1. INDUSTRY STRUCTURE
1.1 Global Economy & Geopolitical Events
a. Global GDP & Growth Dynamics
The recent time is marked by renewed concerns over energy security, as geopolitical conflicts and trade tensions disrupted global energy value chains to a very large extent. The global economy recorded moderate but uneven growth in CY 2025 amid heightened trade frictions, elevated public debt levels and persistent geopolitical tensions. According to the IMF World Economic Outlook (April 2026), global real GDP growth stood at 3.4% in 2025 and is projected to moderate to 3.1% in 2026, with forecasts revised downward from earlier estimates due to the economic impact of the ongoing Middle East conflict. The downside risks included escalation of geopolitical tensions, worsening trade fragmentation, commodity price shocks and weaker-than-expected productivity gains from 4th Industrial Revolution (4IR) technological adoption. Among major economies, India remained one of the fastest-growing large economies, supported by strong domestic consumption, public capital expenditure, digitalisation and manufacturing expansion. India recorded real GDP growth of 7.6% in 2025, significantly outpacing major peers and had emerged as the worlds fourth- largest economy during 2025; however, subsequent IMF projections indicate ranking volatility due to exchange-rate movements and nominal GDP revisions.
Indias growth model remains relatively resilient, with private final consumption expenditure contributing around 60% of GDP, thereby reducing vulnerability to external demand shocks. However, rupee depreciation during the period has increased imported inflation risks, particularly for energy-importing sectors.
b. Tariffs & Trade Policies — Impact on Global & India Economy
The year gone by witnessed renewed trade protectionism. Rising protectionist measures and tariff actions across major economies have affected global supply chains, particularly for clean energy equipment. The evolving trade environment has reinforced the importance of supply chain diversification and domestic manufacturing capabilities1,2.
As regards to India, the US imposed a 25% tariff on Indian goods at the end of July 2025, with an additional 25% duty effective August 27, 2025, as a penalty for Indias purchase of Russian oil, which was expected to hurt Indias economic output3. India and the United States continued bilateral engagement to advance a phased trade arrangement and in February 2026, the two countries agreed to a historic interim trade framework, whereby the U.S. officially dropped the additional 25% penalty tariff tied to Russian oil and reduced the base reciprocal tariff from 25% to 18%.
Overall, the evolving tariff environment reinforces the need for resilient supply chains, diversified sourcing and stronger domestic manufacturing capabilities.
c. Key Geopolitical Events (Pre-Hormuz)
Prior to the Middle East Strait of Hormuz conflict, global energy markets were already influenced by multiple geopolitical disruptions affecting trade flows, shipping routes and commodity pricing.
Russia-Ukraine Conflict & European Gas Flows: The
Russia-Ukraine conflict continued to reshape European gas markets. Russian pipeline gas supplies to Europe were largely limited to the TurkStream route (via Black Sea), while additional volumes were supplied as LNG from global exporters. Europe continued to diversify its LNG sources through growing US LNG imports, Norway gas supply etc., while reducing dependence on traditional Russian pipeline flows.
Red Sea / Suez Canal Disruptions: Maritime security risks in the Red Sea and Suez corridor remained a key logistical challenge. A large share of vessels continued to avoid the route during 2025, with many shipments diverted via the Cape of Good Hope, increasing the voyage times, freight costs, insurance premiums and vessel tightness.
Overall, even before the Hormuz crisis, global markets were operating in a fragile environment characterised by supply and shipping disruptions, re-routing, tariff-led trade shifts and elevated energy price volatility.
d. Key Geopolitical Events (Persian Gulf Geopolitical Crisis - Hormuz Blockade)
The escalations between the US, Israel and Iran in the Persian Gulf from late February 2026, reinforced the notion that the Strait of Hormuz is the worlds most critical energy chokepoint. Prior to the crisis, around 15.29 million barrels/day of crude and condensate from Saudi Arabia, UAE, Iraq and Iran transited the Strait, representing nearly 33% of global crude exports. Petroleum Refined Product flows were about 5.88 million barrels/day or 22.4% of global product exports. With respect to LNG, Qatar and UAE together exported about 87.91 MMTPA through the Strait, including 81.33 MMTPA from Qatar and 6.57 MMTPA from UAE.
| Key Strategic Exposure via Strait of Hormuz (Pre-Crisis) | Volume | Global Share |
| Crude & Condensate Exports | 15.29 MMBPD | 33% |
| Refined Products | 5.88 MMBPD | 22% |
| LNG (Qatar + UAE) | 87.91 MMTPA | 20% |
The outbreak of conflict in the Middle East on 28 February 2026 and the resulting disruption to tanker traffic through the Strait of Hormuz triggered supply disruptions across crude oil, petroleum products, LNG and several industrial commodities. The crisis impacted key energy
infrastructure across the Gulf region, including LNG, oil, gas and petrochemical facilities, leading to reduced supply availability and delays in planned capacity expansions.
The disruption resulted in sharp volatility across global energy markets. Brent crude prices increased from around US$72/bbl in late February 2026 to about US$120/bbl by end of March, while LNG prices also rose significantly amid tighter supply conditions. Commercial shipping costs increased significantly due to increase in insurance costs and re-routing of trade flows.
This crisis underscored the vulnerability of globally concentrated energy supply routes and reinforced the importance of supply diversification, strategic reserves and resilient energy infrastructure.
