Good afternoon, everyone. May I request everyone to settle down, please?

Thanks, everyone. We are going to start the analyst meet for today.

A very good afternoon to my friends from the analyst community, investors, and portfolio managers. I welcome you all to GAIL (India) Limited Investors and Analyst Meet for 2026.

I am Amit Rustagi, Executive Director and Head of India Equity Sales for UBS Securities in India, your host for today's evening. It's my pleasure to now welcome the GAIL management team.

In the story of India's evolving gas economy, some leaders are not merely participants, they are architects. Today, I have the pleasure to introduce some of these leaders to you.

I'd like to introduce Mr. Deepak Gupta, Chairman and Managing Director of GAIL, which stands firmly among them.

He assumed charge as CMD of GAIL in March 2026. Mr.

Gupta joined GAIL (India) Limited as Director (Projects) in Feb 2022. After an illustrious tenure in Engineers India Limited, he took on key leadership roles across the energy ecosystem, serving as Chairman of MNGL, Green Gas, while also contributing as Director at OPAL and Chairman of Talcher Fertilizers.

At GAIL, he led one of the India's most ambitious pipeline programs, the Urja Ganga project. Under his leadership, critical stretches, such as Bokaro-Angul, Dhamra-Angul, Barauni-Guwahati, and the long-awaited connectivity to Kolkata were completed despite significant challenges.

Sir, welcome to you. Now, I'd like to introduce Shri Rakesh Kumar Jain, Director (Finance) of GAIL.

He has rich and varied experience of more than 30 years of working in oil and gas sector and regulator. As Director (Finance), he oversees the finance, internal audit, business information, and many other functions at the company.

During his deputation to the PNGRB, where he served as Joint Advisor, he was actively involved in drafting and review of tariff regulations and regulatory amendments, conceptualization of unified tariff, authorization of the 9th and 10th CGD bidding rounds, and various finance-related functions. Welcome to you, sir.

Now, I'd like to introduce Shri S.K. Sinha ji, ED (Finance and Accounts).

Shri Sinha joined GAIL in 1994 and has vast experience in key finance functions: corporate finance, corporate accounts, management accounting, business development, mergers and acquisitions, and financial concurrence. He has also been actively involved in investor relations and interactions with the analyst fraternity.

Welcome to you, Mr. Sinha.

Now, I'd like to introduce Mr. Sumit Kishore.

He is Executive Director (Gas Marketing). He oversees one of the critical activities relating to the gas marketing and transmission business of GAIL, which accounts for 85% of the company's revenue, through a network of 13 zonal marketing offices across India.

Earlier, he was also taking a very critical job and looking after the business development and E&P-related activities in GAIL. Welcome to you, sir.

Now, I'd like to express my gratitude to the entire GAIL team for managing the current challenges and maintaining uninterrupted supplies of natural gas and LPG to the crucial downstream utilities. Thanks to the dedication of the entire management team and the employees for selfless working at the frontlines to ensure that there is no supply disruption in our country.

I would also like to appreciate GAIL's management for an extensive investor relations program to communicate with investor community, which has got recognized externally by Extel, which was Institutional Investor earlier, to rank them several times in several categories. Now, I'd like to hand over the podium to Chairman sir for his initial remarks.

Thank you.

I can talk from here? Okay.

Thank you, Amit. At the outset, I extend a very warm welcome to the entire investor community for joining us today.

I also take this opportunity to thank each of my colleagues from GAIL for being present here, and specially to the investor community for their continued trust and engagement with GAIL. The financial year under review commenced amid significant global uncertainty.

The year began with the continuation of the Russia-Ukraine conflict and witnessed evolving geopolitical developments in the West Asia towards the later part of the year. These developments disrupted the global energy markets, leading to sharp volatility in the oil and gas prices.

Supply chain disruptions coupled with currency volatility and moderate weather conditions across key regions during the financial year '26 impacted supply-demand dynamics. In this challenging environment, timely policy initiatives by the government played an important role in supporting the sector.

At the organizational level, our response was anchored in coordinated efforts guided by financial prudence and a clear focus on long-term sustainability. We are proud to share that our teams worked relentlessly to maintain operational resilience and financial discipline.

Clear and transparent communication with customers, government stakeholders, investors, and analysts remained a cornerstone of our approach. Despite multiple external headwinds, we ensured reliable and uninterrupted management of the critical supply of natural gas, particularly to the priority sectors, thereby contributing meaningfully to national energy security.

Despite all such global challenges, GAIL showed resilience driven by our well-diversified upstream LNG portfolio and commitment towards our customers. Before going to the financials of the financial year, I would like to draw your attention to the key business highlights of the year.

PNGRB issued an interim revision of natural gas pipeline tariffs for GAIL's integrated natural gas pipeline network from ₹58.61 to ₹65.69 per MMBtu effective from January 1, 2026, which represents an increase of 12%. Around 2,000 kilometers of natural gas pipelines have been commissioned, including two major pipeline projects, namely the Mumbai-Nagpur-Jharsuguda pipeline, except about 200 kilometers out of 1,700 kilometers awaiting PESO approval, and the Srikakulam-Angul main line.

Further, 60 KTA of PP plant at Pata was commissioned successfully. During the financial year, our Jamnagar-Loni pipeline achieved its highest ever annual transmission of 3.27 MMPTA against a capacity of 3.25.

We have received PNGRB authorization to double the capacity of this pipeline to 6.5 MMPTA. In line with GAIL's Strategy 2030 and net zero commitment, the board has accorded investment approval for key renewable energy projects, including the 600-megawatt solar power project with co-located BESS at Tasko, Jhansi, 178-megawatt wind power project, Maharashtra, and 100-megawatt solar project in Maharashtra.

With the commissioning of these projects, GAIL's RE portfolio is going to be more than 1 gigawatt by the end of next financial year, marking a significant scale-up from the present capacity of 153 megawatt, reinforcing the company's decarbonization trajectory. Now, I would like to share the performance highlights of the financial year.

