GAIL shares tumble 7% after PNGRB approves lower-than-expected tariff; details here
According to Nuvama Institutional Equities, GAIL's Q2 FY26 EBITDA fell 15 per cent year-on-year (YoY) to Rs 3,200 crore, though it was 5 per cent above consensus and 3 per cent ahead of its own estimate, aided by better marketing margins and a 2 per cent rise in blended tariff.
- Nov 28, 2025,
- Updated Nov 28, 2025 10:50 AM IST
GAIL (India) Ltd shares fell sharply in early trade on Friday, dropping 6.53 per cent to a low of Rs 171.80 after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved the company's integrated pipeline tariff at a level below market expectations. PNGRB set the tariff at Rs 65.69 per mmbtu, lower than GAIL's proposed Rs 77.98 per mmbtu. Street estimates were in the range of Rs 67–70 per mmbtu.
The regulator stated that the tariff revision reflects higher System Usage Gas–related costs but does not factor in any potential increase in capital expenditure.
According to Nuvama Institutional Equities, GAIL's Q2 FY26 EBITDA fell 15 per cent year-on-year (YoY) to Rs 3,200 crore, though it was 5 per cent above consensus and 3 per cent ahead of its own estimate, aided by better marketing margins and a 2 per cent rise in blended tariff.
The natural gas marketing segment posted a 3 per cent YoY increase in EBITDA to Rs 1,500 crore, supported by 9 per cent volume growth, even as EBITDA per scm dropped 6 per cent.
The petrochemicals business moved into the red due to a 6 per cent fall in production and weak product spreads, with Nuvama expecting similar margin pressure in the second half of FY26. Natural gas transmission volumes also declined 5 per cent YoY, leading the brokerage to cut its FY26–27 volume guidance by 1–4 per cent.
Nuvama has reduced its FY26 and FY27 EBITDA estimates for GAIL by 7 per cent each and revised its target price to Rs 162 while maintaining a 'Reduce' rating.
GAIL (India) Ltd shares fell sharply in early trade on Friday, dropping 6.53 per cent to a low of Rs 171.80 after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved the company's integrated pipeline tariff at a level below market expectations. PNGRB set the tariff at Rs 65.69 per mmbtu, lower than GAIL's proposed Rs 77.98 per mmbtu. Street estimates were in the range of Rs 67–70 per mmbtu.
The regulator stated that the tariff revision reflects higher System Usage Gas–related costs but does not factor in any potential increase in capital expenditure.
According to Nuvama Institutional Equities, GAIL's Q2 FY26 EBITDA fell 15 per cent year-on-year (YoY) to Rs 3,200 crore, though it was 5 per cent above consensus and 3 per cent ahead of its own estimate, aided by better marketing margins and a 2 per cent rise in blended tariff.
The natural gas marketing segment posted a 3 per cent YoY increase in EBITDA to Rs 1,500 crore, supported by 9 per cent volume growth, even as EBITDA per scm dropped 6 per cent.
The petrochemicals business moved into the red due to a 6 per cent fall in production and weak product spreads, with Nuvama expecting similar margin pressure in the second half of FY26. Natural gas transmission volumes also declined 5 per cent YoY, leading the brokerage to cut its FY26–27 volume guidance by 1–4 per cent.
Nuvama has reduced its FY26 and FY27 EBITDA estimates for GAIL by 7 per cent each and revised its target price to Rs 162 while maintaining a 'Reduce' rating.