GAIL margin rebounds to 17.23% after three-quarter slide
Revenue grew +16.67% YoY while expenses rose +7.77%; management said Q1 capex was Rs 6,176 cr against an FY27 plan of Rs 11,500 cr.
Filed 31 Jul 2026, 14:13 IST · GAIL (India) Ltd (GAIL)
Key takeaways
- Consolidated operating margin rose 6.84 percentage points YoY to 17.23%, as expenses grew +7.77% against revenue growth of +16.67%.
- Consolidated net profit increased +96.08% YoY even as the tax rate rose 4.12 percentage points and interest cost increased +49.80%.
- Q1FY27 operating margin was 2.33 percentage points above the 14.9% median for 10 reported Energy peers.
Price around the results
Operating rebound from Q4FY26
GAIL’s consolidated operating performance improved sharply in Q1FY27, with revenue up +16.67% YoY and operating profit up +93.47%. Sequentially, revenue increased +15.80% while expenses declined -0.07%, lifting operating margin by 13.14 percentage points from Q4FY26. Net profit consequently rose +96.08% YoY and +215.30% QoQ.
Lower cost growth supported margins
Year-on-year expense growth of +7.77% was below revenue growth of +16.67%, which expanded operating margin by 6.84 percentage points. Other income declined -16.01% YoY and represented 7.58% of profit before tax, so it was not the main source of the earnings increase. Higher interest cost, up +49.80% YoY, and a 4.12-percentage-point rise in the tax rate partly reduced the operating gain at the net-profit level.
Margin trend turns after three quarterly declines
Operating margin had fallen for three consecutive quarters from 10.39% in Q1FY26 to 4.09% in Q4FY26 before recovering to 17.23% in Q1FY27. The latest margin was 2.33 percentage points above the 14.9% median among 10 Energy-sector peers that had reported. This places the quarter materially ahead of the recent internal trend as well as the peer midpoint.
Q1 capex reached Rs 6,176 cr
The company’s presentation reported capital expenditure of Rs 6,176 cr in Q1FY27. Management said it had planned approximately Rs 11,500 cr of capital expenditure for FY2026-27. The reported spending therefore gives investors a disclosed base for tracking progress against that company plan.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹41,198 cr | ₹35,577 cr | +15.80% | +16.67% |
| Other income | ₹475 cr | ₹1,250 cr | -61.97% | -16.01% |
| Expenses | ₹34,100 cr | ₹34,123 cr | -0.07% | +7.77% |
| Operating profit | ₹7,098 cr | ₹1,453 cr | +388.37% | +93.47% |
| Operating margin (%) | 17.23% | 4.09% | — | — |
| Interest | ₹319 cr | ₹263 cr | +21.25% | +49.80% |
| Depreciation | ₹987 cr | ₹474 cr | +108.32% | -0.62% |
| Profit before tax | ₹6,268 cr | ₹1,966 cr | +218.74% | +106.93% |
| Tax | ₹1,597 cr | ₹485 cr | +229.25% | +146.92% |
| Net profit | ₹4,671 cr | ₹1,481 cr | +215.30% | +96.08% |
| EPS (₹) | ₹7.10 | ₹2.26 | +214.16% | +97.22% |
Operating margin of 17.23% compares with a Energy sector median of 14.90% across 10 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company planned capital expenditure of approximately Rs. 11,500 crore for FY2026-27.
Expansion
- Capital expenditure totalled Rs. 6,176 crore in Q1 FY2026-27.
What to watch
- Whether operating margin remains above 17.23% after the three-quarter decline through Q4FY26.
- Whether interest-cost growth moderates from +49.80% YoY.
- Capital expenditure reported next quarter against management’s FY2026-27 plan of Rs 11,500 cr, following Rs 6,176 cr in Q1FY27.