GAIL is set to accelerate expansion across natural gas transmission, LNG, petrochemicals, LPG and emerging clean-energy businesses after delivering a steady financial performance in a volatile global energy environment during FY 2025-26.

 

Addressing shareholders at the company’s 42nd Annual General Meeting, GAIL Chairman Deepak Gupta said the year had underscored the growing importance of balancing energy security with the global transition to cleaner fuels.

 

“FY 2025–26 underscored a fundamental reality: energy security has become as important as energy transition.”

 

He pointed to geopolitical tensions in the Middle East and disruptions to LNG supply chains through the Strait of Hormuz as stark reminders of the vulnerability of global energy markets. Volatility in LNG prices, freight rates and supply availability, he said, reinforced the need for diversified sourcing, resilient infrastructure and flexible supply chains.

 

For India, GAIL said the experience strengthened the case for a pragmatic energy strategy combining security, affordability and sustainability, even as the country expands renewable energy, biofuels and emerging technologies.

 

Despite the challenging external environment, GAIL reported Revenue from Operations of Rs 1,38,697 crore in FY26, up from Rs 1,37,288 crore in the previous fiscal.

 

Profit Before Tax stood at Rs 8,964 crore, while Profit After Tax was Rs 6,968 crore.

 

The company also highlighted its governance record, noting that the Comptroller and Auditor General of India conveyed Nil Comments on GAIL’s financial statements for the 17th consecutive year.

 

“This is a significant affirmation of the Company’s financial reporting, internal controls and governance standards.”

 

GAIL transmitted an average of approximately 122 MMSCMD of natural gas through its pipeline network during the year and marketed around 104 MMSCMD, including global sales.

 

 

GAIL remains at the centre of India’s National Gas Grid expansion, with its natural gas pipeline network now stretching beyond 18,690 km.

 

Nearly 1,500 km of additional pipelines are under construction. Once completed, GAIL’s network is expected to approach 20,000 km, strengthening gas connectivity across the country.

 

The company’s LNG sourcing portfolio has also expanded to 16.56 MMTPA, combining long-term contracts with market-linked procurement. During FY26, GAIL imported 132 LNG cargoes, including seven spot cargoes, to maintain supplies to priority customers amid global market volatility.

 

GAIL is simultaneously strengthening its LNG shipping capabilities. Long-term charter agreements have been concluded for GAIL Bhuwan, with a capacity of 180,000 cubic metres, and Energy Fidelity, with a capacity of 174,000 cubic metres.

 

The company now has access to nine LNG vessels, including five under long-term charter arrangements.

 

 

A major operational milestone came at the Dabhol LNG Terminal, where completion of the breakwater facility enabled year-round operations.

 

The terminal received its first LNG cargo during the monsoon season and also handled its 1,000th LNG cargo during the year.

 

Given the strategic importance of Konkan LNG Limited, GAIL’s Board has approved a scheme to merge the company with GAIL, paving the way for closer operational and strategic integration.

 

GAIL’s international footprint is also expanding. GAIL Global (USA) LNG LLC continues to support sourcing and liquefaction arrangements for its US portfolio, while GAIL Global (Singapore) Pte. Ltd. is strengthening LNG trading and international business.

 

The company has also established GAIL Global IFSC Limited at GIFT City, with a mandate covering treasury management and opportunities in international financial services and ship leasing.

 

 

GAIL is expanding its role in India’s LPG transportation infrastructure, with plans to raise the capacity of the 1,427-km Jamnagar-Loni LPG Pipeline from 3.25 MMTPA to 6.5 MMTPA.

 

The Petroleum and Natural Gas Regulatory Board has also authorised GAIL to develop three new LPG pipelines totalling approximately 1,775 km — the Cherlapally-Nagpur Pipeline, Jhansi-Sitarganj Pipeline, and Shikrapur-Goa and Hubli Pipeline.

 

In petrochemicals, GAIL commissioned a 60 KTA Polypropylene unit at Pata, taking the integrated complex’s capacity from 810 KTA to 870 KTA.

 

The company is also advancing its 500 KTA PDH-PP project at Usar, which it describes as India’s first propane dehydrogenation-based polypropylene complex. The project carries an estimated investment of approximately Rs 11,256 crore.

