Maharatna stock in focus after PNGRB approves capacity expansion of its gas pipeline network

The shares of this Petroleum and Natural Gas company gained up to 1 percent after the Petroleum and Natural Gas Regulatory Board approved an increase in the capacity of the pipeline. 

Price Movement 

With a market capitalization of Rs 1.14 lakh crore, the shares of Gail (India) Ltd closed at Rs 174.10 per share, decreased around 2.06 percent as compared to the previous closing price of Rs 177.55 apiece. 

Matter Explanation 

According to the company filing, Gail (India) Ltd received the Petroleum and Natural Gas Regulatory Board’s (PNGRB) approval for the capacity augmentation of its Dahej-Uran-Dabhol-Panvel Natural Gas Pipeline (DUPL-DPPL) network. 

Moreover, GAIL’s approval to expand pipeline capacity from 19.9 to 22.5 MMSCMD will boost natural gas transportation, driving business growth. The increased capacity enhances supply efficiency, supporting higher demand and strengthening GAIL’s market position in the energy sector. 

Financial condition 

Analyzing the company’s financial performance, revenue jumped by 6 percent from Rs 34,698 crore in Q3FY24 to Rs 36,835 crore in Q3FY25, during the same time, net profit increased by 27 percent from Rs 3,193 crore to Rs 4,084 crore. 

Operational Highlights 

In Q3 FY25, gas marketing volume rose to 103.46 MMSCMD from 96.60 MMSCMD in Q2, while LNG imports reached 37 cargoes, totaling 107 in nine months. Natural gas transmission fell 4% to 125.93 MMSCMD due to lower power sector demand. Polymer output hit 216 TMT (106% capacity), and LHC rose to 283 TMT. 

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Project Updates 

The company’s Major pipeline projects like Mumbai-Nagpur-Jharsuguda and Jagdishpur-Haldia-Bokaro-Dhamra are set for completion in FY25- 26. Petrochemical projects, including 60 KTA Polypropylene at Pata and 500 KTA at Usar, are expected to be commissioned in the next financial year, boosting industrial capacity and infrastructure. 

Future Projections 

GAIL expects gas transmission volumes to grow by 10 MMSCMD annually over the next 2-3 years. Management remains optimistic about achieving growth targets despite challenges, citing a strong pipeline of projects and strategic initiatives to boost operational efficiency and sustain long-term expansion.

Company profile 

GAIL (India) Limited is an India-based natural gas processing and distribution company. The Company’s segments include Transmission Services, Natural Gas Marketing, Petrochemicals, LPG And Liquid Hydrocarbons and Other segment. Its Transmission Services segment includes natural gas and liquid petroleum gas (LPG). 

Written by Abhishek Singh

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