Thank you, Palak. Welcome, everyone, to the Q3 FY26 conference call of GAIL India.

We have with us members of the senior management headed of course by Shri Rakesh Kumar Jain, the Director (Finance) of the company, and other senior executives in his team. Without further ado, I'll hand it over to him for opening remarks, post which we'll have a detailed Q&A.

Sir, over to you.

Thank you, Probal, and good morning everyone and a very warm welcome to our quarter three financial year '26 earnings conference call. Here with me, I am joined by my senior colleagues from various sections and departments of GAIL (India) Limited.

The quarter under review has been marked by continuous volatility in global energy markets due to uncertain weather conditions and evolving geopolitical dynamics, which has kept the HH and spot prices on higher side. Despite the adversities, GAIL's natural gas transmission volume has shown a recovery as compared to earlier quarters marked by elevated consumption by fertilizer, refinery, and CGD sectors.

In addition, GAIL has been able to seize the first-mover advantage in preceding 9 months by securing additional tie-ups with CGD customers, which has resulted in new tie-ups of approximately 2 MMSCMD. I find it worth mentioning that during calendar year 2025, more than 15,000 capacity transactions have been booked through GAIL's open pipeline access portal, which is encouraging for us to continue to build and invest in the natural gas infrastructure of the country.

Let me begin with business updates for the quarter. As you are aware that PNGRB has issued an interim revision of natural gas pipeline tariff for GAIL's integrated natural gas pipeline network from ₹58.61 to ₹65.69 per MMBtu, and this is effective from 1st January 2026.

This represents an increase of approximately 12.1%, leading to positive impact of approximately ₹1,200 crore per annum. GAIL has filed a review petition, that is post announcement of tariff.

We reviewed the tariff and we filed a review petition on 26th December 2025, seeking an increase of ₹15 per MMBtu to the interim revision. We submitted approximately ₹78.

We got ₹65.69. Effectively there was approximately ₹12 reduction, but when we filed the review petition, it became ₹15 on same principles.

Because, as that the tariff is worked out on discounted cash flow methodology. Any delay in tariff approvals also results in increase in tariff ability of GAIL.

GAIL has ability to get more. Therefore, the ₹12 has become ₹15, and we filed a review petition for increase of ₹15 per MMBtu to the interim tariff revision.

Through this petition, GAIL expect truing up of the factors like OPEX, CAPEX, transmission loss, revenue sharing in terms of the regulatory provisions, which have not been considered in the interim tariff order. With effect from October 1st, 2025, GAIL has implemented state-wise CST procurement of domestic gas from ONGC Gujarat to enhance tax efficiency for CGD customers.

GAIL is continuously looking for tax optimization, how can we do it for various sections or various customers so that we have ability to give competitive prices. GAIL has been offered to set up two fertilizer plants along the MNJPL corridor.

We seek to go into fertilizer sector, these plants will also act as an anchor load for MNJPL. The envisaged investment for these two plants is ₹21,000 crore.

The said proposal is having an in-principle approval of board, and the proposal is under evaluation stage now. GAIL Global IFSC Limited, which is GAIL's wholly-owned subsidiary, has successfully commenced operations within the first year of its operation by extending an inter-corporate loan of ₹290 crore to Bengal Gas Company Limited.

GAIL sees renewable energy as a strategic growth opportunity and is undertaking a significant expansion of existing clean energy portfolio of 145 MW we have, that is 118 MW of wind and 27 MW of solar. Several large projects are currently in various stages of development, are under progress, including 170 MW wind project in Maharashtra, solar project of 100 MW and 600 MW in Uttar Pradesh, and approximate 30 MW 35 MW captive use solar plants across various GAIL locations.

Compressed biogas continues to be a strategic pillar of our clean energy portfolio. Following the successful commissioning of 5 tonnes per day CBG plant at Ranchi, the board has approved investment for establishing six CBG plants.

These projects are part of GAIL's commitment to establish around 25-30 CBG plants across India, for which the company is proactively engaging with multiple state governments to secure land. These initiatives reflect our strong commitments to strengthen India's energy security while accelerating the transition towards sustainable and clean energy solutions and enhancing long-term value creation.

GAIL's retail LNG business continues to progress steadily with a plan to establish 29 LNG stations. Development of LNG stations at five locations is presently underway.

Further, GAIL CGD entities have already commissioned 13 LNG or LCNG stations, making early steps towards building a cleaner long-haul transportation ecosystem in the country. As this is one of the major consuming sector and upcoming major in LNG consuming sector.

I feel happy to inform our investors that the company has declared an interim dividend @ 50% of face value for the financial year 2025-26, that is ₹5 per share. GAIL's results for the quarter ended 31st December 2025 have been declared on last Saturday.

I will briefly touch upon the major highlights for this quarter. Thereafter, we may open the session for queries.

GAIL's turnover stood at ₹34,030 crore in Q3 financial year '26 as against ₹34,972 crore in quarter two financial year '26. Profit before tax in quarter three financial year '26 stood at ₹2,030 crore as against ₹2,823 crore in Q2 financial year '26.

The profit after tax during the quarter stood at ₹1,603 crore as against ₹2,217 crore in Q2 financial year '26. Quarter three versus quarter three, that is quarter three financial year '26 versus quarter three financial year '25.

On comparative quarter basis, GAIL achieved turnover of ₹34,030 crore as against ₹34,907 crore in corresponding period of last year. PBT stood at ₹2,030 crore as against ₹5,029 crore, and PAT stood at ₹1,603 crore as against ₹3,867 crore.

