GAIL shares in focus today as PNGRB revises transmission tariff
Shares of GAIL closed 0.76% lower at Rs 183.80 on Thursday against the previous close of Rs 185.20. Market cap of the firm stood at Rs 1.20 lakh crore.
- Nov 28, 2025,
- Updated Nov 28, 2025 9:01 AM IST
Shares of GAIL are in focus today after the Petroleum and Natural Gas Regulatory Board (PNGRB) issued a long-awaited transmission tariff revision. The new tariff stands at ₹65.7 per Million Metric British Thermal Unit (MMBtu), up 12% from the previous rate of ₹58.6 per MMBtu. This increase falls short of the ₹78 per MMBtu that GAIL had sought.
Shares of GAIL closed 0.76% lower at Rs 183.80 on Thursday against the previous close of Rs 185.20. Market cap of the firm stood at Rs 1.20 lakh crore. Over the last month, the stock has risen by 4%, but it remains 3.7% lower for the year 2025 to date.
Brokerage firm UBS said that the tariff hike has been disappointing, and that the increase in realised tariff could even be lower. The 12% hike in announced tariff does not mean an equal increase in realised tariffs, according to UBS.
According to ICICI Securities, "Our base case estimates were at a 15% increase from financial year 2027, so the 12% increase implies a 2.5% to 4.7% hit to GAIL's Earnings Per Share (EPS) for financial year 2027 and 2028," the brokerage wrote in its note.
ICICI Securities also wrote about the adjustments for actual and future capex and operating exprenditure not being considered in the current tariff revision, stating that the regulator intends to limit the impact on the customer at one go.
ICICI Securities commented, "Therefore, while the impact on FY27 and maybe FY28 may be negative vs street and indeed I-Sec estimates, the window of further revision in the next review in FY28 creates an upside risk for GAIL," the note stated.
However, UBS said that the deferred review of other parameters to FY28, flagging that a true-up of all parameters at this stage would lead to a material increase in tariffs, and can place unexpected financial pressure on customers.
Analysts noted that the next opportunity for a full tariff review, including truing up capital and operating expenditures, has been postponed until 2028 and will take effect from April 2028.
Shares of GAIL are in focus today after the Petroleum and Natural Gas Regulatory Board (PNGRB) issued a long-awaited transmission tariff revision. The new tariff stands at ₹65.7 per Million Metric British Thermal Unit (MMBtu), up 12% from the previous rate of ₹58.6 per MMBtu. This increase falls short of the ₹78 per MMBtu that GAIL had sought.
Shares of GAIL closed 0.76% lower at Rs 183.80 on Thursday against the previous close of Rs 185.20. Market cap of the firm stood at Rs 1.20 lakh crore. Over the last month, the stock has risen by 4%, but it remains 3.7% lower for the year 2025 to date.
Brokerage firm UBS said that the tariff hike has been disappointing, and that the increase in realised tariff could even be lower. The 12% hike in announced tariff does not mean an equal increase in realised tariffs, according to UBS.
According to ICICI Securities, "Our base case estimates were at a 15% increase from financial year 2027, so the 12% increase implies a 2.5% to 4.7% hit to GAIL's Earnings Per Share (EPS) for financial year 2027 and 2028," the brokerage wrote in its note.
ICICI Securities also wrote about the adjustments for actual and future capex and operating exprenditure not being considered in the current tariff revision, stating that the regulator intends to limit the impact on the customer at one go.
ICICI Securities commented, "Therefore, while the impact on FY27 and maybe FY28 may be negative vs street and indeed I-Sec estimates, the window of further revision in the next review in FY28 creates an upside risk for GAIL," the note stated.
However, UBS said that the deferred review of other parameters to FY28, flagging that a true-up of all parameters at this stage would lead to a material increase in tariffs, and can place unexpected financial pressure on customers.
Analysts noted that the next opportunity for a full tariff review, including truing up capital and operating expenditures, has been postponed until 2028 and will take effect from April 2028.