Ships crossing Strait of Hormuz, by type, daily count
IShipUd
a. Global Primary Energy
a. Global Primary Energy Supply 20254
The global energy sector continued to witness steady expansion in CY 2025, supported by economic activity, rising electricity consumption and continuing electrification across end-use sectors. As per the IEA Global Energy Review 2026, global primary energy supply increased by 1.3% to 655 Exajoule (EJ) in 2025 from 646 EJ in 2024. However, the growth rate moderated compared to the previous year due to sustained geopolitical uncertainties, slower economic growth momentum and overall efficiency improvements across consuming sectors.
Fuel-wise, all major energy sources registered growth, albeit at varying rates. Renewables recorded the fastest growth, while fossil fuels continued to retain a significant share in the global energy basket, underlining the dual challenge of ensuring energy security while advancing decarbonisation objectives.
Amongst fossil fuels, Natural gas demand growth moderated sharply to around 1.0% in 2025, compared with 2.8% in 2024, amid relatively elevated prices during the first half of the year. Incremental demand was led by the United States, European Union and the Middle East, while Asia Pacific recorded comparatively weaker growth.
An important efficiency indicator that improved during the year, was the global energy intensity (energy use per unit of GDP, which improved by nearly 2% in 2025. While the global energy intensity trend during 2019-2024 was around 1.3% annually. This reflected stronger renewable penetration, efficiency gains and more moderate weather- driven demand growth.
Global Energy Supply by Source - CY 2025
| Source | Energy Supply 2023 (EJ) | Energy Supply 2024 (EJ) | Energy Supply 2025 (EJ) | Growth in 2024 (%) | Growth in 2025 (%) |
| Coal | 176 | 178 | 179 | 1.2 | 0.4 |
| 27.60% | 27.31% | 27.33% | |||
| Oil | 192 | 193 | 194 | 0.8 | 0.6 |
| 30.28% | 29.78% | 29.62% | |||
| Natural Gas | 144 | 148 | 149 | 2.7 | 1 |
| 22.87% | 22.99% | 22.75% | |||
| Renewables | 92 | 96 | 101 | 5.4 | 4.6 |
| 14.51% | 14.97% | 15.42% | |||
| Nuclear | 30 | 31 | 31 | 3.7 | 1.2 |
| 4.73% | 4.78% | 4.73% | |||
| Total | 634 | 646 | 654 | 2.2 | 1.3 |
Source: IEA Global Energy Review 2026
Low-emission energy sources continued to drive global energy growth in CY 2025, with solar PV accounting for over 25% of incremental demand, followed by natural gas at 17%. Collectively, renewables and nuclear contributed nearly 60% of global energy demand growth, reflecting the ongoing energy transition. Global electricity demand grew by around 2.8% to 32,132 TWh—more than twice
the rate of overall energy demand growth—driven by industry, buildings, electric mobility, cooling needs and digital infrastructure, reinforcing the emergence of the "Age of Electricity."
1.3 Global Gas Sector
a. Demand and Supply Trends
Global natural gas demand registered moderate growth during CY 2025. Demand growth was driven by the power, industrial and city gas sectors, while natural gas continued to play a critical role in balancing intermittent renewable generation and supporting energy transition objectives.
On the supply side, global gas production remained volatile, which however was supported by increased output from the United States, Qatar and other major producing regions. Several LNG projects progressed during the year, including the expansion of Qatars North Field East and North Field South projects, the Plaquemines LNG project and Corpus Christi Stage III in the United States and LNG Canada Phase-I. These projects are expected to contribute significantly to global LNG supply over the coming years. Europe remained dependent on LNG imports to replace reduced Russian pipeline gas supplies. While gas storage levels were generally comfortable entering winter, colder weather conditions and periodic supply concerns led to increased procurement of LNG cargoes. In North America, severe winter storms during early 2025 temporarily disrupted gas production and LNG export operations, contributing to short-term market volatility.
b. LNG Market and Price Trends
Global LNG markets remained relatively balanced for most of CY 2025, supported by new LNG supply additions and moderate demand growth.
Asian spot LNG prices (JKM) averaged around US$12.15/ MMBtu during CY 2025, while European gas prices (TTF) averaged around US$12.11/MMBtu. Prices remained significantly below the peaks witnessed during the energy crisis of 2022 but continued to exhibit periodic volatility. During early 2026, escalating geopolitical tensions in the Middle East and concerns regarding LNG supply security led to a sharp increase in both JKM and TTF benchmarks. Henry Hub prices in the United States remained comparatively lower, reflecting robust domestic production growth and continued expansion of export capacity.
The widening price differential between Henry Hub- linked LNG contracts and spot LNG prices reinforced the importance of long-term LNG contracts, portfolio diversification and destination flexibility for LNG importers.
c. Strait of Hormuz and Market Implications
The escalation of conflict in the Middle East during February-March 2026 highlighted the strategic importance of the Strait of Hormuz, The market reaction was immediate across gas, oil and freight benchmarks. Key prices as of March 26, 2026, were:
• Dated Brent: $103.89/bbl
• JKM (May): $19.198/MMBtu (vs ~$10/MMBtu pre-war)
• WIM (West India Marker, May): $19.023/MMBtu
• TTF (May): $18.565/MMBtu
• Propane Middle East CP: $545/MT (vs ~$393.4/MT in US — Mt. Belvieu)
• Butane Middle East CP: $540/MT (vs ~$488.8/MT in US — Mt. Belvieu)
• INR/USD exchange rate depreciated ~4% to 94.6
This crisis underscores the urgent need for supply security, diversification and shipping resilience to mitigate risks from concentrated export hubs and chokepoints. Moving forward, development of new export capacities in North America and Africa, along with long-term contracting, will be critical to buffering global energy security against future geopolitical shocks.
