PSU Energy Stock Slips 17% Even After ₹6,968 Crore Profit and ₹0.50 Dividend

GAIL (India) Limited reported weaker FY26 profitability despite stable revenue growth, record LPG transmission, and continued infrastructure expansion across India’s energy network.

The PSU energy stock has remained under pressure, declining nearly 17% over the last one year, even after the company posted a standalone Profit After Tax (PAT) of ₹6,968 crore and announced a total FY26 dividend of ₹5.50 per share including interim and final payouts.

The company also highlighted aggressive capital expenditure, renewable energy investments, and pipeline expansion plans as part of its long-term energy transition strategy.

GAIL FY26 Standalone Financial Performance

GAIL reported marginal revenue growth during FY26, although EBITDA and profitability declined sharply due to pressure on operating margins amid a challenging global energy environment.

Standalone Financial Highlights

Metric	FY26	FY25
Revenue From Operations	₹1,38,697 Crore	₹1,37,288 Crore
EBITDA	₹13,119 Crore	₹19,168 Crore
Profit Before Tax (PBT)	₹8,964 Crore	₹14,825 Crore
Profit After Tax (PAT)	₹6,968 Crore	₹11,312 Crore

The company stated that geopolitical uncertainties, including the Russia-Ukraine conflict and West Asian tensions, continued impacting global energy markets during FY26.

GAIL Q4 FY26 Performance

Quarterly profitability also weakened during Q4 FY26 with significant contraction in EBITDA margins.

Q4 FY26 vs Q3 FY26 Performance

Metric	Q4 FY26	Q3 FY26
Revenue From Operations	₹34,797 Crore	₹34,076 Crore
EBITDA	₹2,175 Crore	₹3,335 Crore
EBITDA Margin	3.31%	7.79%
PBT	₹1,577 Crore	₹2,030 Crore
PAT	₹1,262 Crore	₹1,603 Crore

The sharp decline in Q4 EBITDA margin reflected pressure on operational profitability during the quarter.

GAIL Consolidated Financial Performance

On a consolidated basis, the company also reported lower profitability compared to FY25.

Consolidated Financial Highlights

Metric	FY26	FY25
Revenue From Operations	₹1,42,094 Crore	₹1,42,290 Crore
EBITDA	₹14,524 Crore	₹20,635 Crore
PBT	₹9,725 Crore	₹16,095 Crore
PAT (Excluding Minority Interest)	₹7,582 Crore	₹12,450 Crore

Despite weaker earnings, the company maintained stable revenue levels across operations.

GAIL Declares ₹5.50 Total Dividend

The Board recommended a final dividend of ₹0.50 per share for FY26.

This is in addition to the ₹5.00 interim dividend already paid during the financial year.

Dividend Details

Parameter	Details
Final Dividend	₹0.50 Per Share
Interim Dividend	₹5.00 Per Share
Total FY26 Dividend	₹5.50 Per Share
Dividend Payout Ratio	51.90%

The final dividend remains subject to shareholder approval at the upcoming Annual General Meeting.

GAIL FY26 Capital Expenditure and Debt

GAIL continued aggressive infrastructure investments during FY26.

Capex and Debt Snapshot

Parameter	Details
Total FY26 Capex	₹9,594 Crore
Total Debt	₹17,414 Crore

The capital expenditure was primarily directed toward:

• Pipeline Infrastructure
• Petrochemical Projects
• Operational Expansion
• Joint Ventures and Subsidiaries
• Renewable Energy Investments

Operational Highlights

GAIL reported mixed operational trends during FY26 across transmission, marketing, and petrochemical segments.

Operational Performance

Operational Metric	FY26	FY25
Natural Gas Transmission	122.18 MMSCMD	127.32 MMSCMD
Gas Marketing Volume	104.21 MMSCMD	101.49 MMSCMD
LPG Transmission	4,600 TMT	4,478 TMT
LHC Production	813 TMT	947 TMT
Polymer Production	768 TMT	827 TMT

Gas marketing volume improved during FY26, while LPG transmission reached a record high.

However, natural gas transmission and polymer production witnessed declines compared to FY25.

Pipeline Expansion and Renewable Energy Plans

GAIL added nearly 2,000 km of pipeline network during FY26 as part of its infrastructure expansion strategy.

The company also approved major renewable energy investments.

Renewable Energy Projects Approved

Project Type	Capacity
Solar Projects	~700 MW
Wind Projects	~178 MW
CBG Plants	6 Plants (~95 TPD Capacity)

GAIL is also expanding the Jamnagar-Loni LPG pipeline capacity to 6.5 MMTPA.

CMD Commentary

Chairman & Managing Director Shri Deepak Gupta stated that FY26 remained challenging because of global geopolitical disruptions and energy market volatility.

Despite these pressures, the company maintained resilient operations supported by:

• Policy Interventions
• Infrastructure Expansion
• LPG Transmission Growth
• Renewable Energy Investments
• Energy Transition Initiatives

The management reiterated its long-term focus on clean energy, gas infrastructure, and sustainable growth projects.

GAIL Stock Performance

Despite stable operations and strong dividend payouts, GAIL stock has remained under pressure over the medium term.

GAIL Stock Returns

Period	Return
1 Day	+1.40%
5 Days	-2.71%
1 Month	-1.60%
6 Months	-13.55%
1 Year	-17.02%
5 Years	+58.71%

Outlook

While FY26 profitability weakened because of global energy market challenges and margin pressure, GAIL continues strengthening its long-term energy infrastructure portfolio.

The company’s investments across pipelines, renewable energy, compressed biogas projects, and LPG infrastructure reflect its strategy to transition toward a diversified and cleaner energy ecosystem while maintaining leadership in India’s natural gas sector.

What was GAIL’s FY26 standalone net profit?

GAIL reported a standalone Profit After Tax (PAT) of ₹6,968 crore for FY26 compared to ₹11,312 crore in FY25.

How much dividend did GAIL declare for FY26?

GAIL declared a total FY26 dividend of ₹5.50 per share, including a final dividend of ₹0.50 and an interim dividend of ₹5.00 per share.

Why did GAIL’s profit decline in FY26?

The decline in profitability was mainly due to pressure on operating margins, weaker EBITDA performance, and global energy market volatility caused by geopolitical tensions.

What was GAIL’s FY26 revenue from operations?

GAIL reported FY26 revenue from operations of ₹1,38,697 crore on a standalone basis.

What was GAIL’s EBITDA during FY26?

The company reported standalone EBITDA of ₹13,119 crore during FY26.

How much capital expenditure did GAIL incur in FY26?

GAIL incurred total capital expenditure of ₹9,594 crore during FY26.

What renewable energy projects has GAIL approved?

GAIL approved investments in approximately 700 MW solar projects, 178 MW wind projects, and 6 compressed biogas (CBG) plants.

What was GAIL’s LPG transmission volume in FY26?

GAIL achieved record LPG transmission of 4,600 TMT during FY26.

How much has GAIL stock fallen in one year?

GAIL stock declined approximately 17% over the last one year despite stable revenue and dividend payouts.

What are GAIL’s key business segments?

GAIL operates across:

• Natural Gas Transmission
• Gas Marketing
• LPG Transmission
• Petrochemicals
• Renewable Energy
• Pipeline Infrastructure