 

At Mangalore, work is progressing on GAIL Mangalore Petrochemicals Limited’s 1.25 MMTPA PTA plant, marking GAIL’s entry into a new petrochemical value chain.

 

“These investments in petrochemicals are not simply about adding capacity. They are about developing a more diversified downstream business and strengthening the growth of GAIL’s petrochemical portfolio," the Chairman said.

 

 

GAIL is also pursuing selective upstream integration alongside its core transmission and marketing operations.

 

The company currently holds interests in eight domestic E&P blocks, two E&P blocks in Myanmar and one shale gas asset in the United States.

 

Its upstream business recorded its highest-ever gross turnover of Rs 1,157 crore during FY26.

 

Meanwhile, City Gas Distribution continues to be a key demand driver. Through subsidiaries and joint ventures, GAIL Group companies are authorised in 72 geographical areas, serving approximately 109 lakh PNG customers and operating more than 3,400 CNG stations.

 

 

Compressed Biogas is emerging as another growth pillar for GAIL. As the nodal agency for the CBG-CGD Synchronisation Scheme, the company achieved its highest-ever CBG sales during the year.

 

Investment approval has been obtained for six new CBG plants, with GAIL targeting 26 CBG plants by 2030.

 

The company is also moving into large-scale fertiliser manufacturing. The Board has accorded in-principle approval for investments in two world-scale gas-based fertiliser plants in Maharashtra and Chhattisgarh, involving a combined investment of approximately Rs 21,000 crore.

 

The projects are expected to support India’s food security while creating anchor demand for GAIL’s pipeline network and contributing to regional development.

 

GAIL is also exploring opportunities in critical minerals and has signed MoUs with Khanij Bidesh India Limited and Hindustan Copper Limited.

 

 

While natural gas remains at the core of GAIL’s business, the company is positioning itself for a broader energy transition through investments in renewable energy, green hydrogen, carbon management, energy efficiency, battery storage and other low-carbon technologies.

 

GAIL has committed to achieving Net Zero Scope 1 and Scope 2 emissions by 2035.

 

Its R&D portfolio currently includes more than 30 collaborative research projects, while a new state-of-the-art Research and Development Centre is being established at Sohna, Haryana.

 

Innovation is also being pursued through start-ups. GAIL has invested in 44 start-ups to date, with a total fund allocation of Rs 95.16 crore, of which Rs 78.06 crore has been disbursed.

 

The company has also joined other oil and gas public sector enterprises in establishing the MC2 Foundation, a common platform for innovation and entrepreneurship under the aegis of the Ministry of Petroleum and Natural Gas.

 

GAIL said safety remains non-negotiable, with technology-based monitoring, advanced asset management and predictive-maintenance applications being deployed to strengthen operational safety and asset integrity.

 

The company’s CSR programmes reached more than 25 lakh people during FY26, while GAIL Arogya provided healthcare services to more than 19 lakh beneficiaries.

 

Looking ahead, GAIL said the energy transition will involve multiple fuels and technologies rather than a single dominant solution.

 

“The energy transition will not be linear, nor will it be shaped by a single fuel or technology," the Chairman said.

 

The company expects natural gas to remain critical to industrialisation, urbanisation, mobility, fertiliser and petrochemical industries, while LNG, CGD and CBG will play increasingly important roles in strengthening supply diversity, cleaner consumption and the circular economy.

 

GAIL said petrochemicals would provide opportunities for value addition and import substitution, while renewable energy, battery storage, green hydrogen and carbon-management solutions would gain increasing importance.

 

The company enters the next phase with what it described as a broad set of strategic strengths — including India’s largest natural gas pipeline network, a diversified LNG portfolio, expanding shipping capabilities, strong gas marketing operations, a nationwide CGD ecosystem, growing downstream businesses and deep project-execution capabilities.

 

“Our strategic direction is therefore clear. We will expand the National Gas Grid, strengthen gas marketing, diversify LNG sourcing and shipping, expand petrochemicals and LPG infrastructure, support CGD and CBG development, progress the fertiliser projects, and selectively explore upstream resources and critical minerals," the Chairman said.