GAIL (India)'s Q1 FY 2025-26 Quarterly Results

Result Summary

• GAIL (India) Ltd reported a 7.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 1.4%.
• Its expenses for the quarter were up by 8.4% QoQ and 4.9% YoY.
• The net profit decreased 3.7% QoQ and decreased 25.2% YoY.
• The earnings per share (EPS) of GAIL (India) Ltd stood at 3.6 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

GAIL (India) Ltd is a leading natural gas company in India, primarily engaged in the processing, transmission, and distribution of natural gas. As a state-owned enterprise, GAIL operates in various segments including natural gas, liquid hydrocarbons, liquefied petroleum gas transmission, petrochemicals, and electricity generation. The company plays a pivotal role in India's energy sector, supporting the country's energy needs through its extensive pipeline infrastructure. Recent developments for GAIL include expansions in its gas transmission network and initiatives to increase its presence in renewable energy sectors. These strategic moves aim to align with India's growing energy demands and the global shift towards sustainable energy solutions.

Revenue

In the first quarter of FY26, GAIL (India) Ltd reported a total income of ₹35,454.81 crores, reflecting a quarter-over-quarter (QoQ) increase of 7.5% from ₹32,992.84 crores in Q4FY25. This also represents a year-over-year (YoY) increase of 1.4% compared to ₹34,958.32 crores in Q1FY25. The growth in revenue indicates a positive trend in the company's income generation over the past quarters, potentially driven by increased demand or expanded operations. Despite fluctuations in the energy sector, GAIL has managed to maintain a stable revenue stream, showcasing its resilience and capacity to adapt to market conditions.

Profitability

GAIL (India) Ltd's profitability metrics for Q1FY26 show a mixed performance. The profit before tax (PBT) stood at ₹2,607.23 crores, marking a decrease of 2.9% QoQ from ₹2,684.92 crores in Q4FY25 and a significant decrease of 28.6% YoY from ₹3,649.62 crores in Q1FY25. The profit after tax (PAT) was ₹2,382.24 crores in Q1FY26, down by 3.7% QoQ from ₹2,474.31 crores in Q4FY25, and a substantial decrease of 25.2% YoY from ₹3,183.35 crores in Q1FY25. The earnings per share (EPS) followed a similar trend, decreasing by 5.3% QoQ to ₹3.60 from ₹3.80 and declining by 25.0% YoY from ₹4.80. These figures reflect challenges in maintaining profit margins, which may be attributed to increased expenses or market dynamics affecting the company's cost structure.

Operating Metrics

The total expenses for GAIL (India) Ltd in Q1FY26 were reported as ₹32,847.58 crores, which shows an increase of 8.4% QoQ from ₹30,307.92 crores in Q4FY25 and an increase of 4.9% YoY from ₹31,308.70 crores in Q1FY25. This upward trend in expenses indicates rising operational costs, which may be influenced by various factors such as higher input costs, expansion activities, or changes in regulatory environments. Despite the increase in expenses, GAIL has managed to sustain its operational activities efficiently, as reflected in its revenue growth. The tax expense for Q1FY26 was ₹646.60 crores, which increased by 3.5% QoQ from ₹624.96 crores in Q4FY25 but decreased by 30.5% YoY from ₹930.47 crores in Q1FY25. This tax variation suggests significant changes in taxable income or applicable tax rates over the periods analyzed.