GAIL (India) said its board of directors has approved the public listing of its city gas distribution (CGD) arm, GAIL Gas, with the State-run utility to dilute 25 per cent stake via an Initial Public Offering (IPO).
Besides, the country’s largest gas utility reported a more than doubling of its consolidated net profit on an annual basis at around ₹4,724 crore in Q2 FY27 aided by growth in natural gas marketing business.
“GAIL board, in its meeting held today accorded in-principle approval for listing of shares of GAIL Gas, (a wholly owned subsidiary of GAIL) (GGL) on the Indian stock exchanges through IPO route by diluting GAIL’s equity in GGL up to 25 per cent,” GAIL said in a BSE filing.
After GGL submits the final proposal based on Book Running Lead Manager (BRLM) recommendations on valuation, price band, modality and other terms and conditions, approval of GAIL board for the final extent of dilution, modality & other terms & condition of IPO will be obtained, it added.
The IPO is expected to be launched in FY28. GGL is implementing CGD projects in 16 Geographical Areas (GA). Besides, it is pursuing CGD business in Andhra Pradesh, Rajasthan, Vadodara (Gujarat), Haridwar (Uttarakhand), North Goa and Assam through its joint ventures.
Profits surge
GAIL’s consolidated net profit surged to around ₹4,724 crore in Q2 FY27, compared to ₹1,989 crore a year-ago. In Q1 FY27, it reported a profit of ₹4,671 crore.
The company’s consolidated total income rose to around ₹47,474 crore in Q2 FY27, compared to ₹41,483 crore in Q1 FY27 and ₹35,894 crore in Q2 FY26. Total expenses also rose to ₹41,645 crore in Q2 FY27 from ₹35,558 crore in Q1 FY27 and ₹33,608 crore in Q2 FY26.
GAIL said the quarter reflected resilience in transmission and natural gas marketing performance. Despite geopolitical headwinds, the company saw robust volumes across all major segments.
Deepak Gupta, CMD of GAIL (India), said “Throughout this challenging period, our teams have demonstrated remarkable resilience and agility, ensuring that operations continue seamlessly despite the prevailing headwinds. Our foremost priority has remained meeting customer requirements and ensuring uninterrupted supplies. At the same time, the company has maintained its focus on enhancing operational efficiency, strengthening business resilience and creating sustainable long-term value for all stakeholders.”
The company’s natural gas transmission volume during Q2 FY27 stood at 130.10 million standard cubic meters per day (mscmd ) compared to 122.36 mscmd a year-ago. Gas marketing volume rose to 97.23 mscmd from 93.82 mscmd during the same period. The LPG transmission volume stood at 1,130 thousand tonnes (TT) against 1,077 TT.
The company recorded cumulative capex of ₹7,600 crore in H1 FY27, which includes ₹1,425 crore incurred in Q2 FY27 against the annual planned capex of around ₹12,900 crore.
In its results filing on BSE, GAI said that from March 2026 LNG supplies from Middle East have been disrupted due to the geopolitical situation in West Asia. Due to force majeure declared by Petronet LNG (PLL) on March 3, 2026, RLNG allocation to the company under the contract was reduced to zero with effect from March 4, 2026 and is continuing. However, based on LNG supplies from its upstream supplier, around 190 million standard cubic meters (MSCM) RLNG has been supplied by PLL during the half year ended September 30, 2026.
The company has also taken various mitigation measures, including procurement of LNG/natural gas from the spot market and alternative sources, to manage and minimise the impact, it added.
Published on October 30, 2026