Standalone financials on yearly basis, FY '25 versus FY '26: GAIL reported a turnover of ₹1,38,328 crores in FY '26 as compared to ₹1,36,942 crores in the FY '25, driven primarily by higher gas marketing volumes, that is increase of 3 MMSCMD. Profit before tax stood at ₹8,964 crores as against ₹14,825 crores in the previous year.

The decrease in profit is primarily attributable to one-time settlement with M/s SMTS amounting to ₹2,440 crores in the previous year, increase in input gas cost in the petrochemical segment in the current year ₹1,400 crores, and provision made against outstanding dues of M/s Nagarjuna Fertilizers to approximately ₹675 crores. PAT stood at ₹6,968 crores compared to ₹11,312 crores in FY '25.

On quarterly basis, Q4 FY '26 versus Q3 FY '26: The gross turnover for the quarter four FY '26 stood at ₹34,591 crores against ₹34,030 crores in the quarter three FY '26, reflecting a growth of 2%. This increase was primarily driven by higher average gas price realizations in the gas marketing segment, positive impact of upward tariff revision in the integrated natural gas pipeline network, and improved liquid hydrocarbon price realizations.

Profitability, however, moderated during the quarter. PBT stood at ₹1,577 crores versus ₹2,030 crores in Q3 FY '26.

PAT stood at ₹1,262 crores versus ₹1,603 crores in the Q3 FY '26. The decline in profitability was mainly on account of decrease in gas marketing margins, elevated input gas costs in the petrochemical segment, higher provisions during the quarter, which was partially offset by lower depreciation following revision in the useful life of the assets.

Moving to the consolidated financials on yearly basis, FY '25 versus FY '26: The consolidated turnover remained flat and stood at ₹1,41,716 crores versus ₹1,41,931 crores in the previous financial year. The PBT in FY '26 stood at ₹9,725 crores versus ₹16,096 crores in the FY '25, down by 40%.

The PAT stood at ₹7,582 crores in FY '26 versus ₹12,450 crores in the FY '25. On quarterly basis, Q4 FY '26 versus Q3 FY '26: The consolidated turnover in the current quarter remained flat and stood at ₹35,499 crores against ₹35,253 crores in the previous quarter.

The PBT in the current quarter is ₹1,966 crores versus ₹2,165 crores in Q3 FY '26. The PAT is ₹1,485 crores versus ₹1,756 crores in the Q3 FY '26.

I would now like to share segment-wise physical performance and the outlook for the short to medium term. The gas marketing volumes reached 104.21 MMSCMD in FY '26, registering an increase of approximately 3% compared to 101.49 MMSCMD in the previous financial year.

The segment reported a PBT of ₹2,775 crores. The marketing segment encountered headwinds during the year arising from multiple factors, including the geopolitical developments, moderate weather conditions, pipeline disruptions, and lastly, the closure of the Strait of Hormuz.

All these factors caused disruption to the gas market and affected the demand and supply of natural gas in the country. A provision of ₹675 crores has been recognized towards outstanding claims pertaining to M/s NFCL.

The inter-ministerial consultation process on revising NFCL's energy norms has been completed, and the matter is now at an advanced stage of consideration by the Cabinet Committee on Economic Affairs. The provision has been created on a conservative basis and will be reversed upon realization.

While the company was progressing in line with the annual guidance of ₹3,500 crores, these developments impacted the realization of the targeted performance. For the financial year '26-'27, the company expects to achieve a minimum PBT of ₹4,000 crores from the gas marketing segment if West Asia crisis persists during the full financial year.

However, in case the geopolitical situation is normalized by mid of quarter two, then minimum PBT from this segment would be ₹4,500 crores. GAIL continues to undertake targeted measures to optimize its gas sourcing and marketing portfolio and enhance operational efficiencies and strengthen resilience against market volatility.

Natural gas transmission volume for FY '26 stood at 122.18 MMSCMD as against 127.32 MMSCMD in the previous financial year. The average natural gas transmission up to quarter three was about 123 MMSCMD, and the run rate for January-February '26 was about 129 MMSCMD.

However, due to the supply chain disruption on account of West Asia crisis, natural gas transmission for the March '26 dropped to 99.71, which dragged the transmission volume of quarter four '26 to 118.99 MMSCMD as against 125.45 MMSCMD in Q3 FY '26. Barring the crisis, the company was on its way to achieve its natural gas transmission guidance of 124 to 125 MMSCMD.

Now looking at the current scenario, it would not be feasible to project anything with certainty for the current financial year. However, we expect that the transmission volumes of FY '27 should be around 119 MMSCMD in case the West Asia crisis starts getting to normalize by mid of July '26, and should be about 115 MMSCMD if the aforementioned crisis persists during the full financial year.

Polymer: The overall production of 768 TMT was achieved in FY '26, which is about 94% of the nameplate capacity. In petrochemicals, due to continued stress on petrochemical prices till February '26 and higher feedstock prices, the company incurred a loss of ₹1,413 crores.

We are actively pursuing to shift Pata Petrochemical Complex from natural gas to ethane as a feedstock to ensure sustainable margins from this business. In so far as the liquid hydrocarbon segment is concerned, the production was down by 14% as compared to previous year and stood at 813 TMT as against 947 TMT.

The capacity utilization was around 61%. The decrease is attributed to deallocation of the APM gas for LPG production.

Further, as per the MOPNG notification dated 3rd April, 0.79 MMSCMD of additional gas has been allocated to the LHC segment, and we expect sustainable performance from this segment in FY '27 subject to continued allocation. In spite of disruption in the month of March, LPG transmission volume increased to 4,600 TMT as against 4,478 TMT in the previous financial year, that is highest ever in the history of GAIL.

We expect our LPG transmission volumes in the same range for the financial year '27. Coming to the CGD segment, GAIL directly operates six geographical areas, namely Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, and Cuttack, which have progressed from the initial development phase to a high-growth phase, demonstrating robust growth in volumes driven by network expansion and increasing market penetration.

In the FY '25-'26, these six GAs have shown impressive growth with volumes increasing by approximately 29%. The PBT from GAIL's CGD showcased an impressive growth of 12% during FY '26 over the previous year.

