Prabhudas Lilladher and Motilal Oswal have both issued 'BUY' ratings on GAIL India with identical target price of ₹190 in their research reports dated February 02, 2026. According to Prabhudas Lilladher's analysis, the stock currently trades at 12.1x/10.5x FY27/FY28E EPS and offers attractive risk-reward prospects following recent price corrections. The broker values the company at 11.0x December 2027E EPS and adds ₹40 for investments at 25% holding company discount to arrive at the target price. Motilal Oswal maintains a SoTP-based target price of ₹190 and estimates a 19% CAGR in PAT over FY26-28, driven by strong fundamentals across the company's business segments.
GAIL's Q3FY26 results showed mixed performance with transmission volume at 125.5mmscmd, up 1.5% QoQ and flat YoY, driven by higher offtake from fertilizer, CGD and refinery segments. However, EBITDA declined 16.8% QoQ and 6.4% YoY to ₹26.6 billion, falling short of analyst estimates of ₹31.0 billion. PAT fell 27.7% QoQ and 58.6% YoY to ₹16.0 billion, impacted by the absence of one-off other income from arbitration settlement recognized in Q3FY25. Trading volumes dipped 1.4% to 104 mmscmd, contributing to the overall earnings pressure. As reported by Prabhudas Lilladher, the decline was primarily due to poor performance in the trading segment and higher losses in the petrochemical segment. Motilal Oswal notes that 9MFY26 EBIT forms ~72% of the earlier guidance of ₹45 billion, with the weakness largely driven by poor performance in marketing, petrochemical, and LPG segments.
GAIL maintained its transmission volume guidance of 134-135mmscmd and expects approximately 5% growth in trading volume in FY27. According to the company's projections, the PNGRB tariff revision is expected to result in incremental transmission revenue of ₹12 billion per annum. The regulatory tariff revision from PNGRB stands as a key forward-looking catalyst, expected to generate approximately ₹12 billion in additional annual revenue for the transmission business. This revenue enhancement, coupled with stable volume growth, forms the bedrock of the positive outlook for GAIL. The company's reaffirmed volume guidance and anticipated incremental revenues from regulatory tariff adjustments position the stock for future growth despite current operational challenges.
The stock currently trades at 12.1x/10.5x FY27/FY28E EPS according to Prabhudas Lilladher's analysis. Both brokerages' recommendations are based on the company's intact volume guidance, the recent price correction creating attractive valuations, and the expected benefits from regulatory tariff revisions. The target price of ₹190 represents a premium to current trading levels, reflecting the bullish outlook from both Prabhudas Lilladher and Motilal Oswal on the natural gas transmission and trading company. Prabhudas Lilladher's decision to reiterate a 'BUY' rating, albeit with a revised target price of ₹190 from ₹202, highlights conviction in GAIL's ability to leverage future growth drivers. The current price correction, despite the earnings dip, offers a more favorable risk-reward profile according to their analysis, with the stock's forward P/E multiples of 12.1x for FY27 and 10.5x for FY28 being viewed as reasonable entry points for investors focused on the company's long-term potential.