India’s gas transmission and marketing sector is set for robust growth in FY26, driven by a 6–7 percent rise in sales for major companies and significant pipeline network expansion, nearly 11,000 km planned. GAIL, a key player, targets gas marketing volumes of 105 mmscmd in FY26, while transmission volumes are expected to reach over 127 mmscmd.
With a market capitalization of Rs 1,24,894.02 crore, the shares of Gail (India) Ltd were trading at Rs 189.95 per share, increasing around 1.79 percent as compared to the previous closing price of Rs 186.85 apiece.
Jefferies, one of the well-known brokerages globally, maintains its ‘Buy’ rating on this oil stock with a target price of Rs 250 apiece, indicating a potential upside of 31 percent from Friday’s price of Rs 190.60 per share.
According to the brokerage, GAIL is eyeing a 33 percent hike in the unified tariff to ₹78/mmbtu, driven by a 6 percent reduction in pipeline capacity under the PNGRB framework. While the company expects a 20 percent rise, Jefferies is conservatively estimating a 10 percent increase. The final unified tariff order is likely to be notified in the upcoming PNGRB board meeting.
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Jefferies estimates that a 10–20 percent tariff hike could boost GAIL’s transmission EBITDA by 13–26 percent in FY27 compared to current forecasts. This improvement could also raise GAIL’s Return on Capital Employed (ROCE) to 10–12 percent, up from the present 8 percent, indicating stronger operational efficiency and potential for enhanced shareholder returns.
Looking forward to the company’s financial performance, revenue increased by 11 percent from Rs 32,756 crore in Q4FY24 to Rs 36,442 crore in Q4FY25. Further, during the same time frame, net profit increased by 1.2 percent from Rs 2,474 crore to Rs 2,506 crore.
GAIL has established a strong global presence, with strategic operations and partnerships across key regions. Its footprint spans the USA, Russia, Egypt, China, Myanmar, and Singapore, reflecting GAIL’s commitment to international expansion and securing energy assets across global markets.
Written by Abhishek Singh
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