GAIL shares slip 2% on weaker-than-expected Q4: Should you buy, sell, hold?

Motilal Oswal reiterated “buy” rating on GAIL

GAIL (India) shares slipped up to 2 percent to Rs 182 per share on May 15 after the company reported weak March quarter performance (Q4FY25).

GAIL (India) reported standalone net profit of Rs 2,049 crore in the March quarter, a 5.87 percent decline from the year-ago period. The gas distributor had reported a net profit of Rs 2,177 crore last year. Revenue from operations came in at Rs 35,707 crore, up 10.4 percent year-on-year  (YoY) from Rs 32,334 crore in the last year.

The gas distributor reported an EBITDA of Rs 3,215 crore for the quarter ended March, up 13 percent on a YoY basis. Meanwhile, its EBITDA margins expanded to 9 percent to Q4FY25 from 8.8 percent in the year-ago period.

Transmission volume fell to 121 Million Metric Standard Cubic Meter Per Day (mmscmd) in Q4FY25 from 126 mmscmd YoY in Q3FY25.

Brokerages largely remain bullish on the counter as they believe the worst of EBIT volatility could be behind from here on and the next fiscal year would be marked by better volumes.

Motilal Oswal reiterated 'buy' rating on GAIL and shared a target price of Rs 212. The brokerage estimates an 11 percent CAGR in PAT and also expect RoE to improve to ~13.8 percent in FY26

Prabhudas Lilladher Capital downgraded GAIL to ‘Hold’ from ‘Accumulate’ with a target price of Rs 191. The brokerage firm values the company at 11 times its adjusted standalone EPS of FY27.

On the other hand, Emkay Global retained ‘Buy’rating with unchanged target price of Rs 220. They, however, slash FY26-27E EPS by 3-5 percent.

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