🔥 Nomura on

GAIL

: Buy | Target ₹225 🔥

Nomura sees strong upside for GAIL, driven by upcoming tariff revisions and long-term recovery in petchem. 🔑 Key Highlights: ✅ Tariff Hike Boost – Integrated tariff hike >20% could surprise positively. ✅ Petchem Recovery – Segment expected to improve from FY27F onwards. ✅ Tariff Request – GAIL has applied to PNGRB for a 33% hike to ₹78/mmbtu, due to: – Zero APM gas allocation for compressors (higher substitute cost) – PNGRB’s revised capacity estimates 📌 Likely Outcome: Tariff may rise to ₹70/mmbtu (~19.5% ↑) from April 2026. 📊 Impact Forecast: – Gas transmission EBIT FY27F ↑ 42% YoY – Group consolidated EBIT FY27F ↑ 24% YoY Nomura remains bullish with a Buy rating & TP ₹225 🚀