GAIL Q3FY26 Results: Net Profit Falls 59% YoY, EBITDA Margin Drops to 7.79%
GAIL (India) Limited's Q3FY26 results showed significant profitability decline with net profit falling 59% YoY to ₹1,602.57 crore and EBITDA margin compressing to 7.79%. The company filed regulatory compliance documents with stock exchanges and declared interim dividend of ₹5 per share despite challenging market conditions in natural gas and petrochemicals sectors.
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GAIL (India) Limited announced its Q3FY26 quarterly results showing continued pressure on profitability with net profit declining both on year-on-year and quarter-on-quarter basis. The company's results reflect challenging market conditions in the natural gas and petrochemicals sectors, with sequential quarterly performance also showing deterioration across key financial metrics including EBITDA performance.
Financial Performance Overview
The company's standalone financial results showed marked deterioration in profitability metrics across multiple timeframes. Net profit after tax fell to ₹1,602.57 crore, representing a substantial 59% decline from ₹3,867.38 crore reported in the same quarter last year. On a sequential basis, the decline was 28% from ₹2,220 crore in the previous quarter, indicating continued margin pressures.
| Financial Metric: | Q3FY26 | Q3FY25 | YoY Change (%) | Previous Quarter | QoQ Change (%) |
|---|---|---|---|---|---|
| Net Profit After Tax: | ₹1,602.57 crore | ₹3,867.38 crore | -58.6% | ₹2,217.24 crore | -27.8% |
| Revenue from Operations: | ₹34,075.81 crore | ₹34,957.76 crore | -2.5% | ₹35,031.24 crore | -2.7% |
| EBITDA: | ₹2,655 crore | - | - | ₹3,190 crore | -16.8% |
| EBITDA Margin: | 7.79% | - | - | 9.11% | -132 bps |
| Earnings Per Share: | ₹2.44 | ₹5.88 | -58.5% | ₹3.37 | -27.6% |
| Total Income: | ₹34,755.27 crore | ₹35,707.47 crore | -2.7% | ₹35,823.81 crore | -3.0% |
EBITDA Performance Analysis
The company's operational efficiency showed significant deterioration during the quarter. EBITDA declined to ₹2,655 crore from ₹3,190 crore in the previous quarter, marking a 16.8% sequential decline. More concerning was the compression in EBITDA margin, which fell to 7.79% from 9.11% in the preceding quarter, indicating weakening operational profitability amid challenging market conditions.
Nine-Month Performance Analysis
For the nine-month period ended December 31, 2025, GAIL demonstrated resilience in revenue generation while facing margin pressures. Revenue from operations increased marginally by 2.3% to ₹1,03,899.50 crore compared to ₹1,01,580.11 crore in the corresponding period last year.
| Parameter: | 9M FY26 | 9M FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | ₹1,03,899.50 crore | ₹1,01,580.11 crore | +2.3% |
| Net Profit: | ₹5,706.13 crore | ₹9,263.29 crore | -38.4% |
| Total Expenses: | ₹98,276.84 crore | ₹93,731.48 crore | +4.8% |
| Profit Before Tax: | ₹7,386.60 crore | ₹12,123.49 crore | -39.1% |
Segment-Wise Performance
The company's diversified business portfolio showed mixed results across different segments. Natural gas transmission remained the strongest performer, while petrochemicals faced significant challenges.
Natural Gas Transmission emerged as the most profitable segment, generating ₹1,376.09 crore in segment results compared to ₹1,370.29 crore in the same quarter last year. Natural Gas Marketing contributed ₹30,605.41 crore in revenue for the quarter, though segment results declined to ₹853.18 crore from ₹2,880.98 crore in the previous year. Petrochemicals segment reported a loss of ₹482.64 crore in segment results, compared to a marginal profit of ₹4.68 crore in the corresponding quarter last year.
Board Meeting and Regulatory Compliance
The Board of Directors meeting was held on January 31, 2026, commencing at 2:00 p.m. and concluding at 5:15 p.m. The board approved the unaudited financial results for the quarter and nine months ended December 31, 2025, along with the payment of interim dividend. The results were filed with stock exchanges in compliance with SEBI regulations.
Dividend Declaration and Corporate Actions
The Board of Directors approved an interim dividend of ₹5.00 per equity share (face value ₹10 each), amounting to ₹3,287.55 crore. The record date for dividend payment has been fixed as February 5, 2026.
Regulatory Filing and Newspaper Publication
In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, GAIL has published its unaudited financial results for the quarter and nine months ended December 31, 2025 in newspapers. The company filed the necessary documents with National Stock Exchange of India Limited (Scrip Code: GAIL-EQ) and BSE Limited (Scrip Code: 532155) on February 2, 2026.
| Exchange Details: | Information |
|---|---|
| NSE Scrip Code: | GAIL-EQ |
| BSE Scrip Code: | 532155 |
| Filing Date: | February 2, 2026 |
| Company Secretary: | Mahesh Kumar Agarwal |
Key Financial Ratios and Regulatory Matters
The company's financial health indicators showed mixed trends with debt equity ratio at 0.25 times compared to 0.23 times in the previous year, while current ratio declined to 0.99 times from 1.22 times. Operating margin compressed to 4.71% from 5.75%, and net profit margin fell significantly to 4.71% from 11.09%.
The company continues to face regulatory challenges, including appeals against provisional tariff orders and a Central Excise demand of ₹2,889 crore related to Naphtha classification before the Supreme Court.
Historical Stock Returns for GAIL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.43% | -2.50% | -13.77% | -20.27% | -11.49% | +60.18% |
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