GAIL (India) Limited (GAIL) AI Stock Analysis

• Market Cap: ₹1.09T
• Dividend Yield: 4.39%
• Average Volume (3M): 612.57K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.46
• Revenue Growth: 5.91%
• EPS Growth: -5.42%
• Country: IN
• Employees: 5,038
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Gas
• EPS (TTM): 2.40
• Shares Outstanding: 6,575,099,600
• 10 Day Avg. Volume: 440,192
• 30 Day Avg. Volume: 612,566
• PEG Ratio: 0.38
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 15.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹189.50
• Price Target Upside: 8.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 12.58
• Revenue Forecast (FY): ₹1.39T

• Rating: 77 Outperform
• Price Target: ₹176.00 ▲(0.34% Upside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

GAIL (India) Limited's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's solid balance sheet and improved cash flow generation enhance its financial resilience. Technical analysis supports a neutral to slightly bullish outlook, though operational profitability requires monitoring.

Positive Factors

Balance Sheet Strength

A high equity ratio and low debt-to-equity provide durable financial flexibility, enabling GAIL to fund pipeline maintenance, incremental capex and strategic projects without heavy reliance on markets. This resilience helps the company withstand commodity cycles and rate/regulatory shifts over months.

Improved Cash Generation

A marked improvement in free cash flow and strong operating cash flow relative to net income signal enhanced internal funding capacity. Sustained cash generation supports reinvestment, dividend maintenance and reduces refinancing risk, strengthening medium-term financial stability.

Integrated Gas Value Chain

Scale across transmission, marketing, processing and petrochemicals creates diversified revenue streams and cross-segment synergies. The pipeline network delivers regulated/contracted tariff income that is relatively stable, while downstream businesses capture product spreads—supporting durable earnings mix.

Negative Factors

Operational Margin Pressure

A declining EBIT margin indicates rising operating cost pressure or adverse mix that can erode core profitability. If sustained, margin compression reduces the buffer against commodity swings and increases dependence on volume growth or tariff adjustments to preserve long-term returns.

Earnings Volatility

A large negative EPS growth rate points to earnings volatility that may stem from commodity price swings, one-offs or margin shifts. Persistent earnings variability complicates cash planning, dividend predictability and capital allocation over the medium term.

Commodity & Regulatory Exposure

GAIL's margins and volumes are structurally tied to regulatory tariff frameworks, gas allocation policies and domestic vs LNG supply dynamics. These external levers can materially alter revenue and spreads over months, leaving strategic outcomes partly dependent on policy and commodity trends.

GAIL (India) Limited Business Overview & Revenue Model

Company Description

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. The company operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. It is involved in the transmission and marketing of natural gas to the power, fertilizer, industrial, automotive, petrochemicals, and domestic and commercial sectors. It also markets liquefied petroleum gas (LPG), propane, pentane, naphtha, mixed fuel oil, polyethylene, and polypropylene; and manufactures petrochemicals, such as high-density polyethylene and linear low-density polyethylene under the brand names of G-Lex and G-Lene. In addition, the company generates wind and solar power. Further, the company engages in the chartering of LNG vessels. The company owns and operates approximately 14,500 km of natural gas pipeline. Additionally, the company operates 5 gas processing plants, 2 petrochemicals plants, 10 LPG pumping/receiving stations, and 8 natural gas compressor stations. GAIL (India) Limited was incorporated in 1984 and is based in New Delhi, India.

How the Company Makes Money

GAIL generates revenue primarily through the transmission and distribution of natural gas, which constitutes a significant portion of its income. The company's revenue model includes charging tariffs for gas transportation through its pipeline network, which is one of the largest in India. Additionally, GAIL earns money from the sale of natural gas to industrial customers, power plants, and city gas distribution companies. The production and sale of petrochemicals, including polymers and chemicals, also contribute to its revenue. GAIL has formed strategic partnerships and joint ventures with various domestic and international entities, enhancing its market reach and operational capabilities. Factors such as government policies promoting natural gas usage, increasing demand for cleaner energy sources, and expanding infrastructure projects further bolster its earnings.

GAIL (India) Limited Financial Statement Overview

Summary

GAIL (India) Limited exhibits strong financial health with robust revenue and profit growth. The balance sheet is stable with low leverage, and cash flow generation has improved significantly. However, there is slight pressure on operational profitability and a need for ongoing cash management attention.

Income Statement

GAIL (India) Limited has demonstrated strong revenue growth with a 6.5% increase from 2024 to 2025 and a robust net profit margin of 8.77% for 2025. The gross profit margin improved significantly, reflecting efficient cost management. However, the EBIT margin showed a slight decline compared to the previous year, indicating potential pressure on operational profitability.

