GAIL (India) Limited gave in-principle approval for an initial public offering of its wholly owned gas subsidiary as consolidated quarterly revenue rose 32.7%, while six distribution areas are due to transfer to the unit.
Consolidated revenue from operations reached ₹47,301.03 crore (₹473.01 billion) in the quarter ended Sept. 30, 2026, compared with ₹35,657.23 crore a year earlier. GAIL’s board approved unaudited results for the quarter and half year. The results were accompanied by a limited review report.
On a standalone basis, revenue from operations was ₹45,923.57 crore and profit after tax was ₹4,650.22 crore. Standalone profit after tax was ₹2,217 crore in the year-earlier quarter.
The proposed IPO could dilute GAIL’s equity in GAIL Gas by up to 25%. The valuation, price band, transaction structure and other terms are pending a proposal from GAIL Gas, based on recommendations from book-running lead managers. GAIL’s board must give further approval to the proposal and terms.
The board also approved moving six city gas distribution areas to GAIL Gas: Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Khordha. Under a Business Transfer Agreement, GAIL Gas will take over the areas as a going concern in a transaction structured as a slump sale. The transfer is scheduled to take effect Jan. 1, 2027.
