GAIL (India) (GAIL IN) – Q2FY27 Result Update – Transmission vol guid. raised on increased gas consumption – BUY
Published on 30 Oct 2026
GAIL reported higher than expected EBITDA of INR64.1bn (PLe: INR46.7bn; BBGe: INR45.2bn), driven by steady profitability in the Transmission business, resilient Trading performance and a turnaround in Petchem profitability. Consequently, PAT beat estimates at INR46.5bn (PLe: INR30.4bn; BBGe: INR30.2bn). Transmission volume increased by 6.3%/5.3% QoQ/YoY to 130.1mmsmd led by increased gas consumption across power, fertilizer and petrochemical sectors. Transmission volumes are guided at 126-127mmscmd (previous: 123mmscmd) in FY27, increasing to 134-135mmscmd in FY28, supported by recovery in gas consumption. On the back of strong H1FY27, management raised its FY27 Marketing/Trading PBT to INR90-95bn, although elevated trading gains witnessed in H1FY27 are unlikely to sustain in H2FY27. GAIL expects FY28 Marketing PBT to normalize to INR40-45bn. Company expects Petchem to remain breakeven in FY27. Maintain BUY, valuing the company at 11.0x Sep’28E EPS and adding INR38/share for investments (25% holding company discount), arriving at a revised TP of INR206 (earlier: INR204).