1.4 Indian Energy Sector
Indias energy sector in FY 2025-26 navigated a transformative year, characterized by robust economic momentum, aggressive pursuit of decarbonization goals and a critical structural shock triggered by the Hormuz geopolitical crisis.
Total Energy Supply (TES) for India increased to 39.10 EJ in CY 2025 from 38.82 EJ in CY 2024, registering a growth of ~0.72%, while Indias overall energy import dependency remained elevated at approximately 87% for crude oil5, 54.35% for natural gas6 and 21.88% for coal7, underscoring structural reliance on external energy sources.
India - Energy Demand & Supply Indicators (CY 2025)8
| Parameter | CY 2024 | CY 2025 | y-o-y |
| Total Energy Supply | 38.82 EJ | 39.10 EJ | 0.72% |
| Crude Oil Import Dependency | 87.25% | 87.03% | -0.25% |
| Natural Gas Import Dependency | 53.18% | 54.35% | 2.2% |
| Coal Import Dependency | 22.11% | 21.88% | -1.04% |
| Per Capita Energy Consumption | 26.8 GJ | 26.7 GJ | -0.37% |
Indias energy demand profile continues to be dominated by fossil fuels, though the share of non-fossil sources is steadily increasing in line with policy targets. Indias Energy Mix, as per EI Stats 2026, is as under:
India Energy Mix - Share %
| 2025 | 2024 | |
| Oil | 27.86% | 28.06% |
| Natural Gas | 6.13% | 6.58% |
| Coal | 59.01% | 59.24% |
| Nuclear energy | 1.50% | 1.54% |
| Hydro electric | 1.64% | 1.45% |
| Renewables | 3.86% | 3.14% |
b. Indias Energy Import Dependency — Structural Vulnerability9
With high import dependency, Indias energy import profile also reflected a high concentration of supply from the Gulf region, creating a strategic exposure:
• Crude Oil: ~46% of total imports originated from Hormuz-exposed suppliers (Iraq, Saudi Arabia, UAE, Kuwait, Oman, Qatar).
• LNG: ~52.5% of imports were sourced from Hormuz- exposed suppliers, with Qatar (40.4%) and UAE (12.1%) as dominant players.
• LPG: ~94% of LPG imports originated from Gulf/Middle East sources, making it the most vulnerable commodity in the imported energy basket.
Impact of Hormuz Blockade on India -Crude Oil, Products, LPG & Natural Gas
The escalation of tensions in the Strait of Hormuz from late February 2026 had a significant impact on Indias hydrocarbon supply chain, as ~52.5% of Indias LNG imports were sourced from Qatar and the UAE. Also, ~46.3% of crude oil imports originate from Gulf producers exposed to the Strait. While physical supplies of crude oil remained largely uninterrupted due to diversified sourcing and Indias 256.1 MMTPA refining capacity, the disruption triggered sharp price volatility, with Brent crude rising to about US$ 117.5/bbl in March 2026, increasing import costs and pressuring refining margins. However, there was a significant reduction of about 25 % of LNG imports.
The impact was particularly severe in the LPG segment, where India depends on the Middle East for nearly 94% of imports. Supply disruptions and logistics constraints pushed Propane CP prices to US$ 545/MT in March 2026. In response, the Government invoked the Essential Commodities Act to prioritise LPG production by directing domestic refineries and petrochemical units to divert propane and butane streams to Oil Marketing Companies.
To manage the disruption, the Government introduced a priority-based gas allocation framework for PNG, CNG, LPG production and fertilizer sectors, while GAIL was designated as the nodal agency for gas pooling. Additional measures included streamlining pipeline approvals, promoting PNG penetration and extending the CBG-CGD Synchronisation Scheme till 2047. Further, the CBG Blending Obligation (CBO) envisages phased blending of CBG in CGD networks up to 5% by FY 2028-29,
supporting long-term energy security and reducing import dependence.
c. I ndias Revised Nationally Determined Contributions (NDC) Targets & Renewable Energy Achievements
India continued to make steady progress towards its updated NDCs10, targeting:
• Reduction of Emissions Intensity of its GDP by 47% by 2035 from 2005 level.
• To achieve 60% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2035.
• To create Carbon Sink of 3.5 to 4.0 billion tonnes of CO2 eq. through Forest and Tree Cover by 2035 from 2005 level.
As of March 2026, Indias installed renewable energy capacity reached ~274.68 GW, reflecting continued scale- up across solar, wind and hybrid systems (MNRE).
India has effectively met its near-term renewable capacity targets under the NDC framework, supported by policy continuity and increasing private sector participation.
However, increasing renewable penetration also introduces grid intermittency risks, necessitating parallel investments in storage, flexible generation and grid balancing infrastructure.
