More Stories

Informist, Tuesday, Jul. 29, 2025

 

Please click here to read all liners published on this story

--GAIL: Target addition of 85 new CNG station in next two years 
--CONTEXT: Comments by GAIL management in post-earnings conference call 
--GAIL: Co, JVs will together add 260 new CNG stations over next two years 
--GAIL: Co, JVs to add 260,000 new domestic PNG stations in next 2 yrs 
--GAIL: Maintain marketing guidance of INR 40 bln-INR 45 bln for FY26 
--GAIL: Will add 127-128 mscmd natural gas transmission in FY26 
--GAIL: Facing challenges on petrochemical pricing, demand good 
--GAIL: Petrochemical business may only near break-even level in FY26 
--GAIL: Subdued prices of alternate fuels like naphtha, propane a concern 
--GAIL: Plan to incur capital expenditure of around INR 120 bln in FY27 

 

By Anand JC and Pallavi Singhal

 

NEW DELHI - The management of GAIL (India) Ltd. Tuesday said it has slashed its natural gas transmission guidance for 2025-26 (Apr-Mar) to 127-128 million standard cubic meters per day from 138-139 mscmd previously targeted for the year. This revision is due to the frequent unplanned shutdowns of fertiliser plants, a slight reduction in volumes of city gas distributors, among other reasons, its management told analysts in a post-earnings conference call.

 

GAIL's natural gas transmission volume for the June quarter was 120.6 mscmd, lower than the 120.8 mscmd in the March quarter due to "unexpected decline in volume", its executives said. "Every year, we will not see the monsoon like this. Every year, we will not see the tripping of fertiliser plants like this," the company said, adding that these were the primary reasons behind the guidance cut. Fertiliser plants are now working at a normal level, but only almost, it said.

 

GAIL also earned a one-time income of INR 1.33 billion during the June quarter in its gas transmission segment on account of the differential settlement of the unified tariff. This was factored into the company's profit before tax for the reporting quarter, which was INR 25.33 billion compared to INR 27.01 billion in the March quarter.  

 

The marketing margin of the company was INR 9.94 billion for the June quarter. It has maintained its guidance of registering a marketing margin of INR 40 billion-45 billion in the ongoing financial year.

 

GAIL does not expect its petrochemicals business to fare well in the current financial year. "We may be able to reduce our losses. We may be trying to come nearer to break-even level but I will not be able to give you any guidance," it said. The company is hopeful of the segment remaining in the black this year.

 

Currently, the segment is seeing good demand in the market but the challenges stem from the pricing aspect, GAIL said. The segment is undergoing a pricing cycle where higher availability of polymers in the international market is pushing the prices downward. In addition, prices linked to Henry Hub have also nearly doubled, which has added to the pressure.

 

GAIL has authorisation to operate in six geographical areas. In these, it has 440,000 domestic piped natural gas stations, added 2,600 more during the June quarter. On its own, it plans to add 150,000 more in the next two years. Its fully-owned subsidiary GAIL Gas plans to add 260,000 stations in the next two years, including with its joint ventures.  

 

Currently, it has around 212 compressed natural gas stations. The gas infrastructure company plans to add 85 new CNG stations over the next two years. The company, including its joint ventures, plans to add 260 new CNG stations in the next two years.

 

During the June quarter, crude and liquefied natural gas prices increased but prices of alternate fuels fell. This peculiar situation lowered the demand from downstream clients. "Some of the alternate fuels such as naphtha, propane, while they are correlated with the crude oil prices, are also linked to the refining complexities," the company said. Their prices have been consistently subdued which is a matter of concern, GAIL said.

 

GAIL plans to incur a capital expenditure of INR 107 billion in FY26 and INR 120 billion in FY27.

 

The compnay disclosed its June quarter earnings on Monday. It reported a net profit of INR 18.9 billion on revenue of INR 347.7 billion. At 1426 IST, shares of GAIL were 1.2% higher at INR 182.90 on the National Stock Exchange.   End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Subhojit Sarkar

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.