GAIL (India) Ltd
(NSE:GAIL)
₹
173.63
-2.77 (-1.57%)
Market Cap: 1.14 Tn
Enterprise Value: 1.36 Tn
PE Ratio: 11.51
PB Ratio: 1.28
GF Score: 86/100 
Q1 2027 Gail (India) Ltd Earnings Call Transcript
Jul 31, 2026 / 10:00AM GMT
Release Date Price:
₹181.44
(+4.49%)
Key Points
Positve
- GAIL (India) Ltd (GAILF) delivered a robust financial performance in Q1 FY27, with standalone PAT surging to INR4,292 crores from INR1,262 crores in Q4 FY26, driven by elevated crude and LPG prices and a diversified portfolio.
- The company successfully navigated geopolitical disruptions and supply challenges by leveraging portfolio flexibility and spot sourcing, ensuring continuity of gas supplies and supporting India's energy security.
- GAIL (India) Ltd (GAILF) achieved a significant milestone by making the entire 1,707-km Mumbai-Nagpur-Jharsuguda pipeline operational, strengthening its gas transmission infrastructure.
- The acquisition of Konkan LNG Limited as a wholly owned subsidiary is expected to streamline operations, bring tax efficiency, and make RLNG sourcing more competitive.
- The LHC segment reported a substantial increase in PBT to INR772 crores in Q1 FY27, up from INR144 crores in the previous quarter, aided by higher LPG prices and a 20% increase in production.
- GAIL (India) Ltd (GAILF) received PNGRB authorization for three new LPG pipelines totaling over 1,800 km, with an estimated investment of INR6,700 crores, supporting future growth.
- The company is on track to achieve its FY27 capital outlay guidance of around INR11,500 crores, demonstrating strong progress across strategic growth initiatives.
Negative
- GAIL (India) Ltd (GAILF)'s gas marketing volumes were impacted by force majeure declared by PLL, affecting Qatar volumes and seven other cargoes, requiring the company to source eight spot cargoes to meet demand.
- The elevated marketing spreads from favorable index movements (Henry Hub and JCC nine-month linked) are expected to be largely short-term, with benefits likely to normalize as averages converge.
- The polymer business incurred a loss of INR130 crores in Q1 FY27 due to feedstock diversification towards the priority sector, although the plant is expected to reach breakeven during FY27.
- LPG transmission volumes declined by around 3% quarter-over-quarter due to disruptions in LPG imports caused by the West Asia crisis.
- The company's gas marketing guidance for FY26-'27 remains at INR4,500 crores PBT, implying a steep decline in quarterly run rate from Q1's performance, reflecting uncertainty and potential normalization.
- Petrochemical profitability is sensitive to gas costs; with a landed gas price of $10.54 per MMBtu, the segment is still loss-making, and profitability depends on achieving a $13-$14 landed price.
- The company faces potential cost increases from new projects, with depreciation expected to rise by around INR312 crores annually for the PDH-PP plant and interest costs by approximately INR440 crores per year.
Operator
(audio in progress) Gail India Limited Q1 FY27 earnings conference call hosted by Ambit Capital Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vivekanand S. from Ambit Capital Private Limited. Thank you, and over to you, sir.
Vivekanand Subbaraman
Ambit Capital Pvt Ltd - Analyst
Thank you, Palak. Good day, ladies and gentlemen. On behalf of Ambit Capital Private Limited, I welcome everyone to Gail India Limited's first-quarter fiscal '27 earnings call.
Today, we have the pleasure of having with us the senior management of Gail led by its Director of Finance, Shri SK Sinha-ji.
I will now hand over the call to the management for their opening remarks, which will be followed by Q&A session. Over to you, Sinha-ji.
Satish Sinha;India;Ltd;Chief Financial Officer;Finance;Executive Director
Gail;Director
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