1.5 India Gas Sector Developments
Indias natural gas sector continued to evolve as a key pillar of the Countrys energy transition strategy during FY 202526, supported by policy reforms, infrastructure expansion and increasing adoption across end-use sectors. However, global gas price volatility and geopolitical developments, particularly the disruption in the Strait of Hormuz during early 2026, posed challenges to demand growth in price-sensitive segments.
a. Demand Trends and Sectoral Consumption
Indias natural gas consumption stood at ~189.2 MMSCMD during FY 2025-26. The fertilizer sector remained the largest consumer, accounting for 53.8 MMSCMD (28%), followed by City Gas Distribution (CGD) at 45.3 MMSCMD (24%), power at 21.8 MMSCMD (12%), refineries at 15.1 MMSCMD (8%) and petrochemicals at 10.7 MMSCMD (6%). CGD consumption recorded strong growth of about 9.7% year-on-year, driven by expansion of PNG and CNG networks across the Country. In contrast, consumption in power, industrial and other fuel-switching sectors moderated during the year owing to elevated gas prices.
| Total (MMSCMD) | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 | Y-o-Y Change % |
| Fertilizer | 49.53 | 53.15 | 57.63 | 56.19 | 53.8 (28%) | -4.25% |
| CGD | 33.36 | 32.95 | 36.96 | 41.29 | 45.3 (24%) | 9.71% |
| Power | 27.83 | 22.34 | 24.88 | 24.39 | 21.8 (12%) | -10.62% |
| Refinery | 14.55 | 10.71 | 15.22 | 16.09 | 15.1 (8%) | -6.15% |
| Petrochemicals | 7.85 | 5.37 | 8.15 | 9.20 | 10.7 (6%) | 16.30% |
| Others | 35.35 | 36.31 | 45.67 | 48.14 | 42.5 (22%) | -11.72% |
| Total | 168.47 | 160.83 | 188.52 | 195.30 | 189.2 | -3.12% |
Note: Other Sectors Natural Gas consumption reduced in comparison to FY 2024-25 due to switching to alternate fuels.
b. Domestic Production and LNG Imports
I ndias domestic natural gas production improved during the year, supported by output from offshore and deepwater fields, reaching ~34.3 BCM. However, LNG continued to play a critical role in meeting the Countrys energy requirements, with LNG imports estimated at around
26.5 MMT. Consequently, import dependence remained significant at about 50.6% of total gas consumption, underlining the importance of supply diversification and energy security.
c. Infrastructure Expansion and Policy Developments
The Government continued to advance its vision of a gas- based economy through policy reforms and infrastructure expansion. A major milestone during FY 2025-26 was the implementation of the Unified Tariff regime under a two-zone structure, aimed at improving affordability and enhancing access to natural gas for consumers located farther from gas sources. The national gas grid expanded to ~27,427 km, supported by measures to streamline Right of Use (RoU) approvals and accelerate pipeline development. Simultaneously, CGD networks continued to expand across the Country, driving growth in PNG and CNG consumption.
The Government also maintained a strong focus on alternative gaseous fuels. The scheme for Development of Pipeline Infrastructure (DPI) for facilitation of Compressed Biogas (CBG) Offtake and the CBG-CGD Synchronization Scheme contribute towards the development of the CBG ecosystem with an aim to cut import dependence. Urban PNG expansion (replacing LPG) and ongoing pricing reforms further stabilize base demand. In addition, the CBG Blending Obligation (CBO) framework envisages phased blending of CBG in CGD networks up to 5% by FY 2028-29, supporting domestic production, reducing import dependence and advancing decarbonisation objectives.
I ndias natural gas sector in FY 2025-26 continued to evolve as a critical transition fuel segment, balancing energy security, affordability and decarbonisation objectives.
1.6 Indian Petrochemical Sector— Impact of War & Feedstock Dynamics
Indias petrochemical sector continued to benefit from strong economic growth, rising manufacturing activity and increasing domestic consumption. The market size of the Indian Chemicals and Petrochemicals sector is expected to grow to approximately USD 300 billion by 2028, up from its current market size of USD 220 billion & all analyst are quite bullish on the growth trajectory of India for next two decades. With per capita polymer consumption of about 14 kg, compared to the global average of 42 kg, India remains one of the most attractive long-term growth markets for petrochemicals and is expected to account for a significant share of incremental global demand.
During FY 2025-26, the sector faced volatility in feedstock and energy markets following the Middle East conflict. Higher crude oil prices increased the cost of key feedstocks such as Naphtha and LPG, putting pressure on petrochemical margins. As nearly 80% of Indias petrochemical capacity is refinery- integrated, the rise in crude prices translated into higher domestic feedstock costs and impacted cracker economics across the industry.
The disruption also highlighted the importance of feedstock diversification and supply security. Government measures prioritising propane and butane for LPG production, coupled with constraints in domestic gas availability, affected gas- based petrochemical operations, including facilities dependent on domestic ethane. Overall, the developments underscored the need for diversified feedstock sourcing, integrated operations and resilient supply chains to maintain long-term competitiveness.
