GAIL (India) Limited , the country's largest gas transmission and distribution company, reported a net profit of ₹1,886.00 crore for the first quarter, down from ₹2,724.00 crore in the same period last year. The company's revenue from operations stood at ₹34,792.00 crore, showing a modest increase from ₹33,692.00 crore in the corresponding quarter of the previous year.

Financial Performance

Despite the year-on-year decline in profit, GAIL showed quarter-on-quarter improvement. Compared to the previous quarter, the company's net profit decreased from ₹2,049.00 crore to ₹1,886.00 crore. The revenue, however, saw a slight dip from ₹35,707.00 crore in the previous quarter.

On a consolidated basis, GAIL reported a net profit of ₹2,369.00 crore and revenue of ₹35,429.00 crore for the quarter.

Operational Highlights

GAIL's natural gas transmission volume stood at 121 MMSCMD (million metric standard cubic meters per day), while its marketing volume was 105 MMSCMD. The company also reported sales of 177 TMT (thousand metric tonnes) of petrochemicals and 198 TMT of liquid hydrocarbons during the quarter.

Capital Expenditure and Future Projects

Sandeep Kumar Gupta, Chairman & Managing Director of GAIL, stated that the company incurred a capital expenditure of approximately ₹3,176.00 crore during the quarter, primarily focusing on pipelines, petrochemicals, and equity contributions to joint ventures.

Gupta also announced that GAIL has received authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB) for the capacity expansion of the Jamnagar-Loni LPG pipeline. The project, estimated to cost around ₹5,000.00 crore, will double the pipeline's capacity from 3.25 MMTPA to 6.5 MMTPA and is expected to be completed within three years.

Joint Venture with Rajasthan Power Utility

In a significant development, GAIL has entered into a joint venture agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL). The 50-50 partnership aims to transfer existing gas-based power plants totaling 600.5 MW to the joint venture company and develop approximately 1,000 MW of renewable energy projects in Rajasthan.

Key points of the joint venture include:

• Transfer of 330 MW gas-based power plant in Dholpur and 270.5 MW plant in Ramgarh to the JV company, subject to due diligence by GAIL
• Development of about 750 MW of solar projects and 250 MW of wind power projects
• Initial authorized and paid-up share capital of ₹10.00 lakh
• Equal board representation with three directors each from GAIL and RVUNL
• A five-year lock-in period for the partnership

This strategic move aligns with GAIL's efforts to diversify its energy portfolio and contribute to India's renewable energy goals.

Sustainability Recognition

GAIL has been included in the FTSE4Good Index series for the seventh consecutive year, underscoring the company's commitment to sustainability and strong Environmental, Social, and Governance (ESG) performance.

As GAIL continues to navigate the evolving energy landscape, its focus on expanding infrastructure, venturing into renewable energy, and maintaining strong financial performance positions it well for future growth in India's gas and energy markets.

GAIL (India) Limited , India's leading natural gas company, has reported a net profit of ₹1,886.00 crore for the first quarter, according to its latest financial results. The company's revenue from operations stood at ₹34,792.00 crore for the quarter ended June 30.

Financial Performance

GAIL's profit before tax (PBT) for Q1 was ₹2,533.00 crore, while the total income, including other income, amounted to ₹35,084.00 crore. The company's earnings per share (EPS) for the quarter stood at ₹2.87.

Segment-wise Performance

Natural Gas Transmission

The natural gas transmission segment continued to be a strong performer for GAIL, with revenue of ₹2,805.00 crore and a segment profit of ₹1,558.00 crore.

Natural Gas Marketing

The natural gas marketing segment, which is the largest revenue generator, reported revenue of ₹31,003.00 crore and a segment profit of ₹1,072.00 crore.

Petrochemicals

The petrochemicals segment faced challenges, reporting a loss of ₹249.00 crore on revenue of ₹1,681.00 crore.

LPG and Liquid Hydrocarbons

This segment showed resilience with a profit of ₹205.00 crore on revenue of ₹1,105.00 crore.

LPG Transmission

The LPG transmission business contributed ₹226.00 crore to the revenue.

Petrochemical Business Outlook

In a significant development, GAIL management indicated during a conference call that its petrochemical business is expected to reach the break-even point by FY26. This update provides a positive outlook for the segment that has been facing headwinds.

Financial Position

As of June 30, GAIL's balance sheet reflected a strong financial position with:

The company's debt-to-equity ratio stood at 0.24, indicating a conservative financial leverage.

Future Outlook

With the expected turnaround in the petrochemical business and consistent performance in its core natural gas business, GAIL appears well-positioned for future growth. The company's diverse business portfolio, spanning gas transmission, marketing, petrochemicals, and LPG, provides it with multiple avenues for expansion and stability.

GAIL's focus on improving its petrochemical business performance by FY26 demonstrates the company's commitment to enhancing shareholder value across all its business segments. As India's energy landscape continues to evolve, GAIL's strategic position in the natural gas value chain is likely to play a crucial role in the country's energy transition.