GAIL (India) Ltd.Tariff Boost Offsets Petchem Woes

GAIL India delivered mixed Q3 FY26 results with revenue declining to ₹34,030 crores from ₹34,972 crores in Q2, while profit after tax fell to ₹1,603 crores from ₹2,217 crores quarter-on-quarter.

The decline was primarily driven by a ₹483 crore loss in petrochemicals due to elevated input gas costs at $11.2 per MMBTU, rupee depreciation, and subdued polymer prices. However, natural gas transmission volumes improved to 125.45 MMSCMD with 56% utilization, reaching 128.65 MMSCMD in December. Management maintained its marketing margin guidance of ₹4,000 crores for FY26 despite challenges. A significant positive development is the 12.1% tariff revision to ₹65.69 per MMBTU effective January 2026, adding ₹1,200 crores annually, with a pending review petition seeking an additional ₹15 per MMBTU.

The company declared a ₹5 per share interim dividend and expects transmission volumes of 134-135 MMSCMD in FY27. Calendar year 2026 will see major pipeline commissioning including Mumbai-Nagpur-Jharsuguda and Jagdishpur-Haldia projects to strengthen India's gas grid.