As this is mainly because of an exceptional income we got last year quarter three, that is ₹2,440 crore, which was recorded by the company on account of arbitration settlement with SMTS. Now I will touch upon the physical performance during the quarter vis-a-vis previous quarter.

Gas marketing volume during the quarter stood at 103.98 MMSCMD as against 105.49 MMSCMD in Q2 financial year '26. Natural gas transmission volume improved to 125.45 MMSCMD in quarter three financial year '26 as against 123.59 MMSCMD in quarter two financial year '26.

The average capacity utilization was 56%. Polymer production was almost flat at 219 TMT in Q3 financial year '26, which stood at 220 TMT in previous quarter.

LHC production stood at 199 TMT as against 221 TMT in previous quarter. LPG transmission was 1,188 TMT as against 1,167 TMT in previous quarter.

The capacity utilization was 103% during the quarter. Now let me take you through the consolidated financials of Q3 financial year '26 versus Q2 financial year '26.

The consolidated turnover in Q3 financial year '26 stood at ₹35,253 crore as against ₹35,594 crore in Q2 financial year '26. The PBT in quarter three financial year '26 stood at ₹2,165 crore as against ₹2,565 crore in Q2 financial '26.

The profit after tax in Q3 financial year '26 stood at ₹1,756 crore versus ₹1,972 crore in Q2 financial year '26. As GAIL also is directly dealing with six CGDs.

Just to take you through the performance of those six CGDs. GAIL has six direct authorization of six GAs and has an infrastructure of 215 CNG stations and 4.64 lakh DPNG connections.

During the quarter, two new CNG stations and 15,990 new DPNG stations were added. The physical volume stood at 0.55 MMSCMD.

In next 2 years, GAIL targets to add around 85 new CNG stations and around 1,50,000 new DPNG connections. I will also take you through the performance of our 100% subsidiary GAIL Gas Limited.

In Q3 financial year '26, turnover of GAIL Gas stood at ₹3,292 crore as against ₹3,235 crore in Q2 financial year '26. PBT stood at ₹143 crore as against ₹148 crore in Q2 financial year '26.

The decrease is mainly due to increase in input gas cost and exchange rate resulted in reduction in margin. PAT stood at ₹106 crore as against ₹111 crore in Q2 financial year '26.

The physical volume stood at 7.8 MMSCMD. During quarter three financial year '26, GAIL Gas along with its JVs, subsidiaries has added 71,411 new DPNG connections and nine CNG stations.

GAIL Gas with its JVs, subsidiaries have an infrastructure of 12,46,000 DPNG connections and 674 CNG stations. I will also take you through the status of ongoing project.

As of December 2025, GAIL's operational natural gas pipeline length has crossed to 18,000 km. Calendar year 2026 will be an important year for project commissioning with several major pipeline scheduled to come on stream like Mumbai-Nagpur-Jharsuguda, that is remaining portion I am talking about, the Jagdishpur-Haldia project, KKMBPL Phase 2, Gurdaspur-Jammu pipeline.

Together, these projects will significantly enhance reach, reliability, and regional balance in natural gas grid. GAIL is also actively considering participating in bidding for new petroleum and petroleum product pipeline, largely LPG pipeline.

Petrochemicals project. As regards petrochemical project, this calendar year will be an important from petrochemical project point of view as well.

Major projects such as GAIL's 1,250 KTA PTA plant at GMPL, Mangalore, 500 KTA PDH-PP plant at Usar are scheduled to be commissioned during this calendar year. A 60 KTA PP plant at Pata is very advanced stage of commissioning, may be commissioned in a day or so.

CAPEX for quarter three financial year '26. During the quarter, a CAPEX of ₹2,186 crore was incurred, out of which ₹804 crore was incurred on pipeline, ₹455 crore was incurred on operational CAPEX and others was ₹620 crore, and rest was on CGD, E&P, renewable, equity contribution, etc.

I will also take you through the segment-wise outlook for short to medium term. The PBT from gas marketing during the quarter stood at ₹779 crore.

The PBT from gas marketing during the 9 months stood at ₹3,000 crore. We are expecting to achieve marketing margin well from gas marketing segment in financial year '26.

In gas transmission segment quarter three financial year '26, average transmission volume improved to 125.45 MMSCMD as compared to 123.59 MMSCMD during Q2 financial year '26. Further, the volume during the month of December '25 stood at 128.65 MMSCMD.

This reflects that there is now recovery phase or there is growth in transmission business after we have seen the quarter one, which was not to our expectations. Further, the volume during the month of December 2025 stood at 128.65 MMSCMD, signifying the return of volume to normal levels.

Average transmission volume of 9 months financial year '26 stood at 123.23 MMSCMD. The recovery in gas transmission volume is primarily on account of elevated consumptions by fertilizer, refinery, and CGD sectors, and resumption of gas supply on two sections after completion of repair job, which had got disrupted during Q2 financial year '26 due to extreme monsoon and flash floods in North India.

We are hopeful of achieving our gas transmission guidance of 124 to 125 MMSCMD for financial year 2025-26. Polymer production stood at 219 TMT as against 220 TMT in previous quarter.

There is a loss of ₹483 crore during quarter three financial year '26 due to increase in input gas cost, rupee depreciation, and decline in polymer prices. This segment is likely to be at similar level for remaining part of this financial year.

