GAIL profit more than doubles on strong gas marketing performance

State-owned Gas Authority of India Ltd (GAIL) more than doubled its net profit to ₹4,650.22 crore in the September quarter, driven by a sharp improvement in its natural gas marketing business, its largest revenue-generating vertical.

Revenue from operations rose 31.2% year-on-year (YoY) to ₹45,924 crore.

The natural gas marketing business was the key driver of profitability. The segment’s profit before tax (PBT) jumped more than 2.5 times to ₹3,284.3 crore, while revenue increased 31% YoY to ₹41,226.04 crore.

Natural gas transmission volumes stood at 130.1 million metric standard cubic metres per day (MMSCMD) during the quarter. GAIL expects average transmission volumes of around 126-127 MMSCMD in FY27.

Speaking during a post-results analyst call, Director (Finance) Satish Kumar Sinha said the company increased spot sourcing to manage supply disruptions triggered by the West Asia crisis, which affected its gas supplies from the Middle East.

“The West Asia crisis has now gone on for over eight months and the company’s volumes from the Middle East demanded stopped. This was partially offset through portfolio flexibility and spot sourcing,” he said, adding that GAIL’s diversified sourcing portfolio helped it navigate the quarter.

Mr. Sinha said GAIL received 18 spot cargoes in the current quarter, compared with eight in the first quarter. He noted that international gas prices remained “volatile” and elevated at around $30-32 per million British thermal units (MMBtu).