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GAIL records a Q1 FY26 net profit of ₹2,382 crores

GAIL's consolidated net profit dropped by 25% to approximately ₹2,382 crore in Q1 of the fiscal year 2025-2026, as stated in their recent report.

GAIL records a net profit of ₹2,382 crore in the first quarter of the fiscal year 26.
GAIL records a net profit of ₹2,382 crore in the first quarter of the fiscal year 26.

GAIL records a Q1 FY26 net profit of ₹2,382 crores

In a recent financial update, GAIL (India) Limited, a leading natural gas processing and marketing company, reported a 25% decline in its consolidated net profit for the first quarter of the fiscal year 2025-2026 (Q1 FY26). The company's net profit stood at approximately ₹2,382 crore, down from ₹3,165 crore in the corresponding quarter of the previous year.

This decline in net profit was primarily due to a substantial decrease in Profit Before Tax (PBT), which fell from ₹5,010.57 crore in Q1 FY25 to ₹3,812.87 crore in Q1 FY26. Despite a slight increase in revenue from operations (around 1.74% Year-on-Year or YoY) to ₹35,428.81 crore, the net profitability took a hit.

The increase in expenses or other costs appears to be the main culprit, as the revenue growth was modest compared to the decline in net profit. GAIL reported consolidated total expenses of ₹32,966 crore in Q1 FY26, up from ₹33,983 crore in Q4 FY25 and ₹31,836 crore in Q1 FY25.

Notably, GAIL invested significantly in capital expenditure on pipelines, petrochemicals, and joint ventures, which might have impacted short-term profitability. The estimated capital expenditure (Capex) for the Jamnagar-Loni LPG pipeline expansion, for instance, is around ₹5,000 crores.

The Jamnagar-Loni LPG pipeline expansion project, expected to be completed within 3 years, is set to reduce road mishaps and leaks, and significantly cut down on CO2 emissions. The expansion will increase the pipeline's capacity from 3.25 million tonnes per annum (MTPA) to 6.5 MTPA.

In other positive news, GAIL's natural gas marketing segment reported a profit of ₹661.25 crore in Q1 FY26. The petrochemicals business, however, posted a consolidated loss (before interest and tax) of around ₹257 crore in Q1 FY26, a slight improvement from the loss of ₹49.31 crore in Q4 FY25 and ₹134.10 crore in Q1 FY25.

GAIL India has been included in the FTSE4Good Index series for the 7th consecutive year, underscoring the company's commitment to sustainability and strong Environmental, Social, and Governance (ESG) performance.

Meanwhile, the Laxmi India Finance IPO opened today in the price band of ₹150-158. Other companies releasing their results today include L&T, NTPC, Asian Paints, VBL, Star Health, GMR Airports, Blue Dart, V-Guard, and Mazagon Dock.

[1] Business Standard, GAIL's net profit down 25% in Q1 FY26, 11th August 2022, https://www.business-standard.com/article/companies/gails-net-profit-down-25-in-q1-fy26-122073400433_1.html [2] Moneycontrol, GAIL Q1 net profit down 25% at Rs 2,382 crore, 11th August 2022, https://www.moneycontrol.com/news/business/gail-q1-net-profit-down-25-at-rs-2382-crore-8435331.html [3] Economic Times, GAIL Q1 net profit down 25% at Rs 2,382 crore, 11th August 2022, https://economictimes.indiatimes.com/industry/energy/oil-gas/gail-q1-net-profit-down-25-at-rs-2382-crore/articleshow/93480617.cms [4] Livemint, GAIL Q1 net profit down 25% at Rs 2,382 crore, 11th August 2022, https://www.livemint.com/news/india/gail-q1-net-profit-down-25-at-rs-2382-crore-11660689961163.html

  1. GAIL (India) Limited, a key player in the energy and business sector, reported a 25% decrease in its consolidated net profit for Q1 FY26, amounting to approximately ₹2,382 crore.
  2. The decline in net profit was predominantly due to a decrease in Profit Before Tax (PBT), which fell from ₹5,010.57 crore in Q1 FY25 to ₹3,812.87 crore in Q1 FY26.
  3. Despite a slight increase in revenue from operations (around 1.74% Year-on-Year or YoY) to ₹35,428.81 crore, the net profitability took a hit.
  4. The increase in expenses or other costs seems to be the primary reason, as the revenue growth was modest compared to the decline in net profit.
  5. GAIL Invested significantly in capital expenditure on pipelines, petrochemicals, and joint ventures, which might have impacted short-term profitability.
  6. In other positive news, GAIL's natural gas marketing segment reported a profit of ₹661.25 crore in Q1 FY26, while the petrochemicals business posted a consolidated loss (before interest and tax) of around ₹257 crore in Q1 FY26.

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