However, likely softening of input gas prices, various measures being taken for cost optimization and improvement of efficiency may lead to improvement in performance of this segment in coming year. LHC production stood at 199 TMT during Q3 financial year '26 as against 221 metric tonne in previous quarter with a PBT of ₹29 crore.

The PBT for LHC segment has been hit by drop in prices on account of low crude prices coupled with reduction in allocation of new well gas from 0.32 MMSCMD to 0.2 MMSCMD. The management is actively engaging with ministry for more allocation of domestic gas.

In addition to above operational and financial performance, I would also like to highlight the progress of Project Sanchay 2, our flagship project which is focused on maximizing profitability across core business segments through targeted improvements enabled by advanced data analytics. Phase 1 of project has been successfully completed with 30 approved use cases with an expected benefit of more than ₹600 crore on net present value basis during coming 5 years.

This is after net off of CAPEX, which we are going to incur around ₹146 crore. In addition to monetary benefits, Sanchay 2 is also helping build internal capabilities.

GAIL is establishing a center of excellence comprising existing Sanchay 2 team members and further strengthening it team so that analytics, optimization, and value creation become embedded in the way GAIL operates across all business units. That's all from my side regarding the overview of performance and projects.

Now the management of company is available, and we will be glad to address any queries that you may have. Over to you, Probal.

Thank you, sir. Operator, can we start the Q&A?

Yes, sir.

Hi, thank you for the opportunity. I have two questions.

The first one is on the transmission business. How do you see the volume ramp-up for FY27 and '28?

What do you think the global gas supply dynamics are looking like when it comes to these assumptions of gas demand? That's question one.

The second question I'll ask after you answer this one.

Thank you. With respect to volume ramp-up in financial year '26, we have been giving guidance time to time.

In terms of our guidance, we are expecting at least 134 to 135 MMSCMD of volume in coming financial year. We will end this financial year in fact around 124 to 125, and we are expecting at least 10 million volume, which anyway should have been available this year because there were various factors because of which we could not achieve that.

In order to give even further details of that, almost 4 million volume we are expecting to come from natural growth of CGD. Then we lost power volume this year.

Almost 2 million volume power we lost. We expect that to come back.

New refineries volume and old refineries, the 3 million volumes will come from there. Fertilizer, we have seen disruptions during the year.

That is likely to come up. Even if that volume which we lost during this year, including the CGD growth of 4 to 5 million, we expect to reach 134 to 135 MMSCMD in financial year '27.

Regarding global gas supply, the global gas supply is abundantly available from coming financial years. As lot of capacities are coming on stream, and that is helping the price to go down.

We expect those prices to soften. In fact, we have lot of offers available at a very, very competitive price.

Therefore, that will also increase the boost of gas consumption in our price-sensitive market.

Thank you for this. Just one follow-up or additional question on the new gas contracts that you're signing.

Are these contracts primarily Brent-linked, or do you have a mix of baskets to link the price to?

Actually, when we source the volume, we have two, three things in our mind. One, that it should be cheapest available volume to our country because, that ours is a price-sensitive market.

We do not go based on the any geography or any index. We are evaluating those offers which we are discussing.

Currently, we are feeling that Brent-linked contract are, because this is all dynamics, Brent-linked contracts are more competitive as compared to Henry Hub-linked contract. Therefore, as a portfolio player, we always want to keep a mix of Brent-linked and Henry Hub.

We are looking immediate basis on Brent-linked contract. We are, of course, also discussing Henry Hub.

We feel that Brent-linked contract may be available at a competitive rate as compared to Henry Hub during current market, I'm telling, because I'm not telling that we will not go for Henry Hub. It's a dynamic situation.

Right. That really helps.

Last question is the current portfolio that you have of long-term sourcing, which is around 17 million metric tonne, where do you want to take this to let's say in the next couple of years?

We have stated statement about this. By 2030, at least, I'm using the word at least, we want to increase our portfolio to around 6 to 7 MMTPA more from current level.

Though demand in the country will be significantly more, at least 22, 23 MMTPA we want to increase the portfolio. When we see that the more demand is coming, which is likely to come, we'll further take a call.

All right. Thank you and all the best.

Thank you.

Thank you so much. You talked about this 6 to 7 MTPA additional LNG by 2030.

When should one think that you'll start contracting these?

We will go progressively. We are already in market for sourcing of at least 12 cargo per annum.

We are already in the market. We are having discussions with various suppliers.

Such a huge volume you cannot expect or we also do not intend to contract in one go. Progressively we are going because we are also seeing the what kind of index, what kind of supplier, what kind of flexibilities available.

Progressively we will reach to 22, 23. That is, we will be adding 6 to 7.

Are you seeing early signs of price correction coming in, or you're still waiting for the glut to really start coming and then price will see? Actually, we believe that the already the competitive offers are available.

Because when we are talking of this contracting, it is not from '26. We are talking of '27, '28.

For that, the suppliers are ready to offer the competitive price. We do not expect that the price will further crash.

Of course, you cannot predict anything in oil and gas business, but still based on our analysis that the offers currently available are quite competitive, and therefore, we have really interest in going ahead.

Understood. If you can also talk, when do you think the tariff review will happen?

PNGRB said 1st April 2028. Do you see a scenario where it can happen earlier?

I want to spend good time on this subject. Actually, our last tariff revision had happened from 1st April 2023.

In normal course, tariff revision, if you go law of the land, that is regulations, the tariff revision was due in April 2028. When April '23, the tariff was revised, PNGRB had done moderations of around ₹10 per MMBtu, largely on two accounts.

