GAIL India Reports 18% Drop in Q2 Net Profit Amid Petrochemical Margin Pressure

Energy

31st October 2025, 10:51 AM

GAIL India Reports 18% Drop in Q2 Net Profit Amid Petrochemical Margin Pressure

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Stocks Mentioned :

GAIL (India) Ltd

Short Description :

GAIL (India) Ltd announced an 18% decline in its net profit for the September quarter (Q2 FY26), reporting Rs 2,823.19 crore compared to Rs 3,453.12 crore in the same period last year. This downturn was primarily driven by margin pressures in its petrochemical business, which incurred a pre-tax loss of nearly Rs 300 crore. While natural gas volumes remained steady, revenue from operations saw an increase to Rs 35,031 crore from Rs 32,930.72 crore.

Detailed Coverage :

State-owned GAIL (India) Ltd has reported a significant 18 percent decrease in its net profit for the second quarter of the 2025-26 fiscal year, ending September 30, 2025. The company's standalone net profit stood at Rs 2,823.19 crore, a noticeable drop from Rs 3,453.12 crore earned during the corresponding quarter of the previous fiscal year. This decline is largely attributed to prevailing margin pressures in the petrochemical sector, which resulted in a pre-tax loss of approximately Rs 300 crore for the company's petrochemical business segment.

Despite flat earnings from its core natural gas transmission and marketing operations, the challenging petrochemical margins impacted overall profitability. However, GAIL's revenue from operations showed a positive trend, rising to Rs 35,031 crore from Rs 32,930.72 crore in the July-September 2024 period.

For the first half of the current fiscal year (April-September 2025), GAIL's net profit fell by 24 percent to Rs 4,103.56 crore. Natural gas sales in H1 FY26 averaged 105.47 million standard cubic meters per day (mmscmd), an increase from 98.02 mmscmd a year earlier. However, gas transportation volumes through its pipeline network saw a slight decrease, from 127 mmscmd in H1 FY25 to 122 mmscmd in H1 FY26. Petrochemical sales in H1 FY26 were 386,000 tonnes.

Impact This news can impact GAIL's stock price due to reduced profitability, potentially affecting investor sentiment towards the energy sector. The pressure on petrochemical margins highlights sector-specific challenges that could influence future earnings. Rating: 6/10.

Difficult Terms: Net Profit: The amount of profit remaining after all expenses, taxes, and costs have been deducted from total revenue. Petrochemical Margins: The difference between the selling price and the cost of producing petrochemicals, indicating profitability. Pre-tax Loss: A loss incurred before accounting for income taxes. Natural Gas Transmission: The process of transporting natural gas through pipelines. Natural Gas Marketing: The business of selling natural gas to end-users. Million Standard Cubic Meters Per Day (mmscmd): A unit measuring the volume of natural gas moved daily under standard temperature and pressure conditions.