Whereas GAIL (India) Ltd.’s internet standalone revenue fell within the quarter ended March as a consequence of a high-base impact, brokerages stay upbeat on the state-owned vitality company, as earnings confirmed resilience regardless of world fuel value volatility.
Morgan Stanley holds an ‘chubby’ name on the corporate, with Citi and Investec reiterating their ‘purchase’ suggestions. GAIL’s core earnings had been consistent with the bullish estimate and beat road consensus, mentioned Morgan Stanley in its newest observe, with Investec and Citi echoing the sentiment.
GAIL stands to learn from the export of US shale fuel and India’s deeper fuel penetration, in accordance with Morgan Stanley. Regardless of solely a 2% annual dip in fourth-quarter volumes, GAIL managed to climate excessive world costs, it added.
The agency forecasts a ten% upside to road fiscal 2026 estimates, pushed by new LNG sourcing contracts, tailwinds from regulatory reforms, and enlargement in petrochemical investments as fuel prices fall.
Investec famous a robust Ebit beat of Rs 2,880 crore, marking 18% above its estimate, largely led by fuel advertising and LPG segments. Revenue after tax for the fiscal jumped 29% yearly, bolstered by a one-off settlement. Even excluding this, adjusted revenue after tax was up 8% on an annual foundation at Rs 9,500 crore, they famous.
Petchem Ebit remained weak, harm by low plant utilisation and subdued pricing, added the brokerage.
In the meantime, Citi sees a compelling narrative forming round India’s rising LNG imports and GAIL’s push to lock in low-cost US LNG contracts. The worst of Ebit volatility could also be behind, with the present fiscal trying structurally stronger thanks to raised volumes, petchem restoration, and incremental LNG pipeline investments, it mentioned.
GAIL This fall FY25 Highlights (Standalone, QoQ)
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Income up 2% to Rs 35,685 crore versus Rs 34,937 crore (Bloomberg estimate: Rs 35,747 crore).
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Ebitda up 13.3% to Rs 3,216 crore versus Rs 2,838 crore (Bloomberg estimate: Rs 3,052.0 crore).
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Margin expands to 9% versus 8.1% (Bloomberg estimate: 8.5%).
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Web revenue down 47% to Rs 2,049 crore versus Rs 3,867 crore (Bloomberg estimate: Rs 2,035 crore).
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