Higher Expenses Limit GAIL’s Quarter Four Net Profit Growth

GAIL (India) Ltd reported a marginal 1.3% year-on-year increase in consolidated net profit to ₹2,506 crore in Q4 FY25. The company’s performance was weighed down by higher expenses and continued losses in its petrochemicals segment, which largely offset the gains from its LPG and natural gas transmission businesses.

Sequential Decline Due to One-Time Gain in Previous Quarter

Despite the slight annual uptick, net profit fell nearly 39% quarter-on-quarter, primarily due to a one-time arbitration gain booked in Q3 FY25. The absence of this exceptional income impacted the bottom line in the March quarter.

Operational Metrics: Transmission and Marketing Volumes Dip

Natural gas transmission volumes in Q4 FY25 stood at 120.83 MSCMD, down from 125.93 MSCMD in Q3. However, gas marketing volumes improved slightly to 106.53 MSCMD, compared to 103.46 MSCMD in the previous quarter.

In the liquids segment, Liquid Hydrocarbon (LHC) sales dropped to 198,000 tons from 282,000 tons sequentially. On the other hand, polymer sales rose 4% quarter-on-quarter to 229,000 tons, signalling stable demand.

Full-Year Performance: Transmission and Polymer Output Improve

For the full fiscal year FY25, GAIL recorded a 6% year-on-year increase in natural gas transmission volumes, reaching 127.32 MSCMD. Gas marketing volumes also grew to 101.49 MSCMD from 98.45 MSCMD a year ago.

As reported by thehindubusinessline.com, polymer production registered a 6% annual growth to 827,000 tons, while LHC production declined slightly to 947,000 tonnes compared to 9,96,000 tons in FY24.