State-run GAIL (India) on Thursday reported a 41 per cent Y-o-Y decline in its consolidated net profit at around ₹1,481 crore in Q4 FY26 on account of loss of LNG supplies due to the conflict in West Asia.
On a sequential basis, net profit of the country’s largest gas utility fell by 14 per cent.
GAIL’s consolidated total income during the March quarter in FY26 stood at around ₹36,497 crore compared to ₹35,641 crore in Q3 FY26 and ₹36,944 crore in Q4 FY25.
Total expenses on a consolidated basis were higher at ₹34,989 crore in Q4 FY26, compared to ₹33,822 crore in Q3 FY26 and ₹33,983 crore in Q4 FY25.
Final dividend
The board of directors has recommended a final dividend of ₹0.50 per equity share for FY26, subject to shareholder approval. This is in addition to the interim dividend of ₹5 per share, taking the total dividend payout ratio for the year to 51.90 per cent.
On the West Asia situation, GAIL in its results filing with BSE said “During March 2026, LNG supplies from the Middle East were disrupted due to the geopolitical situation in West Asia. Further, force majeure declared by Petronet LNG (PLL) on March 3, 2026, RLNG allocation to the Company under the contract was reduced to zero from 4 March 2026, and four LNG cargoes under other contracts were also impacted.”
This affected the company’s operation including decline in natural gas sales and transmission volumes by around 21 million standard cubic meters per day (MSCMD) and 30 MSCMD, respectively, during March 2026 as compared to February 2026, the Maharatna company added.
Mitigation measures
The company has taken various mitigation measures including procurement of LNG from the spot market and alternative sourcing to manage the impact and ensure supply to priority sectors in line with the government’s Natural Gas (Supply Regulation) Order of March 9, 2026.
“Further, the said geopolitical situation has also impacted the LPG pipeline transmission in the month of March 2026 by 39,000 tonnes as compared to February 2026,” GAIL said.
Deepak Gupta, Chairman & Managing Director of GAIL (India), said, “The year was marked by a challenging and complex global backdrop, beginning with the ongoing Russia-Ukraine conflict and evolving geopolitical developments including the onset of the West Asian crisis towards the later part of the year. Despite these headwinds, supported by timely policy interventions by the government, GAIL delivered a resilient operational and financial performance.”
Focus areas
GAIL remained focused on ensuring operational continuity, cost discipline, and supply reliability, enabling the company to effectively navigate a volatile market environment. During the year, it added around 2,000 km of pipeline network and achieved the highest-ever LPG transmission of 4.6 million tonnes per annum (MTPA). It is also doubling the capacity of Jamnagar-Loni LPG pipeline to 6.5 MTPA, he added.
Gupta highlighted that the Board has accorded investment approval for key renewable energy projects, including around 700 megawatt (MW) of solar and roughly 178 MW of wind capacity, six compressed biogas plants with total capacity of around 95 tonnes per day.