Balance Sheet

The balance sheet is solid with a healthy equity ratio of 63.84% in 2025, suggesting strong financial stability. The debt-to-equity ratio is manageable at 0.25, indicating low leverage. However, there was a slight increase in debt levels, which could pose a risk if not managed properly.

Cash Flow

GAIL has shown significant improvement in free cash flow, with a remarkable growth rate of 9127.8% from 2024 to 2025. The operating cash flow to net income ratio is strong at 1.26, indicating efficient cash generation relative to earnings. However, the free cash flow to net income ratio, though improved, suggests room for enhancement in cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.42T	1.42T	1.33T	1.46T	927.70B	573.72B
Gross Profit	243.00B	251.83B	244.28B	162.33B	220.79B	136.47B
EBITDA	141.98B	144.26B	135.72B	73.39B	150.60B	72.72B
Net Income	116.36B	124.50B	98.99B	56.16B	122.56B	61.36B
Balance Sheet
Total Assets	0.00	1.33T	1.25T	1.08T	965.59B	813.85B
Cash, Cash Equivalents and Short-Term Investments	27.21B	38.72B	14.64B	8.05B	25.22B	22.97B
Total Debt	0.00	215.95B	217.94B	178.16B	92.16B	78.73B
Total Liabilities	-852.40B	479.08B	475.21B	426.74B	322.54B	277.30B
Stockholders Equity	852.40B	849.98B	769.97B	649.27B	641.14B	531.82B
Cash Flow
Free Cash Flow	0.00	78.05B	845.50M	-56.26B	26.57B	32.96B
Operating Cash Flow	0.00	157.35B	125.86B	32.05B	96.29B	89.93B
Investing Cash Flow	0.00	-67.38B	-82.73B	-76.40B	-56.46B	-46.93B
Financing Cash Flow	0.00	-89.41B	-34.57B	29.72B	-39.16B	-34.71B

GAIL (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 175.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GAIL, the sentiment is Negative. The current price of 175.4 is above the 20-day moving average (MA) of 164.89, above the 50-day MA of 163.21, and above the 200-day MA of 172.21, indicating a bearish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 36.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GAIL.

GAIL (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIL	77 Outperform	₹1.09T	16.11	―	4.39%	5.91%	-5.42%
BPCL	76 Outperform	₹1.55T	5.71	―	4.73%	-1.35%	61.80%
POWERINDIA	73 Outperform	₹1.14T	78.05	―	0.03%	16.49%	245.51%
IOC	68 Neutral	₹2.53T	4.41	―	4.90%	-0.93%	42.85%
HINDPETRO	67 Neutral	₹854.11B	6.62	―	3.26%	-1.81%	231.75%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
JSWENERGY	64 Neutral	₹846.75B	50.05	―	0.41%	39.71%	1.33%

GAIL (India) Limited Corporate Events

GAIL Announces Retirement of Chairman and Managing Director Sandeep Kumar Gupta

GAIL (India) Limited has announced that Chairman and Managing Director Sandeep Kumar Gupta has ceased to hold office with effect from March 1, 2026. His departure follows his superannuation from the services of GAIL on February 28, 2026, in line with the company’s retirement policies.

The change in leadership has been formally communicated to stock exchanges NSE and BSE in compliance with SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. This marks a key transition at the helm of the state-owned gas utility, with implications for ongoing governance and strategic continuity as the board and government move to oversee succession.

GAIL appoints Deepak Gupta as Chairman and Managing Director

GAIL (India) Limited has announced that Deepak Gupta has assumed charge as Chairman and Managing Director effective March 1, 2026, following his earlier role as Director (Projects). A mechanical engineer with more than 35 years’ experience across the oil and gas value chain, he brings a blend of technical, strategic, and board-level leadership to the helm.

Gupta has led major projects at GAIL, including large natural gas and LPG pipelines, gas processing units, SCADA infrastructure, and green energy initiatives aimed at net-zero goals, while overseeing operations and maintenance of over 20,000 km of pipelines and associated facilities. His prior leadership roles in GAIL joint ventures and at Engineers India Limited on landmark international and domestic refinery and petrochemical projects underscore his experience in complex project execution, governance, and digital transformation, signaling continuity and strategic depth for GAIL’s future growth and clean energy ambitions.

GAIL (India) Limited Faces Significant GST Penalty

GAIL (India) Limited has been subject to an order by the Additional Commissioner of CGST, Delhi South Commissionerate, demanding GST payment on corporate guarantees issued to banks on behalf of its subsidiaries and joint ventures. This action has resulted in a substantial financial penalty of Rs.143,08,40,592, which could impact the company’s financial operations and obligations.