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SASI KUMAR SEBI RA

31st Jan · SEBI-Registered Analyst

GAIL (India) Q3 FY26 – Earnings Under Pressure Amid Softer Volumes

GAIL reported a weaker performance in the December 2025 quarter, with declines across revenue and profitability, impacted by lower gas transmission margins and subdued trading performance. • Sales: ↓ 5% YoY to ₹35,173 crore (vs ₹36,835 crore in Dec 2024) • EBIDT: ↓ 8% YoY to ₹2,927 crore (vs ₹3,169 crore) • Net Profit: ↓ 20% YoY to ₹1,729 crore (vs ₹4,084 crore) • EPS: ↓ 57% YoY to ₹2.67 (vs ₹6.21) At a price of ₹167, market cap ₹1,09,995 crore, and PE 12.8, GAIL trades at a reasonable valuation reflecting near-term earnings pressure. While current profitability is impacted by margin normalization and volatility in gas markets, the company’s strong pipeline network and strategic role in India’s gas infrastructure provide long-term stability as gas consumption rises.

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