GAIL.NS Stock Today: February 01 Profit Slumps 58%, Rs 5 Dividend
GAIL Q3 results are in focus as profit fell 58.6% year-on-year to Rs 1,603 crore, while the board announced a Rs 5 interim dividend. Shares of GAIL.NS closed at Rs 167.29 on 30 January, down 0.05%. A 12% pipeline tariff hike effective 1 January could support Q4 EBITDA, but petrochemicals and LPG weakness weighs on margins. We break down the numbers, dividend math, tariff impact, and the near-term trading setup for Indian investors.
Q3 snapshot: profit slide with dividend support
PAT fell to Rs 1,603 crore in Q3 FY26, down 58.6% YoY, led by weaker petrochemicals and LPG spreads. Nine-month FY26 revenue stood near Rs 1.03 lakh crore, with PAT of Rs 5,706 crore, as per company updates. The board also declared an interim dividend of Rs 5 per share. Reported profit decline is confirmed by The Hindu source.
The stock closed at Rs 167.29 on 30 January, down Rs 0.09 (-0.05%). Day range was Rs 165.21–168.10; 52-week range is Rs 150.52–202.79. Market cap is about Rs 1.10 lakh crore, with volume at 1.58 crore shares vs 0.94 crore average. Nine-month revenue and the Rs 5 interim dividend were also noted by Daily Pioneer source.
Dividend payout and what it means
The Rs 5 interim dividend implies about a 2.99% yield on the current price of Rs 167.29. On a trailing basis, dividend per share is Rs 7.5, a 4.48% yield. With 657.51 crore shares outstanding, the interim payout signals an estimated cash outflow near Rs 3,288 crore. This supports returns even as GAIL profit declines in the quarter.
For income-focused investors, the announced dividend adds near-term support. That said, payout sustainability depends on margins normalising in petrochemicals and LPG. We prefer tracking cash flows alongside earnings. If spreads stabilise and transmission profits rise, dividend coverage should improve. Conservative investors can reinvest dividends while waiting for clearer margin trends.
Tariff hike and operations outlook
A 12% pipeline tariff hike effective 1 January should aid transmission EBITDA from Q4. This helps offset softer marketing and petrochem margins. Higher regulated tariffs typically have predictable pass-throughs. We expect operating leverage from volume uptick to add further support if domestic gas demand improves. The GAIL Q3 results set a low base for a sequential recovery in Q4.
Management has flagged a delay in a pipeline project, which could shift part of the expected volume and revenue ramp. Petrochemical and LPG spreads remain the swing factors for margin recovery. Working capital is tight (current ratio 0.91), so cash discipline matters. We will watch realizations, tariffs, and project timelines as the main moving parts after the GAIL Q3 results.
What charts and valuation say today
RSI at 40.73 signals weak momentum, while ADX at 14.93 shows no strong trend. CCI at -120 suggests oversold. Price sits near the lower Bollinger Band at Rs 166.74, with the middle band at Rs 170.47 and upper at Rs 174.19. ATR of 3.00 points to a tight range. Traders can watch Rs 166–167 as support and Rs 170.5–174 as resistance.
At Rs 167.29, the stock trades at 10.08x TTM EPS (Rs 16.59) and 1.25x book. EV/EBITDA is 9.44; earnings yield is 9.92%. Debt-to-equity stands at 0.25, and TTM dividend yield is 4.48%. These metrics look reasonable for regulated gas, but margin risks mean the GAIL Q3 results should be paired with near-term catalysts.
Final Thoughts
The GAIL Q3 results show a sharp profit drop to Rs 1,603 crore, but a Rs 5 interim dividend and a 12% pipeline tariff hike set the stage for steadier Q4. For near-term traders, the Rs 166–170 band is key, with Rs 174 as the next hurdle. Long-only investors can lean on the dividend while tracking petrochem and LPG spreads, transmission volumes, and any updates on the flagged pipeline delay. Valuation near 10x TTM EPS and a near 4.5% trailing yield offer a cushion. We suggest phasing entries and using dips toward support while reassessing on each operating update.
FAQs
What are the key takeaways from the GAIL Q3 results?
PAT fell 58.6% YoY to Rs 1,603 crore due to weak petrochemicals and LPG spreads. The board declared a Rs 5 interim dividend. A 12% pipeline tariff hike from 1 January should aid Q4 transmission EBITDA. Investors should track margin recovery, project timelines, and gas demand for the next leg.
What is the yield on the GAIL dividend Rs 5?
At Rs 167.29, the Rs 5 interim dividend equals about a 2.99% point-in-time yield. On a trailing basis, dividend per share is Rs 7.5, implying a 4.48% yield. The actual cash received depends on your shareholding and tax bracket. Payout timing follows standard corporate action schedules.
How does the pipeline tariff hike impact earnings?
The 12% pipeline tariff hike effective 1 January directly supports the transmission segment’s EBITDA from Q4. Higher regulated tariffs improve unit economics and visibility. If gas volumes hold up, operating leverage can add to gains. This tailwind helps balance softer petrochemical and LPG margins highlighted in the GAIL Q3 results.
Is GAIL a buy after the profit decline?
Valuation at ~10x TTM EPS and a 4.48% trailing dividend yield look reasonable, with a tariff-led Q4 tailwind. Risks include petrochemical/LPG spreads and a flagged pipeline delay. Consider phased entries near support (Rs 166–170) and reassess after management updates, instead of a single large allocation.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
