GAIL (India) Limited Earnings Summary — Q4 FY2026
GAIL (India) Limited Faces Margin Pressures as Q4 Net Profit Dipping 14% QoQ Amid Rising Expenses
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹41,198 Cr is 16.7% higher year-on-year.
- Revenue has compounded at 10.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹4,665 Cr is 96.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 32.7% annualised across the period.
- Operating margin stands at 17.2% in Q1 FY2027.
- Operating margin expanded by 684 bps year-on-year.
- Over the last two years operating margin has expanded by 344 bps.
- PBT margin is 15.2%.
- Expense growth of 7.8% remained below revenue growth of 16.7%.
- Operating profit of ₹7,098 Cr is 93.5% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 82/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 41,198 | 35,577 | 35,173 | 35,537 | 35,311 | 36,440 | 36,835 | 33,889 | 34,738 | 32,756 |
| Expenses | Stable | 34,100 | 34,123 | 32,246 | 32,077 | 31,642 | 32,914 | 33,665 | 29,952 | 29,948 | 28,908 |
| Operating Profit | Volatile | 7,098 | 1,453 | 2,927 | 3,460 | 3,669 | 3,526 | 3,169 | 3,937 | 4,790 | 3,849 |
| Operating Margin | Volatile | 17.2% | 4.1% | 8.3% | 9.7% | 10.4% | 9.7% | 8.6% | 11.6% | 13.8% | 11.8% |
| Other Income | Volatile | 475 | 1,250 | 683 | 516 | 566 | 674 | 3,211 | 643 | 685 | 651 |
| Interest | Improving | 319 | 263 | 254 | 234 | 213 | 174 | 169 | 188 | 209 | 159 |
| Depreciation | Accelerating | 987 | 474 | 1,192 | 1,177 | 993 | 786 | 939 | 922 | 1,152 | 1,241 |
| Profit Before Tax | Volatile | 6,268 | 1,966 | 2,165 | 2,565 | 3,029 | 3,240 | 5,272 | 3,470 | 4,114 | 3,099 |
| Tax | Volatile | 1,597 | 485 | 436 | 577 | 647 | 734 | 1,188 | 780 | 930 | 625 |
| Net Profit | Volatile | 4,665 | 1,485 | 1,756 | 1,972 | 2,369 | 2,492 | 4,082 | 2,694 | 3,183 | 2,469 |
| Net Margin | Volatile | 11.3% | 4.2% | 5.0% | 5.5% | 6.7% | 6.8% | 11.1% | 8.0% | 9.2% | 7.5% |
Key Takeaways
- Net profit witnessed a substantial year-on-year decline of 41%, falling from ₹2,506 Cr to ₹1,481 Cr.
- Operating margins compressed to 4%, the lowest in recent quarters, due to a surge in expenses reaching ₹34,123 Cr.
- Other income of ₹1,250 Cr provided a significant buffer to the bottom line this quarter.
- Depreciation charges saw a sharp reduction to ₹474 Cr this quarter compared to the ₹1,192 Cr reported in Dec 2025.
- Despite margin pressure, quarterly sales showed a slight sequential improvement of 1% to ₹35,577 Cr.
- Borrowings have continued an upward trajectory, rising to ₹24,831 Cr to support ongoing capital expenditure projects.
Management Guidance
Management remains committed to the 'One Nation One Gas Grid' initiative with a focus on expanding the gas transmission network and diversifying into Green Hydrogen and Renewables.
Sentiment Shift
Deteriorating
The significant contraction in operating margins and net profit, despite flat revenue, indicates rising cost pressures and operational headwinds.
Outlook
The outlook remains cautious as GAIL navigates global energy price volatility and domestic regulatory tariffs. While pipeline expansion offers long-term volume growth, high capex requirements and borrowing levels may weigh on short-term return ratios.
From the Annual Report (Key Quotes)
“GAIL is the dominant state-owned player in India's natural gas infrastructure, controlling approximately 70% of the transmission market.”
“Strategic vision is focused on the 'One Nation One Gas Grid' and diversifying into Green Hydrogen and Renewables.”
“Borrowing has increased from ₹9,216 Cr in FY22 to over ₹24,831 Cr in FY26 to fund massive capital expenditures.”
Official Quarterly Documents
This summary is AI-generated from GAIL (India) Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.