GAIL (India) Limited Annual Investor and Analyst Meet 2025

On a yearly basis, the consolidated turnover stood at Rs. 1,41,949 crores versus Rs. 1,33,130 crores in the previous financial year, which is an increase of 7%.
The PBT in FY '25 stood at Rs. 16,096 crores versus Rs. 12,595 crores in FY '24, which is an increase of 28%.
And the PAT stood at Rs. 12,450 crores in FY '25 versus Rs. 9,899 crores in FY '24, which is an increase of 26%.
Dividend payout ratio for the Financial Year '24- '25 stands at 43.59%. Now, I would like to shar

In transmission, guidance is 138 million, 148 million, 159 million cubic meter per day in next three years
And with increased transmission volumes supported by the growth in the country, commissioning of the new pipelines, connection of the new plants with the grid, and revision in the tariffs of integrated pipelines, as well as the changes in the regulations which will also give additional support for the isolated networks, this transmission income is the biggest bit.

Volume for FY '25 stood at 127.32 MMS CMD as against 120.46 MMS CMD in previous financial year.
The capacity utilization was approximately 61% in natural gas pipelines.
The increase in transmission volume is attributed to increased domestic consumption.
Expect that gas transmission volume will be approximately 138 to 139 MMSCMD during FY '25-'26.
As already informed, the tariff review for GAILs Integrated network is in progress, which is expected to be implemented in FY '25-'26.

And this is expected to have significant positive impact on GAIL's transmission revenue.

GAIL, along with its joint venture companies and subsidiaries, is authorized to develop city gas distribution networks in 72 geographical areas across the country.

Among these, GAIL directly operates in six geographical areas, namely Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar and Cuttack, which are currently in their early stages of development.
In the Financial Year 24-25, these six GAs have shown impressive growth with volumes increasing by approximately 25%.
Constantly reviewing these CGDs to optimize costs and enhance efficiencies.

In the next two years, GAIL Gas targets to add around 255 new CNG stations and approximately 3.09 lakhs new DPNG connections.

According to a recent report published by PNBRB, the CGD sector is anticipated to be the key driver of growth, with consumption expected to increase 2.5 times to 3.5 times by 2030 and 6 times to 7 times by 2040 from the baseline of approximately 37 MMSCMD in FY '24, reflecting a CAGR of around 15% and 12%, respectively
Further, GAIL Gas Limited, a wholly owned subsidiary of GAIL, which was incorporated in May 2008 for developing city gas distribution business as its focus area, GGL currently owns and operates 16 GAs across India and have nine others as their JVs.
During the current financial year, that is FY '25, GAIL Gas Limited's turnover stood at Rs. 12,231 crores as against Rs. 10,944 crores in FY '24.
PBT increased by 42% and stood at Rs. 615 crores as against Rs. 434 crores in FY '24.
And PAT was up by 40% and stood at Rs. 451 crores as against Rs. 323 crores in FY '24.

Overall production of 827 TMT was achieved in FY '24-'25, which is 102% of the capacity utilization.
In petrochemicals, closed FY '24-'25 almost at breakeven levels despite increased input cost and stress on petrochem prices.
During FY '25-'26, GAIL will continue to take various optimization measures to optimize and improve efficiency in petrochemicals, and run the petrochemical plant at full capacity.
It is expected that GAIL will make reasonable profits in PC segment during FY '25-'26, provided the prices are favorable, both of the input as well as output

In gas marketing, expect to do volume of 108 million, 114 million, that is 113.7 million and 120.3 million.
During the year, CAPEX of Rs. 10,512 crores was incurred

Out of which Rs. 2,200 crores approximately is on pipelines
Approximately Rs. 2,700 crores is on petrochemicals,
Approximately Rs. 3,000 crores is on leasehold assets,
Operational CAPEX is of around Rs. 1,600 crores, and the balance is towards Net Zero, renewables, CGD, E&P, equity contribution, etc.

Largely it will be on petrochemical and pipeline around Rs. 3,000 crores each.
And then net zero, more than Rs. 1,000 crores.
And operational CAPEX incur every year, Rs. 1,500 crores to Rs. 1,600 crores will be around that.
And then city gas distribution and other small like LNG and CBG projects.

Diversified portfolio in terms of price is very helpful to sort of attain the guided numbers on the marketing margin side.
CGD sector is, because of the reach, because of the 307 geographical areas , that PNGRB has authorized, the demand in the country in CGD sector would definitely double or more than double in next seven, eight years.

The current consumption in CGD sector is about 42 million cubic meter per day, and it can easily reach 100 million cubic meter per day because the EV would not affect the market.
And the market is so big, the need for transportation is there, CGD will play its own role, EVs will play its own role.
LNG as a fuel would also, for heavy duty vehicles, would play its own role.
One or two EV push in one or two would not affect the growth of CGD segment in the country

Petrochemical prices are concerned, while do not see very great upside even if the prices are favorable.

At the same time, do not see a very major downside also in petrochemicals, it may largely be range bound.
Does not, in any case, impact largely on the profits, because that is a minuscule component of total game.

Believe market is actually in evolution, and this is the process where used to have three or four importers up to 10 years ago.
Today got about 12 importers who are importing LNG cargoes into the country

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