GAIL Closes FY25 With Highest Ever Annual Profit

New Delhi: Country’s public sector corporation GAIL (India) Limited has closed the financial year 2025 (FY25) with the highest ever annual profit while demonstrating strong fundamentals and strategic direction towards future-ready energy solutions.

This is despite a quarterly decline where it declared a constant net profit of Rs 2,491.76 crores for the quarter ending in March. This was sharply sequentially down against the Rs 4,081.56 crores for the third quarter.

GAIL's consolidated net profit for the FY25 grew by 25.8% year-on-year to Rs 12,449.80 crores, mainly aided by strong operational performance and growth in revenue. The consolidated revenue from operations for the FY25 is Rs 1, 42,291.42 crores, an increase of 6.6% from FY24.

GAIL Chairman and Managing Director Sandeep Kumar Gupta described FY25 as a ‘landmark year’ whereby the company delivered a strong performance across all verticals in spite of global economic headwinds.

He told ETV Bharat, "The Company incurred a capital expenditure (capex) of Rs 10,512 crores in the fiscal 2024-25. GAIL is undertaking similar capex exercise for FY26 with a spending of Rs 3,000 to Rs 4,000 crores on petrochemicals segment, around Rs 3,000 crores on the pipelines segment and rest for other verticals including compressed biogas (CBG) and liquefied natural gas (LNG).

“We achieved the highest-ever EBITDA (earnings before interest, taxes, depreciation and amortization), PBT (profit before tax) and PAT (profit after tax) in GAIL’s history,” Gupta said.

While the yearly numbers were impressive, pressure could be seen at the quarter end. On a consolidated basis, GAIL's revenue for Q4 was Rs 36,551.15 crores, an 11.3% jump from Q4 FY24 but a slight drop from Rs 36,937.05 crores in Q3 FY25. Earnings per share for the quarter stood at Rs 3.79.

On a standalone basis, net profit in Q4 fell by 5.87% year-on-year to Rs 2,049 crores whereas revenues rose to Rs 35,707 crores from Rs 32,334 crores. It was thus said that lower gas transmission volumes and margin pressures in the gas marketing segment caused the dip in the quarterly profits.

The Board of Directors has declared a final dividend of Rs 1 per equity share in addition to the interim dividend of Rs 6.50 already paid during the year. This implies a total dividend payout of 43.59%. But GAIL shares went down nearly 2% to close at Rs 184 on the BSE post the earnings announcement contrary to the 2.7% gains seen over the previous month.

Natural gas transmission volume went down in Q4 to 120.83 Million Metric Standard Cubic Meters per Day (MMSCMD) from 125.93 MMSCMD in the previous quarter. Marketing volumes rose slightly to 106.53 MMSCMD from 103.46 MMSCMD. On a full-year basis, transmission volume grew by 6% to 127.32 MMSCMD while gas marketing volume surged to 101.49 MMSCMD.

Also, the performance improved on the petrochemical front with polymer production increasing by 6% to 827 Thermo-Mechanically Treated (TMT) in FY25. Polymer sales in Q4 increased by 4% sequentially to 229 TMT.

In a significant operational milestone, GAIL announced that its 5 Million Tonnes Per Annum (MTPA) Dabhol LNG terminal in Maharashtra, historically shut during monsoon months due to rough seas, will operate through the upcoming season for the first time. This is made possible by the completion of a breakwater facility enabling all weather operations.

Gupta said the company has sought regulatory approval to classify the terminal as an all weather facility and expects clearance within a week. “We will schedule LNG cargoes accordingly,” he said.

Looking ahead, GAIL plans to expand the Dabhol terminal to 6.3 MTPA by mid-2027 and 12.5 MTPA by 2031–32. The company also received five bids for a stake in a U.S. LNG project as part of a long-term LNG supply strategy. The move aligns with India’s push to diversify away from oil-linked contracts toward Henry Hub linked LNG which currently offers lower and more stable prices. GAIL estimates these prices will hover around $3.5–$4 per Metric Million British Thermal Unit (MMBtu) making imports viable for Indian consumers.

GAIL incurred Rs. 10,512 crores in capex during FY25 and plans a similar outlay in FY26.

To streamline operations in the City Gas Distribution (CGD) segment, GAIL plans to transfer six Geographical Areas (GAs) including Patna, Ranchi and Bhubaneswar from its parent company to its wholly owned subsidiary GAIL Gas Ltd pending approval from the Cabinet Committee on Economic Affairs (CCEA).