GAIL (India) Limited

Good afternoon to my friends from the analyst community, investors and portfolio managers. I welcome you all to Gail India Limited Investors and Analyst Meet for 2026. I am Amit Rustagi, Executive Director and Head of India Equity Sales for UBS Securities in India, your host for today's evening. It's my pleasure to now welcome the Gail management team In the story of India's evolving gas economy, some leaders are not merely participants, they are architects. Today, I have the pleasure to introduce some of these leaders to you. I'd like to introduce Mr. Deepak Gupta, Chairman and Managing Director of Gail, which stands firmly among them. He assumed charge as CMD of Gail in March, 2026. Mr. Gupta joined Gail as Director Projects in Feb 2022 after an illustrious tenure in Engineers India Limited He took on key leadership roles across the energy ecosystem, serving as chairman of MNGL, Green Gas, while also contributing as director at Opal and chairman of Talchar Fertilizers. At Gail, he led one of the India's most ambitious pipeline programs, the Urja Ganga Project. Under his leadership, critical stretches such as Bokaero Angul, Dhamra Angul, Baroni Guwahati, and the long-awaited connectivity to Kolkata were completed despite significant challenges. So welcome to you. Now I'd like to introduce Sri Rakesh Kumar Jain, Director of Finance of Gail. He has rich and varied experience of more than 30 years of working in oil and gas sector and regulator. As Director of Finance, he oversees the finance, internal audit, business information, and many other functions at the company. During his deputation to the PNJRB where he served as joint advisor, he was actively involved in drafting and review of tariff regulations and regulatory amendments, conceptualization of unified tariff, authorization of the 9th and 10th CGD bidding rounds, and various finance-related functions. Welcome to you, sir. Now I'd like to introduce Shri S. K. Sinha ji, ED, Finance and Accounts. Shri Sinha joined GAIL in 1994 and has vast experience in key finance functions, corporate finance, corporate accounts, management accounting, business development, mergers and acquisitions, and financial concurrence. He has also been actively involved in investor relations and interactions with the analyst fraternity. Welcome to you, Mr. Sinha. Now I'd like to introduce Mr. Sumit Kishore. He is Executive Director, Gas Marketing. He oversees one of the critical activities relating to the gas marketing and transmission business of Gail, which accounts for 85% of the company's revenue through a network of 13 general marketing offices across India. Earlier, he was also taking a very critical job and looking after the business development and ENP related activities in Gail. Welcome to you, sir. Now I'd like to express my gratitude to the entire Gail team for managing the current challenges and maintaining uninterrupted supplies of natural gas and LPG to the crucial downstream utilities. Thanks to the dedication of the entire management team and the employees for selfless working at the front lines to ensure that there is no supply disruption in our country. I would also like to appreciate Gail's management for an extensive investors relations program to communicate with investors community, which has got recognized externally by Extel, which was institutional investors earlier, to rank them several times in several categories. Now I like to hand over the podium to Chairman Sir for his initial remarks. Thank you.

I can talk from here?

Yeah, okay. Thank you, Amit. At the outset, I extend a very warm welcome to the entire investor community for joining us today. I also take this opportunity to thank each of my colleagues from Gail for being present here, and especially to the investor community for their continued trust and engagement with Gail. The financial year under review commenced amid significant global uncertainty. The year began with the continuation of the Russia-Ukraine conflict and witnessed evolving geopolitical developments in the West Asia towards the later part of the year. These developments disrupted the global energy markets, leading to sharp volatility in the oil and gas prices. Supply chain disruptions coupled with currency volatility and moderate weather conditions across key regions during the financial year 26 impacted supply demand dynamics. In this challenging environment, timely policy initiatives by the government played an important role in supporting the sector. At the organizational level, our response was anchored in coordinated efforts guided by financial prudence and a clear focus on long-term sustainability. We are proud to share that our teams worked relentlessly to maintain operational resilience and financial discipline. clear and transparent communication with customers, government stakeholders, investors, and analysts remain a cornerstone of our approach. Despite multiple external headwinds, we ensure reliable and uninterrupted management of the critical supply of natural gas particularly to the priority sectors, thereby contributing meaningfully to national energy security. Despite all such global challenges, Gail showed resilience driven by our well-diversified upstream LNG portfolio and commitment towards our customers. Before going to the financials of the financial year, I would like to draw your attention to the key business highlights of the year. PNGRB issued an interim revision of natural gas pipeline tariffs for Gail's integrated natural gas pipeline network from rupees 58.61 to Rupees 65.69 per MMBTU. effective from January 1, 2026, which represents an increase of 12%. Around 2,000 kilometers of natural gas pipelines have