New Delhi: GAIL (India) Ltd reported a 30.7 percent year-on-year decline in standalone net profit for the quarter ended June 2025, with profitability hit by weaker margins in its petrochemicals and gas marketing segments. The company posted a standalone profit after tax of Rs 1,886 crore in Q1 FY26, compared to Rs 2,724 crore in the same quarter last year. On a sequential basis, net profit was also down by 8 percent from Rs 2,049 crore in Q4 FY25.
Standalone revenue from operations for the quarter stood at Rs 34,792 crore, reflecting a modest 3.3 percent increase over the previous year but a 2.6 percent decline from the March quarter. The fall in revenues quarter-on-quarter was accompanied by a steeper fall in profitability, with gross margin (EBITDA) slipping to Rs 3,626 crore from Rs 4,418 crore in Q4, a drop of nearly 18 percent. Year-on-year, EBITDA was down 27 percent. As a result, the EBITDA margin declined sharply to 10.4 percent in Q1 FY26 from 15.2 percent in Q1 last year and 12.9 percent in the previous quarter.
Profit before tax also declined to Rs 2,533 crore, down 30.4 percent year-on-year and 6.2 percent sequentially. Earnings per share fell to Rs 2.87 from Rs 4.14 a year ago and Rs 3.12 in the March quarter.
The consolidated financials reflected a similar trend, though with slightly more resilience. GAIL’s consolidated profit after tax in Q1 FY26 stood at Rs 2,369 crore, down 13.9 percent from Rs 2,752 crore in Q1 last year and 4.9 percent from Rs 2,492 crore in Q4 FY25. Consolidated revenue fell to Rs 35,429 crore, compared to Rs 35,663 crore a year ago and Rs 36,551 crore in the previous quarter. Consolidated EBITDA declined to Rs 4,234 crore in Q1, down from Rs 5,207 crore in Q4 and Rs 5,539 crore in Q1 last year, leading to a margin compression to 11.9 percent.
According to the company’s balance sheet data, GAIL’s net worth stood at Rs 65,127 crore as of June 30, while total capital employed was Rs 93,038 crore. The company continued to maintain a healthy balance sheet, with a debt-to-equity ratio of 0.24. Return on capital employed, annualised for the quarter, fell to 12 percent from 17 percent in FY25. The PAT-to-net-worth ratio also declined to 12 percent from 18 percent in the previous quarter.
The decline in profit was largely driven by margin compression in key business segments. In the natural gas marketing segment, volumes slipped marginally to 105.45 MMSCMD from 106.53 MMSCMD in the March quarter and 107 MMSCMD a year earlier. The transmission business remained stable, with volumes at 121 MMSCMD, while petrochemical sales volumes rose. However, weaker realisations in petrochemicals and a drop in LNG trading margins dragged overall profitability.
Despite the earnings pressure, the company pushed ahead with its capital expenditure programme, investing Rs 3,176 crore in the June quarter, primarily on pipeline infrastructure, petrochemicals, and equity contributions to joint ventures. GAIL has also received regulatory approval to double the capacity of its Jamnagar–Loni LPG pipeline from 3.25 MMTPA to 6.5 MMTPA at an estimated cost of Rs 5,000 crore. The project is expected to be completed in three years and contribute to significant emission reduction and safety gains by lowering road transport dependence.
Chairman and Managing Director Sandeep Kumar Gupta said that GAIL remains committed to expanding its infrastructure and strengthening long-term growth levers. The company has also retained its position in the FTSE4Good Index for the seventh consecutive year, underscoring its ESG credentials.