One, on consideration of system use gas at $3.61 per MMBtu and capacity on a provisional basis. That $3.61 per MMBtu was not even a domestic price.

Because of that, we filed an appeal with regulator to consider that. The appeal was taking time because of some issues.

We were asked by PNGRB to file regular tariff. Whenever you file the regular tariff, you file everything.

We filed everything, and accordingly, our submissions in August '24 was giving us a tariff of ₹78. When PNGRB approved the tariff, they approved ₹65.69.

In fact, they only trued up two parameters for which we went for appeal. We believe that normally interim tariff concept is not there.

We again filed an appeal of ₹15 because now it has become ₹15. While even doing interim relief, we believe that two parameters should have been considered differently than what PNGRB have done.

They considered higher volume, but did not give the transmission loss on higher volume. There is a regulation that if you transport the volume beyond 75% of capacity, 50% of the revenue the transporter can retain, 50% can be passed on.

PNGRB considered higher volume, but that has not been given. We feel apparently these are mistakes, apart from other parameters.

We filed an appeal with PNGRB. We are positive, and we believe that that appeal will be considered.

Otherwise, the tariff was due in April '28, and they have not said anything that that will be cut or this will be cut. They have told in the order that that will be considered in '28.

If it is considered in '28, what ₹15 ₹15 we are asking will become ₹17. It's like a fixed deposit in a bank with a 15% pre-tax return.

Understood. Lastly, if you can just talk, the depreciation was a bit higher...

Sorry

Sure.

Thanks for the opportunity, sir. Sir, first question is on the fertilizer project that you planned.

If you could just help us with in case if we start to invest, what will be the timeline? What is your thought on this CAPEX of 20,000 crores?

How does this compare with a brownfield? We have an expansion option on this plus also what is the project return that we are looking at?

Timelines, cash flows, and project return, these three things if you could help us with. Thank you.

We expect a timeline of 3 years from the date board approves this proposal. Principally, it is approved, but it is subject to policy on energy and the subsidies by government.

We are working on that. Regarding the returns, it's assured return.

If it is in terms of the policy guidelines of fertilizer, it will be an assured return. That is not a concern for us.

Cash flow, since it is a 3 years project, in the 3 years, the cash flow will come, maybe initial 1 year maybe 10%, 20%, then 50%, 60%, and remaining. Like that, cash flow will happen.

There is a capital grant or subsidy angle to this, which at a later point will be...

No capital grant. It is a subsidy which is available to fertilizer plants.

Understood, sir.

Fertilizer plant subsidy means the production subsidy, after production, because this fertilizer is sold at a price notified, and the producer gets the differentials.

Understood, sir. Sir, but based on the current prevailing economics, what do we think a rough cut as a project IRR for this?

What is the project IRR of this? It's 12% equity IRR.

It's 12% equity IRR.

Got it, sir. Sir, second question is on the marketing side.

One, in the month of Jan, Henry Hub has been quite volatile. It has spiked almost to $6, $7.

How do we see this impacting us in the near term? That's the first part.

Second part, sorry, I missed your initial remarks on the marketing guidance outlook. Also in the presentation, in terms of the overseas sales, this number is moved to close to 12 MMSCMD for the 9 month FY26, which was 6, 7 MMSCMD.

Earlier it looked like the international volumes will continue to decline and will be diverted to the domestic market, but last 9 months it has gone up. If you could just clarify on this.

Marketing guidance, we have been giving time to time. Initially, when year began, we gave ₹4,000 crore of marketing margin we will be able to earn.

Seeing the Q2 Q2 performance, we were expecting somewhere 4,000 to 4,500. The question you raise regarding volatility, we still maintain that we will be somewhere 4,000-plus of marketing margin.

That's the guidance. Second question was...

Sorry, one clarification here, sir. When we say 4,000, you are referring to FY26, this financial year, or you're referring to FY27?

This is financial year. I'm talking of this financial year.

For FY27 earlier, we can expect a similar run rate or we'll be guiding at a later point? No,

we have been giving this guidance for '26 also. '27 also, we are not saying that we'll be having any different number than that because our volumes are same, the challenges are same.

We expect next year also we earn ₹4,000 crore of marketing margin.

Got it, sir. Second part was on the overseas sales increasing versus last 9 months this year, 12 MMSCMD.

My colleague, Mr. Satish Sinha will respond.

Basically, during the current year, we have taken various optimization measures. Earlier we used to have destination swap, now we are doing FOBs basis.

Due to this, our overseas sale has increased.

Got it.

Hi. Good morning.

Thanks for the opportunity. On petchem input gas cost, could you tell us what was the number in Q3?

Petchem input?

Just hold on. 10.

11.21. $11.21 per MMBtu.

Okay. What was it in Q2?

As against $10.49 in the previous quarter.

In Q2. Okay.

Last year, if you have the same number for last year?

Last year, it was 9.45.

Okay. Okay.

With Henry Hub still being higher than last quarter, this number should go up more in Q4? Oh

yeah, you're right that Henry Hub has gone higher, but we are talking with respect to 1-month settlement, that is January, right? January after January, February has softened.

If you see the current market of HH, March is still there. Because January normally we have seen because of the severe winter, it goes high.

February and March we do not see any challenge. January, yes, there is a challenge.

We have lot of options. One is risk mitigation measure by marketing in an international market.

Or doing some optimization measure. We are working out it, but on the face of it, what you are thinking maybe correct because today it has gone up.

Part of that certainly we have to bear the cost. All

right. Entire feed stock would be Henry Hub-linked LNG, or is there any other gas in the mix?

