GAIL Q4 results: Consolidated net profit nearly flat at ₹2,492 crore

Gas major GAIL eyes expansion in US LNG sourcing as Q4FY25 net profit stays flat at ₹2,492 crore; receives five proposals tied to equity stakes and long-term supply

State-run natural gas supplier GAIL (India) Ltd’s consolidated net profit remained nearly flat at ₹2,491.76 crore in the fourth quarter (January–March) of 2024–25 (FY25). Attributable to equity holders of the parent, the net profit marked a marginal 0.9 per cent rise from ₹2,468.71 crore in Q4FY24. However, it was down 38.9 per cent sequentially from ₹4,081.5 crore.

 

“There is great potential in raising imports of liquefied natural gas (LNG) from the US, given the flexibility in trade,” said Sandeep Kumar Gupta, Chairman and Managing Director, GAIL, speaking to reporters after the results were announced.

 

“There is great potential for other players to also increase their offtake from the US. At the country level, we have a great appetite for US LNG. If Henry Hub prices are in the $3.5–4 range, it makes good sense to import US volumes. Contracting on a Free on Board (FOB) basis offers flexibility to swap cargoes at an opportune time,” Gupta added.

 

GAIL currently imports 5.8 million tonnes per annum of LNG from the US under earlier contracts.

 

Company officials revealed that GAIL has received five proposals for equity stakes in US LNG projects — each tied to offers for long-term supply contracts. Last month, GAIL floated a tender seeking up to 26 per cent stake in a US LNG project, bundled with a 15-year supply agreement.

 

However, plans were paused following the Biden administration’s January 2024 decision to temporarily halt pending approvals for LNG exports to non-Free Trade Agreement (FTA) countries. India does not have an FTA with the US.

 

In Q4, GAIL reported an 11.3 per cent rise in consolidated revenue from operations to ₹36,551 crore, up from ₹32,833 crore in Q4FY24. Expenses rose 11.8 per cent to ₹33,983.2 crore, from ₹30,384.84 crore a year earlier. This included ₹29,125 crore worth of stock-in-trade purchases, 20.7 per cent higher than the ₹24,115 crore in Q4FY24.

 

GAIL said it incurred capital expenditure (capex) of ₹10,100 crore in FY25, primarily on petrochemicals, pipelines and operations. Estimated revenue for FY26 is projected at ₹8,480 crore.

 

The company reported an annual net profit of ₹12,450 crore in FY25, up 25.7 per cent from ₹9,899 crore in FY24. The increase closely mirrors the exceptional gain of ₹2,440.03 crore booked in Q3FY25, when GAIL settled a legal dispute with a former Gazprom subsidiary.

 

Under the settlement, SEFE Marketing & Trading Singapore Pte Ltd paid GAIL $285 million for non-delivery of LNG volumes in 2023. The deal included withdrawal of arbitration proceedings at the London Court of International Arbitration. SEFE is a subsidiary of Germany’s Securing Energy for Europe GmbH.

 

Looking ahead, the company aims to reach a petrochemical production capacity of 3 million tonnes per annum by 2026, with a new 500 kilotonnes per annum (KTA) plant in Usar, Maharashtra, and a 1.25 million tonnes per annum (MTPA) purified terephthalic acid (PTA) plant expected to be completed by end-2025.

 

Additionally, GAIL plans to set up 26 compressed biogas (CBG) plants by 2035, with one already operational in Ranchi.