CGD sector is witnessing accelerated PNG and CNG adoption driven by the West Asia crisis and supportive government policies. The policy-led acceleration in CGD is driving strong growth visibility with government prioritizing rapid expansion of PNG and the CNG infrastructure.

The mandated conversion of industrial and commercial consumers from LPG to PNG further underscores sustained demand and volume growth across the sector. These initiatives are expected to benefit our authorized GAs of GAIL and of GAIL group CGD companies through higher CNG and PNG penetration and faster network expansion.

Now we will take you through the performance of GAIL Gas Limited, which was incorporated in May 2008 to develop the city gas distribution business as its focus area. GGL currently owns and operates 16 GAs across India and 9 GAs through its JVs.

During the current financial year, GAIL Gas along with its JVs and subsidiaries added 1,91,520 new DPNG connections and 88 new CNG stations. GAIL Gas with its JVs and subsidiaries have an infrastructure of about 12.98 lakh DPNG connections and 745 CNG stations.

The turnover stood at ₹12,681 crores as against ₹12,229 crores in the FY '25. PBT decreased by 3% and stood at ₹596 crores as against ₹615 crores in the year FY '25.

PAT was down by 2% and stood at ₹442 crores as against ₹451 crores in the FY '25. During the current quarter, turnover stood at ₹3,227 crores as against ₹3,292 crores in the Q3 FY '26.

PBT increased by 11% and stood at ₹158 crores as against ₹143 crores in Q3 FY '26. PAT was up by 10% and stood at ₹117 crores as against ₹106 crores in Q3 FY '26.

In the next two years, GAIL Gas, including its JVs, targets to add around 275 new CNG stations and about 4 lakh new DPNG connections. Now we'll briefly update the status of ongoing projects.

In the natural gas pipeline, GAIL's JHBDPL, the remaining section, the KKMBPL Phase 2, the Gurdaspur-Jammu pipeline, the C2-C3 pipelines are scheduled for completion in the current financial year, and these are extremely important pipeline projects which will be almost completing the national gas grid. Vijaipur-Bina pipeline and the DUPL and the DPPL capacity augmentation pipelines are scheduled to be completed in the financial year '27-'28.

As regards the petrochemical projects, the 500 KTA polypropylene project at Usar and the 1,250 KTA PTA at GMPL are scheduled to be commissioned maybe the middle of next year. During the year, a capex of ₹9,594 crores was incurred, out of which ₹2,900 crores was incurred on pipelines.

This is about the capex. Approximately ₹2,059 crores was incurred on petrochemicals, ₹1,600 crores approximately was incurred on equity distributions to the JVs and subsidiaries, approximately ₹2,500 crores was incurred on operational capex and others, rest was on CGD, E&P, and the renewables and the net zero.

In the financial year '26-'27, the capex is expected to be in the range of ₹11,500 crores. With all this, I think this is all from my side.

Thank you for your patient listening. I now hand over to Amit for taking it forward.

Thank you so much.

Thank you. Thanks, sir, for highlighting the key achievements of the year.

For details, now I'd like to invite Anjana ma'am to present about the detailed highlights of the company through a PPT, and maybe after her, we will have Sumit Kishore sir to talk about the gas marketing environment.

A very good afternoon, and on behalf of GAIL, I once again welcome you all to this gathering, our annual analyst meet. It's indeed a pleasure to have you all at this annual event for financial year FY '25-'26.

GAIL, India's foremost natural gas company, has over the decades built a legacy of reliability, growth, and nation building. True to our guiding philosophy of energizing possibility, we continue to power India's energy future, connecting regions and geographies, enabling industries, and driving sustainable growth across the country.

We will share our physical and financial performance highlights for FY '25-'26. Before we proceed, I would like to draw your attention to the safe harbor statement, which covers forward-looking statements and applicable disclaimers governing this presentation.

This is the broad presentation plan for today. It covers our overall positioning, business landscape, recent performance, growth roadmap, and the industry outlook.

This is the committed leadership that we have. Before moving to GAIL's business, I would like a moment to introduce you to the committed leadership who's driving GAIL's vision ahead.

These leaders bring a powerful combination of deep domain expertise, strategic foresight, and proven execution capabilities. Let me walk you through each one of them.

First and foremost, Mr. Deepak Gupta, our CMD and Director (Projects), is a mechanical engineer having over 35 years of rich experience across the entire oil and gas value chain.

He has a proven record in executing large-scale infrastructure projects and is actively driving GAIL's digital transformation and clean energy initiatives. Under his guidance, GAIL is not just managing the present, but actively shaping the future of energy.

Next is our Director (Finance), Shri Rakesh Kumar Jain, with over 35 years of experience in oil and gas and regulatory domains. He brings immense expertise in finance, treasury, investor relations, and risk management.

His excellence has been widely recognized. He was awarded the Extel Best CFO 2025 and the SAP Leadership Awards 2025.

Shri Jain's sharp financial acumen gives us the confidence to pursue ambitious growth plans while maintaining a rock-solid balance sheet. People are at the core of any organization's success, and that responsibility lies with Shri Ayush Gupta, our Director (HR).

Again, a seasoned professional, he's leading our digital HR transformation and talent strategies. A Chevening fellow from Oxford and an award-winning HR leader, Shri Ayush Gupta ensures that GAIL remains a great place to work while preparing our people for the energy sector of tomorrow.

Then we have Shri Sanjay Kumar. He's our Director (Marketing), with over 35 years of extensive experience across gas and LNG value chain.

He brings deep cross-functional expertise in marketing, LNG trading, transmission, and operations. Shri Sanjay Kumar's deep understanding of the market and global LNG dynamics is helping GAIL to expand its footprints both domestically and internationally.

Mr. Rajeev Kumar Singhal, our Director (BD), again three decades plus of rich experience across gas and LNG value chain.

His ability to spot and execute high-impact opportunities is helping GAIL build a more diversified and future-ready portfolio. GAIL, the big picture: Established in 1984, GAIL is just not a company, it's India's natural gas backbone.

