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Informist, Monday, Feb. 2, 2026

 

--GAIL: Plan to add around 85 CNG stations in the next 2 years
--GAIL: To bid for new petroleum, petro products pipelines
--CONTEXT: Comments by GAIL management in post-earnings analysts concall
--GAIL: Spent INR 21.86 billion as capex in Oct-Dec
--GAIL: Hope to achieve gas transmission guidance of 124-125 mscmd for FY26
--GAIL: Expect 134-135 mscmd of gas transmission volume in FY27
--GAIL: See prices softening on abundant global gas supply from FY27
--GAIL: To increase long-term gas sourcing by 6-7 mtpa till 2030
--GAIL:Hope to earn marketing revenue of INR 40 bln-INR 45 bln in FY26, FY27
--GAIL: See no rise in capex as most current projects on verge of completion
--GAIL: Gas marketing volumes guidance for FY27 at 109-110 mscmd
--GAIL: Expect INR 90 bln-INR 100 bln capex for FY27, excluding new projects
 

By Sunil Raghu & Eshitva Prakash

 

MUMBAI – GAIL (India) Ltd. expects to spend INR 90 billion-INR 100 billion in capital expenditure in 2026-27 (Apr-Mar), the company's management told analysts in a conference call Monday.

 

The company, which spent nearly INR 22 billion in capex in the December quarter, sees its capex for FY26 at around INR 107 billion. The FY27 capex does not include any costs the company may incur in setting up new projects. The management said there is no substantial rise in capex plans for FY27 as most of the company's projects are on the verge of completion. "Large part of capex will be on pipeline in FY27 and even in 28. And then we have net zero plan of 35,000 crore (INR 350 billion) over 10 years," the management said. It listed likely investments of INR 20 billion-INR 30 billion on adding 700 megawatts of renewable energy projects, and INR 8 billion-INR 10 billion on compressed bio-gas and liquefied natural gas.

 

GAIL (India) posted a fall of nearly 59% on year in net profit for the December quarter at INR 16.03 billion, as its revenue from operations declined 2.5% on year to INR 340.76 billion.

 

GAIL is also working on setting up 29 liquefied natural gas retail outlets, for which work on five locations is already underway. It also plans to add 85 compressed natural gas stations over two years. Currently, it has 250 CNG stations across the country, two of these added in the December quarter. Primarily, a natural gas transporter, GAIL is also considering bidding for new petroleum and petroleum product pipelines, largely liquefied petroleum gas pipelines that it expects to come up in the country going forward.

 

On the operational front, GAIL's management said it is confident of achieving its natural gas transmission guidance of 124-125 million standard cubic metres per day in FY26. Next financial year, it expects this to rise to 134-135 mscmd. "Almost 4 million (mscmd) volume we are expecting to come from natural growth of city gas distribution and then we lost power volume this year. Almost 2 million volume power we lost, (which) we expect to come back," the management said. It also sees another 3 mscmd of volume coming from the refining sector.

 

The management said it expects natural gas prices to soften globally, as abundant LNG capacities are coming up in the near future and gas would be available from across the world in the coming financial year. "In fact, we have a lot of offers available at a very, very competitive price and that will also increase the boost of gas consumption," the management said. The company sources global gas as LNG for Indian markets. Currently, its LNG purchase is around 16.5 million tonnes per annum, which it believes needs to rise by another 6-7 million tonnes till 2030.

 

The management sees marketing revenue in FY26 around INR 40 billion-INR 45 billion. "27 (FY27) also, we are not saying that we will be having any different number than that because our volumes are same," the management said, adding that its gas marketing volumes in FY27 would be 109-110 mscmd.

 

At 1325 IST, shares of GAIL traded at INR 159.06 on the National Stock Exchange, down over 2%.  End

 

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

 

Edited by Avishek Dutta

 

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