GAIL (India) Limited

Ladies and gentlemen, good day and welcome to Gale India Limited Q2FY26 on X Conference Call hosted by Phillip Capital Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishant Tiwari. Thank you and over to you, sir.

Thank you, Shruti. Good day, ladies and gentlemen. On behalf of Philip Capital India Limited, I welcome everyone to Real India Limited's second quarter FY26 earnings call. Today, we have the pleasure of having with us the senior management team of GAIL, led by Director of Finance, Sri R.K. Jain. I will now hand over the floor to the management for their opening remarks. which I will follow by a close question and answer session. Over to you, sir.

Thank you, Nitin. Friends from the investors and analyst community, a very good afternoon and welcome to Gaze Earning Call for Q2 Financial Year 2016. At the outset, I thank you all for attending this meeting. Let me first begin with the latest business updates. It gives me It is my pleasure to inform you that on October 16, 2025, Gales-Shirkakula-Mangul pipeline, which is a 422-kilometre, has been dedicated to the nations by Honourable Prime Minister. Further, physical progress of Mumbai-Nagpur-Jharsukta pipeline has reached to 97% and PASO approval for Mumbai-Nagpur section, which is 693-kilometre, and Chhattisgarh Purisa section which is 489 kilometer has already been received and gas is in under process. The remaining pipeline is in advanced stage of completion and is scheduled for commissioning by 31st December, 2025. On September 9th, 2025, GAIL got PNGRB authorization to lay, build and operate pipeline from Vijayapur to Beena. This will connect to the BPCL Beena refinery The pipeline will have a capacity of 3 mm CMD and this is 105 km length and involve a capex of 450 crore. The timeline for laying this pipeline is 3 years. This pipeline will become part of integrated natural gas pipeline system of Gale. As already informed earlier, Gale has got authorization for capacity expansion of JLPL LPG pipeline. from existing 3.25 MMTPA at present to 6.5 MMTPA based on current tariff rates. This will increase GIL's revenue by approximate 700 crore rupees. As you know, the tariff is also increasing every year by 3.4%, so that will further add to GIL's revenue. And it will also improve GIL's bottom line around 600 crore rupees per annum at the EBITDA level not bottom line at EBITDA level and again the increase of tariff of 3.4% will have further addition to it. Gains result for the quarter ended 30th September 2025 have been declared today. I will briefly touch upon the major highlights for this quarter. Thereafter we may open the session for your queries. First of all I will take you through the financial highlights of the quarter. Gains turnover in this quarter, that is Q2, is almost flat, which is 34,972 crores, as against 34,735 crores in Q1 financial year 26. Profit before tax stood at Rs. 2,823 crores, as against 2,533 crores in Q1 financial year 26. This is up by 11%. The profit after tax during the quarter increased to Rs. 2,217 crore as against 1,886 crore in Q1 financial year 26. This is up by 18%. On competitive quarter basis, that is quarter two of this financial year versus quarter two of financial year 25, GAIL achieved turnover of rupees 34,972 crore as against 32,810 crore in corresponding period of last year. An increase of approximate 7%. Profit before tax is to that rupees 2823 crore as I guess 3453 crore. This is down by 18% and profit after tax is to that rupees 2217 crore as I guess 2672 crore down by 17%. Now I'll take you through the physical performance during the quarter. Gas marketing volume during the quarter is to that 105.49 mm SCMD as against 105.45 mm SCMD in Q1 financial year 26. The natural gas transmission volume was 123.59 mm SCMD in Q2 financial year 26 as against 120.62 mm SCMD in Q1 financial year 26. The average capacity overall basis if we take off the total capacity, authorized capacity is 39%, but I will talk to the integrated natural gas pipeline system, which is the main revenue earning system. As per the capacity worked out by PNGRB, the applicable capacity for tariff determination for 2025-2026 is 150.46 mm SBMD, and considering the volume flow in this integrated pipeline system of 111.76 mm SBMD, The capacity utilization for this pipeline was 74.28%. Follower production was back to normal. Level of 220 TMT in Q2 financial year 26, which is stood at 177 TMT in previous quarter due to annual turnaround. Liquid hydrocarbon production stood at 221 TMT as against 199 TMT in previous quarter. LPG transmission was 1,167 TMT as against 1,131 TMT in previous quarter. The capacity utilization was approximate 101% during this quarter. Now I will take you through the consolidated financial highlights for quarter two financial year 26 versus quarter one financial year 26. The consolidated turnover in Q2 financial year 26 stood at rupees 35,594 crore as against rupees 35,369 crore, almost flat. The PBT in quarter two financial year 26 stood at rupees 2,565 crore as a guess 3,029 crore in quarter one financial year 26. The profit after tax in Q2 financial year 26 stood at rupees 1,972 crore as a guess 2,369 crore in Q1 financial year 26. Gail, as you know, Gail also has got six geographical areas authorized city gas distribution. I will also share the performance of these six geographical areas. Gale has an infrastructure of 213 CNG stations and 4.5 lakh BPNG connections. During the quarter, 13,700 new BPNG connections were added. The physical volume stood at 0.46 mm CMD. In the next two years, Gale targets to add around 85 new CNG stations and around 1,50,000 new DPNG connections. You know that Gale also has got 100% subsidiary exclusively dealing in retail business. Now, I will also briefly touch about the financials of Gale Gas Limited. In Q2 financial year 26, turnover of Gale Gas is 2,235 crores as a gas 2,927 crores in Q1 financial year 26. PVT increased by 1% stood at Rs. 148 crore as a gas, Rs. 146 crore in Q1 FY26. Profit after tax was up by 3% and stood at Rs. 111 crore as a gas, Rs. 108 crore in Q1 