GAIL’s Q4 profit falls 6% to Rs 2,049 cr on weaker gas marketing, petchem margins

GAIL (India) Ltd has reported a 6% year-on-year decline in profit to ₹2,049 crore for the fourth quarter, primarily due to losses in its petrochemical business.

Revenue from operations rose 10% to ₹35,707 crore in the January–March quarter. The company’s operating profit from its natural gas transmission business expanded during the quarter, but lower profit from gas marketing and a loss in petrochemicals weighed on overall earnings.

For the full year 2024–25, revenue rose 5% to ₹1,37,288 crore, while profit climbed 28% to ₹11,312 crore. All business segments reported higher operating profits during the year, except petrochemicals, where losses narrowed compared to the previous year.

Natural gas sales and transmission volumes are expected to grow by 6–8% in the current year, GAIL Chairman Sandeep Kumar Gupta told a news conference. Henry Hub prices—the U.S. benchmark for natural gas—may remain around $3.5–4 per MMBtu in the short to medium term, he said.

GAIL has declared a final dividend of Re 1 per equity share. Its shares closed 2% lower at ₹183.95 apiece on Tuesday, when the benchmark BSE Sensex ended 1.55% lower.

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Last month, GAIL floated a tender to acquire up to a 26% equity stake in a U.S. LNG project, combined with the offtake of one million tonnes per year of LNG for 15 years. The company has received responses from five parties and is evaluating the proposals, said Rajeev Singhal, Director (Business Development).For the first time, GAIL expects to use its gas import terminal at Dabhol during the monsoon this year, following the completion of a breakwater facility. Until now, the terminal had remained shut during the monsoon season.On Tuesday, GAIL’s board approved the transfer of its city gas business in six licensed areas—including Varanasi, Patna, Ranchi, and Bhubaneswar—to its wholly owned subsidiary, GAIL Gas Ltd, for improved business synergy and operational efficiency, Gupta said.

During the January–March quarter, GAIL reported an operating loss of ₹158 crore in the petrochemical business, compared to a profit of ₹262 crore in the same period last year, due to a sharp rise in input costs—primarily imported natural gas—which could not be fully offset by product price hikes.

Operating profit from the natural gas marketing business also declined to ₹1,204 crore during the quarter, from ₹1,389 crore a year earlier, while profit from gas transmission rose to ₹1,268 crore from ₹982 crore.

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