State-owned Gas Authority of India Ltd (GAIL) reported a significant surge in profitability for the September quarter, with net profit more than doubling to ₹4,650.22 crore. This impressive performance was primarily driven by a strong showing in its natural gas marketing business, which is the company’s largest revenue generator.
Revenue from operations increased by 31.2% year-on-year to ₹45,924 crore. The natural gas marketing segment saw its profit before tax jump over 2.5 times to ₹3,284.3 crore, while revenue for the segment rose 31% year-on-year to ₹41,226.04 crore. Natural gas transmission volumes during the quarter stood at 130.1 million metric standard cubic metres per day (MMSCMD), with GAIL expecting average transmission volumes of around 126-127 MMSCMD in the fiscal year 2027.
During a post-results analyst call, Director (Finance) Satish Kumar Sinha attributed the strong performance to the company’s ability to manage supply disruptions caused by the ongoing West Asia crisis. He noted that GAIL increased spot sourcing to offset the reduction in gas supplies from the Middle East, which had been disrupted for over eight months. The company received 18 spot cargoes in the current quarter, compared to eight in the previous quarter.
Sinha also highlighted that international gas prices remained volatile and elevated, averaging around $30-32 per million British thermal units (MMBtu). Despite these challenges, GAIL’s diversified sourcing portfolio helped it navigate the quarter successfully.