FY26. The physical volume stood at 7.72 mmHg. During Q2 FY26, Gale Gas along with JVE subsidiaries has added 44,512 new DPMG connections and one CNG station. Gale gas with its JVE subsidies have infrastructure of 11,74,000 DPMG connections and 665 CNG stations. I will also touch upon the ongoing projects with Gale. Pipeline projects. SAPL as I already shared is commissioned and MNJPL, JSPDPL, KKMBPL phase 2 are scheduled to be completed during this financial year and Gurdaspur-Jammu pipeline is scheduled for completion in financial year 26-27. Petrochemical projects I will first share about the 60 KTA polypropylene at Pata and sorry 60 KTA polypropylene at Pata and 1250 KTA PTA plant at GMPL are scheduled to be commissioned in current financial year whereas 500 KTA PDHPP plant at USAR is expected to be completed in financial year 27. CapEx for quarter 2 financial year 26 during the quarter the CapEx of rupees 1662 crore rupees was incurred out of which 784 crore was incurred on pipelines, 514 crore was incurred on petrochemicals, 226 is operational capex and remaining approximate 138 crore on CGD, ENP, renewables and equity investments. Now I will share also the segment wise outlook for short to medium term. The profit before tax. From gas marketing business during the quarter stood at Rs. 1,227 crore. The gross margin during the quarter stood at Rs. 1,551 crore. The PVT from gas marketing margin during H1 financial year 26 stood at Rs. 2,221 crore. The gross margin during the H1 financial year 26 stood at Rs. 2,866 crore. At PBTA level, we are on our path to achieve the annual guidance of 4,000 to 4,500 crore from the gas marketing segment in financial year 26. In the gas transmission segment during quarter two financial year 26, average transmission volume improved to 143.59 mm CMD as compared to 120.62 mm CMD during Q1 financial year 26. Average transmission volume for H1 financial year 26 is two direct to FAT 122.11 mm at CMD. From gas transmission point of view, the current pressure has not been so good for gale. We had to revise our guidance earlier. The main reason for this downward revision was delaying pipeline connectivity to refineries, unplanned shutdown and tripping of fertilizer plants, leak of demand from power sector due to moderate summer, early onset and above average monsoon. The situation was further burdened by higher than usual pricing of natural gas in the spot market, which impacted the consumption in domestic market as refineries and industries switched to alternative fuel. Further, due to extreme monsoon and flash floods in northern India, gales suffered pipeline disturbances at four places, which are expected to be restored by the year end. Currently, the services are being managed partially through alternative arrangements. This also has impacted the transmission volume, which will be replenished as soon as the pipelines are operational again. Due to above-enforcing circumstances, the annual transmission volume for financial year 2025-2026 is expected to be at the level of around 123 to 124 mmHg. However, considering that most of the oil sector may not be there and there will be normal growth and commissioning of new pipeline that is SAPL and MNJPL. Gale expect transmission volume to be increased by around 8 to 10 million and we expect our volumes to be around 33 to 134 MMFPMD in financial year 27. Polymer production stood at 220 TMT as against 177 TMT in previous quarter. There is a loss of rupees 299 crore during quarter two financial year 26 due to increased input gas cost. This segment is likely to be at similar level for remaining part of the year. However, various measures like construction of dedicated pipeline, that is C2, C3 pipeline, installation of advanced process control, debottling and 60 KTFPP plants are being taken for cost optimization and improvement of efficiency. Since mostly, since HS gas is being, mostly HS gas being used as an internal consumption by PATA, PC plant and HH price have been unusually higher during this year which is expected to be so far in coming financial year. These factors may hopefully start giving positive results from next financial year onwards. LSE production is 221 TMT during Q2 financial year 26 as against 199 TMT sorry, 199 TMT in previous quarter with a PBT of 112 crore. There is a drop of 45% in PBT from LSE segment as compared to previous quarter, which is primarily on account of reduced price. As you know, the LSE price on an average basis has gone down by approximately 4600 rupees per metric tonne. Gale's new well gas allocation for LPG sinkage has been reduced from 0.32 mmHcmd to 0.2 mmHcmd with effect from 1st October 2025. Estimated impact on production will be around 33 TmT for S2 financial year 26. Gale management is constantly taking up the matter for further allocation of domestic gas or LST to enhance the capacity utilization of our LPG plants. In addition to above operational and financial performance, I would like to highlight that companies taking proactive measures to implement initiatives for maximizing profit and make our company future ready with introduction of advanced technologies and AI-based projects. Project structure 2, our flagship project is focused on maximizing profitability across core business segments through targeted improvements enabled by advanced data analytics. Under the Above project, GAIL is implementing 30 huge cases leveraging advanced technology with an estimated capex of 146 crore. These huge cases together are expected to provide the operational saving of approximately Rs. 600 crore on 5-year NPV basis in addition to huge quantitative benefit in optimization of process, manpower and material. That's all from my side regarding the overview of performance and projects. the management of the company is available and we would be glad to address any query that you may have. Now, I hand over to you, Nitin.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, We will wait for a moment while the question queue assembles. The first question is from the line of Prabol Sain from ICICI Securities. Please proceed.