No,

not necessarily Henry Hub. Henry Hub is quite yes, significant amount is Henry Hub also.

We are supplying Brent and also the available spot prices, whatever, because we have lot of volumes available, we see whatever possible we supply to Pata plant. Not necessarily Henry Hub.

Largely, yes, Henry Hub, but not necessarily everything is Henry Hub.

Understood. Is it fair to say that you will continue to run the plant at 100% utilization even if LNG is staying high, or would you look to kind of curtail that as well?

I will come back to again. February and March, we don't see any challenge.

January prices settled for February, yes, there is a challenge. December price settled for January, there was no challenge.

It was $4.69 per MMBtu. Now coming back to your question, whether we will run 100%, now we are in the fag end of the financial year.

If you stop for a month or two, it actually impacts the energy efficiency and it also impact the customer sentiment. For a smaller period, month or so, we do not take a call for shutting down.

This happens in business, cyclical business certainly impact. Second positive thing is happened in last 1 month, the prices of polymer has gone up.

This month, it has gone up by ₹2.50 per kg, ₹2,500 per metric tonne, and before that, ₹1,000 per metric tonne. So, ₹3,500 per metric tonne price has also gone up.

Where one way the input cost has gone up, yes, another side, that price of polymer has also increased.

Understood. Understood.

Earlier you had mentioned they were also thinking of diversifying into ethane. Any progress there?

We have not said that we are diversifying in ethane. What we are thinking, because this is the only gas-based plant in North India, what we are working on to optimize or take various of cost optimization measures to make this plant on profitable or sustainable basis even at this price.

What we are doing, first optimization measure we have taken, we are putting one pipeline carrying C2, C3 from our Vijaipur plant to Pata. Currently, what we are doing, we are extracting C2, C3 at Vijaipur, mixing in natural gas pipeline, re-extracting it.

During this process, we lost 10% energy. That one optimization measure we have already taken, and this pipeline will be completed in 1 1 and 1/2 years from now.

Second, what we are working on it, it is quite under consideration that we lay a dedicated ethane pipeline for any of the project and actually source ethane. Instead of using gas, we actually directly use ethane.

Ethane, it has been seen that is a cheaper than gas, and it will give 20%, 25% more yield as compared to gas. If we are able to do that, for which we are working, this plant will become even at the current level of prices.

Whereas the price of polymer, if you see in '29 onwards, any forecast is suggesting will go significantly high because today the capacity are higher and demand is less. This situation is going to be reversed in coming 3 years.

Sure.

Just a last question on the LPG and liquid hydrocarbons business. The volume has been curtailed in this quarter, I believe, because of the APM reduction.

Is this a normal run rate now, that 200 KT volume? Run rate.

I think so. Because right now we are having non-APM gas allocation around 1.12 MMSCMD, and new well field gas around 0.2.

Total gas availability for LHC segment is around 1.32. Our production will be around 2 lakh per quarter.

Okay. Understood.

That's all from me. Thank you.

Thank you for the opportunity, sir. Sir, in your opening remark, you highlighted that the Henry Hub price moment is adverse, is it only adverse from the point of view of use as a feedstock in petchem, or has it been some kind of an impact on the trading side as well?

First question, yes, it will certainly impact to some extent on petrochemical project because the January price settled at higher. With respect to the natural gas marketing, we have some open volume.

We have been telling that we source 21 MMSCMD from United States. Almost 3 MMSCMD we have kept open.

Second, there are certain take-or-pay contracts where we have signed 60%, 70% take-or-pay. If Henry Hub prices goes higher and becomes uncompetitive as compared to the crude-linked contract, it's a consumer behavior that they restrict themselves to take-or-pay or around that level.

That certainly put us in a situation to market that volume at a prevailing price. Certainly, the open volume also sometimes provides as a arbitrage of different index is costlier.

Yes, it may to some extent impact us. Our guidance with respect to marketing margin, we have been maintaining of ₹4,000 crore, factoring in all likely situation, whatever is prevailing currently.

Understood, sir. In that case, would you be in a position to give us some kind of a split in terms of volume with regard to this oil-linked selling contract?

Can you come again?

You are mentioning some oil-linked contract to take-or-pay is there, because of which you have to curtail. That particular volume in terms of how much of volume out of that, US contract is actually oil-linked that we are placing?

No, no, I have not said so. What I have said, we have 21 MMSCMD of volume we source from United States.

3 million volume we have kept open. That means it is not back-to-back basis.

That is index is Henry Hub and market. That is the only challenge what we are telling.

Some customers' behavior, if the prices change other way, they restrict themselves take-or-pay and source from other gas. That happens regularly.

Sir, just to get it clarified. The remaining 18 are all back-to-back contracts with gas-linked contracts.

There is no oil-linked? Majority is on back-to-back, and some volume we take swaps.

That's how we make it back-to-back. That is swaps crude versus Henry Hub.

Fine now, sir. My second question was on the CAPEX cost of all these projects.

Is there any project where we are seeing an escalation in the CAPEX cost?

Since most of our current projects are almost at the verge of completion, and their cost has become almost kind of certain. Ex PDH-PP or ₹11,258 crore is almost we will be completing that project within that cost.

PP is already under commissioning, no likely. Mumbai-Nagpur-Jharsuguda, except some portion, we are almost complete.

Srikakulam-Angul, except spur line, we are completing Gurdaspur. Nothing because these projects are at a very significantly advanced stage of completion, and we have visibility that there is unlikely of cost escalation, except Jagdishpur-Haldia, which may see some cost escalation, not any other project.