2. GAIL PERFORMANCE
2.1 Operational Performance
The operational performance of your Company for FY 2025-26 is as follows:
| Particulars | UoM | FY 2025-26 | FY 2024-25 | ||
| Quantity | Revenue from Operations* (Rs. in crore) | Quantity | Revenue from Operations* (Rs. in crore) | ||
| Natural Gas Marketing | MMSCMD | 104.21 | 1,24,244 | 101.49 | 1,20,412 |
| Natural Gas Transmission | MMSCMD | 122.18 | 11,206 | 127.32 | 11,068 |
| LPG Transported | TMT | 4,600 | 916 | 4,478 | 835 |
| Polymers Sales | TMT | 785 | 7,574 | 845 | 8,088 |
| LPG and other Liquid Hydrocarbon Sales | TMT | 815 | 4,293 | 951 | 5,180 |
*including intersegment revenue 2.2 Financial Performance
| Particulars | FY 2025-26 | FY 2024-25 | Change Increase/(Decrease) |
| Revenue from Operations | 1,38,697 | 1,37,288 | 1% |
| Profit Before Tax | 8,964 | 14,825 | (40)% |
| Profit After Tax | 6,968 | 11,312 | (38)% |
Your Company reported revenue from operations of Rs. 1,38,697 crore in FY 2025-26, as compared to Rs. 1,37,288 crore in FY 2024-25, driven primarily by higher gas marketing volumes (increase of ~3 MMSCMD). Profit Before Tax (PBT) stood at 8,964 crore as against Rs. 14,825 crore in the previous year, decrease in profit is primarily attributable to one time settlement with M/S SMTS amounting to 2,440 crore in previous year, increase in input gas cost in petrochemical segment in current year ~ Rs. 1,400 crore and provision made against outstanding dues of M/S NFCL ~ Rs. 675 crore.
For FY 2025-26, Profit After Tax (PAT) stood at Rs. 6,968 crore, compared to 11,312 crore in FY 2024-25.
2.3 Financial Parameters
| Particulars | FY 2025-26 | FY 2024-25 |
| Capex (including equity contribution to group companies) | 9,594 | 10,512 |
| Reserves and Surplus (excluding Transition Reserve, Other Comprehensive Income & Bond Redemption Reserve) i.e. Free Reserves | 59,790 | 56,666 |
| Net worth | 66,365 | 63,241 |
| Total Loans outstanding | 17,414 | 13,577 |
No amount of principal or interest in respect of Foreign Currency Loan was outstanding as on 31st March, 2025.
2.4 Ratio Analysis
| Particulars | FY 2025-26 | FY 2024-25 |
| Debt Equity ratio (times) | 0.28 | 0.26 |
| Debt Service Coverage Ratio (times) | 2.47 | 3.88 |
| Interest Coverage Ratio (times) | 10.14 | 15.35 |
| Return to Net Worth (PAT/Net Worth) (%) | 10.49 | 17.89 |
| Return on Capital Employed (PBIT/Capital Employed) (%) | 10.04 | 16.91 |
| Debtors Turnover [Net Credit Sales (i.e. Net Sales)/Average Trade Receivables] (times) | 14.96 | 13.13 |
| Inventory Turnover (Cost of Goods Sold/Average Inventory) (times) | 24.1 | 22.40 |
| Current Ratio (Current Assets/Current Liabilities) (times) | 0.83 | 0.97 |
| Operating Profit Margin [(EBIT - Other Income)/Net Sales] (%) | 5.15 | 7.84 |
| Net Profit Margin [Profit After Tax (PAT)/Net Sales] (%) | 5.04 | 8.27 |
During FY 2025-26, your Company witnessed a significant decline in profitability, which materially impacted return and coverage ratios, with net profit margin declined from 8.27% to 5.04% and operating margin from 7.84% to 5.15%. This was primarily driven by a sharp reduction in operating earnings (EBIT declined by 3,608.47 crore) despite marginal revenue growth of Rs. 1,370.98 crore, the decline in profitability is mainly contributed to exceptional income recorded in FY 2024-25 amounting to 2,440 crore. pertaining to one time settlement of M/s SMTS, further during the financial year the petrochemical segment was also under stress because of stressed petrochemical prices due to overall global low-price cycle and higher input Gas cost. Towards the end of FY 202526 west Asia crisis further impacted all the major segments negatively, stressing profitability.
The decline in earnings translated into a significant reduction in return ratios, with return on capital employed falling from 16.91% to 10.04% due to lower operating profits and return on net worth declining from 17.89% to 10.49% reflecting a decline in PAT of 4,344.02 crore.
The reduction in profitability impacted debt servicing capacity, as reflected in the debt service coverage ratio declining from 3.88 to 2.47 and interest coverage ratio from 15.35 to 10.14. These movements were primarily due to a decline in profit before tax of 5,860.89 crore, along with an increase in finance costs by 197.91 crore.
On the liquidity side, the current ratio declined from 0.97 to 0.83, mainly due to a reduction in current assets by Rs. 2,462.51 crore, driven by lower receivables by Rs. 1,921.30 crore, and inventory reduction of Rs. 1,098.16 crore, along with an increase in current liabilities by Rs. 530.37 crore, indicating tightening in short-term liquidity.
The capital structure remained stable with marginal increase in debt-equity ratio from 0.26 to 0.28, due to increase in longterm borrowings.
2.5 Market Capitalization
Market capitalization (BSE) of the Company stood at Rs. 90,539 crore on 31st March, 2026 (Rs. 137.70/Share) as compared to 1,20,160 crore on 31st March, 2025 (182.75/Share).
3. OUTLOOK FOR THE FUTURE
3.1 Strategy
Your Company has charted a clear and dynamic roadmap for the future under the framework of Strategy 2030, which is periodically reviewed and refined to remain aligned with evolving market conditions, regulatory developments, global energy trends and technological advancements. Your Companys strategic intent remains anchored in consolidating its leadership across the natural gas value chain while progressively transforming into a diversified and sustainable energy Company. The Companys strategy is structured around three pillars: strengthening core businesses, driving operational excellence and pursuing business diversification opportunities in support of energy transition and net-zero ambitions.