With over 18,000 kilometers of pipeline network transmitting 65% of the country's natural gas and a long-term LNG portfolio of 16.5 MMTPA, GAIL's integrated business model spans across entire gas value chain. Additionally, GAIL is actively engaged in execution of multiple pipeline projects aimed at further expanding its nationwide coverage.

With deep infrastructure strength, a future-ready LNG portfolio, and clear strategic focus, GAIL is not only energizing India today, but is fully geared to lead the country's energy transition tomorrow. This is our existing business portfolio.

From its humble beginning as a single pipeline company, GAIL has transformed into an integrated energy major with well-diversified business portfolio. Starting with NG marketing, GAIL has around 48% market share in India with 16.5 MMTPA long-term LNG portfolio.

Moving to NG transmission, the core strength of our business, with an extensive pipeline network of over 18,000 kilometers and around 65% market share, it makes us the backbone of nation's gas infrastructure. In petrochemicals, GAIL has built a strong downstream presence.

We have a capacity of 870 KTA: 810 KTA of polyethylene and 60 KTA of polypropylene, and we hold around 15% market share. Additionally, we further have marketing rights of 280 KTA of BCPL's production of polyethylene and polypropylene.

In LHC segment, we have four processing units with combined capacity of 1.3 MMTPA. Additionally, we have 4.5 MMTPA capacity of LPG transmission having pipeline network of over 2,050 kilometers.

We have also got the approval for doubling the capacity of our LPG pipeline, Jamnagar to Loni LPG pipeline, from current 3.25 MMTPA to 6.5 MMTPA. GAIL is also accelerating its journey towards a cleaner and greener future.

Our existing portfolio has 118 megawatt of wind power, 34.75 megawatt of solar power, 4.3 tonnes per day of green hydrogen plant, and 5 tonnes per day of CBG plants. In E&P, we have participation interest in 13 E&P blocks having global presence in US and Myanmar too.

GAIL holds a dominant position in CGD with across 672 GAs out of total 307 authorized GAs by PNGRB, including six direct GAs that are under the GAIL's purview. This is the GAIL group structure.

What you see just is not an organization chart, it is a reflection of GAIL's strategic reach. GAIL has a presence in over 30 entities.

This includes 10 subsidiaries, 11 other JVs and associates, and 11 CGD JVs and associates with interest across LNG regasification, petrochemicals, power, shipping, and more, both domestically and internationally. Having look at the shareholding profile, President of India holds 51.52% shares of GAIL.

Average share price during the year was ₹176, and average market cap was ₹1,15,035 crores. As regards return to shareholders, GAIL has a consistent record of rewarding shareholders through dividends with payout ratios consistently in the range of 40% to 50%.

For FY '25-'26, our dividend payout ratio is 52%, which is the highest ever dividend payout ratio. Moving on to our credit ratings: GAIL's financial strength is independently validated by leading domestic as well as foreign rating agencies.

Internationally, Moody's rates us Baa3 stable and Fitch at BBB- stable, both capped to India's sovereign rating. Domestically, India Ratings, ICRA, and CARE all affirm GAIL at the highest ratings of AAA with stable outlook.

This is a reflection of our robust financials and institutional credibility. These are some of the awards and accolades which GAIL has received: best in investor relations, best in performance, best in governance, best gas transporter, a well-rounded recognition of GAIL's commitment to governance, responsibility, and operational excellence.

ESG: For GAIL, ESG is not a reporting exercise, it's a way of doing business. On the environmental front, we are committed to net zero, targeting 100% reduction in Scope 1 and 2 emissions by 2035 and 35% in Scope 3 by 2040, backed by a 3.6-gigawatt renewable energy target and a RE portfolio expansion from existing 155 megawatt to 1 gigawatt, which is already underway.

GAIL believes that a truly successful company must have a heart, and that heart is GAIL Hriday. Spanning health, education, women empowerment, skill development, rural development, and environment, our CSR programs have touched nearly 25 lakh lives this year, backed by investment of approximately ₹189 crores, reflecting our deep commitment to inclusive and sustainable growth.

The big picture is clear. Now let us get into the details, the business landscape.

Natural gas transmission, GAIL's core and core business, and we lead this space decisively with over 18,000 kilometers of pipeline network commanding a 65% market share and an integrated pipeline network of around 14,200 kilometers. GAIL is the undisputed leader of India's gas transmission infrastructure.

In natural gas marketing, GAIL continues to strengthen its dominant position with 104 MMSCMD in sales, 48% of India's gas consumption, and a well-diversified LNG portfolio of 16.5 MMTPA, and further plans to add 4 to 5 MMTPA more by 2030, that is our target. The growth trajectory is clear and compelling.

In the petrochemicals business, GAIL continues to deliver strong operational performance with a plant capacity utilization of 94% for FY '25-'26. With two significant upcoming plants, our petrochemicals footprint is set for a new significant leap.

On the liquid hydrocarbon fronts, the 813 TMT of production across four plants reflects steady operational delivery. In view of additional allocation of gas of around 0.79 MMSCMD, we expect plants to operate at higher capacity over previous year.

FY '26 marked the highest ever LPG transmission, reflecting strong demand and efficient pipeline operations. Our LPG transmission capacity currently stands at 4.5 MMTPA with both major pipeline networks operating at around 100% utilization.

Further, authorization has also been received for doubling the capacity of Jamnagar-Loni LPG pipeline, further strengthening the company's LPG infrastructure and supporting India's decarbonization journey. Moving on to financial performance highlights: Despite significant global headwinds arising from geopolitical conflicts, energy market volatility, and supply chain disruptions, our company delivered a resilient standalone financial performance.

During the year, the turnover stood at ₹1,38,328 crores, which is an increase of 1% from previous financial year. EBITDA is ₹13,119 crores, PBT stood at ₹8,964 crores, and the PAT was ₹6,968 crores.

Moving on to key financial ratios: PAT to net worth ratio and return on capital employed is 10%. Company is consistently maintaining healthy debt and equity ratio over the years; for current financial year, it is 0.28.

