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State-owned GAIL (India) Ltd has outlined a Rs 10,700 crore capital expenditure (capex) plan for the financial year 2025-26 (April-March) to expand manufacturing capacity across all verticals, the company announced following its financial results for FY2024-25. This ambitious capex marks an approximately 2 percent increase from the Rs 10,512 crore spent during FY2024-25, covering its natural gas, pipeline services, and other operations.
For FY2024-25, GAIL reported a revenue from operations of Rs 1,37,288 crore, up from Rs 1,30,638 crore in FY2023-24. The company achieved an EBITDA of Rs 19,168 crore, compared to Rs 15,583 crore in the previous year. Profit before tax (PBT) was Rs 14,825 crore in FY2024-25, up from Rs 11,555 crore in FY2023-24. Profit after tax (PAT) rose significantly to Rs 11,312 crore, compared to Rs 8,836 crore in the previous fiscal year.
On a quarter-on-quarter (QoQ) basis, revenue from operations in the January-March 2025 quarter stood at Rs 35,707 crore, compared to Rs 34,958 crore in the preceding quarter. However, EBITDA for the January-March 2025 quarter (Q4 FY25) was Rs 3,783 crore, down from Rs 6,027 crore in Q3 FY25. PBT for Q4 FY25 was Rs 2,701 crore, compared to Rs 5,029 crore in the sequential previous quarter, while PAT was reported at Rs 2,049 crore in Q4 FY25, down from Rs 3,867 crore in Q3 FY25.
Sandeep Kumar Gupta, Chairman and Managing Director of GAIL (India), stated, “We incurred a capex of Rs 10,512 crore during FY2024-25. The robust performance during FY25 was primarily driven by better physical and financial outcomes across all major segments. Despite challenges in the global economy, our company achieved unprecedented financial milestones, including the highest-ever EBITDA, PBT, and PAT in GAIL’s history.”
Gupta further announced, “The Board of Directors has recommended a final dividend of Rs 1 per equity share (face value of Rs 10 per equity share) for FY2024-25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). This is in addition to the interim dividend of Rs 6.50 per equity share. Consequently, the dividend payout ratio for the financial year stands at 43.59 percent.”
Petrochemical investment
The company has increased its investments in the petrochemical sector, primarily to cater to the rising domestic demand. According to a company presentation, GAIL (India) has proposed an investment of Rs 3,000 crore, accounting for 28 percent of the total capex allocated for FY2025-26. This represents a significant rise from Rs 2,653 crore, or 25 percent of the total investment, spent on petrochemical sector development during FY2024-25.
Gupta highlighted that GAIL Gas Limited (GGL), a wholly-owned subsidiary of GAIL, was established in May 2008 with a primary focus on developing the City Gas Distribution (CGD) business. GGL currently owns and operates 16 Geographical Areas (GAs) across India. Additionally, in March 2018, GAIL received PNGRB authorization to develop the CGD network in six GAs: Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, and Cuttack.
To streamline operations and enhance business synergy, efficiency, and a retail-focused approach, the Board has recommended transferring the six GAs currently managed by GAIL to GGL, subject to approval from the Cabinet Committee on Economic Affairs (CCEA).
Consolidated result
On a consolidated basis, GAIL (India) Ltd reported revenue from operations of Rs 1,42,291 crore in FY2024-25, compared to Rs 1,33,500 crore in FY2023-24. EBITDA for FY2024-25 stood at Rs 20,643 crore, up from Rs 16,986 crore in FY2023-24. Profit Before Tax (PBT) for FY2024-25 was Rs 16,096 crore, an increase from Rs 12,595 crore in FY2023-24. Profit After Tax (PAT) for FY2024-25, excluding minority interest, stood at Rs 12,450 crore, compared to Rs 9,899 crore in the previous financial year.
On a quarter-on-quarter (QoQ) basis, revenue from operations for January-March FY2024-25 was reported at Rs 36,551 crore, slightly down from Rs 36,937 crore in the sequential previous quarter. EBITDA in Q4 FY25 was Rs 4,207 crore, compared to Rs 6,381 crore in Q3 FY25. PBT for Q4 FY25 stood at Rs 3,240 crore, compared to Rs 5,272 crore in Q3 FY25. PAT for Q4 FY25, excluding minority interest, was Rs 2,492 crore, down from Rs 4,082 crore in Q3 FY25.
Natural gas volume grows
During the year, natural gas transmission volume grew by 6 percent to 127.32 MMSCMD, compared to 120.46 MMSCMD in the previous year. Gas marketing volume reached 101.49 MMSCMD in FY25, up from 98.45 MMSCMD in FY24. LHC production stood at 947 TMT, down from 996 TMT, while polymer production increased by 6 percent to 827 TMT, compared to 777 TMT in the previous year.
For the quarter, natural gas transmission volume stood at 120.83 MMSCMD in Q4 FY25, compared to 125.93 MMSCMD in Q3 FY25. Gas marketing volume reached 106.53 MMSCMD, up from 103.46 MMSCMD in the previous quarter. LHC sales were 198 TMT, down from 282 TMT, while polymer sales rose by 4 percent to 229 TMT, compared to 221 TMT in the previous quarter.
Renewable energy pact
GAIL (India) and the Government of Karnataka have signed a Memorandum of Understanding (MoU) to explore the establishment of renewable energy projects with a capacity of up to 1 Gigawatt (GW) in the state. The MoU was signed in Bengaluru on May 9, 2025, in the presence of M.B. Patil, Hon’ble Minister for Large and Medium Industries and Infrastructure Development, and K. J. George, Hon’ble Minister for Energy, Government of Karnataka. The agreement was executed by S. Selvakumar, Principal Secretary, Commerce & Industries Department, Government of Karnataka, and Parivesh Chugh, Executive Director (SD & Renewables), GAIL.
Under the MoU, the Government of Karnataka will assist GAIL in securing the necessary permissions, registrations, approvals, clearances, and incentives from the relevant state departments, in accordance with the state’s prevailing policies, rules, and regulations. GAIL plans to establish renewable energy projects with a total capacity of up to 1 GW within five years.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
