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Informist, Friday, Jul. 31, 2026

 

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--GAIL: Gail Gas plans 275 new CNG stations in next two years
--CONTEXT: GAIL (India) mgmt's comments in post-earnings call with analysts 
--GAIL: Gail Gas to add 370,000 more domestic PNG connections in 2 yrs
--GAIL: Reiterate capex of INR 115 billion for FY27
--GAIL: Have 16.5 mln tn LNG; sourced 2.5 mln tn more of 7-8 mln tn target
--GAIL: See LPG profitability fall in Jul-Sept as global prices soften

 

By Sunil Raghu and Ruchira Kagita

 
AHMEDABAD/MUMBAI – GAIL (India) Ltd. has kept its capital expenditure target for financial year 2026-27 (Apr-Mar) unchanged at INR 115 billion, the company's management said in its post-earnings analyst call for the June quarter. The company, which already has 16.5 million tonnes per annum of liquefied natural gas tied up, has been able to source another 2.5 mtpa of LNG of targeted 7-8 mtpa of LNG, the management said. 

 

The company's gas volumes stood at 93.82 million standard cubic meters per day of natural gas in Apr-Jun, including 8.76 mscmd in the international markets. The company management said that they would maintain their gas marketing guidance for FY27 at around INR 45 billion profit before tax. Its natural gas transmission volumes stood at 122.36 mmscmd, up from 118.99 mmscmd, and was broadly in line with FY26. "Based on the current operating trend and the June quarter volume of 122.36 mscmd, we now expect natural gas transmission volume for FY27 to be around 123 mscmd, with an assumption that the current geopolitical situation continues," the management said.

 

As for polymer production business, the company's production in June quarter stood at 51,000 metric tonnes, and record a loss of INR 1.3 billion. While currently, the company's petrochemical complex is operating at 100?pacity, the company is mulling to shift the PATA petrochemical complex from natural gas to ethane as a field-stock to ensure long-term sustainable margins.  

 

GAIL reported a profitability of INR 33.53 billion for gas marketing segment in the June quarter. It now targets profitability of INR 45 billion for FY27. On being asked whether GAIL would be able to sustain the earnings from liquefied petroleum gas, or LPG, at over INR 7 billion for the remaining three quarters of FY27, the management said the prices of LPG had softened in the current quarter and 'certainly' there would be a decrease in LPG profitability. In Apr-June, the company earned INR 7.72 billion from LPG segment, versus INR 2.05 billion a year ago.

 

The GAIL management said they were actively evaluating setting up two fertiliser plants in Maharashtra and Chhattisgarh. They also said that its city gas distribution subsidiary Gail Gas plans to add 275 new compressed natural gas, or CNG, stations in the next two years. It also plans to add at least 370,000 more domestic piped natural gas connections in these two years.

 

For the June quarter, GAIL (India)'s net profit jumped nearly 128% to INR 42.92 billion. The company's revenues excluding excise duty grew over 12% on year to INR 389.53 billion. The top line inclusive of excise duty was INR 389.82 billion. Friday, shares of the company closed over 4.5% higher at INR 181.44 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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