Share price as on 31st March was ₹138, and our market cap stood at ₹90,539 crores. This is how the balance sheet looks like as on 31st March 2026.

Our assets and liabilities stood at ₹1,22,567 crores, wherein capital employed is ₹98,667 crores, net worth is ₹66,365 crores, and long-term outstanding loans are ₹14,259 crores. This is the consolidated financial performance.

Turnover stood at ₹1,41,716 crores, gross margin was ₹14,524 crores, PBT was at the level of ₹9,725 crores, and PAT ₹7,582 crores. These are some of the major one-off transactions which were recorded during the year.

There is a provision of ₹675 crores in the gas marketing segment towards dues from NFCL, which we have been assured that we'll be receiving it, we'll be reversing this position as and when this amount is received. There was an entry tax provision reversal of ₹291 crores again in the gas marketing segment.

In the transmission segment, there was a depreciation impact of ₹475 crores toward reassessment of useful life of assets from 30 to 40 years. This depreciation impact is likely to continue for next 10 years more because we have reassessed the pipeline life, the depreciation impact will continue.

In petrochemicals, this depreciation impact was to the tune of ₹189 crores. The overall impact of these transactions was ₹373 crores, negative and positives taken together.

Moving on to strategic investments and growth roadmap of the company: During the year, we did a capex of around ₹9,600 crores, which reflects the company's confidence in sustained demand growth, infrastructure-led expansion, and long-term value creation. Going forward, the company plans to incur a capex of approximately ₹11,600 crores in the next financial year, continuing its focus on infrastructure expansion, diversification, and future-ready growth.

These are some of the major projects which are in pipeline: pipeline projects, petchem projects, net zero, and others. I would like to invite Mr.

Sumit Kishore for the industry outlook and strategic direction on the gas marketing.

Good afternoon, everybody. I'll quickly take you through the industry gas industry outlook as a in general.

Specifics about GAIL have already been communicated. Overall, in 2000 calendar year '25, if you look at the overall LNG landscape, there were three major supplying countries: they were Australia, Qatar, and United States.

This picture, this circle looks very important now looking at the events which have panned out in the calendar year 2026. We can see from here around 84 MMTPA was supplied from Qatar, and another important country, UAE, from where around 5 MMTPA was coming.

These are the two countries which have got impacted. If you look at the second circle, the Qatar's 84 MMTPA, what was the breakup of that?

Around 12 MMTPA was coming to India through different direct contracts as well as indirect portfolio contracts. Now global gas demand outlook for 2025, that marked a transitional year for global gas.

The first half of 2025 was a very, very tight year, and later on, it gave way to then easing second half of the year, wherein new some new LNG sources started supplying gas. Overall, if you see, the LNG prices softened in 2025 towards the end of the year, and the Asian JKM prices started falling by the end of the year.

However, market volatility remained high due to geopolitical minor events. We saw major event later in the year 2026.

The Overall, there were several long-term contracts signed for gas in the LNG industry, which was unprecedented signing for long-term contracts in the year 2025. If you look at the outlook for the years coming five years, we can see that global LNG supply is expected to rise significantly by 2030.

While we are having some disruptions in the Qatar supply, around 220 MMTPA of new liquefaction capacity, mainly from the US and the Qatar. The US is expected to increase its share of global LNG supply from currently around 103 MMTPA in 2024 to 234 MMTPA by 2030.

Many new projects are there which are ready for under construction stage, they are under different stages of conceptualization and feasibility stage also. Europe's plan to phase out Russian gas by 2027 will keep the LNG imports elevated, supporting strong demand for Atlantic Basin and the US LNG supplies.

Medium-term gas markets will be shaped by two major contrasting trends: one is rising gas demand from the developing economies in the Asian countries, and the counter effect, the increasing shift towards renewables and electrification in the developed OECD markets, which is mainly the European market. The above outlook could be significantly impacted if the West Asian crisis prolongs.

Delayed reopening of the Strait of Hormuz may impact the LNG supply growth in the medium term. If you look at the global gas demand outlook, following the supply shock of 2022-2023, where the we saw a Russia-Ukraine war, which saw natural gas markets moved towards a gradual rebalancing and return to structural growth that happened.

That rebalancing happened over a period of two to three years after the supply shock of 2022. Due to the West Asian war, supplies from UAE and Qatar are now impacted, which will have impact on the global LNG demand.

However, the decline in Asian demand is expected to be offset by some medium-term growth in the European market. On the LNG supply side, the supply cuts on Qatari volume during 2026 are being balanced gradually by other regions like USA, Mexico.

Some of the projects which are coming up immediately are listed below. If you can see, even when the Qatar resumes, there may be some disruption because some of the projects will take some time to resume.

These supplies from these sources will become important. This is just a picture of the Hormuz where the which proved to be a major bottleneck, and all of you might have seen these pictures in various media reports.

The Strait of Hormuz turned out to be a critical chokepoint for global LNG supplies, and any disruption, it was proven in these times, can create far-reaching impacts on the global energy security. The strait enables the export of 82 MMTPA from Qatar and around 5 MMTPA from the UAE.

It represents around 20% of the global LNG supplies. This concentration underscores the systemic vulnerability of global LNG supply chains to any disruption in the Strait of Hormuz.

Now coming to the India story: India's LNG imports during the calendar year 2025 were mainly from Qatar, it was around 12 MMTPA; from UAE, it was 3.2 MMTPA, which constitutes around 60% of the India's overall LNG imports. As of December 2025, India's long-term LNG portfolio stood at around 23 MMTPA, which was more than 83% of the total LNG supplies coming to the country.

Out of these disrupted sources, 8.5 MMTPA are source-specific to Qatar and UAE, and remaining volumes are delivered under various portfolio contracts, which the constitution of those portfolio contracts may vary on month-to-month basis, and we see a slightly improving situation as the time passes. As far as the India's expected natural gas demand in 2030 and '40, PNGRB had conducted a study wherein they had projected two scenarios: one is the good-to-go scenario, where the moderate growth and expected developments were factored; the other scenario was good-to-best scenario, where accelerated growth and favorable policy implementation was taken into consideration.

