GAIL (India) Limited (GAIL) AI Stock Analysis

• Market Cap: ₹1.12T
• Dividend Yield: 4.37%
• Average Volume (3M): 612.57K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.52
• Revenue Growth: 5.91%
• EPS Growth: -5.42%
• Country: IN
• Employees: 5,038
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Gas
• EPS (TTM): 3.40
• 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: ₹216.67
• Price Target Upside: 26.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ₹202.00 ▲(17.68% 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

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, enabling investment in growth opportunities and debt reduction.

Balance Sheet Health

A strong balance sheet with low leverage provides resilience against economic downturns and supports strategic investments.

Negative Factors

Operational Profitability Pressure

Pressure on operational profitability can impact margins and limit reinvestment capacity, affecting long-term growth prospects.

EBIT Margin Decline

A declining EBIT margin suggests challenges in cost management, which could erode profitability if not addressed.

Debt Level Increase

Increasing debt levels may strain financial resources, limiting the company's ability to invest in growth and manage economic fluctuations.

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: Negative
• Last Price: 171.65
• 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 Negative. The current price of 171.65 is below the 20-day moving average (MA) of 172.27, below the 50-day MA of 177.63, and below the 200-day MA of 179.47, indicating a bearish trend. The MACD of -2.73 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 51.62 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	₹1.12T	10.23	―	4.37%	5.91%	-5.42%
BPCL	76 Outperform	₹1.59T	7.37	―	4.73%	-1.35%	61.80%
POWERINDIA	68 Neutral	₹826.94B	114.17	―	0.03%	16.49%	245.51%
IOC	68 Neutral	₹2.30T	9.00	―	4.89%	-0.93%	42.85%
HINDPETRO	67 Neutral	₹999.01B	7.17	―	3.26%	-1.81%	231.75%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
JSWENERGY	63 Neutral	₹835.52B	41.24	―	0.42%	39.71%	1.33%

GAIL (India) Limited Corporate Events

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.

GAIL (India) Limited Schedules Q2 Earnings Conference Call

GAIL (India) Limited has announced that it will hold its Earnings Conference Call for the second quarter of fiscal year 2025-26 on October 31, 2025. The call is part of the company’s compliance with SEBI regulations, ensuring transparency with stakeholders, and will not disclose any unpublished price-sensitive information.

GAIL (India) Limited Announces Investor Meet Schedule

GAIL (India) Limited announced its schedule for an upcoming Analyst/Institutional Investor Meet, organized by ICICI Securities, set to take place on September 29, 2025, at their corporate office in New Delhi. This meeting aims to engage with a group of investors, ensuring transparency and communication with stakeholders, while confirming that no unpublished price-sensitive information will be disclosed.