GAIL improves in Q2 as lockdowns ease, demand for gas grows in cities

Rebound in performance, improved gas transmission prospects and inexpensive valuations are keeping analysts positive.

The gradual improvement in GAIL’s performance following the easing of lockdowns — evident from its September quarter (Q2) results — has spurred Street sentiment. The GAIL stock has gained over 4 per cent in two sessions after the results announcement.

The company, operating India’s largest pipeline network for gas transmission, is seen as a major beneficiary of an uptick in domestic gas demand. Growing city gas distribution, and rising demand for cleaner and cost-effective fuel from automobiles and industrial sectors, will improve it’s transmission and trading volumes.

In Q1, the lockdown had impacted volumes and gas trading revenues, while lower gas prices