Even if you look at the good-to-go scenario, the total gas supply is expected to be around 297 MMSCMD by 2030, and it is expected to be 495 MMSCMD by 2040. The mainly the these are the pie charts showing the description of the various gas consuming industries.

As you see from the above, CGD sector is expected to be the highest consuming sector with over 40% share, over 200 MMSCMD by the year 2040. There are other sectors, especially the LNG in trucking, which is which are going to be the major drivers in the coming years.

As we see the picture in China emerging where the LNG by trucking consumes more than 10 to 12 MMTPA of LNG. The gas infrastructure in India is this is shown in a map which is showing all the pipelines, the terminals, and the gas sources.

If you look at the terminal capacity, the total terminal capacity currently is around 57.7 MMTPA. If you consider the growth as projected by PNGRB, we would be requiring more terminals to bring in the desired quantity of natural gas in the country.

The Dabhol expansion is already in place, which is expected to make the capacity increase by 1.3 MMTPA, and in the Dabhol expansion 2, we'll be increasing the capacity by 6.3 MMTPA. City gas distribution, as we have already narrated, is going to be one of the major growth engines of the gas consumption industry.

If you see, the CGD growth has been is expected to be in the range of 12% to 15% till 2030 and will lead the growth of gas consumption in India. Most of the growth will come from the CNG sector and the smaller industries and the commercial installations.

The government has been very favorable in favoring in helping the CGD industry, and they have they have taken several key initiatives like reallocating the cheapest APM gas to the domestic for the domestic consumption by diverting gas from power and other non-priority sectors. Further, they have also given priority to CNG and DPNG in the HPHT gas, and then new well gas has also been provided for the CGD sector.

If you look at the current gas scenario, 60% just to give a glimpse, 60% of India's LPG requirement is imported. I'm comparing just the two fuels, LPG versus natural gas.

90% of the LPG imports traditionally used to come through the Middle East, which has now got disrupted. India has strategically diversified its LNG sourcing portfolio over the past decade, and GAIL had prudently entered into US LNG contracts more than a decade ago.

GAIL's diversified LNG portfolio has come as a big savior in averting an energy crisis during the current war situation. Going forward, natural gas is likely to replace propane and LPG for usage in the industrial sector, and also natural gas is likely to replace LPG for cooking in the kitchens in the cities.

In conclusion, the Middle East conflict and the Hormuz closure has significantly disrupted the LNG industry. Recovery will happen gradually in phases.

Even after the war subsides, LNG production normalization is expected to be gradual, with Qatar taking a multi-year recovery timeline. India should strengthen a diversified LNG portfolio to improve the energy security, and government push for LPG to PNG conversion will further accelerate the demand growth for the natural gas sector.

CBG sector currently at we are producing around 0.6 MMSCMD of CGD. This is expected to grow significantly with the help of supportive policies like mandatory CBG blending, and more policies are expected to come in future from the Ministry of Petroleum and Natural Gas.

Key priorities going forward for the country will be LNG sourcing from diversified geographies, infrastructure development, strategic gas storage, and compressed biogas, and favorable government policies. If you look at the petchem segment industry outlook, as we are all aware that the per capita consumption of polymers is just 15 in India, whereas in China, it is 83 kg per capita, and if you consider it for US, it is 93 kg per capita.

There's significant polymer growth potential in the country, and India remains committed to having its growth in the polymer segment also. Compressed biogas, as I told, is one of the key segments where we are looking at very positively.

GAIL achieved 88,174 metric ton of CBG sales through CBG-CGD synchronization scheme in 2025-2026, which was more than double of the MoU target. This MoU this CBG-CGD synchronization scheme is one of the pillars of the CBG sale, and GAIL is the nodal agency which is as per MOPNG conducting the synchronization scheme.

443 TPAs were signed with 344 CBG biogas producers and 42 CGD industries. GAIL itself is setting up six CBG plants under construction with collective production capacity of 95 tonnes per day.

Thank you.

Thank you, sir. Sir, with your permission, we'd like to open the floor for Q&A, and I'd like to request the participants to introduce themselves with their name and name of the firm before asking the question.

Yeah. Please go ahead.

Hi. This is Probal here, sir, this side from ICICI Securities.

This way, here, sir.

Yeah. I'll just stand up, I guess.

The question was about the petrochemical business, where you mentioned about trying to move to ethane from the current gas-based input capacity. Just if you can give us a little bit of color on how this switch will work, what kind of requirement will be there, what are the kind of arrangements we're looking at from a supply perspective, and what is the kind of pricing that we're working with?

Without ethane coming in, for FY '27 in particular, if this dispute continues to restrict gas flows, what kind of capacity is realistic in terms of production that we should be working with?

I'll just give an overview of petrochemical on ethane route. As GAIL is currently operating its Pata Petrochemical Complex on natural gas.

That is a major feedstock, and that is where the volatility comes in. Our profitability of Pata complex is critically dependent on the price of gas.

Now, looking at the volatility because of the geopolitical situation over the last couple of years since the Russia-Ukraine war started and now this Iran-US conflict, our profitability of Pata has always been going up and down, and there have been times when we had to shut down the Pata plant because it was not viable. Recently, while we had to close down the Pata plant because of the government order, we restarted it because we were able to source some extra volumes of gas, and also because the price of petrochemical was quite attractive, and the plant is running, but at a partial load.

This is the situation. Going forward, we want to have this Pata plant run on both gas as well as ethane, and we are currently studying the ethane pipeline to connect this plant with ethane.

We will look at the details of this ethane supply from all the possible global sources, mainly the US. Then once this pipeline is commissioned, we'll evaluate after having done the DFR, etc., what kind of economics works out.

We are very confident that on the ethane route, this plant will become viable, and we will at least have both the kind of flexibility: we can run the plant on gas as well as ethane. The studies will commence very soon.

Then, going forward, this is a plan. Anything else that you want to add on this?

No, no, you covered,

sir.

One question was there what will be the financials if we run, that was, Probal, your question. As Chairman sir explained that we are running at a partial load.

