GAIL (GAIL.BO): 1QFY27: Solid All-round Beat

Research evidence excerpt

GAIL (GAIL.BO): 1QFY27: Solid All-round Beat

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31 Jul 2026 09:57:26 ET │ 15 pages

GAIL (GAIL.BO)

1QFY27: Solid All-round Beat

CITI'S TAKE

Buy GAIL reported a solid beat in 1Q, with EBITDA rising qoq from Rs12bn to

Rs64bn, well ahead of our Rs30bn estimate. The beat was primarily driven Short-Term View: Upside, expires 04-OCT-26

by very strong gas trading performance and supported by better-than- Price (31 Jul 26 15:30) Rs181.40

expected performance in the LPG, gas transmission, and petchem Target price Rs202.00↑

segments. 1Q net income at Rs43bn was up qoq from Rs13bn, ahead of from Rs195.00

our Rs16bn estimate. 1Q EPS stood at Rs6.5/sh. Notwithstanding near- Expected share price return 11.4%

term LNG headwinds (as highlighted in our recent note), GAIL’s diversified Expected dividend yield 3.9%

LNG portfolio (16.5 MMTPA), extensive & under-utilised pipeline network,

Expected total return 15.2% tariff upsides, and longer-term gas adoption tailwinds keep us

Market Cap Rs1,192,719M constructive. Maintain Buy; TP Rs202.

US$12,465M

Gas marketing: Sharp beat, albeit aided by temporary factors — Gas trading

EBITDA rose qoq from Rs7.7bn (adjusted for a one-off in 4Q) to Rs37.7bn, well ahead

of our Rs10bn estimate. Mgmt. attributed this to two factors: 1) One of GAIL’s oil- Saurabh HandaAC

linked LNG contracts (2.4 MMTPA) benefited from timing differences in the duration +91-22-6175-9858

of oil linkages (purchasing at 9 MMA oil vs. selling at 3 MMA oil), which would

saurabh.handa@citi.com

gradually normalise (this had been previously flagged by mgmt.); 2) Gains on c.30%

of GAIL’s 5.8 MMTPA US LNG volumes which are open. 1Q pre-tax trading profit was Prerna Goenka

Rs33bn; mgmt. has maintained its FY27E pre-tax guidance at Rs45bn, though we prerna.goenka@citi.com