GAIL (India) Limited (GAIL) AI Stock Analysis

• Market Cap: ₹1.05T
• Dividend Yield: 4.39%
• Average Volume (3M): 612.57K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.56
• 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: ₹204.50
• Price Target Upside: 16.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ₹182.00 ▲(3.76% Upside)

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 leverage provide durable financial resilience, supporting capital allocation for pipeline expansion, maintenance, or strategic projects. This structural strength lowers refinancing risk, preserves investment-grade flexibility, and sustains operations through demand cycles.

Material cash flow improvement

A dramatic increase in free cash flow and OCF>net income indicates stronger cash conversion and funding ability. Improved cash generation supports capex, dividend policy, debt servicing and strategic investments, enhancing long-term financial flexibility and sustainability.

Pipeline network and market position

An extensive midstream pipeline footprint creates durable competitive advantages: regulated/contracted transmission revenues, high barriers to entry, and strategic connectivity to producers, CGD and industrial demand centers. This underpins stable long-term cash flows.

Negative Factors

Operational margin pressure

A declining EBIT margin suggests emerging cost or spread pressures within core operations. If sustained, margin erosion can reduce reinvestment capacity and free cash flow, making profitability vulnerable to commodity swings and raising the bar for efficiency improvements.

Earnings weakness (EPS decline)

A substantial drop in EPS reflects weaker reported profitability and can signal one-off charges, lower realized spreads, or operational setbacks. Persisting EPS declines constrain retained earnings, limit reinvestment and dividend capacity, and pressure medium-term earnings power.

Increase in debt levels

Even from a low base, rising debt can erode the company's conservative balance sheet cushion. If debt growth continues, interest and leverage risks increase, reducing flexibility for capex or strategic moves and heightening sensitivity to rate or cash-flow shocks over the medium term.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 175.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 175.4 is above the 20-day moving average (MA) of 164.13, above the 50-day MA of 168.89, and below the 200-day MA of 179.09, indicating a neutral trend. The MACD of -1.55 indicates Negative momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 36.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹1.05T	12.27	―	4.39%	5.91%	-5.42%
BPCL	76 Outperform	₹1.59T	6.37	―	4.73%	-1.35%	61.80%
POWERINDIA	68 Neutral	₹846.00B	116.80	―	0.03%	16.49%	245.51%
IOC	68 Neutral	₹2.32T	9.11	―	4.90%	-0.93%	42.85%
HINDPETRO	67 Neutral	₹963.80B	6.26	―	3.26%	-1.81%	231.75%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
JSWENERGY	64 Neutral	₹788.86B	34.63	―	0.41%	39.71%	1.33%

GAIL (India) Limited Corporate Events

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.

GAIL (India) Limited to Participate in Mumbai Investor Roadshow

GAIL (India) Limited has announced its participation in a Non-Deal Roadshow organized by Phillip Capital, scheduled for December 5, 2025, in Mumbai. This event, which involves one-on-one and group meetings with investors, signifies GAIL’s ongoing efforts to engage with institutional investors and analysts, potentially impacting its market positioning and investor relations.

GAIL Announces Tariff Increase for Natural Gas Pipeline Network

GAIL (India) Limited has announced that the Petroleum and Natural Gas Regulatory Board (PNGRB) has approved an interim levelized tariff increase for its Integrated Natural Gas Pipeline (INGPL) network, effective January 1, 2026. The new tariff of ₹65.69/MMBTU represents a 12% increase from the previous rate, resulting in an estimated positive financial impact of approximately ₹1,200 Crore. This adjustment is limited to System Use Gas and capacity determination, with a comprehensive review of other parameters scheduled for 2028.

GAIL Announces Tariff Increase for Natural Gas Pipeline Network

GAIL (India) Limited has announced a material price movement in its share price following a tariff order from the Petroleum and Natural Gas Regulatory Board (PNGRB) for its Integrated Natural Gas Pipeline (INGPL) network. The new levelized tariff of ₹65.69/MMBTU represents a 12% increase from the previous tariff, potentially leading to a positive financial impact of approximately Rs. 1,200 Crore. This adjustment is interim, focusing on System Use Gas and capacity determination, with a comprehensive review scheduled for 2028.

GAIL Announces Directorate Change with Cessation of Ms. K C Ratan

GAIL (India) Limited announced the cessation of Ms. Kamini Chauhan Ratan as a Non-Executive Director, effective November 22, 2025. This change is in compliance with a directive from the Ministry of Petroleum & Natural Gas and aligns with SEBI’s listing regulations, potentially impacting the company’s governance structure.

GAIL Addresses Mumbai CNG Supply Disruption

GAIL (India) Limited addressed a recent incident involving a gas pipeline leak that impacted CNG supply in Mumbai. The leak, caused by third-party damage, was swiftly managed by GAIL’s operations team, restoring normal gas supply within 40 hours. The company clarified that the incident had no material impact on its operations or stock price, and it was not required to disclose the event to stock exchanges under regulatory norms.