GAIL India Share Price Up 5% to 52-Week High After Strong Q1 Results

GAIL India share price surged over 5% to reach a 52-week high in early trading on Wednesday following the release of its robust Q1 results, which exceeded market expectations. The stock climbed by as much as 5.43% to ₹246.35 per share on the BSE.

By 9:50 am IST, GAIL India share price were trading 4.94% higher at ₹245.20 per share on the BSE.

In the first quarter of FY25, GAIL (India) reported a consolidated net profit of ₹3,183.35 crore, marking a 77.5% increase from ₹1,792.99 crore in the same quarter the previous year. This growth was driven by higher gas transmission volumes, increased domestic natural gas marketing volume, and better natural gas marketing margins.

Sequentially, the company's net profit grew by 28.6%. Revenue from operations in Q1FY25 saw a slight rise to ₹34,821.89 crore from ₹32,848.78 crore year-on-year (YoY).

Sandeep Kumar Gupta, Chairman & Managing Director of GAIL, stated that the company had spent approximately ₹1,659 crore in capital expenditures during the current quarter. This spending, focused mainly on pipelines, petrochemicals, and equity to joint ventures, accounts for about 21% of the annual target of ₹8,044 crore.

In the June quarter, GAIL India’s EBIT from the natural gas transmission segment increased by 47.3% to ₹1,446.87 crore from ₹982.45 crore in the March quarter, and by 40% from ₹1,028.33 crore YoY.

The EBIT for the Natural Gas Marketing segment rose to ₹2,036.13 crore from ₹1,507.65 crore quarter-on-quarter (QoQ). The Petchem segment, however, reported an EBIT loss of ₹49.31 crore, compared to an EBIT of ₹533.41 crore QoQ and an EBIT loss of ₹301.75 crore YoY.

Foreign brokerage firms Citi and UBS both have a 'Buy' rating on GAIL India shares, with a target price of ₹250 per share.

Over the past month, GAIL India’s share price has increased by more than 10%, and over the past three months, it has risen by over 17%. Year-to-date (YTD), the stock has delivered over 51% returns and has provided more than 105% returns over the past year.

GAIL (India) Ltd (GAIL) is a vertically integrated gas enterprise involved in various aspects of the gas industry. Its operations include processing, transmitting, and marketing gas; transmitting liquefied petroleum gas (LPG); regasifying liquefied natural gas (LNG); and producing and marketing petrochemicals. Additionally, GAIL is active in the compressed natural gas (CNG) and city gas distribution sectors. 

The company has also diversified into oil and gas exploration and production, as well as solar and wind power generation. Serving industrial, commercial, and domestic clients, GAIL operates through an extensive network of proprietary pipelines. It maintains operations in India, Singapore, and the US, with its headquarters located in New Delhi, India.