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GAIL (India) Limited — Q2 FY26
GAIL's Q2 FY26 standalone revenue was flat QoQ at INR 34,972 crore, up 7% YoY, but PAT fell 17% YoY to INR 2,217 crore due to lower gas marketing margins and petrochemical losses.
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GAIL's Q2 FY26 standalone revenue was flat QoQ at INR 34,972 crore, up 7% YoY, but PAT fell 17% YoY to INR 2,217 crore due to lower gas marketing margins and petrochemical losses. Gas transmission volumes improved to 123.59 mmscmd, but full-year guidance was revised down to 123-124 mmscmd due to power demand weakness, refinery fuel switching, and pipeline outages. Management expects FY27 volumes to recover to 133-134 mmscmd driven by CGD growth, power recovery, and new pipelines. Gas marketing PBT guidance of INR 4,000-4,500 crore for FY26 remains on track. Key risk: sustained high Henry Hub prices could further pressure petrochemical margins.
GAIL की दूसरी तिमाही (Q2 FY26) में कुल कमाई पिछली तिमाही के बराबर रही, यानी 34,972 करोड़ रुपये, जो पिछले साल से 7% ज्यादा है। लेकिन मुनाफा (PAT) 17% घटकर 2,217 करोड़ रुपये रह गया, क्योंकि गैस बेचने में कम मार्जिन और पेट्रोकेमिकल्स में घाटा हुआ। गैस ट्रांसमिशन की मात्रा बढ़कर 123.59 mmscmd हो गई, लेकिन बिजली की कम मांग, रिफाइनरियों का दूसरे ईंधन पर शिफ्ट होना और पाइपलाइन बंद होने के कारण पूरे साल का अनुमान घटाकर 123-124 mmscmd कर दिया गया। कंपनी को उम्मीद है कि अगले साल (FY27) यह 133-134 mmscmd तक पहुंच जाएगा, क्योंकि शहरों में गैस की मांग बढ़ेगी, बिजली क्षेत्र सुधरेगा और नई पाइपलाइनें बनेंगी। गैस मार्केटिंग से इस साल 4,000-4,500 करोड़ रुपये मुनाफा होने का अनुमान सही है। मुख्य जोखिम: अमेरिका में गैस की कीमतें (Henry Hub) ज्यादा रहीं तो पेट्रोकेमिकल्स का मुनाफा और गिर सकता है।
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Sustained high Henry Hub prices pressuring petrochemical margins
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Gas Transmission Volume
123.59 mmscmd
+2.5% QoQ
Q2 FY26 average transmission volume improved from 120.62 mmscmd in Q1.
Gas Marketing Volume
105.49 mmscmd
flat QoQ
Gas marketing volume remained nearly unchanged from 105.45 mmscmd in Q1.
Polymer Production
220 TMT
+24.3% QoQ
Production recovered from 177 TMT in Q1 after annual turnaround.
LPG Transmission Capacity Utilization
101%
+5pp QoQ
Utilization improved from ~96% in Q1, reflecting strong demand.
What Changed vs Last Quarter
NEW
FY27 gas marketing PBT expected at similar level of INR 4,000-4,500 crore
Management guided that next year's gas marketing PBT will be around the same level as FY26, with no new major additions expected.
UPDATED
FY26 gas transmission volume guidance revised to 123-124 mmscmd
Management lowered full-year transmission volume guidance from earlier expectations to 123-124 mmscmd due to power demand weakness, refinery fuel switching, and pipeline outages.
UPDATED
FY27 gas transmission volume target of 133-134 mmscmd
Management expects FY27 volumes to increase by 8-10 mmscmd driven by CGD growth, power recovery, new pipelines, and refinery demand.
UPDATED
Gas marketing PBT guidance of INR 4,000-4,500 crore for FY26
Management reiterated the annual PBT guidance for the gas marketing segment, with H1 PBT at INR 2,221 crore, indicating confidence in achieving the target.
DROPPED
Capex plan of INR 12,000 crore for FY27
Includes INR 4,000 crore for pipelines, INR 2,500 crore for petrochemicals, and INR 2,000 crore for net zero initiatives.
NEW RISK
Sustained high Henry Hub prices pressuring petrochemical margins
Petrochemical segment posted a loss of INR 299 crore in Q2 due to high input gas costs (~$10.6/mmbtu). If Henry Hub remains elevated, losses may persist.
NEW RISK
Reduction in domestic gas allocation for LPG shrinkage
New gas allocation for LPG shrinkage was reduced from 0.32 mmscmd to 0.2 mmscmd from Oct 1, 2025, estimated to impact H2 production by 33 TMT.
NEW RISK
Power sector demand may not recover as expected
Government plans to phase out imported gas for power could limit demand recovery, despite management's expectation of 2-3 mmscmd power volume returning in FY27.
RISK GONE
Petrochemical segment losses may persist
Pata petrochemical plant posted INR 249 crore loss in Q1; management expects only breakeven at best in FY26 due to high input costs and weak polymer prices.
RISK GONE
Transmission volume downside from fertilizer plant outages
Unscheduled shutdowns at fertilizer plants (e.g., KFCL) reduced volumes by 1.4 MMSCMD; further disruptions could pressure guidance.
RISK GONE
Weak alternate fuel pricing impacting gas demand
Lower naphtha and furnace oil prices led to fuel switching by refineries, reducing gas offtake; this trend may continue if crude remains soft.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25
Recent government notification reduced APM allocations, impacting GAIL Gas by INR 16 crore/quarter and GAIL standalone by INR 6 crore/quarter. Management sees opportunity to source LNG but margin pressure remains.
Mentioned in Q1 FY25, Q3 FY25
Transmission volume is expected to increase by 10 MMSCMD year-on-year for the next two to three years, driven by CGD, refinery, and new pipeline volumes.
Mentioned in Q1 FY25, Q2 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.
Mentioned in Q3 FY25, Q4 FY25
Marketing margins can be impacted by index mismatches (e.g., nine-month average sourcing vs. three-month average selling) and overcommitment, as seen in Q3 FY25.
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Guidance and risk preview
Management lowered full-year transmission volume guidance from earlier expectations to 123-124 mmscmd due to power demand weakness, refinery fuel s...
Petrochemical segment posted a loss of INR 299 crore in Q2 due to high input gas costs (~$10.6/mmbtu).
View Risks →