Thank you for the opportunity, sir.

Am I audible?

Yes, very well.

Sir, first question with respect to the volumes. Because of the way that the rains have gone, obviously demand from the power sector has been a major factor driving the slower demand. So, any guidance you can give us of what H2 looks like given the very long tail of monsoons we have seen in the country this year?

So, I shared in terms of average volume for this financial year which is around 123 to 124 mmHg and we expect in H2 we will be around 125 mm FTMD.

So, not much change in terms of segmental demand at least for this year.

Actually, Yeah, you're right, not much change, but kind of quarter one we saw, we are not going to see those things because in quarter one, as we shared, fertilizer plants went for shutdowns, the power demand was not there, our petrochemical plants were also under shutdown. So quarter two onwards, we have started seeing the normalcy and we will see some kind of growth in terms of commissioning of new pipeline and the normal growth.

Got it. And a couple of more questions.

One was about the Dabhol LNG with respect to, you know, the progress on getting it to full utilization.

Any guidance on FI27 in terms of the terminal utilization that we can get?

So, as we shared with you, Dabhol terminal is now full weather terminal, right? And the nameplate capacity of that terminal is 5 mm TPA and But only one constraint is still we are experiencing that we do not have the heating system. Whenever RDPPL runs, we are able to take the advantage of the heating system available there. But in the absence of heating system, we are expecting to supply around 50% of the capacity. And the heating system will also be available sometime in 26-27.

Got it, sir. And last question from my side. You had, I think, mentioned in previous interaction. that the last leg of that Kochi Bangalore-Bangalore pipeline is imminent in terms of completion. So, if you can kindly refresh us in terms of latest timeline for both the legs to be fully operational.

Yeah, I shared with all the pipelines. including KKMVPL, the last lab which is pending, Jagdishpur Haldia and MNJPL, all the pipelines Gail is constructing excluding Gurdaspur Jammu pipeline will be commissioned during this financial year.

All right, sir. Thank you. That is very helpful. I will come back for more questions.

All the best. Sure.

Thank you.

Thank you. The next question is from the line of Balaji Das from Alliance Services.

So I have basically two questions like you know first question is like like what is the latest you know status on this you know this integrated service you know which is pending from the PNGIP like we heard that you know there has been frequent discussions and there is some you know difference of opinions in the tariffs, billing and etc. So, could you please provide the latest progress on this integrated tariff pipeline actually?

Actually, as you know, we submitted our pipeline, integrated pipeline tariff way back in August 24. All the processes has been completed. And now with regard to various information, news which are going around, we don't bother about these news. Because we are very clear whatever tariff we have submitted that is 78 rupees. uh which is which is in terms of the regulations and we share that even if pngrb based on past moderations uh pngrb does we were sharing some time in march that our tariff will be around 70 71 rupees but in between one development has happened pngrb has changed its regulations uh with respect to sharing of revenue uh above 75 utilization of pipeline 50 percent to be retained by entity and 50 percent to be passed on to customers that regulation is also giving some kind of increase to tariff and second the amount of delay it is happening in the processing of tariff that is also adding to the tariff. So maybe 20 paisa per month is increasing. So our guidance that on conservative basis of 70 rupees was passed that should increase by 2 to 3 rupees. Now coming back to specific answer to your question when it will come we expect it can come any time from now maybe in November.

Okay, thanks for the update and the second question is like on this we heard like you know the listing of the KL Gas IPO actually okay, so did any further progress on the consultant and when are the future plans actually for KL Gas actually because we heard that you know we are hiring consultant for the analysis of listing and etc.

Yeah, you heard rightly. But rail gas is one of the biggest company in the country in terms of city gas distribution. I shared in the brief that currently it is marketing 7.26 mmHg volume. Gale gas has got most of the geographical areas, any city gas receiving company has. We have one of the geographical areas like Bengaluru. It has already reached 1 mm spmd. And we in Gale believe that now it is high time that we start the process of listing Gale gas. In that regard, we have already started the process of hiring a consultant. As I understand, the consultant has already been selected. And the order may have been given. We may be giving in very very few days from now either it might have been you know maybe you so we are on our path to study about listing of rail gas and after conclusion of that study certainly that study is very important for us uh we expect one year timeline or so should be good enough thanks thanks thanks for the opportunity thank you yeah thank you the next question is from the line of amit murarga from access capital

Please proceed.

