GAIL's FY26 profit falls 38% to Rs 6,968 crore amid global headwinds; board recommends final dividend
New Delhi, May 21
State-run gas utility GAIL Limited on Thursday reported a 38 per cent decline in its standalone Profit After Tax to Rs 6,968 crore for the financial year ended March 31, 2026, amid a challenging global environment and volatility in energy markets.
The company had posted a PAT of Rs 11,312 crore in FY25.
According to the company's financial results, Revenue from Operations rose marginally to Rs 1,38,697 crore in FY26 from Rs 1,37,288 crore in the previous financial year.
EBITDA for FY26 stood at Rs 13,119 crore, compared to Rs 19,168 crore in FY25, while Profit Before Tax (PBT) declined to Rs 8,964 crore from Rs 14,825 crore a year ago.
On a consolidated basis, PAT (excluding minority interest) stood at Rs 7,582 crore in FY26, as against Rs 12,450 crore in FY25.
Commenting on the performance, GAIL Chairman and Managing Director Deepak Gupta said the company operated in a difficult global environment during the year.
"The year was marked by a challenging & complex global backdrop, beginning with the ongoing Russia-Ukraine conflict and evolving geopolitical developments including the onset of the West Asian crisis towards the later part of the year," Gupta said.
"Despite these headwinds, supported by timely policy interventions by the Government, GAIL delivered a resilient operational and financial performance," he added.
The company said its board has recommended a final dividend of Rs 0.50 per equity share for FY26, subject to shareholder approval. This is in addition to the interim dividend of Rs 5 per share already paid during the year.
GAIL incurred a capital expenditure of Rs 9,594 crore during FY26, mainly towards pipeline infrastructure, petrochemical projects and operational capex and equity contributions to joint ventures and subsidiaries, in line with its long-term growth strategy.
On the operational front, natural gas transmission volume fell to 122.18 Million Metric Standard Cubic Meters per Day (MMSCMD) in FY26 from 127.32 MMSCMD in FY25. However, gas marketing volume increased to 104.21 MMSCMD from 101.49 MMSCMD in the previous year.
The company also achieved its "highest-ever LPG transmission of 4.6 MMTPA 9 Million Metric Tonnes Per Annum]", Gupta said, adding that GAIL added around 2,000 km of pipeline network during the year.
"Further, GAIL is doubling the capacity of Jamnagar-Loni LPG pipeline to 6.5 MMTPA," he said.
Highlighting the company's clean energy plans, Gupta said the board has approved investments in renewable energy and compressed biogas projects.
"The Board has accorded investment approval for key renewable energy projects, including ~700 MW of solar and ~178 MW of wind capacity, 6 CBG (Compressed Biogas) plants with total capacity of around 95 TPD (Tonnes Per Day)," he said.
— ANI
Reader Comments
The global energy crisis is real. Russia-Ukraine war and West Asian tensions are hitting everyone. But good to see GAIL still expanding pipelines and going green with solar and biogas. At least some forward thinking in these tough times.
Revenue marginal increase of 1% but PAT down 38%? That's a massive drop in margins. 📉 The management should explain why costs are ballooning. Otherwise, the capex of Rs 9,594 crore shows they're serious about infrastructure. Let's hope FY27 is better.
I'm skeptical about renewable energy ambitions of PSUs - they always announce big plans but execution is slow. Still, 700 MW solar and 178 MW wind is a good start. The LPG pipeline expansion to 6.5 MMTPA is impressive though. That's real infrastructure progress.
As a GAIL shareholder, this is disappointing but expected in current global scenario. The fact that they still gave dividend shows some commitment to shareholders. My advice: hold on for the long term - energy infrastructure is strategic for India's growth. 🇮🇳
Highest-ever LPG transmission of 4.6 MMTPA is a silver lining. Common people need affordable cooking gas, so this is vital. But why is gas transmission volume down? That's concerning for a gas utility. Hope the new pipelines reverse this trend.
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