GAIL India's Q4 Financial Performance

State-run gas utility GAIL (India) Ltd has announced a 6% year-on-year decline in its consolidated net profit for the January–March quarter. This downturn is attributed to lower gas marketing margins and significant losses in the petrochemical segment.

Net profit for Q4 FY25 was recorded at Rs 2,049.03 crore, a decrease from Rs 2,176.97 crore in the same period last year and a sharp fall from Rs 3,867.38 crore in the previous quarter.

Challenges and Achievements

GAIL's chairman, Sandeep Kumar Gupta, highlighted the absence of a one-time gain from an arbitration award in Q3 as a key factor for the quarter-on-quarter decline. Despite these challenges, Gupta emphasized the company's strong operational performance throughout FY25, marking a landmark year with record financial milestones.

The company's earnings were further impacted by reduced margins on LPG and persistent price pressures in the petrochemical segment. However, GAIL achieved a 5% increase in revenue from operations for the full financial year, reaching Rs 1.37 lakh crore.

Operational Highlights and Future Plans

Operational achievements included a 6% growth in natural gas transmission volumes and an increase in gas marketing volume. The board has recommended a final dividend of Re 1 per equity share, alongside plans to transfer city gas licenses to GAIL Gas Ltd for enhanced business synergy.