Hi, good evening. Just a question on petrochemicals. What was the input gas cost in Q2? If you could just tell that.

The input gas cost in Q2 was around $10.6, $10.5, $10.6.

So this is expected to go up given that Henry Hub has actually increased

Actually, Henry Hub has started softening now. I also briefed you that we have experienced unusually higher Henry Hub price. If you compare last financial year, Henry Hub prices were 50% of the current price level. So, it is already was peaking and it started softening. Currently, Henry Hub prices, we do not believe that it will further go up. Rather, it will be softened. That's how we expect that in next financial year, lot of good positive things should happen with us.

And what is the outlook on OPEX? The OPEX also looks like it has increased a bit in the quarter on the transmission side.

Transmission side, OPEX, I will have to come back. I don't think, I don't know from where you are arriving at. Gas consumption has gone down. Anyway, we can offline ask you for your specific details. But during the quarter, it has reduced. Yeah. Yeah, that's what I was telling you.

No, no, not against previous year. I was looking at versus Q1. So Q1, it was actually 836 crores, which is 905 crores in Q2.

We will be giving you this very, very soon. There is no big difference in what you are sharing. we'll be giving you offline this answer. You can connect our IRT.

Okay. And lastly, what is the outlook for gas transmission volumes for FY27? This year looks like we will do close to 124 and then a CMD or so. Next year, like earlier you were talking about 135 for FY27. So do you think that could also be at risk now with weaker numbers we are seeing in FY26?

Actually this year we were expecting, last year we transported 131. We were expecting that we will beat this number but whatever events which has happened during this year I narrated like in terms of power demand which has significantly gone down. Nobody would have expected that the monsoon, there will be early onset of monsoon, the summer will be below average kind of summer. and the spot prices will be higher and therefore the refineries in particular have shifted to alternative fuel. Handling up prices were also higher and our four pipelines got impacted due to heavy monsoons. So all these are the unique and one-off kind of situations. So we maintain that next financial year we will be having 134 to 135 mmHg kind of volume.

Okay, okay, sure. Thank you.

Thank you. The next question is from the line of Sabri from MK Global. Please proceed.

Yeah, good afternoon. So I just missed your opening remarks. I think you mentioned something about tariff for the first two, three minutes.

Can you please like again like touch that upon?

You are talking of tariff approvals? Yes.

I mean, initially, you started with the tariff part, right?

I joined four or five minutes late.

So, that's what I would like to know.

About tariff, I only answered with respect to the question which a rare participant had asked about the tariff approvals, when it is likely to happen. If your question is that, I can repeat that answer. No, my question is on the opening remarks. Before you touched upon the results, you were updating something 2-3%.

Sir, I was updating about commissioning of various pipelines, not tariffs.

Okay, so that would lead to some sort of like blended increase in tariff. Were you touching upon that? No, no, that will not increase. Yeah, on company basis, it will change the tariff. but those are the one of MLGPL and Trikakula Mangul are bid out pipeline their tariff is fixed so the overall company level certainly it will change the blended tariff right sir okay got it and second question is on this new pipelines only I think these are like bid out pipelines right but Trikakula Mangul is not bid out right We got three pipelines under bidding. One is Shirkakula Mangal, second is Mumbai-Dapur-Jharsukhda and third is Gujratpur pipeline. Right. And I think the tariff is like above 100 rupees per MMBTO in each of them.

That's a good tariff.

Yeah. So I just wanted to know, given that you have got capacity left in the integrated network also, would you be able to push volumes in this? I know Sri Karpuramangal is a specific route, but Mumbai Nagpur has to be somewhat parallel to Jagdishpur-Haldia. So, what's the strategy? How is it parallel to Jagdishpur-Haldia? Jagdishpur-Haldia, eastern pipeline, that is the west-east pipeline. It's not parallel. No, I mean, it's connected only. I mean, that way, I think, Hazira-Vijayapur-Jagdishpur-Haldia. It connects the terminal, yes, but the market is different. Okay, okay. So, how much volume you are expecting in these new pipelines set by FY27 or 28? So, next year we expect around 2 million volume from these pipelines because these are beginning to start marketing or transmitting volume. So, next year we expect 2 then it will ramp up.

Thank you so much and all the best. Thank you.

Thank you. Before we take the next question, participants may press 3rd and 1 to ask a question. The next question is from the line of Yogesh Patil from Dalit Capital. Please proceed.

