GAIL’s top line defied gravity this quarter. The state-owned gas major reported a 17.8% surge in revenue to ₹45,895 crore, a clear win against the market’s cautious outlook. Analysts polled by CNBC-TV18 had estimated revenue at just ₹40,426 crore, meaning GAIL over-delivered by nearly ₹5,500 crore.
The profit components hold up under scrutiny, though with caveats. EBITDA remained stable at ₹6,412 crore, refusing to slide as predicted. The street had pegged this figure lower at ₹4,741 crore, expecting a dip. However, the margin compressed to 14%, down 240 basis points from the previous quarter, though it still beat the projected 11.7%.
The engine behind this revenue spike is natural gas marketing. That segment’s billings swelled to ₹41,226 crore from ₹34,437 crore in the June quarter. Petrochemicals also woke up, jumping to ₹2,519.5 crore from a negligible ₹646 crore. On the flip side, LPG and Liquid Hydrocarbons revenue shrank to ₹1,834 crore from ₹2,039 crore, showing a mixed bag across verticals.
But the real catalyst for traders might be the corporate action. The board granted in-principle approval to list GAIL Gas Ltd, its wholly-owned subsidiary, via an IPO. GAIL plans to dilute up to 25% of the equity. The final terms, including valuation and price band, will follow BRLM recommendations before the board gives the final nod.
On the tape, GAIL shares responded positively. The stock scaled as much as 3% on Friday, October 30, closing at ₹168.25, a 1.9% gain. Despite this bounce, the title remains down 2% year-to-date, suggesting the market is still digesting the valuation.