Your Company continues to strengthen its core businesses of natural gas transmission, gas marketing, petrochemicals and CGD. During FY 2025-26, the Company transmitted an average of about 122 MMSCMD of natural gas and achieved average gas marketing volumes of about 104 MMSCMD. Your Company remains at the forefront of Indias efforts to
increase the share of natural gas in the primary energy mix by expanding infrastructure, deepening market access and enabling efficient gas distribution across sectors.
Your Company is actively augmenting the National Gas Grid towards the vision of "One Nation, One Gas Grid". As on 31 March 2026, your Companys natural gas pipeline network stood at ~18,700 km, with about ~1500 km under various stages of construction. Upon completion of the ongoing projects, the network is expected to expand to over 20,000 km, further strengthening connectivity across the Country. Key projects under execution include the Mumbai-Nagpur- Jharsuguda Pipeline, Srikakulam-Angul Pipeline, Gurdaspur- Jammu Pipeline, Kochi-Koottanad-Bengaluru-Mangaluru Pipeline (Phase-II), Durgapur-Haldia and Dhamra-Haldia sections of JHBDPL, DUPL-DPPL capacity expansion and the Vijaipur-Bina spurline. In addition, your Company has submitted DFRs to PNGRB for new pipeline corridors connecting Mallavaram, Bhopal, Bhilwara, Vijaipur, Pachpadra and Barmer, which are currently under evaluation.
Your Company has emerged as one of Indias leading LNG players with a diversified sourcing portfolio of ~16.56 MMTPA. The Company continues to pursue long-term LNG sourcing opportunities and portfolio diversification to strengthen Indias energy security amidst evolving geopolitical developments. Your Company continues to optimise its LNG portfolio and actively undertakes hedging strategies to manage commodity price risks. The Company also remains an active participant in Indias evolving gas markets, including transactions through the Indian Gas Exchange (IGX), thereby supporting market development and liquidity.
With a strategic vision to further strengthen supply chain resilience, your Company has developed a dedicated LNG shipping portfolio. Your Company currently has seven LNG vessels on charter, including the newly inducted Energy Fidelity and has also acquired a 26% equity stake in LNG Japonica Shipping Corporation Ltd., owner of the vessel GAIL Bhuwan.
Your Company continues to play a significant role in Indias LNG infrastructure. Through its subsidiary, Konkan LNG Limited (KLL), the Company operates the 5 MMTPA Dabhol LNG Terminal in Maharashtra. Completion of the breakwater facility enabled the terminal to receive its first-ever LNG cargo during the monsoon season in June 2025, significantly enhancing all-weather operability. GAIL is now progressing plans to expand the terminal capacity from 5.0 MMTPA to 6.3 MMTPA in the first phase.
In the downstream of the natural gas value chain, your Company is in the process of strengthening its LPG transmission business & LHC business. During FY 2025-26, PNGRB authorised the expansion of the Jamnagar-Loni LPG Pipeline capacity from 3.25 MMTPA to 6.5 MMTPA, which is expected to further strengthen LPG transportation infrastructure in the Country. Your Company operates five gas processing plants with a combined LHC production capacity of ~1.4 MMTPA.
Your Company also remains committed to expanding its petrochemical portfolio and strengthening downstream value addition. During FY 2025-26, the Company successfully commissioned a 60 KTPA Polypropylene unit at Pata, increasing the capacity of its integrated petrochemical complex from 810 KTPA to 870 KTPA. Your Company is also executing Indias
first Propane Dehydrogenation-Polypropylene (PDH-PP) project at Usar, Maharashtra, with a capacity of 500 KTPA and an estimated investment of about Rs. 11,256 crore. These initiatives are expected to increase your Companys overall petrochemical capacity by nearly 2.7 times to ~2.9 MMTPA including capacities of JVs / Subsidiaries. Your Company is also exploring long-term sourcing arrangements for propane, ethane and paraxylene to enhance feedstock flexibility and competitiveness.
In the CGD sector, your Company continues to maintain a strong presence through its subsidiaries and joint ventures. GAIL group entities are authorised in 72 Geographical Areas across the Country and collectively serve over more than 109 lakh domestic PNG consumers through an extensive CGD network supported by ~3,400+ CNG stations. Your Company also has strategic overseas investments in gas distribution businesses in Egypt and China.
In the upstream sector, your Company holds participating interests in domestic and overseas exploration and production assets, including blocks in India and Myanmar, as well as shale gas assets in the United States. Your Company continues to evaluate opportunities that complement its integrated gas business and strengthen long-term resource security.
As part of its energy transition strategy, your Company is actively expanding its footprint in compressed biogas (CBG), renewable energy and green hydrogen. The Companys first CBG plant at Ranchi commenced operations during the year and several additional projects are being pursued through strategic partnerships and equity investments. Your Company has set an ambitious target of establishing 26 CBG plants by 2030. Additionally, your Company has acquired 49% equity in Leafiniti Bioenergy Private Limited (LBPL) for setting up of 10 Compressed Bio-Gas (CBG) plants through LBPL. In the Renewable Energy segment, your Company has a portfolio of ~146 MW. Presently, the Renewable capacity has increased to 154 MW. Further, your Companys board recently has accorded approval for setting of a total ~800 MW solar projects with BESS in Uttar Pradesh and Maharashtra.
