Strong consolidated revenue expansion of over 32% helped propel bottom-line growth during the quarter, despite margin pressure on a standalone basis. The board granted in-principle clearance to initiate a public listing for GAIL Gas Ltd that will dilute up to a quarter of GAIL's stake. To streamline retail operations before the share sale, six city gas distribution areas will be transferred to the subsidiary through a slump sale taking effect on January 1, 2027.
Key points
Standalone operational EBITDA margin contracted by 240 basis points down to 14% despite p…: Standalone operational EBITDA margin contracted by 240 basis points down to 14% despite positive top-line growth.
Book-running lead managers will help establish the final valuation, transaction structure…: Book-running lead managers will help establish the final valuation, transaction structure, and price band for the subsidiary listing.
Six city gas distribution areas across regions including Patna and Varanasi will transiti…: Six city gas distribution areas across regions including Patna and Varanasi will transition to GAIL Gas Ltd under a Business Transfer Agreement.
Sources checked by our analysis pipeline: 1
Consolidated revenue from operations rose 32.7% YoY to Rs 47,301.03 crore from Rs 35,657.23 crore in Q2FY26.
The company's board also granted in-principle approval for the listing of shares of its wholly owned subsidiary, GAIL Gas Ltd, on Indian stock exchanges through an initial public offering (IPO), involving the dilution of up to 25% of GAIL's equity holding.
On a standalone basis, GAIL reported a net profit of Rs 4,650 crore in Q2FY27, marking an 8.3% increase from Rs 4,292 crore reported in the corresponding quarter of the previous fiscal.
Standalone revenue from operations rose 17.8% YoY to Rs 45,895 crore from Rs 38,953 crore in Q2FY26.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 6,412 crore, compared with Rs 6,377 crore in the year-ago quarter, registering a marginal increase of 0.5%.
However, EBITDA margin contracted to 14% in Q2FY27 from 16.4% in Q2FY26, a decline of 240 basis points (bps).
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