State-run gas utility GAIL (India) on Thursday reported a sharp 38% year-on-year fall in the FY26 fourth quarter net profit as disruptions in LNG supplies linked to the West Asia conflict hit gas marketing margins and weakened profitability across key business segments.
The company posted a consolidated net profit of Rs 1,262.18 crore in the January-March quarter, down from Rs 2,049.03 crore in the corresponding period last year and Rs 1,602.57 crore in the preceding quarter, according to a stock exchange filing. The earnings decline came amid supply disruptions in liquefied natural gas (LNG) imports from Qatar — India’s largest LNG supplier —following the escalation of the Iran conflict since early March.
Segment Divergence
Revenue from operations declined marginally to Rs 34,797 crore during the quarter, while Ebitda dropped sharply to Rs 2,175 crore from Rs 3,335 crore in the previous quarter, reflecting pressure on margins in gas marketing and petrochemicals businesses. The natural gas marketing segment slipped into losses of Rs 151.32 crore. It had reported a pre-tax profit of Rs 1,203.67 crore a year ago. Losses in the petrochemicals business more than doubled to Rs 377.71 crore. These losses offset gains from the gas transmission business, where pre-tax earnings rose 48% year-on-year to Rs 1,881.58 crore.
For the full FY26, GAIL’s consolidated net profit plunged to Rs 6,968 crore from Rs 11,312 crore in FY25.
Operationally, gas transmission volumes during the March quarter stood lower at 118.99 million standard cubic metres per day (mmscmd), while annual transmission volume for FY26 was 122.18 mmscmd. Gas marketing volume during Q4 stood at 102 mmscmd compared with 104 mmscmd a year ago. However, annual gas marketing volumes rose to 104.21 mmscmd in FY26 against 101.49 mmscmd in FY25.
Global Headwinds
“The year was marked by a challenging and complex global backdrop, including the onset of the West Asian crisis towards the later part of the year,” Chairman and Managing Director Deepak Gupta said. He added that timely policy interventions helped the company maintain operational resilience despite global energy market disruptions.
The company capital expenditure during FY26 stood at Rs 9,594 crore, primarily towards pipeline infrastructure, petrochemical projects and investments in subsidiaries and joint ventures.
The board recommended a final dividend of Rs 0.50 per equity share for FY26, in addition to the interim dividend of Rs 5 per share already paid during the year, taking the total payout ratio to 51.9%.