GAIL Q2 Results: Profit zooms 139% YoY to Rs 4,720 crore, revenue rises 33%; board approves GAIL Gas IPO

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).

GAIL Gas IPO: Board approves listing plan

In a regulatory filing, GAIL said its board, at a meeting held on October 30, 2026, accorded in-principle approval for listing the shares of GAIL Gas Ltd on Indian stock exchanges through the IPO route.

The proposed public offering will involve dilution of up to 25% of GAIL's equity stake in GAIL Gas, which is currently a wholly owned subsidiary of the company.

GAIL said GAIL Gas will submit its final proposal based on recommendations from the book-running lead managers (BRLMs), covering valuation, price band, transaction structure and other terms and conditions.

Following this, GAIL's board will consider and approve the final extent of dilution, IPO structure and other terms and conditions. The company said the details will be communicated to the stock exchanges accordingly.

GAIL to transfer six CGD geographical areas to subsidiary

Separately, the GAIL board approved the transfer of six city gas distribution (CGD) geographical areas currently held by GAIL to its wholly owned subsidiary, GAIL Gas Ltd.

The six geographical areas identified for transfer are Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Khordha.

The transfer will be undertaken through a slump sale under a Business Transfer Agreement on a going-concern basis. The effective date of the transfer has been set as January 1, 2027.

Shares of GAIL were trading at Rs 168.25 apiece on the National Stock Exchange (NSE) at 3:20 pm on Friday, up 1.89% from the previous closing price of Rs 165.17.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here