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GAIL’s operating profits in its gas transmission business are expected to decline sequentially on higher transmission cost, while volume is expected to be higher q-o-q | Photo Credit: REUTERS
State-run GAIL is expected to report better performance, on a sequential basis, aided by a low base, on likely normalisation of the gas trading segment yielding better margins amidst range bound gas volume.
The country’s largest gas utility is expected to report its Q4 FY25 and FY25 performance on Tuesday.
Emkay Global Financial Services expects softness in petrochemicals and higher transmission opex for GAIL to be partly offset by higher gas marketing margins.
GAIL’s gas volumes could be largely flat quarter-on-quarter (q-o-q), while petrochemicals earnings may decline sequentially on higher gas cost despite steady plant utilisation levels at around 105 per cent. LPG earnings are likely to decline q-o-q due to reduced APM allocation.
Similarly, JM Financial expects GAIL’s operating profits to appreciate sequentially on a low base on likely normalisation of the gas trading segment.
GAIL’s operating profits in its gas transmission business are expected to decline sequentially on higher transmission cost, while volume is expected to be higher q-o-q. Its petrochemicals earnings are also expected to decline sequential due to lower sales volume and margins.
LPG earnings are also likely to decline q-o-q due to fall in global LPG prices and lower production after 1/3rd cut in APM allocation for LPG segment impacted its viability.
During Q3FY25, GAIL reported a 52 per cent y-o-y growth in its consolidated net profit at around ₹4,084 crore, aided by a ₹2,440 crore compensation for LNG supplies.
Sequentially, net profit rose 28 per cent. Its consolidated total income was higher at around ₹37,315 crore in Q3FY25, against ₹34,258 crore in Q2 FY25 and ₹35,1822 crore in Q3FY24.
In Q3FY25, GAIL’s average natural gas transmission volume rose by 3.6 per cent y-o-y to 125.93 million standard cubic meters per day (MSCMD). However, volume was down by around 3.6 per cent on a q-o-q basis. Gas marketing volume rose by 5.4 per cent y-o-y and 7.1 per cent q-o-q at 103.46 MSCMD.
Published on May 13, 2025
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