 9,903 | 12,463 | 7,582 |
| EPS in Rs | 4.67 | 2.76 | 4.98 | 7.09 | 9.68 | 13.93 | 9.21 | 18.4 | 8.54 | 15.06 | 18.93 | 11.53 |
| Div. Payout % | 24% | 37% | 56% | 43% | 25% | 31% | 36% | 36% | 59% | 37% | 40% | 48% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 1,268 | 1,268 | 1,691 | 2,255 | 2,255 | 4,510 | 4,440 | 4,440 | 6,575 | 6,575 | 6,575 | 6,575 |
| Reserves | 32,754 | 35,135 | 37,614 | 39,424 | 43,749 | 44,758 | 48,742 | 59,674 | 58,352 | 70,422 | 78,422 | 82,474 |
| Borrowings | 18,291 | 9,052 | 6,553 | 3,876 | 2,224 | 6,912 | 7,873 | 9,216 | 17,816 | 21,794 | 21,595 | 24,831 |
| Other Liabilities | 17,355 | 13,608 | 12,433 | 15,798 | 20,199 | 18,754 | 19,975 | 23,254 | 25,062 | 25,944 | 26,583 | 26,656 |
| Total Liabilities | 69,669 | 59,063 | 58,291 | 61,353 | 68,426 | 74,934 | 81,030 | 96,584 | 1,07,805 | 1,24,735 | 1,33,176 | 1,40,537 |
| Fixed Assets | 33,976 | 29,946 | 30,092 | 30,480 | 32,700 | 38,230 | 41,160 | 44,572 | 49,697 | 55,188 | 58,836 | 68,667 |
| CWIP | 13,806 | 3,688 | 4,126 | 5,938 | 9,738 | 11,666 | 13,400 | 15,490 | 16,646 | 23,627 | 27,421 | 24,072 |
| Investments | 1,272 | 9,844 | 10,125 | 10,452 | 10,722 | 9,893 | 13,058 | 16,408 | 17,248 | 21,910 | 22,765 | 26,233 |
| Other Assets | 20,615 | 15,584 | 13,948 | 14,482 | 15,267 | 15,145 | 13,413 | 20,114 | 24,214 | 24,010 | 24,155 | 21,564 |
| Total Assets | 69,669 | 59,063 | 58,291 | 61,353 | 68,426 | 74,934 | 81,030 | 96,584 | 1,07,805 | 1,24,735 | 1,33,176 | 1,40,537 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 4,214 | 3,960 | 6,024 | 8,769 | 7,984 | 8,345 | 8,993 | 9,420 | 3,205 | 12,586 | 15,735 | 11,249 |
| Investing | -2,809 | -904 | -334 | -2,660 | -5,701 | -8,299 | -4,640 | -5,490 | -7,453 | -8,226 | -6,623 | -9,154 |
| Financing | -3,058 | -3,028 | -5,275 | -5,252 | -3,364 | 281 | -3,471 | -3,917 | 2,972 | -3,457 | -8,941 | -2,750 |
| Net Cash Flow | -1,653 | 29 | 415 | 858 | -1,081 | 328 | 882 | 13 | -1,276 | 902 | 171 | -655 |
| Free Cash Flow | 1,498 | 2,500 | 4,029 | 5,370 | 443 | -890 | 3,309 | 2,481 | -5,548 | 98 | 7,818 | 2,451 |
| CFO/OP | 93 | 103 | 120 | 130 | 102 | 121 | 142 | 84 | 64 | 111 | 118 | 113 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 19 | 19 | 21 | 23 | 21 | 24 | 22 | 29 | 27 | 26 | 24 | 22 |
| Inventory Days | 18 | 14 | 17 | 17 | 16 | 21 | 25 | 19 | 17 | 20 | 20 | 16 |
| Days Payable | 26 | 25 | 27 | 35 | 24 | 25 | 37 | 28 | 20 | 22 | 24 | 19 |
| Cash Conversion Cycle | 12 | 8 | 11 | 6 | 13 | 20 | 10 | 20 | 23 | 24 | 20 | 19 |
| Working Capital Days | -12 | -17 | -10 | -24 | -5 | -10 | -24 | -6 | -6 | -8 | -8 | -15 |
| ROCE % | 10% | 8% | 12% | 16% | 22% | 20% | 13% | 23% | 10% | 15% | 14% | 10% |
Documents
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Company Information
Incorporated in 1984, GAIL, a Government of India undertaking, is an integrated natural gas company in India. It owns over 11,500 km of natural gas pipelines, over 2300 km of LPG pipelines, six LPG gas-processing units and a petrochemicals facility. It also has a joint-venture interest in Petronet LNG Ltd, Ratnagiri Gas and Power Pvt Ltd, and in the CGD business in several cities. GAIL has wholly owned subsidiaries in Singapore and the US for expanding its presence outside India in the segments of LNG, petrochemical trading and shale gas assets.