GAIL shares jump 4% as Q2 net profit rises over 8% to Rs 4,650 crore, revenue grows 17%
GAIL shares rose nearly 4% after the company reported strong second-quarter profit and revenue growth, supported by its gas marketing and transmission businesses. Investor sentiment was also buoyed by the boards in-principle approval to list subsidiary GAIL Gas through an IPO.
The shares of GAIL (India) jumped nearly 4% on Monday to their day’s high of Rs 174.80 on NSE after the company on Friday reported an 8.3% growth in its Q2 net profit to Rs 4,650 crore and a 17.8% YoY revenue growth from operations to Rs 45,895 crore in the same period.According to a filing with the exchange, the company had a net profit of Rs 4,292 crore in the corresponding quarter of the previous fiscal.
The revenue from operations rose to Rs 38,953 crore in Q2FY26.The profit after tax (PAT) stood at Rs 8,943 crore in H1 FY27 compared to Rs 4,104 crore in the corresponding period of the previous year. 5%. However, EBITDA margin contracted to 14% in Q2FY27 from 16.4% in Q2FY26, a decline of 240 basis points (bps).Live EventsOperating profit from GAIL's natural gas marketing business jumped two-and-a-half times to Rs 3,284 crore in the September quarter from Rs 1,304 crore a year earlier.The company said that the quarter reflected resilience in transmission and Natural Gas marketing performance.
Despite geopolitical headwinds, the Company saw robust volumes across all major segments.The operating profit from gas transmission rose 36% to Rs 1,926 crore, while profit from the LPG and other liquid hydrocarbons business nearly quadrupled to Rs 442 crore. Losses in the petrochemicals business narrowed to Rs 22 crore from Rs 299 crore a year earlier.The company also reported a 139.3% year-on-year (YoY) jump in consolidated net profit to Rs 4,719.66 crore in Q2FY27 and revenue from operations rose 32.7% YoY to Rs 47,301.03 crore in the same period.GAIL Gas IPOThe company's board also accorded in-principle approval for the listing of shares of its wholly owned subsidiary, GAIL Gas Ltd, on Indian stock exchanges through the initial public offering (IPO) route, involving dilution of up to 25% of GAIL's equity holding.
The proposed public offering will involve dilution of up to 25% of GAIL's equity stake in GAIL Gas, which is currently a wholly owned subsidiary of the company.The company said that GAIL Gas will submit its final proposal based on recommendations from the book-running lead managers (BRLMs), covering valuation, price band, transaction structure and other terms and conditions.Following this, GAIL's board will consider and approve the final extent of dilution, IPO structure and other terms and conditions.
The company said the details will be communicated to the stock exchanges accordingly.Also the GAIL board also approved the transfer of six city gas distribution (CGD) geographical areas currently held by GAIL to its wholly owned subsidiary, GAIL Gas Ltd. The six geographical areas identified for transfer are Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Khordha. The effective date of the transfer has been set as January 1, 2027.
GAIL (India) share price movementIn the last month, the shares of GAIL (India) gained 1.15%, and they gained nearly 0.83% in the current calendar year so far. In the last year, the stock fell 5.24%. In the last three years and five years, the stock gained 41.90% and 72.11%, respectively.Disclosure: This article has been written by Surbhi Khanna, who is not a SEBI-registered Research Analyst or an investment advisor.
Surbhi Khanna does not hold any financial interest in Economic Times as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the Economic Times Digital or the journalist.
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