GAIL Q2 FY27 results: net profit up 137.5% to ₹4,724 crore, revenue up 32.7%

How did GAIL perform in Q2 FY27?

GAIL reported consolidated revenue of ₹47,301 crore in Q2 FY27, up ₹11,644 crore or 32.7% from ₹35,657 crore in Q2 FY26. EBITDA rose ₹3,531 crore or 102.0% to ₹6,992 crore, lifting the margin 5.1 percentage points to 14.8%. Profit before tax was ₹5,829 crore, up 154.9%.

Net profit increased ₹2,735 crore or 137.5% to ₹4,724 crore from ₹1,989 crore, while basic EPS rose ₹4.18 to ₹7.18. Revenue increased 14.4% from ₹41,350 crore in Q1 FY27, but EBITDA fell 1.5% to ₹6,992 crore and its margin declined 2.4 percentage points to 14.8%. Net profit rose 1.1% from ₹4,671 crore.

On a standalone basis, Q2 FY27 revenue was ₹45,923.57 crore and profit after tax was ₹4,650.22 crore, against profit before tax of ₹2,217.24 crore. The figures used in the comparisons above are consolidated.

What changed in GAIL's costs and profit?

Total expenses rose ₹8,038 crore or 23.9% to ₹41,645 crore in Q2 FY27 compared with ₹33,608 crore in Q2 FY26. Cost of materials increased ₹769.12 crore or 35.7%, finance costs rose ₹89.39 crore or 38.2%, and other expenses increased ₹190.85 crore or 7.3%. Employee costs fell ₹62.82 crore or 10.0%, while depreciation declined ₹164.16 crore or 13.9%.

Other income fell ₹63.68 crore or 26.9% to ₹172.86 crore from ₹236.54 crore. There was no exceptional item in either quarter. Tax expense increased ₹799.85 crore or 138.7% to ₹1,377 crore from ₹576.68 crore, while profit before tax rose ₹3,542 crore to ₹5,829 crore. The filing does not state a reason for the year-on-year movement in profit.

Against Q1 FY27, total expenses increased ₹6,087 crore or 17.1%. Cost of materials rose ₹1,515 crore or 107.8% and other expenses increased ₹561.07 crore or 25.0%. Other income increased ₹40.39 crore to ₹172.86 crore, while tax fell ₹220.04 crore to ₹1,377 crore. No exceptional item was reported.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹88,651.21 crore, up ₹17,565.16 crore or 24.7% from ₹71,086.05 crore in H1 FY26. Total income rose 24.5% to ₹88,956.54 crore, while profit before tax increased 140.2% to ₹11,753.45 crore.

Net profit for the first half rose ₹5,023.78 crore or 114.9% to ₹9,394.74 crore from ₹4,370.96 crore. Basic EPS increased from ₹6.6 to ₹14.27.

What do the balance sheet and cash flow show?

GAIL's consolidated total assets were ₹154,838.85 crore at 30 September 2026, against ₹140,536.59 crore at 31 March 2026. Total equity rose to ₹97,003.39 crore from ₹89,291.66 crore, while borrowings fell to ₹15,495.62 crore from ₹19,964.21 crore. Cash increased to ₹1,074.18 crore from ₹959.23 crore.

Inventories rose to ₹7,488.19 crore from ₹5,154.93 crore, trade receivables increased to ₹14,305.9 crore from ₹8,605.11 crore, and trade payables rose to ₹9,652.01 crore from ₹6,104.18 crore. In H1 FY27, operating cash flow was ₹10,602.5 crore, compared with ₹5,747.34 crore in H1 FY26.

Investing cash outflow narrowed to ₹4,114.0 crore from ₹5,790.85 crore, while financing cash outflow widened to ₹6,143.14 crore from ₹736.66 crore. Capital expenditure was ₹3,689.66 crore, compared with ₹3,916.12 crore a year earlier.

How has GAIL done over the last 8 quarters?

Revenue increased in each of the last two quarters on a year-on-year basis. It rose from ₹35,657 crore in Q2 FY26 to ₹41,350 crore in Q1 FY27 and ₹47,301 crore in Q2 FY27. The recent low was ₹35,302.76 crore in Q3 FY26, while the recent high was ₹47,301 crore in the current quarter.

Net profit moved from ₹1,988.71 crore in Q2 FY26 to ₹4,670.99 crore in Q1 FY27 and ₹4,723.75 crore in Q2 FY27. The recent low was ₹1,481.46 crore in Q4 FY26, and the recent high was ₹4,723.75 crore in the current quarter.