Minor escalation in...

Minor. That's what I'm telling.

Great, sir. That is very useful.

Thanks, and all the best.

Thank you.

Good morning, sir. Two questions.

Firstly, you mentioned on the Henry Hub price, which is your price. For January, you said it is 4.69, right?

January supply price. Actually, applicable of first price for January is price settled in December, right?

Price settled in December is 4.69, which is applicable for January supply. The price settled for January is 7.46, which is applicable for current month, that is February.

That has gone up significantly. That will have impact on the petchem, right?

I admitted that. We will take some optimization measures.

Can we market it instead of bringing that gas to this market? Can we market it to Europe where prices are good, and then we source some spot or some crude-linked contract gas or available in our portfolio supply.

Those optimization measures will take. On face of it, it has gone up.

Right, sir. A small follow-up to this, this ₹4,000 crore is, when you say ₹4,000 crore, you mean the EBIT, right?

No,

I mean PBT.

You mean PBT, right? Q3, what was the PBT then?

EBIT was ₹4,000 crore, but I think below EBIT...

You reduce ₹769 crore from ₹3,000 crore, around 2,231. 2,3?

2,231. 2,231 was the...

2,231.

Yeah.

For half year, first half.

Okay. ₹2,231 crore was the PBT for half year versus that you are expecting ₹4,000 crore-plus for the full year, right?

Yeah. Actually, some events are taking place because of geopolitical situation.

Has anybody envisaged that the exchange rate will test to 92?

Right, right, sir. Definitely.

These factors are also making us to calibrate, but we still maintain ₹4,000 crore.

Right, sir. Sir, and second question is on your ethane sourcing.

You will set up another, I think, right now you are setting up Vijaipur-Pata, but if you were to import ethane from US and all, you'll have to set up another pipeline, which will be set up somewhere in the Hazira-Dahej belt. Is that right?

Maybe Hazira, maybe Dahej, maybe Dabhol to Vijaipur. We have all the options available because we have our own terminal as well.

We are expanding the capacity of Dabhol from current level of 5 MMTPA to 6.3, already sanctioned, and we have planned to gradually increase to 12, 12.5. We have all the options available, and we are working on that, which terminal we should plan for bringing ethane and utilize, because anybody will prefer that you should utilize your own terminal.

Got it, sir. Thank you so much, and all the best.

Yeah.

Hello, sir. Thanks a lot for giving this opportunity.

I have two questions. First is regarding the sourcing.

Since you have mentioned it a couple of times that you source about 15.5 million tonne of contract. Sir, can I get the bifurcation of the contracts like what kind of volumes are getting from RasGas, what kind of volumes are getting from Exxon, Chevron, etc.?

This is first question. Once you answer it, I'll go to the second question which I have in my mind.

We have 16.53 MMTPA of contracts existing. Out of that, we have 5.8 million tonne from United States on Henry Hub, and 0.75 from Middle East on Henry Hub.

That makes 6.55 million tonne, right? Then 4.5 million tonne from, again, RasGas on crude-linked.

Approximately 3 million tonne again from one of the marketing company, SEFE, on crude-linked. 0.42 million tonne again on crude-linked through PLL.

We have signed one more contract from Vitol for 1 million tonne, that is crude-linked. ADNOC another 0.53 million tonne crude-linked.

Got it, sir. Thanks a lot.

Sir, second question is regarding the downstream players, the fertilizer, the CGD players and other players whom you actually give the gas. I wanted to ask regarding the marketing margins of the contracts, because in the last quarterly call, you mentioned about there's a 7.8 million tonne of contract in which you have a bit of sort of fixed margin and which is majorly sold to fertilizer player.

Does it involve that CGD companies also, and this 7.8 is something which you majorly get from the RasGas, is it something which I'm understanding correct? That is the one point.

Second is, what's the typical marketing for the other 7.2 million contracts in which you do not have a typical fixed kind of margin which is there in the 7.8 million?

Actually, it's not RasGas we are getting 7.5 or 7.8. Only we are getting 4.8 as of now.

Crude-linked, and 0.75 on Henry Hub. That is one question.

Second, largely our volume, I have said 3 MMSCMD, you can say 0.75 MMTPA or maybe 0.8 MMTPA is open. All other volumes we have marketed either back-to-back, or if not back-to-back, we are taking swaps for mitigating risk time to time.

When we have marketed these volumes on back-to-back or through swap, there is a fixed margin. Now, fixed margin varies from contract to contract and period of contract.

That's the overall scenario. Somewhere you get maybe a dollar margin, or somewhere you get $0.20 margin, or somewhere you get $0.10 margin.

That varies from the time we marketed, that varies to whom we marketed, and that varies also based on how much volume we marketed. Largely you can consider that out of total volume, we have marketed largely on back-to-back basis, except maybe 0.8 or 0.9.

Got it, sir. Sir, over and above this, largely the back-to-back contract, you also get margins on the APM and the STPT, right?

Definitely, I think it's capped according to the government of ₹200 per 1,000 SCM, something like that. This was regarding the RLNG part, but not about the domestic front.

In domestic front, you also get some marketing margins on getting contract through APM or STPT. Am I understanding it correct?

There is a margin which has been capped by government end, about 200 ₹ per 1,000 SCM. Is it something like that?

For the domestic gas. Actually,

domestic gas also has two parts. One is APM gas, where the margin is ₹200 per 1,000 SCM.

