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GAIL (India) Limited — Q2 FY25
GAIL reported a strong Q2 FY25 with consolidated PAT of INR 2,694 crore, driven by robust marketing margins and higher transmission volumes.
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GAIL reported a strong Q2 FY25 with consolidated PAT of INR 2,694 crore, driven by robust marketing margins and higher transmission volumes. Gas marketing volume was 96.60 MMSCMD, while transmission volume was 130.63 MMSCMD. The petrochemical segment returned to profitability with PBT of INR 116 crore in H1. Management maintained its FY25 marketing margin guidance of INR 4,500 crore, with 73% already achieved in H1. Key projects like the PDH-PP plant (75% complete) and the Mumbai-Nagpur-Jharsuguda pipeline are on track. Risks include potential APM allocation cuts impacting CGD margins and elevated spot LNG prices. Overall, the outlook remains positive with volume growth expected across segments.
GAIL ने वित्त वर्ष 2025 की दूसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी का कुल मुनाफा (PAT) 2,694 करोड़ रुपये रहा। यह मुनाफा गैस बेचने और पाइपलाइन से गैस पहुंचाने के काम में बढ़ोतरी से आया। गैस बिक्री 96.60 MMSCMD और पाइपलाइन से गैस पहुंचाने का काम 130.63 MMSCMD रहा। पेट्रोकेमिकल कारोबार में भी मुनाफा हुआ, जो पहले छह महीने में 116 करोड़ रुपये रहा। कंपनी ने पूरे साल गैस बेचने से 4,500 करोड़ रुपये मुनाफे का अनुमान लगाया है, जिसमें से 73% पहले ही हासिल हो चुका है। नए प्रोजेक्ट जैसे PDH-PP प्लांट (75% तैयार) और मुंबई-नागपुर-झारसुगुड़ा पाइपलाइन समय पर चल रहे हैं। जोखिम में सरकारी गैस आवंटन में कटौती और महंगी स्पॉट LNG कीमतें शामिल हैं। कुल मिलाकर, कंपनी का भविष्य अच्छा दिख रहा है।
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APM gas allocation cuts to CGD sector
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Gas Marketing Volume
96.60 MMSCMD
-2.9% QoQ
Q2 volume declined due to reduced power sector consumption from monsoon and lower spot sourcing.
Natural Gas Transmission Volume
130.63 MMSCMD
-0.9% QoQ
Transmission volume remained nearly flat QoQ, with capacity utilization at 62%.
Petrochemical Production Volume
234 TMT
+44.4% QoQ
Production surged as Pata plant resumed operations after annual maintenance in Q1.
LHC Production Volume
252 TMT
+16.7% QoQ
LHC production increased sequentially, with capacity utilization at 71%.
What Changed vs Last Quarter
NEW
Petrochemical segment to return to reasonable profitability in FY25
After H1 PBT of INR 116 crore (vs loss of INR 461 crore in FY24), management expects reasonable full-year profit from the segment.
NEW
PDH-PP plant at Usar to be commissioned by October 2025
Mechanical completion expected by April 2025, commercial production by October 2025. Project cost INR 11,256 crore, currently 75% complete.
UPDATED
FY25 marketing margin guidance of INR 4,500 crore likely to be exceeded
Management expects to exceed the INR 4,500 crore marketing margin guidance for FY25, with 73% already achieved in H1. Formal revision will be provided in Q3 results.
UPDATED
Gas transmission volume expected at 130 MMSCMD for FY25
Full-year transmission volume guidance of 130 MMSCMD, with H1 average at 131.21 MMSCMD. Over 2-3 years, volumes expected to grow 10-12 MMSCMD YoY.
DROPPED
Transmission volume growth of 10-12 MMSCMD over 2-3 years
Management expects to add 10-12 MMSCMD of transmission volume by FY26-27, driven by CGD, refinery, and new customer connections.
DROPPED
Petrochemical segment to deliver 'reasonably good profit' in FY25
Despite Q1 loss of INR 42 crore due to shutdown, management expects full-year petrochemical profitability to improve significantly.
NEW RISK
Elevated spot LNG prices impacting marketing margins
Spot LNG prices remain high at ~$13/MMBtu, reducing arbitrage opportunities. Management expects normalization but timing uncertain.
NEW RISK
Petrochemical project ramp-up risks
New PDH-PP plant and GMPL project may not contribute profits in first year (FY26-27), with potential delays or cost overruns.
NEW RISK
Transmission tariff revision uncertainty
Tariff petition submitted to PNGRB; approval expected by March 2025 but timing and quantum of revision are uncertain.
RISK GONE
Regulatory tariff revision risk
PNGRB may revisit integrated pipeline tariffs, potentially reducing returns if volume growth leads to excess returns above regulatory limits.
RISK GONE
Delay in ONGC KG basin gas ramp-up
ONGC's projected 1-2 MMSCMD in FY25 and 5-6 MMSCMD in FY26 from KG basin have been delayed, impacting GAIL's sourcing and transmission plans.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q1 FY25
Management acknowledged that APM gas allocation to CGD will continue to decline as demand grows, potentially squeezing margins for CGD operators and indirectly affecting GAIL.
Mentioned in Q1 FY24, Q2 FY24
Management expects to exit FY24 at a run rate of 123-124 MMSCMD, with FY25 average of 132-133 MMSCMD.
Mentioned in Q2 FY24, Q3 FY24
Shortfall volumes from Gazprom have not been supplied, and the matter is sub judice. No compensation or resolution has been factored into guidance.
Mentioned in Q2 FY24, Q3 FY24
Petrochemical profitability depends on input gas cost and selling prices, which are volatile. Management expects reasonable profit but uncertainty remains.
Fast read
Guidance and risk preview
Management expects to exceed the INR 4,500 crore marketing margin guidance for FY25, with 73% already achieved in H1.
Recent government notification reduced APM allocations, impacting GAIL Gas by INR 16 crore/quarter and GAIL standalone by INR 6 crore/quarter.
View Risks →