GAIL (India) Limited has reported a sharp moderation in profitability for FY2025–26 even as revenues held steady and operations remained broadly resilient in a volatile global environment.

 

The state-run gas utility posted a Profit After Tax (PAT) of Rs. 6,968 crore in FY26, down from Rs. 11,312 crore in the previous year, reflecting pressure on margins across its core businesses. Revenue from operations edged up marginally to Rs. 1,38,697 crore, compared with Rs. 1,37,288 crore in FY25.

 

However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell significantly to Rs. 13,119 crore from Rs. 19,168 crore, while Profit Before Tax (PBT) declined to Rs. 8,964 crore from Rs. 14,825 crore.

 

On a consolidated basis, PAT (excluding minority interest) stood at Rs. 7,582 crore, down from Rs. 12,450 crore a year earlier, as EBITDA dropped to Rs. 14,524 crore versus Rs. 20,635 crore.

 

Sequentially, Q4 FY26 also reflected softer performance. Standalone PAT came in at Rs. 1,262 crore, compared with Rs. 1,603 crore in Q3, while consolidated PAT (excluding minority interest) fell to Rs. 1,485 crore from Rs. 1,756 crore.

 

Despite the earnings pressure, the company maintained a strong operational focus and shareholder returns. The Board recommended a final dividend of Rs. 0.50 per equity share (face value Rs. 10 per share) for FY26, subject to approval at the AGM, in addition to an interim dividend of Rs. 5.00 per share. The total dividend payout ratio stood at 51.90%.

 

Capital expenditure for the year stood at Rs. 9,594 crore, directed towards pipeline expansion, petrochemical projects, joint ventures, and subsidiaries.

 

Operationally, performance was mixed. Natural gas transmission fell to 122.18 MMSCMD from 127.32 MMSCMD, while gas marketing volumes rose to 104.21 MMSCMD from 101.49 MMSCMD. Polymer and LHC production also declined year-on-year, though LPG transmission rose to 4,600 TMT from 4,478 TMT.

 

In Q4, volumes softened across most segments compared with Q3, including gas transmission at 118.99 MMSCMD versus 125.45 MMSCMD, and polymer sales at 180 TMT versus 218 TMT.

 

Chairman and Managing Director Deepak Gupta, said: "The year was marked by a challenging & complex global backdrop, beginning with the ongoing Russia-Ukraine conflict and evolving geopolitical developments including the onset of the West Asian crisis towards the later part of the year. Despite these headwinds, supported by timely policy interventions by the Government, GAIL delivered a resilient operational and financial performance."

 

He added: "Our teams remained focused on ensuring operational continuity, cost discipline, and supply reliability, enabling the Company to effectively navigate a volatile market environment. 

 

"During the year, we added approximately 2,000 km of pipeline network and achieved the highest-ever LPG transmission of 4.6 MMTPA. Further, GAIL is doubling the capacity of Jamnagar-Loni LPG pipeline to 6.5 MMTPA."

 

Outlining future priorities, he said: "As we advance towards our Strategy 2030 and net-zero commitments, the Company continues to invest in future-ready growth avenues."

 

Gupta further highlighted that the Board has accorded investment approval for key renewable energy projects, including ~700 MW of solar and ~178 MW of wind capacity, 6 CBG plants with total capacity of around 95 TPD, reinforcing GAIL’s commitment to energy transition, sustainability and long-term value creation."