GAIL (India) Ltd, a government-owned natural gas company, reported a mixed Q2 FY26 with revenue growth overshadowed by a substantial decline in profits.
Financial Summary:
- Revenues rose 4.86% year on year to ₹35,537 crore from ₹33,889 crore.
- Total expenses increased 7.81% to ₹33,488 crore from ₹31,062 crore.
- Consolidated net profit fell 26.06% to ₹1,989 crore from ₹2,690 crore.
- Earnings per share (EPS) dropped 26.83% to ₹3.00 from ₹4.10.
Key Insights:
- The profit decline was driven by higher operating expenses and pressure on petrochemical margins despite volume growth in natural gas transmission and marketing.
- Transmission volume remained stable at 123.59 million standard cubic meters per day (mmscmd), with gas marketing volume at 105.49 mmscmd.
- Sales of light hydrocarbons and polymers showed sequential growth, supporting downstream business performance.
- The company incurred a capital expenditure of approximately ₹1,662 crore in the quarter focusing on pipeline and petrochemical projects.
- The company is expanding capacity with projects like the Srikakulam Angul pipeline dedicated to the nation.
Outlook:
While GAIL faces margin pressure and rising costs in the short term, its strong asset base and strategic projects position it well for long-term growth in India’s evolving energy landscape.
This quarter underscores the challenges of cost management balanced against growing volume and infrastructure investment.
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