GAIL (India) Ltd.
NSE: GAILGAIL (India) Ltd.: A 30-second snapshot
GAIL (India) Ltd., the state-owned natural gas transmission and marketing company, trades at ₹163.74, just below its 200-day moving average of ₹164.94 and 12.62% lower than a year ago. FY26 full-year net profit fell 38% to ₹6,968 crore on supply-chain disruption, extending a five-year earnings decline of 40.3%. The stock carries a dividend yield of 7.6% and a forward PE of 9.17, while trailing PE stands at 14.20.
P/E
14.2
Forward P/E
9.2
ROE
+8.7%
Debt / Equity
27.81
Profit Margin
+5.4%
Div. Yield
+7.6%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
28/100
News
8 headlines · 0 positive · 5 negative
Earnings Miss: GAIL (India) Limited Missed EPS By 15% And Analysts Are Revising Their Forecasts - simplywall.st
simplywall.st
GAIL India Q4 net profit falls 40.41% to ₹1,485 crore; revenue declines 2.30% - ETEnergyworld.com
ETEnergyworld.com
GAIL net profit declines 38% to Rs 6,968 crore in FY26 amid supply-chain disruption - PSU Watch
PSU Watch
GAIL Q4 results: PAT falls 15% QoQ to Rs 1,485 crore; co declares Rs 0.5 dividend - The Economic Times
The Economic Times
India's GAIL posts quarterly profit fall on pressured gas supply - Reuters
Reuters
Recent context
- ·GAIL reported Q4 FY26 net profit of ₹1,485 crore, a 40.41% YoY decline, and full-year FY26 net profit of ₹6,968 crore, down 38%; management cited gas supply-chain disruption as the primary driver. The board declared a ₹0.5 interim dividend for Q4.
- ·EPS for the most recent quarter missed analyst estimates by 15%, prompting analyst forecast revisions per reported coverage; simplywall.st noted the miss and forecast changes in a May 26 report.
- ·Reuters and ET EnergyWorld attributed the quarterly profit fall to pressured gas supply margins; the news flow of 5 negative to 0 positive articles over the review period reflects the earnings miss as the dominant recent narrative.
Strengths
- +Dividend yield of 7.6% is among the highest in the Energy sector peer group, reflecting GAIL's policy of distributing earnings to shareholders even through a period of profit decline.
- +Forward PE of 9.17 versus trailing PE of 14.20 indicates the market prices in an earnings improvement from current depressed levels; the 35% compression in implied multiple reflects changed earnings expectations.
- +Mean analyst rating of 1.71 across 31 analysts (1–5 scale, lower = more constructive) represents one of the more constructive consensus readings among NSE large-caps covered.
- +Trading above the 50-DMA (₹157.02) with RSI at 52.46 (neutral zone) indicates no extreme near-term momentum readings; nearest support levels are ₹161.31, ₹157.01, and ₹153.03.
Weaknesses
- −5-year earnings growth of -40.3% and a Q4 FY26 net profit decline of 40.41% YoY to ₹1,485 crore reflect sustained fundamental deterioration that has extended through the most recent reporting period.
- −Debt-to-equity of 27.81 with a rising debt trend, set against a profit margin of 5.36% and FCF positive in only 3 of tracked years, presents a strained balance sheet relative to earnings generation.
- −Quality score of 19 ranks last among 6 Energy sector peers; ROE of 8.69% is the weakest in the peer group and has not crossed 15% in any tracked year, with a consistency score of 8 out of a possible higher range.
- −Price is 12.62% lower over 12 months and 16.26% below the 52-week high; the stock has not reclaimed the 200-DMA and all 5 recent news items with a sentiment classification are negative, centered on earnings misses and supply disruption.
Open questions
- ?Does the 38% decline in FY26 net profit represent a cyclical trough tied to identifiable supply-chain disruptions, or does it reflect a structural shift in GAIL's gas transmission and marketing economics?
- ?How does GAIL's D/E of 27.81 on a rising trend compare to the balance sheet structure of Indian PSU utilities with similar government backing, and what refinancing obligations fall within the next two years?
- ?Given that FCF was positive in only 3 of tracked years, what is the cash-flow basis for sustaining a 7.6% dividend yield through a period of declining profits?
- ?The forward PE of 9.17 embeds an earnings recovery assumption relative to trailing PE of 14.20 — what specific volume, tariff, or margin catalysts would need to materialise for that implied recovery to occur?
Peer comparison: Energy
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GAIL | GAIL (India) Ltd.You're viewing | 14.2 | +8.7% | 19 |
| Industry avg | across 5 peers | 9.8 | +19.9% | 53 |
| COALINDIA | Coal India Ltd. | 9.4 | +28.1% | 77 |
| BPCL | Bharat Petroleum Corporation Ltd. | 4.9 | +28.5% | 55 |
| ONGC | Oil & Natural Gas Corporation Ltd. | 8.0 | +12.7% | 53 |
| IOC | Indian Oil Corporation Ltd. | 4.5 | +21.0% | 49 |
| RELIANCE | Reliance Industries Ltd. | 22.1 | +9.1% | 32 |
Technical state
Current price
₹163.74
SMA 50
₹157.02
SMA 200
₹164.94
RSI (14)
52.5 (neutral)
From 52w high
-16.3%
1Y return
-12.6%
3M return
-3.7%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -40.3% and revenue contraction of -2.4% over the same period reflect sustained multi-year deterioration in both top-line and bottom-line; Q4 FY26 net profit fell 40.41% YoY to ₹1,485 crore and full-year FY26 net profit declined 38% to ₹6,968 crore.
- highDebt-to-equity ratio of 27.81 with a rising debt trend in persistence data; in a PSU gas-utility context this amplifies refinancing and interest-coverage risk, particularly against a profit margin of only 5.36%.
- mediumQuality score of 19 ranks GAIL last (6 of 6) among Energy sector peers; COALINDIA leads at 77, BPCL at 55, ONGC at 53, IOC at 49, RELIANCE at 32 — GAIL sits materially below all peers on this composite metric.
- mediumROE of 8.69% is the weakest in the peer group (COALINDIA 28.12%, BPCL 28.47%, IOC 20.97%, ONGC 12.7%) and has never exceeded 15% in any tracked year; FCF was positive in only 3 of tracked years with a consistency score of 8.
- mediumPrice (₹163.74) is 0.7% below the 200-DMA (₹164.94) and down 12.62% over 12 months; down 16.26% from the 52-week high with nearest resistance cluster at ₹166.75–₹167.96.
- mediumAll 5 negative headlines in the past two weeks relate to earnings misses and supply-chain disruption; EPS missed analyst estimates by 15% in the most recent quarter according to reported coverage.
Cross-section contradictions
- Forward PE of 9.17 is sharply lower than trailing PE of 14.20, implying the market prices in a significant earnings recovery — but 5-year earnings growth is -40.3% and the most recent quarter saw a 40.41% YoY profit decline, making the implied recovery trajectory difficult to reconcile with recent results.
- Dividend yield of 7.6% suggests meaningful income support, yet FCF was positive in only 3 of tracked years and debt is on a rising trend — the yield level warrants scrutiny against actual cash generation capacity.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days