Largest State-owned Natural Gas Processing and Distribution Company Declares Rs 1 Final Dividend For FY25, Reports Record High EBITDA, PAT, And PBT, With Rs 10,512 Crore Capex in FY25
The stock is up by 26 per cent from its 52-week low of Rs 150.60 per share and has given multibagger returns of over 200 per cent in 5 years.
Shri Sandeep Kumar Gupta, Chairman and Managing Director of GAIL (India) Limited, stated that the company's robust performance in FY25 was driven by improved operational and financial results across all major segments. Despite global economic challenges, GAIL achieved record-breaking results with its highest-ever EBITDA, Profit Before Tax (PBT), and Profit After Tax (PAT). He also informed that the Board of Directors has recommended a final dividend of Rs 1 per equity share (face value Rs 10) for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). This is in addition to the interim dividend of Rs 6.50 per equity share declared earlier. The total dividend payout ratio for FY25 stands at 43.59%. The company incurred a capital expenditure of Rs 10,512 crore during the financial year.
GAIL Gas Limited (GGL), a wholly owned subsidiary of GAIL, was incorporated in May 2008 to focus on the City Gas Distribution (CGD) business. Currently, GGL operates 16 Geographical Areas (GAs) across India. In March 2018, GAIL received authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) to develop CGD networks in six additional GAs—Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneshwar, and Cuttack. To bring operational efficiency, business synergy, and a retail-focused approach, the Board has proposed the transfer of these six GAs from GAIL to GGL, subject to the approval of the Cabinet Committee on Economic Affairs (CCEA).
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For FY25, GAIL (India) Limited reported a standalone revenue from operations of Rs 1,37,288 crore, an increase from Rs 1,30,638 crore in FY24. EBITDA rose to Rs 19,168 crore from Rs 15,583 crore, while PBT grew to Rs 14,825 crore from Rs 11,555 crore. The company recorded a PAT of Rs 11,312 crore in FY25, up from Rs 8,836 crore in FY24. On a quarterly basis, revenue from operations for Q4 FY25 stood at Rs 35,707 crore, slightly higher than Rs 34,958 crore in Q3 FY25. However, EBITDA declined to Rs 3,783 crore from Rs 6,027 crore in the previous quarter. PBT fell to Rs 2,701 crore from Rs 5,029 crore, and PAT stood at Rs 2,049 crore, down from Rs 3,867 crore in Q3.
Operationally, natural gas transmission volumes grew by 6 per cent in FY25 to 127.32 MMSCMD compared to 120.46 MMSCMD in FY24. Gas marketing volumes also increased to 101.49 MMSCMD from 98.45 MMSCMD. Polymer production rose by 6 per cent to 827 TMT, while LHC production declined to 947 TMT from 996 TMT. During Q4 FY25, natural gas transmission volumes decreased to 120.83 MMSCMD from 125.93 MMSCMD in Q3, while gas marketing volumes rose to 106.53 MMSCMD from 103.46 MMSCMD. LHC sales declined to 198 TMT from 282 TMT in the previous quarter, whereas polymer sales increased to 229 TMT from 221 TMT.
On a consolidated basis, GAIL reported revenue from operations of Rs 1,42,291 crore in FY25, up from Rs 1,33,500 crore in FY24. Consolidated EBITDA stood at Rs 20,643 crore compared to Rs 16,986 crore in the previous year. PBT rose to Rs 16,096 crore from Rs 12,595 crore, and PAT (excluding minority interest) increased to Rs 12,450 crore from Rs 9,899 crore. For Q4 FY25, consolidated revenue from operations was Rs 36,551 crore, slightly lower than Rs 36,937 crore in Q3. EBITDA declined to Rs 4,207 crore from Rs 6,381 crore, and PBT fell to Rs 3,240 crore from Rs 5,272 crore. Consolidated PAT (excluding minority interest) dropped to Rs 2,492 crore in Q4 from Rs 4,082 crore in Q3.
GAIL is India’s leading gas transmission & distribution company with extensive gas transmission and distribution pipelines in the country, LPG extraction plants and a gas-based petrochemical plant, besides upstream oil and gas blocks and interests in LNG terminals in India. GAIL also has a global presence and business interests in the USA, Singapore, Myanmar, Russia, China and Egypt. Further, GAIL is pursuing business opportunities in the entire value chain of renewable energy, and other clean energy ventures, including Green Hydrogen and Biofuels.
The company has a market cap of over Rs 1 lakh crore. The stock is up by 26 per cent from its 52-week low of Rs 150.60 per share and has given multibagger returns of over 200 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.