GAIL (India) Limited

Ladies and gentlemen, good day and welcome to Gale India Limited Q1FY27 Earnings Conference Call hosted by Ambit Capital Pvt. Ltd. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then Piro on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vivekanand S. from Ambit Capital Private Limited. Thank you and over to you, sir.

Thank you, Palak. Good day, ladies and gentlemen. On behalf of Ambit Capital Private Limited, I welcome everyone to Gale India Limited's First quarter fiscal 27 earnings call. Today we have the pleasure of having with us the senior management of GAIL led by its director of finance Sri S. K. Sinha ji. I will now hand over the call to the management for their opening remarks which will be followed by Q&A session. Over to you Sinha ji.

Okay, thank you Vivekanand. I extend a warm welcome to all of you and thank you for joining us today. I also take this opportunity to thank our investors and analysts for their continued trust and engagement with the company. For the financial year 26-27 began amid sharp volatility triggered by the West Asia crisis which impacted certain gale volumes. The company managed the disruption through a combination of portfolio flexibility and export sourcing while continue to support customer requirements and India energy security. Gale diversify portfolio proved to be a key strength in navigating the quarter effectively. During the quarter, the energy sector faced significant challenges arising from the geopolitical developments and supply disruptions. Before I move onto the operational and financial highlights, I would like to place or record my sincere appreciation for the entire Gale team. Our teams worked relentlessly to ensure continuity of the gas supplies and meet customer requirements. Their dedication, resilience, and customer centric approach enable Gale to navigate the disruptions effectively while supporting India's energy security, which is reflected in the quarter's strong performance. In summary, Q1F by 27 demonstrated the resilience of the GIL integrative business model with strong financial performance supported by portfolio diversification, discipline supply, management, and continued investor strategic growth projects. molding the key business highlights for the quarter. During the quarter, the entire 1,707-kilometer Mumbai-Nagpur-Jasovara pipeline become operational on 31st May 26th, making a significant milestone in strengthening Gill's gas transmission infrastructure. Pursuant to the NC-LT order, dated 3rd June 26th, Konkan LNG Limited become a only one subsidiary of GAIL India Limited with effect from 6th July 26th. This will help GAIL streamline operational more effectively, bring tax efficiency and make RLNG sourcing more competitive. PNG-RB also authorized for the three LPG pipelines namely Jhansi, Sitargan, moving to the performance highlights first we discussed about the standalone probability Gross turnover for Q4 FY27 stood at Rs 38,912 crores and engaged Rs 34,591 crores in Q4 FY26, reflecting growth of around 12%. Supported by elevated crude and LPG prices and well-diversified portfolio, the company delivered a robust financial performance during the quarter. PBT stood at the 5,773 crores as against 1,577 crores in Q4 F by 26. FAT stood at Rs. 4,292 crores as against 1,262 crores in Q4 F by 26. moving to the calculated financials on calculated basis for Q1 FY27 turnover stood at 41,277 crores compared to the 35,499 crores in Q4 FY26 Evita was 7,573 crores versus 2,703 crores in the previous quarter. PVT stood at 6,268 crores as compared to 1,966 crores in Q4 FY26. PACT excluding minority interest stood at 4,665 crores as against 1,485 crores in Q4 FY26. Moving to the segmental performance and outlooks. First we discuss about the gas marketing due to the force major declared by PLN. Volumes from the Qatar were impacted additionally from seven cargo from other contracts were also affected during the quarter. To meet the demand gas, Gale sourced eight spot cargo during Q1 FY27. Our gas marketing volume stood at 93.82 MMSCMD comprising 8.76 MMSCMD in the international market. Favorable movement in price indexes supported the elevated marketing market spread during the quarter. Higher returns were generated from the Henry Hub link and JCC 9 month link sourcing where the corresponding sales were not indexed on the same basis. this advantage expected to be largely short term as the 9 month and the 