Thanks for taking my question, sir. Sir, in a Q2 FY26, our gas transmission segment per unit tariff realization has declined compared to the Q1 FY26. Any particular reason in a reduction in a tariff realization? Yeah. Actually, in Q1, we got 133 crore rupees on account of tariff reconciliation on unified tariff, right, which is not available in this quarter. So that is how the weighted average tariff or total tariff weighted average tariff rather of Q1 was higher. This quarter since that was a one of kind of thing is not available. Second quarter on quarter the average tariff will continue to change sometime it will be higher sometime it will be the major reason is that it depends which zone has transmitted how much volume because zonal tariff rates are different. So these are One is the region I shared about 133 crore and second is also how much? Around 50 crore on account of weighted average.

Okay, that 50 crore is on upon the weighted average basis.

Yeah.

And weighted average tariff is also not much. It is 60.68 to 60.11. Okay, sir.

The second question is regarding our upcoming petrochemical projects, which are expected to complete in FY26 and FY27, which you guided. Can you guide us what quantum of EBITDA contribution one can expect from these petrochemical facilities in next one to two years? Any numbers you can share with us? So if we talk first of the small capacity addition at PATA, I think which may not be very significant from your point of view, that is 60 KTA capacity PP we are setting at PATA. So by this year end, it will start producing and since it is a facility at PATA, it will remain around same level what PATA is doing because nothing much is going to change. But if you talk of PDHPP, which is 500 KTA faculty at USAR, this is going to be commissioned in financial year 27 and effectively it will start contributing in financial year 28. So if I start forecasting volume of price for two years ahead it will not be good on my part but if you talk of you know the kind of every time there was in terms of dollar maybe 250 dollar per metric ton to 300 dollar per metric ton will be kind of EBITDA will be available to us. That's based on our, you know, project approvals and which holds goods even today. And is there any updates on the JBF side which will be completed in FY26? Yeah, it is going to be complete during this financial year. Yeah. But any probable numbers which we can expect contribution to the EBITDA from that project for completioning? We will come back to numbers. So, we will give you, because I don't have ready numbers available, we will be able to share with you offline. Okay, sir. Last question related to our new LNG sourcing contracts, which will start mostly from the next year, 2026. Near small clarity, are we able to re-actify all of these new LNG cargos at our Dahol terminal? Because as you mentioned that facility will be ready in the next year, so that we will be able to operate it at 100% level by MMTPS. So currently, let me answer you differently. Currently, we have 2.5 million ton capacity at Pata, which we have booked for the Haze and 1.5 at Dhamra and 2.5 I shared with you is almost available without even the heating system at Dhabur. So currently we are able to manage our cargos from these facilities but when the next year the one more new contract starts applying certainly we will be needing more regasification capacities. Currently we are working you know to tie up the additional regasification capacities with the terminal operators where we feel that the market is there And meanwhile, our terminal will also start functioning at 5 MFTPA. But I believe that these capacities will still be not sufficient. of demand we accept in our country. So, we have already taken a decision to expand Kata Petrochemical from current level of 5, sorry, again I am talking about the whole terminal from 5 and then to 6.5 and discussing about increase of capacity of double terminal from 6.5 to a higher level. So, we are quite conscious of the capacity availability currently and the capacity requirement in future. So, two actions are to sum up. One we are tying up more regasification capacities with different terminal operators and second We are also taking actions to expand our Dhabol terminal beyond the existing nameplate capacity of 6.5 and thereafter from 6.5 to say 10 or 12. Suppose 6.5 mm TPA target Dhabol capacity, evacuation pipelines would be ready or do we need to inform PNGRB and they will ask us for the new pipelines to be... Already for 6.5 we have taken action the PNG RV has authorized the expansion of DUPL DPPL pipeline. We are already starting the construction job. So that concern is not there. And then when we take up the design for further announcing the whole terminal capacity certainly we will go back to PNG RV for a further expansion. So, as of now, is it a correct understanding if we expand till 6.5 mm TPA, the evacuation of a gas is possible with the existing infrastructure. That's the correct understanding?

That's it.

Thanks. Thanks a lot, sir. This was really helpful.

Yeah. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Vikash Jain from CLSA. Please proceed.

Thanks for taking my question. Rakeshji, a few questions. Firstly, is your guidance of increasing volume in FY27 to, I think, 131, 132, which is roughly anywhere around 8 to 10 mm CMD more than the average for this year. In that, how much, could you give the breakup of that? What is the assumption of some of the

lost you know the power volumes which did not happen this time that coming back so you have the detailed breakup meanwhile let me take up because last year we transported 133 31 this year a lot of unwanted events have happened so coming back to your answer to your question from where at eight to ten will come the three to 4 million 3 to 3 and half million will certainly come from the city gas distribution company which is which is a normal growth which we have experienced this year also second the power volume is around 2 million 1 to 5 to 2 million was down that will come up so that makes 5 million then 2 million I shared that we will be having volume in MNJP as a Shirka Kula Mongol that makes to 7 And then refineries volume which has gone this year. Actually we cannot expect every year to be same. Almost 2 to 3 million volume we lost to refineries. One more event I shared that the four of our pipeline got impacted because of the heavy flood, those volumes are around 1.5 to 1 million. So this is broad backup. I have not given any new market like coming to eastern sector or normal growth sector. But this itself makes to 8 to 10 million volume. And I am corrected power is 302. Okay.