The another is MDP gas, where marketing margin is around the line of RLNG.

Got it, sir. Sir.

That's all from my end. Thanks a lot for answering these questions.

Thank you.

Hi, sir. Good morning.

Thanks for the opportunity. Sir, my question is also on the gas marketing business.

Can you also help us with the guidance for volume for gas marketing in FY27? I suppose the contract with Vitol is supposed to start in '27, right?

FY27. It has started in '26.

It has started. What is the volume guidance for marketing, sir?

Marketing volume.

Sorry. Volume guidance, we expect actually 5% increase.

We have been maintaining that 5% to 6% increase in the volume. If we end up this year 104, 105, because the year is to be end, maybe 109, 110 MMSCMD on normative basis we should achieve.

Sir, incremental question is linked to that only. If we are targeting higher volume in FY27, are we expecting a contraction in margin, especially in the backdrop of what you earlier commented that non-crude-linked contract are turning out to be more favorable than HH?

Are we expecting any challenges with respect to marketing of HH contracts, and that's why we are... Yeah.

Nitin, considering those challenges, I have not revised my marketing guidance. I have maintained to ₹4,000 crore in spite of increasing volume by 5 MMSCMD.

Your volume is going up, but your PBT guidance remains the same, which tells me that we are expecting a margin contraction. Is that the right assessment, sir?

We are not expecting, but I cannot give you guidance which actually may face some challenges. Like this year, in the beginning, who would have envisaged that situation will happen like this?

Still, we are maintaining the guidance we have given earlier in the beginning of the year, that is ₹4,000 crore. Whenever we give guidance, we should give guidance which is in even conservative or difficult scenario, you are able to achieve, right?

If we expect more, but let that to come actually. We want to give you something which is certain based on today's assumptions.

Understood, sir. Fair enough.

Sir, my second question was with respect to the petrochemical business. Thanks for helping us with the gas cost.

I just wanted to understand the operating cost. If we can give us any ballpark number around what could be an operating cash cost excluding depreciation on a per tonne basis to help us understand how that number is moving.

Actually, in the process plant, particularly in the petrochemicals, we have around 70% to 75% as a gas cost. Rest is the other cost, which includes repairs and maintenance, employee cost, and stores and spares, and other cost.

You can consider this much.

Sir, the 75% number that you're saying would change when the gas cost changes, right? I just wanted to understand a ballpark for, say, operating cost per tonne that we can consider for our understanding.

For your total cost, you can calculate whatever we are published figure for the petrochemical segment. We are reporting separately for the petrochemical, LPG, and other segments.

You can calculate easily from the published figure.

Okay. Fair enough.

Thank you.

Hi, sir. Thanks for the opportunity.

One question on the petchem side. I think ONGC has already announced charter contract for a couple of ethane carriers, and they also have an agreement with Petronet LNG for ethane handling.

Given that the Qatar gas will not be rich gas from 2028 onwards, what is your plan in terms of sourcing gas for your ethane cracker? Will you be using the Petronet's Dahej terminal for handling ethane, or you'll be adding this capability in your Dabhol terminal?

Actually, this question I have clarified in detail that first, we are working on ethane sourcing. We are already in the midst of laying a line from Vijaipur to Pata, which can carry ethane.

We are also evaluating for putting up a pipeline upstream to Vijaipur. For that, we have three terminals at least in West Coast in our mind.

That is Hazira, Dahej, and Dabhol. Dabhol being our own terminal, subject to viability, we will prefer to bring ethane at our own terminal.

Sir. Given the current margins for petchem and the margins in next quarter will be probably worse than what you reported in third quarter because of higher Henry Hub prices, is it not better to just stop operating the cracker probably in the fourth quarter, because you're making losses even at the EBITDA level?

Actually, we could have done it. Mind it, there are consequences of stopping the plant for a very small period.

Because anyway, we are expecting next year onward the prices are going to be softened. There we have those offers available.

If we stop the plant for a period of say 1 or 2 months, it actually hurts two ways. One, the energy efficiency or the minimum energy required to maintain the plant in preservative condition that we have to incur.

Second, the customer sentiment. You see, lot of customers have signed the contract or MOUs with us.

If we stop the plant in between, we will lose these customers and they will go to our competitors. We cannot be fly-by-night player like now we are losing, we stop it, now we are earning, we start it.

On a longer term basis, we do not believe that this plant is going to incur losses. Last year, we were at a break-even level.

This year, unfortunately, two reverse things happened. Prices went down and the input has gone up.

Next year, we are not expecting such a situation to be repeated.

Sir. Understood.

Sir, last question on the housekeeping question. Your staff cost is down significantly.

I think it's lowest in many, many years. What was causing this very low staff cost in the third quarter?

Down?

Yes, sir. Basically, during the last year, we provided PRP at 100%.

Basically, during the current year, no incremental is for the current year. We have reduced our PRP provisions.

There is no impact of labor code in this number, right?

No, right now no.

Sir. Thank you so much, and all the best.

Sir, thank you for doing the call. Just a question around CAPEX now.

Considering your petrochemical projects are getting completed this year, and if you can give us a timeline on when they kind of start up on each of them, how much are you thinking about CAPEX for fiscal '27? Thank you.

We expect to have subject to addition of new projects, which I am not factoring in, we expect to incur ₹9,000 to ₹10,000 crore of CAPEX in financial year '27. We have two, three pipelines which are under construction.

