GAIL Reports 6% Decline in Q4 Net Profit, Reaching Rs 2,049 Crore
State-run gas utility GAIL (India) Ltd has reported a 6% decline in its consolidated net profit for the January-March quarter, primarily due to reduced gas marketing margins and losses in its petrochemical segment. The company’s net profit for the fourth quarter of FY25 was recorded at Rs 2,049.03 crore, a decrease from Rs 2,176.97 crore in the same period last year and significantly lower than the Rs 3,867.38 crore reported in the previous quarter. GAIL’s chairman, Sandeep Kumar Gupta, attributed this decline to the absence of a one-time gain that had bolstered profits in the preceding quarter.
Quarterly Performance Overview
GAIL’s financial results for the fourth quarter of FY25 reveal a challenging landscape for the company. The reported net profit of Rs 2,049.03 crore marks a significant drop compared to both the previous quarter and the same quarter last year. Gupta noted that the absence of a one-time gain from an arbitration award in the third quarter contributed to this decline. The company faced pressure from lower margins on liquefied petroleum gas (LPG) due to a reduction in the allocation of cheaper domestically produced gas. Additionally, GAIL’s petrochemical segment suffered losses amid ongoing price pressures, further impacting overall profitability.
The company’s core gas marketing business also experienced weakened margins, while earnings from its gas transmission segment, where GAIL holds a dominant 70% market share in India, fell by 29%. Despite these setbacks, Gupta emphasized that GAIL achieved strong operational performance throughout FY25, reaching unprecedented financial milestones.
Annual Financial Highlights
For the full financial year 2024-25, GAIL reported a 5% increase in revenue from operations, totaling Rs 1.37 lakh crore. The company achieved a record EBITDA of Rs 19,168 crore and a profit before tax (PBT) of Rs 14,825 crore, up from Rs 11,555 crore in the previous fiscal year. Profit after tax (PAT) saw a notable increase of 28%, reaching Rs 11,312 crore. These figures reflect GAIL’s resilience and operational strength despite the challenges faced in the market.
Operationally, GAIL’s natural gas transmission volumes grew by 6% to 127.32 million standard cubic meters per day (mmscmd) in FY25. Gas marketing volumes also increased, reaching 101.49 mmscmd compared to 98.45 mmscmd in FY24. However, the company reported a decline in liquid hydrocarbon output, which fell to 947,000 tonnes from 996,000 tonnes in the previous year.
Dividend and Future Plans
In light of its financial performance, GAIL’s board has recommended a final dividend of Re 1 per equity share, in addition to an interim dividend of Rs 6.50 per share that has already been distributed. Gupta also highlighted the company’s capital expenditure of Rs 10,512 crore for FY25, indicating ongoing investments in infrastructure and growth.
Furthermore, the board approved the transfer of city gas licenses for six geographical areas—Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, and Cuttack—from GAIL to its city gas distribution arm, GAIL Gas Ltd (GGL). This strategic move aims to streamline operations and enhance efficiency in GAIL’s city gas distribution business, pending approval from the Cabinet. Gupta expressed optimism about this transition, emphasizing the goal of creating a focused entity for the development of GAIL’s city gas distribution business.
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