GAIL (India) (GAIL IN) – Q1FY27 Result Update – Strong earnings beat led by temporary Trading gains – BUY
Published on 01 Aug 2026
GAIL reported higher than expected EBITDA of INR63.8bn (PLe: INR24.6bn; BBGe: INR28.6bn), driven by a sharp rebound in Trading EBIT on higher temporary basis spreads. Consequently, PAT beat estimates at INR42.9bn (PLe: INR15.9bn; BBGe: INR17.3bn). Management maintained FY27 Marketing PBT guidance at INR45bn, as earnings were supported by temporary basis gains and future profitability will depend on Dated Brent prices. GAIL raised FY27 Transmission volume guidance to 123mmscmd (vs. 119mmscmd) following improved volume in Q1FY27. For Petchem, GAIL expects the business to achieve breakeven in FY27. We raise our transmission volume estimate to 123mmscmd (earlier: 115mmscmd) based on Q1FY27 performance. For Trading, we expect the elevated Q1FY27 EBIT to normalize over the coming quarters. Maintain BUY, valuing the company at 12.0x FY28E EPS and adding INR39/share for investments (25% holding company discount), arriving at a revised TP of INR206 (earlier: INR206).
