GAIL (India) reports a strong first quarter with doubled EBITDA and a 140% rise in net profit, bolstered by expanded pipeline operations, marketable gas demand, and strategic LNG sourcing plans amidst geopolitical disruptions.
GAIL (India) delivered a stronger-than-expected first quarter as higher gas transmission throughput, firmer marketing margins and improved liquid hydrocarbon performance lifted earnings, even as some businesses faced pressure from lower volumes and volatile global energy markets. The company’s adjusted Ebitda doubled from a year earlier and adjusted net profit rose 140% year on year, underscoring the benefit of its core pipeline network and trading operations in a quarter shaped by geopolitical disruption and uneven demand.
According to the company’s results and its latest presentation, transmission volumes came in at 122.36 million metric standard cubic metres a day, up from the previous quarter, while the transmission business posted a 14% sequential rise in Ebitda. GAIL raised its FY27 transmission volume guidance to 123 mmscmd from 119 mmscmd, signalling confidence that its network will continue to gain from rising gas demand. The company also said the 1,707-kilometre Mumbai-Nagpur-Jharsuguda pipeline became fully operational during the quarter, helping lift demand at Jharsuguda.
Marketing was another bright spot, with profit before tax in the segment reaching ₹3,350 crore in the quarter. Even so, management expects that contribution to normalise and has held to its annual profit before tax guidance of ₹4,500 crore. Natural gas marketing volumes were lower than in the previous quarter, reflecting softer domestic demand and broader market volatility. The company also said it offset the impact of Qatar force majeure disruption to seven cargoes with eight spot LNG cargoes, while around one-fifth of its Henry Hub-linked LNG is consumed at PATA, with the rest used for Brent-linked optimisation.
Petrochemicals and LPG-LHC also improved, helped by better realisations and lower gas costs, although GAIL expects earnings in those segments to moderate. The PATA petrochemical complex is now operating at full utilisation, and GAIL sees petrochemical operations moving towards break-even in FY27. Still, petrochemical revenue fell 62.1% from a year earlier and sales volumes dropped 79.1%, highlighting how sharply that part of the business remains exposed to pricing and demand swings. The company said its FY27 capital expenditure guidance is ₹11,500 crore, while it is also targeting an additional 7 million to 8 million tonnes a year of LNG sourcing by 2030, with 2.5 million tonnes already tied up.
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