Geojit Financial Services has issued a buy rating on GAIL (India) Limited with a target price of ₹200 in its research report dated August 19, 2026. According to the brokerage's analysis, the recommendation is based on the company's strong quarterly performance and positive outlook for the natural gas sector.
The public sector undertaking delivered robust financial results for Q1FY27, with standalone revenue rising 12.0% year-on-year to ₹38,982 crore. As reported by Geojit Financial Services, this growth was driven by higher realisations across gas marketing, liquid hydrocarbons and transmission services during the quarter. EBITDA surged 91.3% YoY to ₹6,376 crore, with margins expanding by 680 basis points to 16.4% during the quarter.
According to Geojit Financial Services research, gas marketing EBIT jumped to ₹3,481 crore and liquid hydrocarbons reached ₹773 crore, together underpinning the earnings beat. However, the petrochemicals segment remained loss-making at ₹123 crore during the quarter. The strong performance across gas marketing and liquid hydrocarbons segments contributed significantly to the overall profitability improvement.
Reported PAT more than doubled, rising 127.5% YoY to ₹4,292 crore, supported by stronger EBITDA, benign finance costs and robust overall profit delivery. As noted by Geojit Financial Services, profitability was materially aided by favourable, largely non-recurring pricing gains, suggesting these exceptionally strong margins may normalise meaningfully over subsequent quarters of FY27. The brokerage maintains its BUY rating with an SOTP-based target price of ₹200.