As part of its long-term growth strategy, your Company is expanding beyond its traditional natural gas business into fertilizers, coal gasification and other energy-related sectors. A notable development is the Coal Gas India Limited joint venture with Coal India Limited for implementation of a coal gasification-based SNG project in West Bengal, which has been selected for support under the Ministry of Coals Gasification initiative. In addition to its equity participation in Ramagundam Fertilizers and Chemicals Limited (RFCL) and Talcher Fertilizers Limited (TFL), the Board during FY 2025-26 accorded in-principle approval for two new fertilizer plants along the Mumbai-Nagpur-Jharsuguda Pipeline corridor at Saoner (Maharashtra) and Rajnandgaon (Chhattisgarh). These projects are expected to create anchor demand for natural gas and strengthen utilisation of pipeline infrastructure.
To support its global operations and financial strategy, your Company has incorporated GAIL Global IFSC Limited at GIFT City, Gujarat, with a mandate to undertake treasury management activities and explore opportunities in ship leasing and international financial services.
Operational excellence and digital transformation remain key strategic priorities. Your Company continues to implement
enterprise-wide initiatives aimed at enhancing efficiency, transparency and responsiveness. Key initiatives include migration to SAP S/4 HANA, implementation of the Vendor Invoice Management Portal and execution of Project Sanchay II, which seeks to improve operational performance through data-driven decision-making and process optimisation.
In summary, your Companys strategic outlook integrates growth in core businesses with targeted investments in value addition, clean energy, digitalisation and global partnerships. Your Company remains committed to creating long-term stakeholder value while contributing meaningfully to Indias energy security, economic development and transition towards a sustainable low-carbon future.
3.2 Opportunities & New Initiatives
• Natural Gas Marketing
Your Company is striving to expand the gas-based economy in the Country, in line with GoIs vision to increase the share of gas in the energy basket from ~6% to 15% by 2030.
Your Company has ~16.5 MMTPA of contracted LNG volumes and ~11 MMTPA of contracted Domestic gas volumes to cater to its customers.
Your Companys Natural Gas Pipeline Infrastructure connects various gas sources to different gas markets to meet the existing/ future natural gas demand of various Power, Fertilizer, CGD and other industries in the Country. Your Company has ~18,700 kms operational Natural Gas pipeline in India and is in the process of laying another ~1500 kms pipeline across the Country which would increase the accessibility and reach of natural gas to potential untapped markets, thereby enhancing the market share.
Your Company is the largest supplier to the Fertilizer Sector in India and is likely to remain the largest supplier due to steady demand of this sector and subsidy on gas price.
To meet the incremental demand of power sector customers, particularly during periods of supply constraints, the Company has consistently supplied natural gas at highly competitive market rates. This includes supplies under the NVVN Scheme and pursuant to Section 11 of the Electricity Act, 2003, as and when such measures are implemented by the Central Electricity Authority (CEA).
Your Company has also been pursuing Steel sector customers for replacing cooking coal with natural gas as a cleaner and efficient alternative. With the commissioning of NG pipelines such as JHBDPL, MNJPL, etc., the Eastern part of India which has the predominant presence of the Steel sector, now has wider access to Natural Gas. Therefore, your Company is actively taking up with customers for long term tie-ups.
Out of 307 GAs in India, about 72 GAs are being operated by your Company, its Subsidiaries and Joint Ventures. By
constantly expanding the above CGD Network, your Company is able to increase its presence in the PNG & CNG segments across the Country. CGD is expected to grow at more than 10% CAGR and presents a good potential for future growth. Your Company is actively offering competitive short/long term offers to these CGD customers to increase its market share. Your Company being Indias leading natural gas marketer, endeavors to align its procurement with downstream demand. Hence, your Company sources LNG volume from time to time, considering supply-demand balance in the Indian market, future domestic gas production profile, affordability of various consuming sectors and strategic initiatives. Further, in order to manage the market uncertainties, your Company keeps a certain portion of its LNG portfolio on spot basis.
During the financial year, your Company enhanced its domestic gas procurement through a diversified sourcing approach. While your Company procured its highest ever volume of ~334 MMSCM through the IGX platform, it also secured ~410 MMSCM by winning bids across various tenders by upstream suppliers. Additionally, your Company sourced ~33 MMSCM through bilateral agreements. Going forward, your Company continues to refine its procurement approach to ensure better availability of domestic gas at competitive prices for its downstream customers
• Sourcing & Trading
Your Company has established itself as a major global LNG player. To meet the dynamic nature of gas demand in India and to optimize the freight cost for bringing the LNG cargoes from your Companys US portfolio, your Company has been constantly innovating to optimize the flow of LNG to Indian markets. To achieve these objectives, different forms of swap transactions have been devised and undertaken in addition to traditional ship chartering. As these transactions are typically carried out at predetermined price/formula, they also help in mitigating risks associated with volatile markets.
Your Company in the recent past concluded various optimization deals to optimally lift the US LNG cargoes. With growing gas demand in India, your Company would be bringing most of the US volumes to India through an optimal mix of own ship charters and swap optimization. Through innovative Swap transactions, your Company is not only able to optimize the shipping length but also enable significant reduction of carbon emissions.
In the LNG business, your Company has imported 132 LNG cargoes in India during FY 2025-26, including 07 LNG cargoes sourced on spot basis to cater to the growing need.
Your Company is also exploring the market for long-term tie- up opportunities with leading global LNG producers/traders to meet the growing downstream gas demand in India. In this regard, your Company executed 2 LNG Sales and Purchase Agreements (SPA) during FY 2025-26. First SPA was executed
with Vitol Singapore Pte Ltd for supply of ~1 MMTPA from 2026 onwards. Second SPA was executed with Qatar Energy Trading (QET) for supply of ~0.8 MMTPA from 2025 onwards.
