GAIL reports record profits in FY25, recommends Rs 1 final dividend

Despite global economic challenges, the company achieved record-breaking figures in EBITDA, profit before tax (PBT), and profit after tax (PAT).

Sandeep Kumar Gupta, Chairman and Managing Director of GAIL (India) Limited, said that the company's robust performance during FY25 was primarily driven by better physical and financial performance across all major segments.

For FY25, the company's revenue from operations rose to Rs 1,37,288 crore from Rs 1,30,638 crore in the previous year.

The company's EBITDA stood at Rs 19,168 crore, up from Rs 15,583 crore, while PBT increased to Rs 14,825 crore from Rs 11,555 crore. PAT climbed to Rs 11,312 crore, compared to Rs 8,836 crore in FY24.

GAIL's board has recommended a final dividend of Rs 1 per equity share, in addition to the interim dividend of Rs 6.50 per share already paid.

This takes the total dividend payout ratio to 43.59 per cent for the year. On a consolidated basis, the company reported revenue from operations of Rs 1,42,291 crore, EBITDA of Rs 20,643 crore, PBT of Rs 16,096 crore, and PAT (excluding minority interest) of Rs 12,450 crore.

However, the fourth quarter (Q4) showed a sequential decline in profitability, with EBITDA falling to Rs 3,783 crore from Rs 6,027 crore in Q3, and PAT dropping to Rs 2,049 crore from Rs 3,867 crore, even as revenue rose slightly to Rs 35,707 crore.

Operationally, GAIL recorded a 6 per cent year-on-year increase in natural gas transmission volumes, reaching 127.32 million metric standard cubic metres per day (MMSCMD). Gas marketing volumes also grew to 101.49 MMSCMD, while polymer production rose 6 per cent to 827 thousand metric tonnes (TMT).

However, liquid hydrocarbon (LHC) production declined to 947 TMT from 996 TMT. In Q4, natural gas transmission volumes declined slightly to 120.83 MMSCMD, while polymer sales rose 4 per cent to 229 TMT.

In a strategic move to streamline its City Gas Distribution (CGD) operations, the board has recommended transferring six geographical areas (Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneshwar, and Cuttack) from GAIL to its wholly owned subsidiary, GAIL Gas Limited (GGL).

The PSU currently operates 16 geographical areas and is focused on expanding GAIL's presence in the retail gas market. The company also reported a capital expenditure of Rs 10,512 crore for FY25, reflecting its ongoing investments in infrastructure development and long-term growth.