GAIL (India) Ltd.
Energy · NSE
52-week range
₹134 – ₹196
From 52w high
-14.8%
RSI (14)
64.9
vs SMA 50 / 200
↑ 50 · ↑ 200
GAIL (India) Ltd is a PSU natural gas transmission and distribution company trading at ₹166.49, marginally above its 200-DMA (₹165.82), with a trailing PE of 12.77 and a dividend yield of 7.51%. Over the past 5 years, revenue contracted 4.5% and earnings declined approximately 57%, while debt-to-equity has risen to 25.37. The company is investing ₹3,800 crore in 700 MW of solar capacity, signalling a diversification push beyond its core gas pipeline business.
- ✓Dividend yield of 7.51% is materially above typical Energy sector averages, reflecting a high distribution to shareholders relative to current price.
- ✓Trailing PE of 12.77 and forward PE of 10.36 indicate the stock is priced at a discount to the sector median (RELIANCE at 24.05) — placing GAIL among the lower-PE names in its peer group.
- ✓Price is currently above both the 50-DMA (₹155.33) and 200-DMA (₹165.82), representing a recovery from the 52-week drawdown trough; the 3-month change stands at +3.79%.
- ✓News flow of 8 articles with 6 positive and 0 negative, centred on ₹3,800 crore solar investments and a favourable Madras HC tax ruling (₹14.63 crore GST SCN set aside), reflects an absence of near-term negative catalysts in recent coverage.
- ✗Earnings declined approximately 57% over 5 years — the most severe deterioration among tracked metrics — pointing to structural pressure on profitability rather than a one-off earnings event.
- ✗Debt-to-equity of 25.37 with a rising debt trend makes GAIL one of the more leveraged non-banking entities in this peer set; FCF was positive in only 3 of the tracked years, limiting the internal capacity to service or reduce debt organically.
- ✗Quality score of 31 ranks GAIL 4th of 6 peers in the Energy sector, behind COALINDIA (77), ONGC (54), and BPCL (53); the consistency score of 37 and ROE above-15 in only 1 of tracked years underlines sustained return compression.
- ✗Revenue contracted 4.5% over 5 years alongside the earnings decline — indicating that the profitability erosion is not purely a margin story but is accompanied by a shrinking revenue base.
- ·GAIL signed agreements to develop 600–700 MW of solar power projects across Uttar Pradesh and Maharashtra with battery storage, with a total announced capex of ₹3,800 crore — marking a significant step in its energy transition strategy.
- ·The Madras High Court set aside a ₹14.63 crore show-cause notice against GAIL on GST grounds, ruling no liability exists where tax has already been remitted — a favourable legal outcome reported in April 2026.
- ·Despite broadly positive recent news, the stock is down 7.37% over the past 12 months and sits 14.85% below its 52-week high, trading just below a resistance cluster at ₹166.75–167.96 at the current price of ₹166.49.
- ?Does the 57% earnings decline over 5 years reflect temporary commodity-cycle headwinds in gas transmission tariffs, or a structural shift in GAIL's competitive positioning within the energy value chain?
- ?How does GAIL's debt-to-equity of 25.37 compare to its own historical leverage levels, and what is the interest-coverage trajectory given the rising debt trend?
- ?Can the ₹3,800 crore solar capex be funded from operating cash flows given that FCF was positive in only 3 of the tracked years, or does it imply further debt accumulation?
- ?What proportion of GAIL's revenue and margins are regulated (pipeline tariffs) versus market-linked (gas trading, LPG), and how sensitive is the earnings trajectory to gas price volatility?
PE
12.8
Forward PE
10.4
ROE
—
Profit margin
+6.0%
D/E
25.37
Dividend yield
+7.5%
Quality score
31/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
3/5 yrs
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.Analysis generated 10 May 2026.