GAIL (India) Limited, a state-owned energy major and Maharatna company, has reported notable financial achievements in its second quarter (Q2) for the fiscal year 2024-25. The company disclosed a revenue from operations of Rs 32,931 crore, showcasing a robust position despite sectoral challenges. This figure, however, marks a slight dip from the Rs 33,692 crore reported in Q1 FY25. The Profit Before Tax (PBT) for Q2 FY25 stood at Rs 3,453 crore, compared to Rs 3,642 crore in the prior quarter, while the Profit After Tax (PAT) was recorded at Rs 2,672 crore, slightly below the Rs 2,724 crore reported for Q1 FY25.

The overall performance of the first half (H1) of FY25 illustrated a positive trajectory, with total revenue for April to September 2024 reaching Rs 66,622 crore, a climb from Rs 64,050 crore in the same period the previous year. The company’s PBT and PAT in H1 FY25 stood at Rs 7,095 crore and Rs 5,396 crore respectively, outperforming last year’s H1 figures of Rs 5,019 crore (PBT) and Rs 3,817 crore (PAT).

Petrochemical Segment’s Turnaround

One of the standout details from GAIL’s recent earnings report is the impressive turnaround in its petrochemical segment, which registered a PBT of Rs 157 crore in Q2 FY25, a significant recovery from a loss of Rs 42 crore in Q1 FY25. Sandeep Kumar Gupta, Chairman and Managing Director of GAIL, noted that the petrochemical business is poised for sustained profitability for the remainder of the fiscal year, hinting at strategic measures enhancing the segment’s operations.

Operational Highlights and Capital Expenditure

In terms of operations, GAIL reported a natural gas transmission volume of 130.63 MMSCMD and a gas marketing volume of 96.60 MMSCMD in Q2 FY25. Sales of LHC (Liquefied Hydrocarbon) and polymers stood at 253 TMT and 226 TMT, respectively, compared to 218 TMT and 169 TMT in Q1 FY25, indicating steady growth in downstream products.

The company invested heavily in infrastructure, with a capex of Rs 1,885 crore in Q2, mainly directed towards expanding pipelines and petrochemical facilities. This brings the total capital expenditure for H1 FY25 to Rs 3,544 crore, reinforcing GAIL’s commitment to strengthening its operational base and future-readiness.

Consolidated Financial Performance

On a consolidated basis, GAIL’s revenue from operations for H1 FY25 was reported at Rs 68,803 crore, up from Rs 65,898 crore in H1 FY24. PBT reached Rs 7,583 crore, showing a marked increase from Rs 5,421 crore in the same period last year. PAT, after excluding non-controlling interests, rose to Rs 5,876 crore, a substantial improvement over Rs 4,236 crore in H1 FY24.

These figures highlight GAIL’s resilience and strategic positioning amid fluctuating market conditions. The company continues to benefit from a diversified portfolio and strategic capital investments.

Expert Insights: Outlook for GAIL’s Growth

Industry analysts are closely observing GAIL’s financial trends as they predict sustained growth for the company. Experts suggest that GAIL’s strategic expansions in petrochemicals and robust pipeline investments are pivotal in maintaining its leadership in the natural gas sector. The slight quarter-on-quarter revenue dip is attributed to market corrections and external pressures, yet the overall profitability trajectory remains promising.

  BSE Limited, GAIL, Mumbai, National Stock Exchange of India Limited, New Delhi, Sandeep Kumar Gupta