Motilal Oswal has issued a buy rating on GAIL with a target price of ₹200, citing exceptional second quarter performance. According to Motilal Oswal's research report dated November 01, 2026, GAIL's standalone EBITDA came in 36% above estimates at ₹64.1 billion (consensus: ₹45.2 billion). The strong results were primarily attributed to robust performance in natural gas trading and LPG & liquid hydrocarbon segments. The company's reported PAT stood 40% above estimates at ₹46.5 billion (estimate: ₹33.3 billion, consensus: ₹30.3 billion), though interest costs exceeded expectations while other income and PAT came in below estimates.
GAIL's latest quarterly results demonstrate sustained momentum with Q2FY27 standalone PAT of ₹4,650 crore, up 8.3% quarter-on-quarter from ₹4,292 crore in Q1FY27. As reported by GAIL, revenue from operations rose 17.8% QoQ to ₹45,924 crore, reflecting robust volumes across transmission and marketing segments despite geopolitical headwinds. The company's H1FY27 standalone PAT doubled year-on-year to ₹8,943 crore, while H1FY27 revenue reached ₹84,905 crore compared to ₹69,824 crore in the corresponding period of FY26. This significant year-on-year expansion in top-line performance indicates strong operational execution across GAIL's diversified business segments.
GAIL achieved a significant milestone with polymer production volume quadrupling to 204 TMT in Q2FY27 from 51 TMT in the previous quarter, marking a substantial improvement in the petrochemical segment. According to GAIL's disclosure, this dramatic increase in polymer production capacity demonstrates the company's successful expansion into higher-value downstream products. The strong performance across multiple segments contributed significantly to the overall beat in quarterly results, with the Marketing segment and LPG & Liquid hydrocarbon segments performing 43% and 65% above estimates respectively.
Motilal Oswal maintains its buy rating with a sum-of-the-parts (SoTP)-based target price of ₹200. According to the research report, the brokerage estimates a 24% CAGR in PAT over FY26-28, driven by the company's diversified business model and strong operational performance across key segments. The target price of ₹200 represents significant upside potential from current levels, reflecting confidence in GAIL's growth trajectory and operational efficiency improvements, despite the observed divergence between revenue growth and profit growth in recent quarters.
GAIL demonstrated strong capital discipline with cumulative capital expenditure of ₹7,600 crore during H1FY27, including ₹1,425 crore specifically in Q2FY27. As reported by GAIL, this total capex is aligned with the annual planned capex of approximately ₹12,900 crore, supporting its long-term growth strategy. The company's consolidated PBT for H1FY27 stood at ₹12,368 crore compared to ₹5,594 crore in the previous year, while consolidated PAT (excluding minority interest) was ₹9,385 crore against ₹4,342 crore in H1FY26. With operational volumes showing positive momentum across key segments and strategic investments in transmission pipeline capacity, GAIL appears well-positioned for sustained growth in the energy sector.