been commissioned, including two major pipeline projects, namely the Mumbai Nagpur pipeline, except about 200 kilometers out of 1,700 kilometers awaiting peso approval and the Srika Kulam Angul main line for the 60 KTA of PP plant at Pata was commissioned successfully. During the financial year, our Jamnagar Loni pipeline achieved its highest ever annual transmission of 3.27 MMTPA against a capacity of 3.25. we have received PNG-RB authorization to double the capacity of this pipeline to 6.5 mmTPA. In line with Gail's strategy 2030 and net zero commitment, the board has accorded investment approval for key renewable energy projects, including the 600 megawatt solar power project, with co-located base at Tusco, Jhansi, 178 megawatt wind power project, Maharashtra, and 100 megawatt solar project in Maharashtra. With the commissioning of these projects, Gail's RE portfolio is going to be more than one gigawatt by the end of next financial year, marking a significant scale up from the present capacity of 153 megawatt, reinforcing the company's decarbonization trajectory. Now I would like to share the performance highlights of the financial year. Standard financials on yearly basis financial year 25 versus financial year 26. Gail reported a turnover of rupees 1,38,328 crores in financial year 26 as compared to 1,36,942 crores in the financial year 25. driven primarily by higher gas marketing volumes, that is increase of 3 MMS CMD. Profit before tax stood at Rs. 8,964 crores as against Rs. 14,825 crores in the previous year The decrease in profit is primarily attributable to one-time settlement with Messrs SMTS amounting to Rs 2,440 crores in the previous year. Increase in input gas cost in the petrochemical segment in the current year, Rs 1,400 crores, and provision made against outstanding dues of Mrs. Nagarjuna Fertilizer to approximately 675 crores. BAT stood at Rs. 6,968 crores compared to Rs. 11,312 crores in financial year 25. On quarterly basis, Q4 financial year 26 versus Q3 financial year 26 The gross turnover for the quarter four financial year 26 stood at Rs 34,591 crores against Rs 34,030 crores in the quarter three financial year 26, reflecting a growth of 2%. This increase was primarily driven by higher average gas price realizations in the gas marketing segment positive impact of upward tariff revision in the integrated natural gas pipeline network and improved liquid hydrocarbon price realizations. Profitability, however, moderated during the quarter. PBT stood at Rs. 1,577 crores versus Rs. 2,030 crores in Q3 FY26. PAD stood at Rs. 1,262 crores versus Rs. 1,603 crores in Q3 FY26. The decline in profitability was mainly on account of decrease in gas marketing margins, elevated input gas costs in the petrochemical segment, higher provisions during the quarter, which was partially offset by lower depreciation following revision in the useful life of the assets. Moving to the consolidated financials on yearly basis, financial year 25 versus financial year 26. The consolidated turnover remained flat and stood at rupees 1,41,716 crores versus 1,41,931 crores in the previous financial year. The PBT in financial year 26 stood at Rs. 9,725 crores versus Rs. 16,096 crores in the financial year 25, down by 40%. The PAT stood at Rs. 7,582 crores in financial year 26 versus Rs. 12,450 crores in the financial year 25. On a quarterly basis, Q4 Financial Year 26 versus Q3 Financial Year 26, the consolidated turnover in the current quarter remained flat and stood at Rs. 35,499 crores against Rs. 35,253 crores in the previous quarter. The PBT in the current quarter is Rs 1,966 crores versus Rs 2,165 crores in Q3 FY26. The PAT is Rs 1,485 crores versus Rs 1,756 crores in Q3 FY26. I would now like to share segment wise physical performance and the outlook for the short to medium term. The gas marketing volumes reached 104.21 MMSCMD in financial year 26, registering an increase of approximately 3% compared to 101.49 MMSCMD in the previous financial year. The segment reported a PBT of Rs. 2,775 crores. The marketing segment encountered headwinds during the year arising from multiple factors including the geopolitical developments, moderate weather conditions, pipeline disruptions, and lastly, the closure of the state of Hormuz. All these factors caused disruption in the gas market and affected the demand and supply of natural gas in the country. A provision of Rs. 675 crores has been recognized towards outstanding claims pertaining to Messrs. NFCL. The inter-ministerial consultation process on revising NFCS energy norms has been completed and the matter is now at an advanced stage of consideration by the Cabinet Committee on Economic Affairs. The provision has been created on a conservative basis and will be reversed upon realization. While the company was progressing, in line with the annual guidance of Rs. 3,500 crores, these developments impacted the realization of the targeted performance. For the financial year 26-27, the company expects to achieve a minimum PBT of Rs 4,000 crores from the gas marketing segment if West Asia crisis persists during the full financial year. However, in case the geopolitical situation is normalized by mid of quarter two, then minimum PBT from this segment would be Rs 4,500 crores. Gil continues to undertake targeted measures to optimize its gas sourcing and marketing portfolio and enhance operational efficiencies and strengthen resilience against market volatility. Natural gas transmission volume for financial 26 stood at 122.18 MMSCMD as against 127.32 MMSCMD in the previous financial year. The average natural gas transmission up to quarter three was about 123 MMSCMD and the run rate for January, February 26 