Profit Nearly Doubles in June Quarter Despite LNG Disruptions

GAIL (India) Limited reported a sharp rise in consolidated net profit for the quarter ended June 30, 2026, as improved segment performance and higher revenues offset disruptions in liquefied natural gas (LNG) supplies from the Middle East.

Consolidated revenue from operations increased 16.7 per cent year-on-year to Rs 41,350.18 crore in the June quarter, compared with Rs 35,428.81 crore in the same period last year. Total income rose to Rs 41,482.65 crore from Rs 35,572.94 crore.

Profit before Tax more than doubled to Rs 6,267.56 crore, up 106.9 per cent from Rs 3,028.84 crore a year earlier. Net profit climbed 96.1 per cent to Rs 4,670.99 crore, compared with Rs 2,382.24 crore in the June 2025 quarter.

Total expenses for the quarter stood at Rs 35,557.81 crore, up from Rs 32,965.71 crore a year ago. Finance costs increased to Rs 318.96 crore from Rs 212.92 crore, while depreciation and amortisation expenses were largely stable at Rs 986.53 crore against Rs 992.72 crore in the year-ago quarter.

Segment performance reflected broad-based strength. Revenue from Natural Gas Marketing rose to Rs 43,558.67 crore from Rs 34,788.68 crore a year earlier. City Gas revenue increased to Rs 2,256.11 crore from Rs 1,719.42 crore, while LPG and Liquid Hydrocarbons revenue climbed to Rs 2,039.21 crore compared with Rs 1,105.40 crore in the corresponding quarter last year.

On the profitability front, the Natural Gas Marketing segment reported profit before interest and tax of Rs 3,607.72 crore, sharply higher than Rs 1,044.68 crore a year earlier. The LPG and Liquid Hydrocarbons segment recorded profit of Rs 772.50 crore, up from Rs 205.01 crore. The Petrochemicals segment continued to post a loss, though it narrowed to Rs 137.21 crore from Rs 289.52 crore in the same period last year.

The quarter was marked by supply-side challenges. LNG supplies from the Middle East were disrupted due to the geopolitical situation in West Asia. Following a Force Majeure declared by Petronet LNG Limited on March 3, 2026, RLNG allocation to GAIL under the contract was reduced to zero with effect from March 4, 2026. In addition, seven LNG cargoes under various other contracts were impacted during the quarter.

The company said it undertook mitigation measures, including procurement of LNG and natural gas from the spot market and alternative sources, to ensure supply to priority sectors in line with the Government of India’s Natural Gas (Supply Regulation) Order dated March 9, 2026.

For the full financial year ended March 31, 2026, consolidated revenue from operations rose 14.4 per cent to Rs 1,42,094.30 crore from Rs 1,24,244.41 crore in the previous year. Profit before tax for FY26 stood at Rs 9,725.22 crore, while net profit for the year was Rs 7,581.52 crore.

As of June 30, 2026, total consolidated assets stood at Rs 1,49,450.90 crore, compared with Rs 1,35,315.48 crore a year earlier.

GAIL (India) Limited is an integrated energy company focused on natural gas and related businesses. Its principal segments include natural gas transmission and marketing, petrochemicals, LPG and liquid hydrocarbons, and city gas distribution, along with exploration and production, compressed biogas and power generation. The company operates a nationwide natural gas pipeline network spanning about 16,421 km as of March 31, 2025, and participates across the gas value chain through subsidiaries, joint ventures and international LNG and E&P arms.