Thank you. And the other question was on the CWIP that we had at the end of say FY25 and also, you know, there'll be a number higher than that at the end of this quarter. How do we see that's like over 20,000 crores now? How do we see the standalone number? How do we see that falling at the end of FY26 and the end of FY27 as your projects get, the pipelines get commissioned this time and by FY27, even the pet camp will, plant will get commissioned.

Let me give a broad answer to this question. Around 8500 crore belongs to MNJPY. Right? That is going to be commissioned by this financial year end. That is the major impact. The Pata Petrochemicals PDHQP around 1300 crore going to get commissioned this year. Then KK MBPL, my colleague will give figure, I don't already available figure. Phase 2 is going to get commissioned, which is also significant, maybe around 2000 to 2500 crore, that will get commissioned. So, this year and Jagdishpur, some capitalization will also take place in Jagdishpur. These four major CAPEX CWIP around 13 to 14,000 crore. will be capitalized, likely to be capitalized in this financial year, then PDHPP USAR will get commissioned in 27. So, remaining CWIB belongs to PDHPP and is smaller to Gurdaspur. So, largely except PDHPP and Gurdaspur, which is very small project, will get commissioned this year.

Okay. Okay. And so, just last thing, any Any change in guidance, any update on gas trading or anything on that side in terms of?

I have been maintaining since the beginning of this financial year that we will be earning around 4000 crore to 4500 crore on EBITDA level. And we have already crossed 3200 crore in first half in spite of the various negative things. So, we expect that we will certainly touch 4500 crore rupees of guidance at PBT level and may even exceed that.

Okay. Anything for next year also, sir?

Next year will be around same level. We do not expect any new addition to these guidance because...

uh a lot of things depend but in terms of guidance i will maintain around that level only thank you those are all my questions thank you thank you thank you the next question is from the line of vartha rajan from antic limited please proceed thanks for the opportunity sir in the case of rail gas if you can give us a breakup in terms of cng

Gale gas, you are looking for breakup in terms of CNG, PNG supplies? That's how it works. Let me see whether the data is with me or not. Yeah. Q2. So, we have bulk trading in Gale Gas in 4.5 mm SEMD, bulk trading which Gale Gas does. Then, TAS Repedium Zone, which is a UPM-based pricing, 1.32 mm SEMD. And in terms of city gas distribution, which includes PNG, CNG, put together around 2 mm SEMD.

Okay. And similarly for the 6GS and the GAL?

Sorry, 6GA, I can give you 6GA. Actually, I don't have the breakup the way you wanted, but largely it will be satisfying your requirement. We marketed 0.46 mm CMD, which constitute, you know, 0.17 mm CMD as APM. So, largely it will be PNG and CNG. And some portion of RLNG also will be there. And 0.29, we have used RLNG. So I don't have the breakup you wanted, but I can give you offline.

Sure, I'll take it. My last question is on your JVF. I see that you have floated a proposal for connecting the pipeline to the port. So, why would you even consider that in the presence of MRPL potentially who can supply pretty much all your requirement in terms of our value?

Actually, initially we were expecting that we get supplies from MRPL, but somehow things could not materialize as of now when I am talking. Anyway, even if we are able to tie up with MRPL in order to continuously run the plant, nothing wrong about having the alternative supply. And it also gives us flexibility to, you know, take the benefit of price advantage. So, currently, we do not have any contract with MRPL. So, that's the first thing. And second, it always provides the price opportunity and redundancy of the sources. So, these are the two reasons why we are laying the pipeline connecting code for importing Paragite.

Very much, sir. Thank you a lot.

Thank you. The next question is from the line of Gaurav Jain from ICICI Prudential. Please proceed.

Sir, just one question from my side. This 4,000 to 4,500 crore marketing guidance that we give, that is at the EBITDA level or EBIT level? Is it EBIT or EBITDA?

It is actually PBT level.

PBT level, right?

If you talk of margin level, I also share those numbers. It is around 6866. If you are interested in EBITDA level, 2866. I share that also.

Yeah, but the guidance of 4500 could raise it PBT level.

PBT level, yes. Very right.

That's it, sir. Thank you, sir.

Thank you. The next question is from the line of Somaya from Aventis Park. Please proceed.

Yeah, thanks for the opportunity, sir. Sir, first question is on the volume for FY27. So, you did explain in terms of what are the factors that will drive that 8 to 10 mm CMD. We also used to have startup of new refineries which would contribute and also some ramp up on the fertilizer plants. So, is this considered into FI27 or this is more of an FI28 phenomena or what is the potential new industries getting connected?

We have included that when we are talking of the refinery segment, it includes the upcoming new refineries which are likely to get connected on the eastern part of the country and also the existing refineries which have taken slightly less during this year.

