Q2 FY27 results analysis · October 30, 2026
GAIL (India) Ltd Q2 FY27 Results Analysis: PAT Surges 110%, EBITDA Margin Expands 398 bps
+109.7%PAT year on year, Rs. 4,650.22 Cr
Source: Quarterly results filing (NSE)
Quick summary
GAIL (India) Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 45,923.57 Cr (+31.10% YoY) and PAT growth of +109.73% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 45,923.57 Cr (+31.10% YoY) |
| PAT (Q2) | Rs. 4,650.22 Cr (+109.73% YoY) |
| EBITDA margin | 15.35% (+398 bps YoY) |
| EPS (Q2) | Rs. 7.07 (+109.79% YoY) |
Quarter Snapshot
GAIL delivered 31.10% YoY standalone revenue growth and 109.73% PAT growth with EBITDA margin up ~398 bps YoY to 15.35%. H1 gas marketing EBIT of Rs.6,765.59 crore already exceeds the full-year FY27 guidance of Rs.4,000–4,500 crore, while net debt fell Rs.3,637.51 crore in H1. Watch items are the 70.91% receivables build, the Rs.2,889 crore CESTAT contingent demand, and zero PLL RLNG allocation since March 2026.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "in-line to ahead on volumes" — record power demand, no flood repeat | Standalone revenue 45,923.57, +31.10% YoY | Played out |
| Gas marketing | guided "shrink", but "the spread GAIL arbitrages widened rather than converged" → smaller QoQ decline than guided | Q2 standalone EBIT 3,284.30, only −5.66% QoQ | Played out |
| LPG | "Brent's surge argues the opposite" of the guided decrease | LPG & LH EBIT −42.77% QoQ — the guided decrease materialized | Contradicted |
| Petrochemicals | "pressured on price cooling" | Loss narrowed to (22.15) from (122.53); still loss-making | Partially |
| FX / ERV | "another ERV drag" on further rupee depreciation | Finance costs +37.05% YoY; lease liabilities +Rs.3,842.67 cr in H1; no Q2 ERV quantum disclosed | Partially |
| Transmission ~123 MMSCMD | volume guide test | Volumes not disclosed in filing | Not observable |
| Nagarjuna Rs.675 cr reversal in Q2 | "Q2 the stated window" | No reversal disclosed in filing; unattributed Rs.290.97 cr H1 provision write-back exists | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Gas marketing PBT Rs.4,500 crore FY27 (min band Rs.4,000–4,500) | Q1 FY27 earnings call (Jul 31, 2026), reaffirming the FY27 "at least Rs.4,000 crore" guide | Standalone segment EBIT H1 Rs.6,765.59 cr — 150% of the full-year target in half a year; Q2 Rs.3,284.30 cr — pace far ahead | On track |
| Q2 marketing margins "anticipated to shrink" | Q1 FY27 earnings call | Standalone −5.66% QoQ; consolidated −2.33% QoQ — modest shrink | Met |
| LPG profitability "will decrease" in Q2 | Q1 FY27 earnings call | LPG & LH EBIT −42.77% QoQ (772.50 → 442.13) | Met |
| Finance cost Rs.1,200–1,300 crore FY27 | prior earnings calls | H1 Rs.624.58 cr (annualized ~Rs.1,249 cr) | On track |
| Depreciation Rs.3,200–3,300 crore FY27 | prior earnings calls | H1 Rs.1,762.61 cr (annualized ~Rs.3,525 cr) | On track, upper end |
| Capex Rs.11,500 crore FY27 plan | Q1 FY27 earnings call | Cash-flow purchases H1 Rs.2,738.84 cr (standalone); press-release capex basis differs | Too early / basis mismatch |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Gas transmission (MMSCMD) | 123.59 | 125.45 | 118.99 | n.d. | n.d. — not disclosed in filing |
| Gas marketing (MMSCMD) | 105.49 | 103.98 | n.d. | n.d. | n.d. — not disclosed in filing |
Key Investment Insights
Key Positives
- Standalone revenue grew 31.10% YoY to Rs.45,923.57 crore; consolidated revenue grew 32.66% YoY to Rs.47,301.03 crore
- Standalone PAT grew 109.73% YoY to Rs.4,650.22 crore; consolidated attributable PAT grew 139.30% YoY to Rs.4,719.66 crore
- Standalone EBITDA margin expanded ~398 bps YoY to 15.35% from 11.37%
- H1 gas marketing segment EBIT of Rs.6,765.59 crore is 150% of the full-year FY27 guidance of Rs.4,000–4,500 crore
- Petrochemicals EBIT loss narrowed to Rs.(22.15) crore from Rs.(122.53) crore QoQ and Rs.(299.24) crore YoY
- Net debt (excl. leases) reduced by Rs.3,637.51 crore in H1; H1 standalone FCF of Rs.6,360.98 crore
- Every segment grew revenue YoY: LPG & Liquid Hydrocarbons +59.45%, City Gas +40.40% (consolidated), Natural Gas Marketing +31.20%, Petrochemicals +25.88%, Transmission +21.03%
Risk Factors
- Trade receivables rose 70.91% since March 2026 to Rs.14,146.23 crore, absorbing Rs.6,051.11 crore of H1 operating cash flow
- CESTAT naphtha excise demand of Rs.2,889 crore (Rs.3,831 crore with interest) remains a contingent liability flagged as auditor Emphasis of Matter
- PLL RLNG allocation has been zero since March 4, 2026, with ~190 MMSCM supplied in H1 via spot/alternative sourcing mitigation
- Lease liabilities rose Rs.3,842.67 crore in H1 to Rs.8,274.35 crore with H1 unrealized FX loss of Rs.139.03 crore on ship lease ERV exposure
- Marketing segment EBIT margin compressed QoQ (standalone 7.97% vs 10.11% in Q1) and LPG & LH EBIT fell 42.77% QoQ
- Inventory build widened YoY to Rs.(1,062.26) crore from Rs.(191.32) crore, a Rs.870.94 crore YoY P&L drag
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Companies on this page
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.