The EBITDA margin fell to 4.1% in Q4 FY26, then rose to 17.2% in Q1 FY27 before easing to 14.8% in Q2 FY27. The recent low was 4.1% and the recent high was 17.2%.

Which businesses drove the quarter?

Natural Gas Transmission/Marketing remained the largest reported segment, with revenue of ₹57,151.83 crore, up 47.0% from ₹38,879.12 crore. EBIT was ₹5,450.02 crore, against ₹2,525.78 crore, and the reported EBIT margin was 9.5%. LPG and Liquid Hydrocarbons recorded revenue of ₹1,834.05 crore, up 59.5%, and EBIT of ₹442.13 crore against ₹111.79 crore.

City Gas reported revenue of ₹2,534.09 crore, up 40.4% from ₹1,804.87 crore, and EBIT of ₹293.5 crore against ₹164.89 crore. Petrochemicals recorded revenue of ₹2,519.54 crore, up 25.9%, and EBIT of -₹30.5 crore compared with -₹344.58 crore; its reported EBIT margin was -1.2%.

LPG Transmission reported revenue of ₹234.55 crore, up 1.2% from ₹231.73 crore, and EBIT of ₹132.39 crore against ₹128.77 crore. Other Segment revenue was ₹353.82 crore, up 12.6%, with EBIT of ₹167.43 crore compared with ₹139.64 crore.

What else did the company announce?

GAIL's board approved in-principle listing of its wholly owned subsidiary GAIL Gas through an IPO, with dilution of up to 25 percent in GAIL Gas. The final dilution, modality and other terms will require board approval after GAIL Gas submits a proposal based on the BRLM's recommendations. The same-day filings did not state a dividend.

The board also approved the transfer of six city gas distribution areas—Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Khordha—to GAIL Gas through a slump sale on a going-concern basis, effective 1 January 2027. Separately, the investors' presentation reported H1 FY27 capex of ₹7,600 crore against annual planned capex of approximately ₹12,900 crore for FY27.

The board extended the Gurdaspur-Jammu pipeline completion schedule to December 2026, citing delay in receipt of forest permission in Punjab, and said no additional investment was required. It also extended the Kochi-Koottanad-Bengaluru-Mangaluru pipeline completion schedule to March 2027 because of a delay in the availability of hindrance-free fronts; that filing also said no additional investment was required.

What did the auditors point out?

The independent auditors' limited review report was unmodified and said nothing had come to their attention that caused them to believe the standalone statement did not disclose the information required under the Listing Regulations or contained a material misstatement. The report included an emphasis of matter.

The auditors drew attention to two provisional PNGRB tariff orders for petroleum and petroleum product pipelines, which GAIL is contesting before APTEL; any adjustment will be recognised when the matter is finally decided. They also highlighted a CESTAT order concerning the differential amount and classification of naphtha, amounting to ₹2,889 crore with interest of ₹3,831 crore up to 30 September 2026, including applicable penalty and interest. GAIL has appealed to the Supreme Court and treats it as a contingent liability, and the auditors said their conclusion was not modified for these matters.

What did GAIL's management say?

Management identified Middle East supply disruption, gas-price volatility, petrochemical break-even economics, the Kochi pipeline execution schedule and the available ONGC domestic-gas profile as risks. It said Qatar Energy remained under force majeure and gas prices were roughly $30-32/MMBtu. S.K. Sinha, Director of Finance, said the marketing-margin range assumes continued Brent volatility and accounts for disturbed long-term supply during the year.

Management also said GAIL Gas expansion was a priority, with the company targeting 275 CNG stations and 3.7 lakh PNG connections over two years. On pipeline execution, management said: “Basically, only three to four kilometers is left. So we are hopeful that three to four kilometers will be laid by March maximum.”

How did GAIL shares react?

GAIL closed 1.6% higher on the reaction day from its pre-results close of ₹165.22. The stock was up 0.4% after 5 minutes, 1.0% after 15 minutes and 0.1% after 30 minutes from the price when the filing appeared. By the next day's close, it was up 6.6% from the pre-results close; no five-day move was given.

The Gas industry recorded a median reaction-day move of -1.8% and a next-day move of -3.5%. GAIL therefore outperformed the industry median by 3.4 percentage points on the reaction day and by 10.1 percentage points by the next day's close. The Nifty 100 rose 0.3% on the reaction day and 2.0% by the next day's close.

GAIL's earlier results-day reactions were mixed. The shares moved 4.3% on 31 July 2026, 4.1% on 21 May 2026, -3.9% on 31 January 2026, -0.6% on 31 October 2025, 1.8% on 28 July 2025 and -2.5% on 13 May 2025. The 30 January 2025 reaction was 0.6%, while the 5 November 2024 reaction was 6.2%.