So, when we said the refineries will add 1 to 2 mm ACMD, so this includes both these factors.

No, no. Number is not correct. The statement is correct. Actually, there are two factors. One, the volume is lost, right? And the another, we said around 2 to 3 mm ACMD, not 1 to 2. When Vikas asked the question, I said around 3 mm ACMD will get because lost volume and the new refineries.

Got it, sir. And which are the refineries that we are looking at, sir, or rather the incremental volumes.

The new ones to be connected are Haldia and Bongaigon and Guati.

Got it, sir. Sir, any further upside in fertilizer plants ramping up or any upside that is left or is it, it's fully covered?

Oh, yeah. Fertilizer plants are already ramped up.

Understood, sir. Sir, also, second question.

If you talk of, you know, the addition by consumption, there are some plants which are actually doing capacity expansion. And we also understand there are proposals to put plants in maybe Maharashtra and also Chattisgarh. So, in those terms, certainly, there will be additions to the transmission volume. But in terms of existing, yes, example.

Got it, sir. Sir, also in terms of gas consumption for transmission, the system use gas consumption, the quantum and the pricing, is it still HPHT? If you could just help on that and also on the PETCHEM and LPG side, the quantum of gas consumption.

What is your specific question?

The system use gas consumption and transmission side. It used to be 1.5, 1.6 mm ACMD.

For the gas transmission segment. Yeah. 1.44 for LPG and around 5 for petrochemicals.

Sir, I missed the transmission. Transmission, what number you had mentioned here?

1.6.

1.6. And the pricing, sir, it is at the HPHD, the 1.6 NMS AMD.

Actually, we always endeavour to get the cheapest available sourcing, one of the cheapest for, you know, even for this internal tangential transmission, but you can for your working consider the around HP, HT even.

Understood. Sir, in terms of marketing of the total values that we do, broadly, what would be the back to back contracts that we will have?

and any I mean what are the quantum of spot exposure if you can give some color on that and also this the basis swabs that we do to what extent it covers our portfolio currently so you know I understand you know the portfolio gale let me if for the sake of your reputation we have currently contracted volume of around 16.5 million tons okay and the Out of 16.5 million ton volume, 1 million ton will start flowing from next year. That is with all. The 15.5 million ton volume is currently flowing. Out of that, only 0.75 million ton or even less than 0.75 million ton is open. Rest is back to back. Only some of the volume which is not back to back in terms of the index volume one of contract we have wherein we have the formula upstream formula on JCCC and 9 months average and downstream we have formula on Brent 3 months average so to that extent you can say it's different but we consider that also back to back because it only leaves a cash flow issue because over a period of time 9 months and 3 months average give the same similar kind of cash flow So we consider those as a back to back contract. If we consider those as a back to back contract only 0.75 million ton you consider that we have open volume around 2.53 MMSCMD of Henry hub volume. which we have, you can say, considered that we have kept willfully available to us in order to take the benefit of market arbitrage sometime in domestic market and sometime in international market. So, that is the only volume we have and in terms of spot volume, spot volume we source time to time in order to fulfill the demand of our existing contract because we contract uh downstream more than we have the sourcing and in order to fulfill those demands sometimes we source the spot and also to meet the demand like power we source the spot so that uh largely remains 10 percent to 15 percent or 10 percent the kind of spot volume we have on average basis this is quite helpful sir just one follow up there so in case

this 95% or 96, 97% where we have back-to-back contracted, if there is a difference in basis, for instance, it's an Henry hub, whereas the end consumption is on the oil link basis. So, we would have had a basis swap to cover it. So, that's the right understanding.

Let me give you again, repeat. Henry hub volume, only 3 mm CMD, 2.5 to 3 mm CMD are only open. Remaining 18, 17, 18 million are on back to back. We do not have any basis risk. Regarding 2.5 to 3, whatever volume is there, yes, we have basis risk if we supply on crude base. We have basis risk if export prices we have differently and we sell on spot. We continue to take swaps for those volumes also, not 100% level. We continue to take swaps maybe at 50%, 45% to 50% level depending on the opportunity provided by market. That's only, only, only risk we carry.

Thank you, sir. This is quite helpful, sir.

Thank you. Thank you. The next question is from the line of Pratyush from Ingrid Equities. Please proceed.

Good evening, sir. Thanks a lot for giving this opportunity. I have two questions. first is on the you know on the transmission the realization so I just wanted to understand that you know do you actually get the realization and the revenues to the weighted average of the per journal tariffs so is it the correct way to you know get the revenues out there from the transmission segment or there is some other thing also which is mentioned on PNGRP website about the you know integrated tariffs so per does you know Gail has something to do with the integrated tariff also or you know you just do the weighted assist cost and you and take out the you know zonal tariffs and the volumes which has been supplied in those respective zones and you get the revenue so is it the correct way or again just something you do with the integrated tariff we get the integrated tariff rate but integrated tariff has also been divided into dollars

Integrated tariff rate is say Rs. 58.60 like that. But that has been divided into three zones. Zone 1, Zone 2, Zone 3. These are three different tariff rates under the same average tariff of Rs. 58.60. So, when you talk of weighted average, it depends which zone customer exists. So, if customer exists in Zone 3, we get higher.

