GAIL board gives in-principle nod to GAIL Gas IPO with up to 25% dilution; Q2 profit at Rs 4,650 crore
GAIL's board gave in-principle approval on 30 October 2026 to list its wholly owned subsidiary GAIL Gas through an IPO, diluting up to 25% of GAIL's stake, the company told the exchanges.
Key points
- GAIL's board on 30 October 2026 gave in-principle approval to list GAIL Gas Ltd through an initial public offering.
- GAIL will dilute up to 25% of its equity in GAIL Gas; standalone Q2 FY27 profit after tax was Rs 4,650 crore.
- The final extent of dilution and other terms of the IPO still need a further GAIL board approval, the filing says.
The board of GAIL (India) Ltd on 30 October 2026 gave in-principle approval to list the shares of its wholly owned subsidiary GAIL Gas Ltd on Indian stock exchanges through an initial public offering (IPO), diluting GAIL's equity in the subsidiary by up to 25%. The company disclosed the decision to the National Stock Exchange and BSE the same day. In a separate release, GAIL reported standalone profit after tax of Rs 4,650 crore for the July-September quarter.
What Happened
According to GAIL's filing, the approval is in principle. GAIL Gas will first submit a final proposal based on the recommendations of the book running lead managers on valuation, price band and other terms. GAIL's board will then approve the final extent of dilution, the structure and other terms of the IPO, and the company will inform the exchanges, the filing says.
GAIL's press release gives its results for the quarter ended 30 September 2026 (Q2 FY27). On a standalone basis, revenue from operations was Rs 45,924 crore, up 17.8% from Rs 38,981 crore in the previous quarter. Profit after tax rose 8.3% to Rs 4,650 crore from Rs 4,292 crore in the April-June quarter.
For the half year from April to September 2026, standalone profit after tax rose 117.9% to Rs 8,943 crore from Rs 4,104 crore a year earlier, and revenue rose 21.6% to Rs 84,905 crore from Rs 69,824 crore. On a consolidated basis, half-year profit after tax, excluding minority interest, rose 116.1% to Rs 9,385 crore from Rs 4,342 crore. GAIL said capital expenditure in the half year was Rs 7,600 crore, against a planned Rs 12,900 crore or so for the year.
What It Means
For GAIL's shareholders, the decision means part of the subsidiary may in future be sold to public investors, with GAIL keeping at least 75% if the plan goes ahead as approved. The final extent of dilution and the other terms of the offer depend on the further board approval the filing describes. GAIL said it will inform the exchanges when that happens.
Sources & Citations
- NSE filing: GAIL Gas listing approval — National Stock Exchange of India
- NSE filing: GAIL Q2 FY27 press release — National Stock Exchange of India