GAIL (India) Ltd Q2 FY27 Results Analysis: PAT Surges 110%, EBITDA Margin Expands 398 bps

Cofacto Research Published October 30, 2026 4 min read

Positive

GAIL (India) Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 45,923.57 Cr (+31.10% YoY) and PAT growth of +109.73% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 30, 2026
Revenue (Q2)	Rs. 45,923.57 Cr (+31.10% YoY)
PAT (Q2)	Rs. 4,650.22 Cr (+109.73% YoY)
EBITDA margin	15.35% (+398 bps YoY)
EPS (Q2)	Rs. 7.07 (+109.79% YoY)

Quarter Snapshot

GAIL delivered 31.10% YoY standalone revenue growth and 109.73% PAT growth with EBITDA margin up ~398 bps YoY to 15.35%. H1 gas marketing EBIT of Rs.6,765.59 crore already exceeds the full-year FY27 guidance of Rs.4,000–4,500 crore, while net debt fell Rs.3,637.51 crore in H1. Watch items are the 70.91% receivables build, the Rs.2,889 crore CESTAT contingent demand, and zero PLL RLNG allocation since March 2026.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue/demand	"in-line to ahead on volumes" — record power demand, no flood repeat	Standalone revenue 45,923.57, +31.10% YoY	Played out
Gas marketing	guided "shrink", but "the spread GAIL arbitrages widened rather than converged" → smaller QoQ decline than guided	Q2 standalone EBIT 3,284.30, only −5.66% QoQ	Played out
LPG	"Brent's surge argues the opposite" of the guided decrease	LPG & LH EBIT −42.77% QoQ — the guided decrease materialized	Contradicted
Petrochemicals	"pressured on price cooling"	Loss narrowed to (22.15) from (122.53); still loss-making	Partially
FX / ERV	"another ERV drag" on further rupee depreciation	Finance costs +37.05% YoY; lease liabilities +Rs.3,842.67 cr in H1; no Q2 ERV quantum disclosed	Partially
Transmission ~123 MMSCMD	volume guide test	Volumes not disclosed in filing	Not observable
Nagarjuna Rs.675 cr reversal in Q2	"Q2 the stated window"	No reversal disclosed in filing; unattributed Rs.290.97 cr H1 provision write-back exists	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Gas marketing PBT Rs.4,500 crore FY27 (min band Rs.4,000–4,500)	Q1 FY27 earnings call (Jul 31, 2026), reaffirming the FY27 "at least Rs.4,000 crore" guide	Standalone segment EBIT H1 Rs.6,765.59 cr — 150% of the full-year target in half a year; Q2 Rs.3,284.30 cr — pace far ahead	On track
Q2 marketing margins "anticipated to shrink"	Q1 FY27 earnings call	Standalone −5.66% QoQ; consolidated −2.33% QoQ — modest shrink	Met
LPG profitability "will decrease" in Q2	Q1 FY27 earnings call	LPG & LH EBIT −42.77% QoQ (772.50 → 442.13)	Met
Finance cost Rs.1,200–1,300 crore FY27	prior earnings calls	H1 Rs.624.58 cr (annualized ~Rs.1,249 cr)	On track
Depreciation Rs.3,200–3,300 crore FY27	prior earnings calls	H1 Rs.1,762.61 cr (annualized ~Rs.3,525 cr)	On track, upper end
Capex Rs.11,500 crore FY27 plan	Q1 FY27 earnings call	Cash-flow purchases H1 Rs.2,738.84 cr (standalone); press-release capex basis differs	Too early / basis mismatch

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27	Q2 FY27
Gas transmission (MMSCMD)	123.59	125.45	118.99	n.d.	n.d. — not disclosed in filing
Gas marketing (MMSCMD)	105.49	103.98	n.d.	n.d.	n.d. — not disclosed in filing

Key Investment Insights

Key Positives

Standalone revenue grew 31.10% YoY to Rs.45,923.57 crore; consolidated revenue grew 32.66% YoY to Rs.47,301.03 crore
Standalone PAT grew 109.73% YoY to Rs.4,650.22 crore; consolidated attributable PAT grew 139.30% YoY to Rs.4,719.66 crore
Standalone EBITDA margin expanded ~398 bps YoY to 15.35% from 11.37%
H1 gas marketing segment EBIT of Rs.6,765.59 crore is 150% of the full-year FY27 guidance of Rs.4,000–4,500 crore
Petrochemicals EBIT loss narrowed to Rs.(22.15) crore from Rs.(122.53) crore QoQ and Rs.(299.24) crore YoY
Net debt (excl. leases) reduced by Rs.3,637.51 crore in H1; H1 standalone FCF of Rs.6,360.98 crore
Every segment grew revenue YoY: LPG & Liquid Hydrocarbons +59.45%, City Gas +40.40% (consolidated), Natural Gas Marketing +31.20%, Petrochemicals +25.88%, Transmission +21.03%

Risk Factors

Trade receivables rose 70.91% since March 2026 to Rs.14,146.23 crore, absorbing Rs.6,051.11 crore of H1 operating cash flow
CESTAT naphtha excise demand of Rs.2,889 crore (Rs.3,831 crore with interest) remains a contingent liability flagged as auditor Emphasis of Matter
PLL RLNG allocation has been zero since March 4, 2026, with ~190 MMSCM supplied in H1 via spot/alternative sourcing mitigation
Lease liabilities rose Rs.3,842.67 crore in H1 to Rs.8,274.35 crore with H1 unrealized FX loss of Rs.139.03 crore on ship lease ERV exposure
Marketing segment EBIT margin compressed QoQ (standalone 7.97% vs 10.11% in Q1) and LPG & LH EBIT fell 42.77% QoQ
Inventory build widened YoY to Rs.(1,062.26) crore from Rs.(191.32) crore, a Rs.870.94 crore YoY P&L drag