GAIL Shares Surge 5% Despite Sharp Q4 Profit Decline

$GAIL (India) shares climbed nearly 5% on Monday, shrugging off a steep 38.4% year-on-year drop in Q4 net profit to Rs 1,260 crore. The company also reported a sharp 64.2% decline in EBITDA to Rs 1,150 crore, missing street expectations due to weak gas trading margins, lower transmission revenues, and ongoing losses in the petrochemical segment. Sequential profit and EBITDA also fell 21.2% and 56.6% respectively. Lower depreciation provided some support to the bottomline. Despite the weak quarterly performance, investor sentiment remained upbeat on expectations of improved gas availability if West Asia tensions ease and the Strait of Hormuz reopens. Brokerages stayed bullish, with several raising target prices citing long-term growth prospects in the natural gas sector. The stock gained strong traction as market participants focused on future triggers rather than current quarter setbacks.