GAIL's Q2 profit more than doubles board approves GAIL Gas IPO

New Delhi, Oct 30 (PTI) State-owned natural gas major GAIL (India) Ltd on Friday reported a more than twofold jump in standalone net profit for the July-September quarter of FY27, driven by strong performance in its natural gas marketing business and a recovery in gas consumption following disruptions linked to the West Asia conflict.

     The company's profit after tax (PAT) rose to Rs 4,723.75 crore in the second quarter from Rs 1,988.71 crore in the corresponding period last year, according to its earnings announcement.

     Revenue from operations increased to Rs 47,301.03 crore in Q2 FY27 from Rs 35,657.18 crore a year back.

     Separately, GAIL's board has granted in-principle approval for the proposed listing of its subsidiary GAIL Gas Ltd through an initial public offering (IPO), potentially involving the sale of up to 25 per cent stake, subject to final board approval.

     GAIL Gas is a 100 per cent subsidiary of GAIL. It is into city gas distribution, retailing CNG to automobiles and piped natural gas to households and industries.

     GAIL's gas marketing business, its largest revenue contributor, recorded pre-tax earnings more than triple to Rs 3,523.57 crore. The segment includes wholesale natural gas trading and distribution. Gas transmission business saw a 36 per cent rise in pre-tax earnings while losses on petrochemical business trimmed to one-tenth at Rs 30.50 crore.

     The performance comes amid a recovery in India's natural gas consumption following supply disruptions triggered by the West Asia conflict. Consumption had begun recovering to pre-conflict levels by September.

     The company said its operations remained resilient despite geopolitical headwinds, with robust volumes across its major business segments.

     Natural gas transmission volumes rose to 130.10 million standard cubic metres per day (MMSCMD) in Q2 from 122.36 MMSCMD in the preceding quarter. Gas marketing volumes increased to 97.23 MMSCMD from 93.82 MMSCMD.

     Production of liquid hydrocarbons (LHC) rose to 256 thousand tonnes (TMT) from 232 TMT, while polymer production increased to 204 TMT from 51 TMT. LPG transmission volumes climbed to 1,130 TMT from 1,077 TMT.

     On a consolidated basis, revenue from operations for the first half stood at Rs 88,651 crore, against Rs 71,086 crore a year earlier. Consolidated PBT rose to Rs 12,368 crore from Rs 5,594 crore, while PAT excluding minority interest increased to Rs 9,385 crore from Rs 4,342 crore.

     GAIL incurred a capital expenditure of Rs 7,600 crore during the first half, including Rs 1,425 crore in the September quarter, against its planned annual capex of approximately Rs 12,900 crore.

     The proposed IPO of GAIL Gas could provide a separate listing for the subsidiary and potentially unlock value from GAIL's gas distribution business, while the latest earnings highlight the importance of its marketing operations and access to alternative LNG supplies amid geopolitical disruptions.

(This story has not been edited by THE WEEK and is auto-generated from PTI)