That partial load is 50% of total capacity. Based on the current market price and the input gas cost, which is largely spot, we expect to be break-even.

That's the financials we have worked out. Going forward, if we are able to run the plant at full capacity and the availability of gas is there, we will be having positive impact.

The assumption is the price which are there currently should continue.

Hi. This is Sabri Hazarika from Emkay Global.

First question is on your petchem project plans. Both PDH-PP as well as GMPL, as you have mentioned, they would be commissioned by the middle of next year.

Is it because of feedstock issues or is it project delays?

Okay. Just a small correction here.

I think the GMPL will get commissioned within this financial year, 100%. The PDH-PP plant, we are expecting it to slightly slip over and get completed by the middle of next year.

The delay in completion is because of multiple factors. There is no singular factor which can be assigned to the delay in completion.

As GMPL is a project that we have taken on NCLT, we had to rope in the licensor to sort of revive the project. The project is now in advanced stages of completion.

There is no feedstock challenge, as we are discussing. As far as the PDH-PP is concerned, there is a 45-kilometer pipeline connectivity to supply propane to this plant, and that pipeline also has been a slow project.

Now we're expecting there is some movement. There were some local issues.

Now we're expecting the pipeline to get completed by maybe another 3-4 months. Then the PDH plant also has started to move.

We're expecting it to get completed by the middle of next year. It is not because of feedstock.

It is because of multiple factors, mainly because of the contractors and the agencies who were entrusted with the work. There have been some issues there, but I think now we're on the course to complete these projects as I mentioned just now.

Thank you. Second question is on your ethane pipeline.

Previously, there are two pipelines that you have mentioned of: one would be connecting Vijaipur with Pata, and the other one is from Dabhol to Vijaipur, which is under planning right now. This Vijaipur-Pata pipeline, is it under progress right now and when is it getting commissioned, and would it supply at least some amount of ethane to the Pata plant once it is ready?

Thank you. That's all.

The C2-C3 pipeline, which you just mentioned, is advancing very well. This project is already going on.

We are expecting to complete this by early '27, and this gives us additional C2-C3 as a feedstock to Pata, and I think we are expected to increase the Pata capacity by about 80 to 90 KTA by virtue of this extra supply of C2-C3. The ethane pipeline which we are proposing to build will actually connect to this pipeline, and then this pipeline will become the part of the ethane pipeline going forward.

That is the plan. Thank you.

Thank you, sir.

This is Namit Arora from InCred Capital. My question is around LNG.

You have mentioned in the presentation that GAIL was very proactive about a decade ago to start developing the US as sources of LNG. Given the disruption in the Middle East and it might take time to normalize, could you walk us through what the current situation is in terms of both availability of LNG and pricing, and how are you trying to sort of address this issue given that this disruption in the Middle East might continue for some time?

Thank you.

Okay. To answer to your question, you know the crisis currently, you know the impact of the Strait of Hormuz on the supplies, mainly from Qatar.

As my colleague was presenting, he explained in detail where the impact is coming from. Then, in the last couple of months, we have been very successful in diversifying our sources for getting LNG into the country, and most of these supplies are coming through spot purchases.

The prices you can see from the indices, they're very volatile. The dynamics is still very much prevailing, and as far as the supplies are concerned, the availability is there.

You can see in the last two and a half months or so, we have been able to maintain uninterrupted supplies to almost all the sectors, gas has not been a problem, and all the priority sectors have been getting enough of gas, and the only issue is the price. Any industry, any sector that warrants gas from us, we are being able to supply gas to them, but at a price which is market-driven.

Our long-term portfolios have got impacted. As he mentioned, US long-term contracts have come as a big savior in this moment of crisis.

Then, the LNG sources have got immensely diversified, and we are procuring gas without much problem.

Got it. Thanks a lot for your detailed thoughts, sir.

My final question is on capital allocation going forward. You may have done some analysis of the capital deployed over the past decade in terms of either returns on capital employed or returns on equity on various businesses, including petrochemicals, etc.

Going forward, how are you thinking about deploying the capital given that you have multiple business segments? Thank you.

I'll request you to take this question. You want to take this question?

I can.

Yeah.

Thank you. As we are the flagship gas transmission company of the country, and we continue to look for pipeline business.

Even if you see, currently we have a lot of pipeline projects which are ongoing, which was shared by my colleague, like KKMBPL project, Jagdishpur-Haldia, DUPL-DPPL expansion, Bina pipeline, Vijaipur-Bina pipeline, then doubling of GLPL pipeline capacity. Going forward, we are expecting to get authorization for at least three LPG pipelines where we are single bidder.

We are also continuously in touch with the various authorities, government, and PNGRB to get more authorization of pipeline based on the nomination because we have seen that other pipeline entities have not built. Our continuous focus certainly will be on pipeline.

We are also having plan to incur at least around ₹35,000 crore of capex in coming 10 years on net zero based on commercial analysis. During presentation, we have shown that almost 778 megawatt projects we have already done.

Then in terms of KLL expansion, we are working to expand the capacity of KLL already from 5 MMTPA to 6.3. Board had taken a decision, and then we plan to expand to 15 MMTPA.

Just now Chairman sir has replied that we are also working on ethane pipeline project, which is around from Dabhol to Vijaipur, will have around estimated capex of ₹12,000 crore. These are the areas we will continue to work.

Certainly, as a commercial organization, will continue to look for any other opportunity which is in consonance with our business, and we will evaluate, and we can also invest our money.

Thank you very much for your detailed thoughts. All the best to the entire team.

Maybe in the interest of time, I'll request the participants to restrict the questions to one only. We go to Nitin,

yeah. Hi.

This is Nitin from PhillipCapital. Thank you for the opportunity.

Sir, my question is also related to capital expenditure programs. There was recently an announcement of a coal gasification project where GAIL could be a participant.

If you could walk us through basically the details of this project in terms of what's our participating interest and what we're looking in terms of outcomes, what could be possible investment that would be involved over here? Also, if you could throw some light on the fertilizer projects that you were evaluating a couple of months back, is there any change in those plans given the crisis in West Asia and increase in gas price?