Those CAPEX will come up like Vijaipur Auraiya C2, C3 pipeline, Gurdaspur-Jammu pipeline, completion of KKMBPL and Jagdishpur-Haldia pipeline, and the spur lines of SAPL. Second, we have also approved in board the doubling the capacity of our Jamnagar-Loni pipeline.

Until now, this segment appears to be very small segment, but by doubling, it will appear to be very lucrative segment. That will also involve a CAPEX of ₹5,400 crore.

Large part of CAPEX will be on pipeline in '27 and even in '28. Then we also have net-zero plan.

₹35,000 crore we have planned to incur in a period of 10 years, and we are evaluating various projects like I narrated during the opening remarks that almost 700 MW of 700-plus MW of renewable energy projects we have in hand. We are working on it, and we are doing it on purely commercial analysis basis to replace our internal uses of power which we are purchasing.

Around ₹2,000 to ₹3,000 crore of CAPEX will come from that side. Then maybe remaining CAPEX which project we are completing during this year will be there from petrochemical and GMPL.

Then equity CGD projects which we are doing, LNG projects which we are doing, CBG projects which we are doing may involve ₹800 to ₹1,000 crore of CAPEX. This is how we'll reach to ₹9,000 to ₹10,000 crore of CAPEX, including equity.

Got it, sir. Very clear.

Sir, the timeline on the completion of the petrochemical plants this year, like when are you thinking which starts up, PTA, Mangalore, PP, PDH, like when do they start up now from your timeline perspective?

PTA will start during this financial year. We are very hopeful that it will be commissioned during this financial year.

PP, which we are putting at Pata, 60 KTA, will be commissioned in a day or two. PDH-PP, Usar, we expect to complete during this calendar year.

That is delayed as planned, we could not complete. By calendar year-end, we expect it to complete.

Got it, sir. Thank you.

Thank you.

Thank you for the opportunity. Sir, you had mentioned that for the tariff hike benefit, which is 12%, and the earnings benefit you're looking at is around 1,200 crores.

Now, this is what you had announced when this was before the zonal tariffs apportionment. Now, based on the zonal tariffs, it looks like the benefit could be slightly higher than that.

Are you still maintaining a 12% number, or could you just quantify in terms of realized benefit?

Actually, we maintain 12% because this zonal distribution is subject to our risk and reward. It may be 14, it may be 11.

We maintain an average number of 12.

Sure, sir. Just a last question on CAPEX with all your pipelines likely to get commissioned over the next, I think, between March and June, how much should we look at in terms of what you will be capitalizing and the implications for depreciation as well?

Just hold on. During the current quarter, I have capitalized around 5,200 crores.

Only balance portion of Srikakulam-Angul, spur line around 300 km, and some portion of Jagdishpur-Haldia from Calcutta to Haldia and Dhamra to Haldia, this will be capitalized by June. Some portion of Mumbai-Nagpur-Jharsuguda, mainly Nagpur to Jabalpur and in Maharashtra regions, this pipeline will be capitalized.

During the by June 2026, Gurdaspur-Jammu pipeline will also capitalized. The CAPEX is around 500 crores.

These are the CAPEX which we will capitalize during the coming years.

Sir, and how much would this amount be if you just exclude the Gurdaspur-Jammu pipeline? Is that another 4,000-5,000 crores of capitalization?

Around ₹2,500 to ₹3,000 crore.

Okay. Got it.

Thank you so much.

Hi, sir. Thanks for taking my question.

I have two of them. Firstly, this staff cost, you said that there was some adjustment because you had made a higher provision earlier.

Going ahead, what would be the annual or quarterly run rate that one should look at? Say, from FY27 or so, what will be the annual staff cost run rate that we should be looking at?

Vikas ji, ye bada simple hai. Hamara jo pay package hai, usme ek performance-related payment hota hai, that is linked to incremental profit.

As compared to last year, this year we are not expecting any incremental profit. On account of incentive that has gone down.

Now, your question, how much you should factor in. This year we are clear, but next year certainly we expect that if we are not having incremental profit, certainly we will have next year because our base is going down.

Next year, you can consider the staff cost at the level of previous year.

Okay.

Like, you can add 100 crores around. You can add 100 crores on incremental profit on account of PRB.

Okay. Understood.

Understood, Sinha ji. Then just one more thing.

This revision of tariff...

Sorry?

...revision of tariff that we've filed for. See, if it does not get a look through sometime in the next 12 months or so, then automatically PNGRB will be like, you're anyways going to get it from April '28.

Is that how we should look at it? How is the process?

Once you submit it, then do they have a timeline within which they need to respond, or...

Vikas ji, there is no timeline for regulator. That's the fact.

At our part, we have filed the petition. At our part, we will follow up for that.

The concerned amount timeline remains.

Okay. Finally, I think just to kind of recap what you were just saying to the earlier participant was, ₹5,400 crore is the capitalization in this particular financial year for pipelines, and how much is it likely to be in '20 FY27?

I think Sinha ji will respond.

Yes,

I will give you...

Vikas ji, I think this is not readily available. Let us give you right answer.

Give us maybe half an hour. We will come back to you.

Sinha ji will come back. Yeah.

Okay. Thank you so much.

Thank you.

Thank you, dear participants. It was always or it is always good to interact with you.

I know you may have some more questions which you might not or you could not have asked because of the time constraint or there was some one question of Vikas we could not respond immediately. We appreciate your participation, and we will be answering you the questions you could not ask or we could not respond offline.

Look forward to interact with you regularly. Thank you very much.

Thank you, everyone.

Thank you, Probal.