GAIL Achieves Record Profit in FY25 Amid Operational Growth and Strategic Expansions – EQ
In Short : GAIL (India) Ltd reported a record profit after tax (PAT) of ₹11,312 crore in FY25, a 28% increase from the previous year, with revenue rising 5% to ₹1.37 lakh crore. Despite strong annual results, Q4 PAT fell to ₹2,049 crore due to lower gas marketing margins. The company announced a final dividend of ₹1 per share.
In Detail : GAIL (India) Limited has reported a record profit after tax (PAT) of ₹11,312 crore for the financial year 2024–25 (FY25), marking a significant 28% increase compared to ₹8,836 crore in the previous fiscal year. The company’s revenue from operations also rose by 5% to ₹1.37 lakh crore. This impressive performance underscores GAIL’s strategic focus on efficient operations and revenue growth.
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) increased to ₹19,168 crore from ₹15,583 crore, while profit before tax (PBT) also grew, reaching ₹14,825 crore compared to ₹11,555 crore in the previous year. This financial success is attributed to higher natural gas transmission volumes and increased polymer production.
Operationally, GAIL saw a 6% rise in natural gas transmission volumes, reaching 127.32 million metric standard cubic metres per day (MMSCMD) during FY25. Gas marketing volume also increased from 98.45 MMSCMD to 101.49 MMSCMD. Additionally, polymer production grew by 6% to 827,000 tonnes, although liquid hydrocarbon (LHC) output dropped from 996,000 tonnes to 947,000 tonnes.
However, GAIL’s profitability declined in the fourth quarter (Q4) of FY25, with net profit slipping to ₹2,049 crore, down from ₹2,176.97 crore in the same quarter the previous year and ₹3,867.38 crore in Q3. The decline was mainly due to lower gas marketing margins and losses in the petrochemical segment, indicating challenges in maintaining consistent quarterly performance.
The Board of Directors recommended a final dividend of ₹1 per equity share for FY25, adding to the interim dividend of ₹6.50 per share that was previously distributed. The total dividend payout ratio stands at 43.59%, reflecting the company’s commitment to returning value to its shareholders despite the challenges in the final quarter.
GAIL incurred a capital expenditure of ₹10,512 crore during FY25, focusing on expanding its infrastructure and operational capacity. Additionally, the board approved transferring city gas licenses for six geographical areas, including Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, and Cuttack, to its city gas distribution subsidiary, GAIL Gas Ltd (GGL). This move aims to streamline operations and strengthen the company’s presence in the city gas distribution sector.