That's all from my end. Thank you.

Okay. On the coal gasification front, as you may be aware, GAIL is currently, along with JV partners, implementing the Talcher project.

That project is almost 65% to 70% complete as of now. We are expecting completion by December '27, but then we also expecting some more delays in the project because we have Wuhuan as the EPC contractor, and we have some issues there.

That is one major investment that we have done already, and that's a JV of Coal India, RCF, and GAIL. That is one ongoing project.

We also have another project which is ongoing, that is a Coal Gas India Limited, that's a JV of Coal India and GAIL. Now, that project is under the initial stages where the DFR is under preparation.

I think the expected cost would be around in the range of ₹13,000 crores. Yes, we are into coal gasification.

We'll also look at other projects in the coming days. We'll evaluate other possible opportunities that come along the way.

In terms of fertilizers, as you may be aware, we are interested in two fertilizer projects currently: one in Chhattisgarh, one in Maharashtra. Yes, the plan is still on.

We are going forward with these two projects, and the expected capex could be around ₹20,000 crores for both the projects. The plan is there, and we are in discussions with the state governments to finalize the details, and I think very soon the initial front-end work on these projects will start.

Thank you.

Sir. This is Kanan Dixit from Elara Securities.

Sir, can you help me this quantify the this gap of the last year this versus this year this decline in the gas marketing this EBITDA? Just want to understand that whether these benefactors are sustainable or not, because you're still giving the 40 billion that's a next year this guidance for it.

That's my first question, sir. Second is this about the swap cargoes that earlier you are getting from the Middle East.

Still you are able to reroute directly to India, or you are facing the shipping issues in this regard? That's my two questions.

With respect to first question, we have, in Chairman's initial remarks, stated that we are likely to earn at least a minimum ₹4,000 crore, which you capture. Your question was what are the reasons for drop in this year?

There are two to three major reasons. One is we had provided ₹675 crore of provisions on account of dues to be received from Nagarjuna Fertilizer, which is in advanced stage of approval and may come anytime this quarter or next quarter, we'll reverse it.

Last year, we have provided. Our guidance was ₹3,500 crore, and ₹2,775 we got.

With this single factor, we could have reached. Another factor is during this financial year, we accounted for ERV, exchange rate variations, as a liability for ships we have hired.

That is also around ₹600 crore. We have to restate our ship leasing liability, the long-term liability we have to provide, and any balance sheet date, we have to revise it.

That is also around ₹600 crore. These two factors alone have brought down our marketing margins to this extent.

About the swapping, sir, from the Middle East?

Swapping, I think, Sumit, you can respond.

Swapping, what exactly was your question? Can you repeat that?

I recall in the previous earning calls, you mentioned that typically you are swapping with the US cargoes with the Middle East around two ships per month, Middle East got closed, still you are

I'll tell you. See, Ras Laffan got immediately impacted, then our portfolio volumes, where you are mentioning about swapping.

Normally the scheduling of the India leg cargo happens for 90 days in advance. We are almost through now, three months is almost over for the war.

Yes, one or two cargoes in each of the previous months got impacted. There was the swap cargoes, which were scheduled to be from Ras Laffan or UAE.

Going forward, we are expecting that none of the cargoes will be scheduled through the already troubled Hormuz Strait. That impact will not be there going forward.

Thanks. Thanks for

it.

Maybe can we take this as a last question, and after this, we invite you for the high tea. The management will be available for an informal interaction during the high tea as well.

Please go ahead.

Sir, thanks for the opportunity. This is Ramesh Pojari from Mehta & Vakil.

I was observing your presentation. Two thoughts came to my mind.

You have 13 E&P blocks ongoing, and India is a net importer of 60% of LNG or gas. Sir, what are the prospects of discovering our own gas and producing it and eliminating this import?

Second thought? You had two thoughts.

This is the first thought. Second thought?

Second thought, you have already answered why the profitability was low, which your colleague gave the answer.

Okay. I'd like to answer your first thought.

See, E&P segment, there is a lot of thrust from Government of India to explore more and to produce more. Now, this is something which is going on, and we are not a E&P player, we only have some participating interests in some of the E&P blocks.

Now, in so far as producing so much of gas that we become completely independent of imports and we don't depend, this will take some time. There is a lot of thrust now.

I think you must have seen government has opened up all the no-go areas for exploration. A lot of work is going on in the Andamans and other areas.

We're also hopeful to get a breakthrough, and I think when it happens, we'll all rejoice. We are still waiting.

As far as we are concerned today, our dependence on imports in so far as gas is concerned is still about 50%,

but

we are fortunate that we have 50% production in-house,

and

that becomes very, very important to ensure that we are able to supply gas to all the sectors without any interruption. Thank you.

Thank you and all the best.

Thank you so much.

Thank you, sir. I'd like to request Rwibhu, analyst at UBS, to give a vote of thanks to the entire forum.

Hello, everyone. I am Rwibhu Aon, Director and the Energy Analyst at UBS India.

It has been a privilege for us to host this insightful investors and analyst meet on behalf of GAIL (India) and UBS Securities. I would like to extend my heartfelt gratitude to Shri Deepak Gupta, Shri Rakesh Kumar Jain, Sumit Kishore, and Shri Satish Kumar Sinha, and the heads of the various departments who handled the event throughout.

I also want to take a minute to thank Director (Finance) sir, Rakesh sir, along with GAIL's senior management and investor relations team, has been proactively engaging with the investors community over the years through best practices, including today's meet, and feedback from the community has helped the company to improve communications and disclosures, which in turn has enabled fair valuation of the company. We want to congratulate the management on their strong and sustained performance in Extel survey of both sell-side and buy-side stakeholders.

We hope and expect GAIL's team would continue such interactive sessions in the future as well. We really appreciate Rakesh sir's time and effort over the years sharing his detailed insights and guidance on the company and the natural gas sector as a whole.

Thank you so much, sir. Wish you all the best in your future endeavors.

I would also like to thank all analysts, investors, and experts for being present here and helping us make this event a grand success. Thank you, and wish you a pleasant evening.