Shares of Gas Authority of India (GAIL) surged over 6% to hit an intraday high of ₹170.7 on the National Stock Exchange (NSE) after the company reported mixed performance for the January-March quarter of FY26. According to reports from Business Standard, at around 11:20 AM, GAIL stock was trading at ₹168.2, up 4.62% compared to the previous session's close of ₹160.77. The stock performance significantly outpaced the broader market, with the NSE Nifty50 index quoting at 23,983.15 levels, up by 263.85 points or 1.11%.
For the March 2026 quarter, GAIL reported revenue from operations of ₹35,705 crore, slightly higher than ₹35,303 crore recorded in Q3FY26. However, the company's earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at ₹2,703 crore, compared with ₹3,610 crore in the previous quarter. Profit before tax (PBT) stood at ₹1,966 crore against ₹2,165 crore in Q3 FY26, while profit after tax (PAT), excluding minority interest, declined to ₹1,485 crore from ₹1,756 crore in the preceding quarter. On a standalone basis, the company reported a 21% quarter-on-quarter decline in net profit to ₹1,262 crore as compared to ₹1,602 crore in Q3FY26.
For the full FY26, GAIL posted revenue from operations of ₹138,697 crore, up from ₹137,288 crore in FY25. Ebitda stood at ₹13,119 crore as against ₹19,168 crore in the previous year, while PAT came in at ₹6,968 crore in contrast to ₹11,312 crore in FY25. During FY26, GAIL incurred a capex of ₹9,594 crore, primarily towards pipeline infrastructure, petrochemical projects, operational capex and equity contributions to joint ventures and subsidiaries, in line with its long-term growth strategy.
The state-owned firm's board has recommended a final dividend of 5% (₹0.50 per equity share), subject to shareholder approval at the upcoming Annual General Meeting. According to reports from Business Standard, this is in addition to the interim dividend of ₹5 per share, taking the total dividend payout ratio for the year to 51.9%. The company also reported steady progress in GAIL Gas, which reported a FY26 PAT of ₹4.4 billion and expanded its CNG network with 88 new stations during the year, with further additions planned over the next two years.
According to analysts at Motilal Oswal Financial Services (MOFSL), GAIL's Q4 performance was supported by stronger-than-expected natural gas transmission and marketing volumes, which exceeded estimates. The brokerage noted that management has guided FY27 gas transmission volumes at around 115 mmscmd under a prolonged West Asia disruption scenario, with potential upside if geopolitical conditions improve by mid-July 2026. Despite trimming FY27 earnings estimates, Motilal Oswal maintained its 'Buy' rating on GAIL with a target price of ₹184, citing attractive valuations, healthy free cash flow prospects, and dividend yield support. JM Financial also maintained its 'Buy' rating with a revised target price of ₹190 from ₹195, while noting that lower depreciation charges and higher other income helped profit after tax remain broadly in line with expectations.
