India's GAIL reports 93% jump in profit in April-June

Indian state-owned gas company GAIL on July 30 reported a 93% year/year increase in standalone net profit for the April-June quarter (Q1FY2025), driven primarily by increased gas transmission volumes, domestic gas marketing volume, and marketing margins.

The company booked a net profit of 27.24bn rupees ($330mn) in Q1, up from 14.12bn rupees in the same quarter last year. GAIL reported revenue of 336.92bn rupees, an increase of 4.5% year/year. On a quarter/quarter basis, revenue was higher by 4.2% while net profit rose by 25%.

Sandeep Kumar Gupta, managing director of GAIL, stated that the company incurred a capital expenditure of about 16.59bn rupees during the quarter, which is about 21% of the annual target of 80.44bn rupees.

GAIL is one of India’s largest natural gas companies, with integrated operations across the value chain, including exploration and production, processing, transmission, distribution, marketing, petrochemicals, LNG trading and shipping, city gas distribution, and related services.

In January, GAIL inked a 10-year agreement with Adnoc Gas, a unit of the UAE's Adnoc, to purchase 0.5mn tonnes/year of LNG. GAIL recently unveiled India's first small-scale LNG unit at Vijaipur in Madhya Pradesh. The company has also advanced its net zero carbon target for scope-1 and scope-2 emissions to 2035 from the earlier target of 2040.