As Good As It Gets

Research evidence excerpt

As Good As It Gets

Idea

August 3, 2026 01:00 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MGAIL (India) | Asia Pacific Mayank Maheshwari

Equity Analyst

As Good As It Gets Mayank.Maheshwari@morganstanley.comMorgan Stanley India Company Private Limited+ +65 6834-6719

Pranitha Shetty

What’s Changed Research Associate

GAIL (India) (GAIL.NS) From To Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Price Target Rs152.00 Rs190.00 Hinal Choudhary

Research Associate

Hinal.Choudhary@morganstanley.com +91 22 6118-2044

AlphaSignals Earnings Reaction

Unchanged Meaningful upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

GAIL is increasingly a play on China and Europe LNG imports, GAIL (India) (GAIL.NS, GAIL IS)

India Oil & Gas | India

before it will start to see upside from US natural gas glut in

Stock Rating Equal-weight

2027. Jun-26 earnings were pretty much peak of earnings and it Industry View In-Line

Price target Rs190.00

will struggle for the rest of 2026 and 1H27. We prefer city gas. Up/downside to price target (%) 5

Shr price, close (Jul 31, 2026) Rs181.44

Sh out, dil, curr (mn) 6,575

Key Takeaways Mkt cap, curr (mn) US$12,508

EV, curr (mn) US$12,431

GAIL's Jun-26 arbitrage benefits (US$0.3bn) from sourcing LNG on 9M average oil Avg daily trading value (mn) US$19

price vs selling price of 3M average oil price should reverse into headwinds Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

EPS (Rs)** 11.53 18.60 17.18 17.96

Europe inventories at near three year lows and slower US export ramp up. We EPS (Rs)§ 11.82 13.38 15.42 17.81

see LNG costs for GAIL will outperform oil based ASPs and deflate margins. Revenue, net (Rs bn) 1,416.0 1,523.1 1,552.6 1,727.6