GAIL shares rise 3% on reports of PNGRB likely to hike pipeline tariffs soon

Shares of GAIL moved higher on Thursday after reports suggested the Petroleum and Natural Gas Regulatory Board (PNGRB) is expediting a decision on pipeline tariff revisions.

Citing sources, CNBC-TV18 reported that an official announcement could arrive within days, lifting market expectations.

The report further stated that analysts expect pipeline tariffs to rise by 10–20%, which could boost GAIL’s earnings from its gas transmission business in the coming years. In July, a PNGRB official had also indicated a potential 20% hike.

At present, natural gas major’s pipelines carry a tariff of ₹58.59 per million British thermal units (mmBtu). Market participants view a revision toward the ₹70/mmBtu level as the most probable outcome.

The news portal also reported that a tariff hike has been widely anticipated and is expected to provide crucial earnings support for GAIL as it navigates volatility in its trading and petrochemical businesses.

Regulators have not revised tariffs for this regulated segment since 2018, despite GAIL’s expanding pipeline network and rising capital expenditures.

Shares of GAIL (India) settled 2.96% higher at ₹179.05 apiece on the National Stock Exchange (NSE). Over the last five days, shares rose nearly 2.58%. Shares of GAIL (India) have advanced 3.49% on a monthly basis, and the scrip has zoomed 14.20% over the last six months.

The stock touched its 52-week high of ₹245 on September 30, 2024, and its 52-week low of ₹150.52 on March 4, 2025. The current market capitalisation of the company stands at ₹117,727.16 crore.

GAIL (India) had reported a net profit of ₹2,382 crore for the first quarter of the current fiscal year (Q1 FY26), down 25% from ₹3,183 crore posted in the year-ago period. The company's revenue was slightly up by 2% at ₹35,429 crore during the reporting quarter, as against ₹34,822 crore in Q1 FY25.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) were at ₹3,669 crore in the June quarter, down 23.4% as compared to ₹4,790 crore. The margin was seen at 10.4% in Q1 FY26 against 14% a year ago.

The company incurred a capital expenditure of approximately ₹3,176 crore during the reporting quarter, mainly on pipelines, petrochemicals and equity contribution to joint ventures, said GAIL's Chairman & Managing Director Shri Sandeep Kumar Gupta.