was about 129 MMSCMD. However, due to the supply chain disruption on account of West Asia crisis, National gas transmission for the March 26 dropped to 99.71, which dragged the transmission volume of quarter 426 to 118.99 MMSCMD as against 125.45 MMSCMD in quarter 3 financial year 26. bearing the crisis, the company was on its way to achieve its natural gas transmission guidance of 124 to 125 MMSEMD. Now, looking at the current scenario, it would not be feasible to project anything with certainty for the current financial year. However, we expect that the transmission volumes of financial year 27 should be around 119 MMSEMD encased the West Asia crisis starts getting to normalize by mid of July 26 and should be about 115 MMSMD if the aforementioned crisis persists during the full financial year. Polymer The overall production of 768 TMT was achieved in financial year 26, which is about 94% of the nameplate capacity. In petrochemicals, due to continued stress on petrochemical prices till February 26 and higher feedstock prices, the company incurred a loss of rupees 1,413 crores. were actively pursuing to shift Pata Petrochemical Complex from natural gas to ethane as a feedstock to ensure sustainable margins from this business. Insofar as the liquid hydrocarbon segment is concerned, the production was down by 14% as compared to previous year and stood at 813 TMT as against 947 TMT. The capacity utilization was around 61%. The decrease is attributed to deallocation of the APM gas for LPG production. Further, as per the MOPNG notification, dated 3rd April, 0.79 MMSCMD of additional gas has been allocated to the LHC segment, and we expect sustainable performance from this segment in financial year 27, subject to continued allocation. In spite of disruption in the month of March, LPG transmission volume increased to 4,600 TMT as against 4,478 TMT in the previous financial year. That is highest ever in the history of Gail . We expect our LPG transmission volumes in the same range for the financial year 27. Coming to the CGD segment, Gail directly operates six geographical areas, namely Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, and Kathak, which have progressed from the initial development phase to a high growth phase, demonstrating robust growth in volumes driven by network expansion and increasing market penetration. In the financial year 2025-2026, These six GAs have shown impressive growth, with volumes increasing by approximately 29%. The PBT from Gail's CGT showcased an impressive growth of 12% during financial year 26 over the previous year. CGD sector is witnessing accelerated PNG and CNG adoption driven by the West Asia crisis and supportive government policies. The policy-led acceleration in CGD is driving strong growth visibility with government prioritizing rapid expansion of PNG and the CNG infrastructure. the mandated conversion of industrial and commercial consumers from LPG to PNG further underscores sustained demand and volume growth across the sector. These initiatives are expected to benefit our authorized GAs of Gail and of Gail Group surgery companies through higher CNG and PNG penetration and faster network expansion. Now we'll take you through the performance of Gail Gas Limited, which was incorporated in May 2008 to develop the city gas distribution business as its focus area. GGL currently owns and operates 16 GAs across India and nine GAs through its JVs. During the current financial year, Yale Gas along with its JVs and subsidiaries added 1,91,520 new DPNG connections and 88 new CNG stations. Yale Gas with its JVs and subsidiaries have an infrastructure of about 12.98 lakh DPNG connections and 745 CNG stations. The turnover stood at Rs. 12,681 crores as against Rs. 12,229 crores in the financial year 25. PbT decreased by 3% and stood at 596 crores as against 615 crores in the financial year 2025. PAT was down by 2% and stood at 442 crores as against 451 crores in the financial year 2025. During the current quarter, Turnover stood at Rs. 3,227 crores as against Rs. 3,292 crores in Q3 FY26. Pbt increased by 11% and stood at Rs. 158 crores as against 143 crores in Q3 FY26. PAT was up by 10% and stood at 117 crores as against 106 crores in Q3 FY26. In the next two years, Gail Gas, including its JVs, targets to add around 275 new CNG stations and about 4 lakh new DPNG connections. Now we'll briefly update the status of ongoing projects. In the natural gas pipeline, Gail's GHBDPL, the remaining section, the KKMBPL phase two, the Gurdaspur-Jammu pipeline, the C2-C3 pipelines are scheduled for completion in the current financial year. And these are extremely important pipeline projects which will be almost completing the national gas grid. Vijayapur-Beena pipeline and the DUPL and the DPPL capacity augmentation pipelines are scheduled to be completed in the financial year 27-28. As regards the petrochemical projects, the 500 KTA polypropylene project at USAR and the 1,250 KTA PTA at GMPL are scheduled to be commissioned maybe the middle of next year. During the year, a capex of 9,594 crores was incurred out of which rupees 2,900 crores was incurred on pipelines. This is about the capex. Approximately rupees 2,059 crores was incurred on petrochemicals. Rupees 1,600 crores approximately was incurred on equity distributions to the JVs and subsidiaries. approximately rupees 2500 crores was incurred on operational capex and others. The rest was on CGD, ENP and the renewables and net zero. In the financial year 26-27, the capex is expected to be in the range of rupees 11500 crores. And so with all this, I think this is all from my side. Thank you for your patient listening. I now hand over to Amit. what they need for.