GAIL Q2 FY25 Results: Net Profit Up 10% YoY to ₹2,689.67 Crore

GAIL (India) Ltd. announced its financial results for the quarter ending September 30 on Tuesday. The state-owned natural gas transmission and marketing giant announced a 10% increase in its net profit for the second quarter of FY25, reporting ₹2,689.67 crore compared to ₹2,442.18 crore in the same period last year. Revenue from operations for the July-September quarter saw a modest increase, reaching ₹33,981.33 crore.

This growth is attributed to a rise in earnings from its gas transmission business and a turnaround in its petrochemical sector, although it faced a decline in marketing margins. The company reported a capital expenditure of ₹1,885 crore for the quarter, primarily directed towards pipeline projects and petrochemical initiatives. This brings the total cumulative capex to ₹3,544 crore as of September 30.

• Revenue: ₹33,981.33 crore, marginal rise from last year.
• Net Profit: ₹2,689.67 crore, up by 10% YoY.
• Segment Performance: Gas transmission business saw an 8% increase in pre-tax earnings to ₹1,402.81 crore, while the petrochemical segment turned around, earning ₹146.19 crore.
• Management’s Take: Strong growth driven by a rise in earnings from its gas transmission business and a turnaround in its petrochemical sector. Outlook remains positive.
• Stock Reaction: GAIL announced its Q2 results on Tuesday after market hours. By 11:46 AM, Gail shares price had risen by approximately 5.9% on NSE.

Management Commentary 

Post GAIL’s Q2 results, its Chairman and Managing Director, Sandeep Kumar Gupta, stated that the petrochemical segment is anticipated to remain reasonably profitable in FY 2024-25. He noted that the turnaround in the petrochemical segment, which earned ₹146.19 crore this quarter compared to a loss of ₹160.94 crore in the previous year, had significantly contributed to the profit growth. 
 
However, earnings from the marketing business declined by 27% to ₹1,253.64 crore. The company reported a natural gas transmission volume of 13.63 million standard cubic meters per day (mmscmd) in Q2, while gas marketing volume stood at 96.60 mmscmd, the company said in a statement.

Stock Market Reaction

GAIL’s Q2 results were announced on Tuesday, post-market hours. On Tuesday, Gail shares price closed at ₹196.41 on NSE and opened at ₹201.00 on the next trading day. At 11:46 AM, shares were trading approximately 5.9% high at ₹208.8 on NSE. This rise could be a reaction to the positive results.

About GAIL India

GAIL (India) Ltd is India's largest natural gas transmission and marketing company. GAIL plays a crucial role in India's energy infrastructure through its involvement in natural gas transportation and petrochemical production. The company has also seen increased sales in its polymer business, with polymer sales jumping to 226 TMT in Q2 from 169 TMT in Q1 FY25. GAIL operates in 67 geographical areas across India and has 8 joint ventures along with three subsidiaries dedicated to its City Gas Distribution (CGD) business.