Understood. So, your integrated tariff would ultimately change if, you know, Zone 3 customers draws more gas compared to zone one. So it totally depends on which zone. Hello? Hello? Yes, yes. Okay, sir. And my second question is regarding the, you know, the customer portfolio. So you very well talked about the sourcing portfolio when the marketing division of Gale is concerned that, you know, what is the sourcing portfolio in terms of back-to-back contract and how do you usually reduce the risk? I just wanted to understand what is the portfolio of the customers to which you sell those gases? For example, you have a contract of 15.5 million ton of natural gas. And definitely there would be some priority customer, there would be some non-priority customer. Is this something that you do have some fixed kind of margin for the priority customers? some different kind of variable margins for the you know or the market determined margin for the non-priority customers and in that non-priority customers or in that you know market determined uh you know margins you do have a cost plus a markup and or you know you or inclination of something like that so how do you you know what is your customer portfolio in terms of marketing division

Actually, market-driven price, we market, what is market-driven price? The imported gas. So, again, in order to give more clarity to your question, out of 16.5 million tons, we are yet to start getting gas for 1 million tons. So, from 15.5, 4.8 million tons is almost on a fixed margin, which increases every year.

Okay, understood.

Another 3 million ton volume we have again on same margin but I shared just before that that contract we have fixed margin but there is some cash flow issues. We source on 9 month basis and we market on 3 month basis. So whenever crude price goes down our realization reduces for a time being and our upstream payment becomes higher because 9 months average takes time to come down. Or whenever crude price goes up, we get more margins initially and then it starts reducing. So we consider them again back to back, but there is some averaging issue. That is 3 million tons. So it makes 7.8 million tons.

Now, coming back to the remaining 5.8 from United States and also 0.75 million ton we recently sourced from Middle East, these contracts purely are varying margin depending on the time we marketed, the kind of ability we had to get the margin.

So, these have varying margins depending on time when we contracted with the customer.

Okay, understood. But the 4 million ton...

Let me give you. Over and above, we also have ability to optimize these margins because the United States volume is on FOB basis What we do in order to reduce the cost, we do ship swaps, that is we call destination swap or FOB sell and DS purchase. So that also we continue to do and are able to reduce our shipping tariff. That also is helpful in, you know, optimizing our profit or increasing our profit.

Understood, sir. And in that 4 million ton which you mentioned that you do have a fixed kind of margin, Is it being sold to the priority customers where you probably usually get the margins of somewhere around Rs. 200 per 1000 SPM, something like that?

No, not Rs. 200. No priority. It is when we marketed. We marketed on whosoever wanted to buy those volumes. But these are largely we have contacted the fertilizer customers.

But the margins are fixed by the government for the fertilizer customers?

by the government, by the parties. And then it continues to increase 5% every year.

Okay. Thank you.

Thank you. The next question is from the line of Nirmal from Aditya Birla Sun Life. Please receive.

Hello. Am I audible?

Yes.

Hello, sir. Thank you for the opportunity. Okay. Sir, you mentioned that you expect 223 mm CMD of power sector demand coming back in the next year. I just wanted to understand this in the context that government has in March-April recently closed some of the old gas-based power plants. And also there was a statement in August by the chairman of Central Electricity Authority that India is planning to phase out import of natural gas for power production. So when we say that power sector demand will come back, do you expect it to come back for peak power demand usage or also for base demand considering that LNG prices might go down significantly next year?

Let me answer. First, we are not aware of what you said. We will have to check up. We are not aware of any such kind of information. But coming back to specifics, we continue to sell around 5 to 6 mm FPMD regularly even without peak power demand to power sector. We have more demand for peaking and during the period may be May to September, October which is you can say the peaking power demand which comes in significant amount. There are days when we had marketed last year 20 mm SEM the kind of volume to power sector. Thirdly, now we are experiencing that power sector is also coming up with regular demand largely to balance the grid because lot of renewable energy is coming. As you know that renewable energy only is able to provide the power during gas, so during non-free hours in order to maintain the supply, that demand also comes. So these are three different reasons why power sector demand is existing and continue to increase. uh okay sir thank you so much thank you due to time constraints that was the last question i now hand the conference over to the management for the closing comments over to you sir thank you very much our friends from analyst and investors community and hope we have been able to answer to your questions i know one or two questions we have passed for offline discussions and we will certainly be providing those information to you and you can connect our investors relations team. For and above, if you might have any more questions you might have missed, you wanted to ask more questions due to time limitation, you could not have asked. We are always available to answer your questions. You can connect our MAC and IR team. Thank you very much.

thank you on behalf of private limited that concludes this conference thank you for joining us and you may now disconnect your line