3 month JCC averages are expected to converge over the time and the benefit from the index movement is likely to normalize. In view of the continued volatility, we maintain our gas marketing guidance for FY26-27 at around 4500 crores PVT. We will further review and revise the guidance if required after declaration of the results for the subsequent quarter. Moving to the natural gas transmission, natural gas transmission volume for the quarter FY27. stood at 122.36 MMSCMD as against 118.99 MMSCMD in the previous quarter. The Q1 FY27 transmission volume is broadly in line with the FY26, 25, 26 with the increase primarily on account of seaport volume which rose by around 4 MMSCMD during the quarter. Based on the current operating trend and the Q1 FY27 volume of 122.36 mmHgMd, we now expect network at transmission volume for Fx27 to be around 123 mmHgMd with the assumption that the geopolitical situation continue. We will continue to monitor the evolving geopolitical situation and domestic demand and we update the guidance if material change is warranted. under the polymer business due to the diversification of pre-retrox natural gas towards the priority sector in line with the government's Gajet notification declaring natural gas as essential commodity polymer production during Q1 FY27 stood at 51 TMT. The segment incurred a loss of Rs. 130 crores for the Pata. At present, the plant is running at 100% capacity and we expect it is to be at the break-even level during 8 by 27. We are actively pursuing the shift of Pata petrochemical complex from natural gas to ethane as a free desktop to ensure long-term sustainable margins. Movinging to the LSP and LPG Transmission in the LPG Transmission Segment Volume stood at 1077 TMT as against 1114 TMT in Q4 FY26 down by around 3% primarily due to disruption in the LPG import on account of the West India crisis In the LSE segment, the company increased production by around 20% during the quarter from 194 TMT to 232 TMT supported by additional allocation of domestic new well gas of approximately 0.597 mmCMD. Production is likely to remain in the range of throughput during the last year. the LSE segment reported PVT of Rs. 772 crores during the Q1F by 27 as against Rs. 144 crores in the previous quarter and Rs. 489 crores in the previous financial year added by higher FPG prices due to the best ACR disturbance. Moving to the CGD and Gale gas performance Gales CGD network across 6 GAs comprises 217 CMG stations and 2.63 lakhs DPNG connection. During Q1 FY27, Gale's CGD business added about 20,069 DPNG connection and 3 CNGA stations. Gale Gas Limited which is wholly owned subsidiary of Gale currently operates 16 GAs directly and 9 GAs through its JB. During Q1 FY27, Gale Gas added about 16,610 DPNG connections as on 30th June 26th Gale Gas held a network of 592 CNG stations and 7,93,684 DPNG connections Over the next 2 years Gale Gas target to add around 275 new CNG stations and about 3.7 lakh new DPNG connections During the current quarter FY27 turnover of Gail Gap stood at Rs 3,326 crores as against Rs 3,227 crores in Q4 FY26 PVT increased by 3% and stood at Rs 162 crores as against Rs 158 crores in Q4 FY26 was up by 3% and stood at Rs. 120 crores as against Rs. 117 crores in Q4A by 26. Moving to the ongoing projects and capped pipeline projects, J-BDPL remaining section, KKMDPL phase 2, Gurudarpur-Jammu pipeline and C2-C3 pipeline are scheduled for completion in the current financial year. pipeline, DPPL capacity augmentation are scheduled for completion in FY27-28. JNPL capacity augmentation is scheduled to be completed in July 28. Petrochemical projects, the 1250 KTA PTA plant at DNPL is in advance stage of commissioning and should start production shortly. The 500 KTA PDSQ plant is scheduled to be commissioned in the next financial year. And moving to other CAPEX plant during the Q1 FY27, GAIL incurred a capital outlay of 6,176 crores demonstrating a strong progress across a strategic growth initiative. This sustained investment underscores our commitment to a strengthened gas infrastructure enhancing downstream capabilities, advancing clean energy projects, and supporting India's long-term energy transition and energy security objectives. We remain on track to achieve our FY27 capacity capital outlay guidance of around 11,500 crores. That concludes my overview of the quarter's performance, segment-wide outlook, and key projects. Over to you, Mr. Vivekanand.