Your Company continuously scouts the market for optimization of its shipping fleet as well as taking additional vessels on time-charter to ensure lifting of US FOB volume and optimize the transportation cost. Further, your Company is actively undertaking hedging to manage commodity price risk.
Your Company concluded its first ever deal of sourcing Paraxylene in December 2025 for supplying to GAIL Mangalore Petrochemicals Limited for its commissioning activities for production of Purified Terephthalic Acid (PTA).
• LNG Regasification Terminals
Your Company is the commercial operator of a 5 MMTPA LNG terminal through subsidiary Company Konkan LNG Limited (KLL) located in Dabhol, Maharashtra. The terminal is now operating the whole year as an all-weather port. KLL shall be able to operate at capacity of 5 MMTPA pursuant to completion of Ambient Air Heating System which is currently under construction.
Strategically located on the Maharashtra coastline, the Dabhol LNG Terminal has a regasification capacity of 5.0 MMTPA and serves as a vital link in Indias gas supply network via the Dabhol-Bangalore and Dabhol-Panvel cross-Country pipelines. Your Company looks to expand the terminals capacity from 5.0 MMTPA to 6.3 MMTPA in the first phase over the next 3 years. The expanded capacity terminal would be able to handle up to 100 LNG cargoes annually.
• Natural Gas Transmission
Your Company strengthened its digital ecosystem during FY 2025-26 with a focused approach on enhancing transparency, operational efficiency and regulatory alignment in pipeline capacity booking and contract management, in line with its commitment to ease of doing business and improved customer experience.
During the year, the Open Access Portal (for booking capacity on Common Carrier basis across your Companys network) was further scaled up as a robust customer-facing platform. Operational since August 2018, the portal now handles ~1,700-1,800 bookings per month and has cumulatively processed over 64,000 capacity bookings as of March 2026. It facilitates booking of ~23-24 MMSCMD of capacity (around 20% of your Companys total transmitted volume), reflecting strong adoption and improved accessibility for customers. Your Company implemented end-to-end integration of the portal with SAP, enabling a seamless digital workflow from booking request to contract creation. This eliminated duplicate data entry and manual mapping, with automatic contract generation in SAP using unique IDs, resulting in reduced processing time and improved accuracy and traceability.
Further, system enhancements were successfully implemented to operationalize the revised Unified Tariff Regime (transition to the 02-Zone tariff structure w.e.f. 01.01.2026). The changes included configuration updates (booking of CNG-T & PNG-D under Zone-1 tariff), embedded validations and streamlined tariff mapping across systems, ensuring regulatory compliance and eliminating tariff-related discrepancies.
Collectively, these initiatives have enabled your Company to establish a scalable and resilient digital framework, delivering faster booking, accurate contract generation and enhanced
transparency for customers, while ensuring alignment with evolving regulatory requirements.
• Developing the National Gas Grid (NGG)
During FY 2025-26, the Honble Prime Minister of India dedicated the following NG pipelines of your Company to the nation:
• 18.07.2025: 132 km Durgapur - Kolkata section of Jagdishpur-Haldia- Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) also known as Pradhan Mantri Urja Ganga (PMUG) Project.
• 16.10.2025: 422 km Main line of Srikakulam-Angul Natural Gas Pipeline (SAPL)
• 01.11.2025: 489 km Chhattisgarh and Odisha section of Mumbai-Nagpur-Jharsuguda Natural Gas Pipeline (MNJPL)
Financial Year 2025-26 has been a remarkable year for pipeline project execution. Your Company has expanded its operational network by commissioning ~2000 km of pipelines across the Country during the year. Among the major pipelines commissioned this FY include ~1504 Km out of 1707 Km Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL) in four states (Maharashtra, Chhattisgarh, Odisha & Madhya Pradesh), ~470 Km out of 744 Km Srikakulam-Angul Pipeline (SAPL) Project in two states (Odisha & Andhra Pradesh) and balance comprising of LMCs & CGD hook ups in various part of the Country including connectivity to IOCLs refineries at Noonmati and Bongaigaon. KKBMPL-II project in Tamil Nadu has also seen steady progress. 29 Km out of 323 Km pipeline section between Singasadra to Krishnagiri has been completed & commissioned with nitrogen. Balance project works of MNJPL, SAPL and KKBMPL-II are being expedited for their earliest completion and your Company remains quite hopeful of completing these projects within the current calendar year. PNGRB issued approval to your Company on 09.09.2025 for laying spur line (~ 105 km) from Vijaipur to BPCL Bina Refinery as a part of Hazira - Vijaipur - Jagdishpur - GREP - Dahej -Vijaipur (HVJ-GREP-DVPL) Natural Gas pipeline under Regulation 21 (3) of PNGRB NGPL Authorization Regulations. Further, your Company approved the investment for an amount of Rs. 449.04 crore.
Your Company was accorded approval for laying of spur line from Dabhol Bangalore Pipeline to JSW, Vijayanagar at Ballari (16" x 115 km) from SV-13 of the Dabhol-Bangalore Natural Gas Pipeline to JSW Vijayanagar, Ballari for an amount of Rs. 537.37 crore vide letter dated 24.03.2026.
Your Company approved capacity augmentation of DUPL-DPPL (30" x 105 km) from 19.9 MMSCMD to 22.5 MMSCMD for an amount of Rs. 844 crore.
All these pipelines are part of ~1500 Km natural gas pipeline projects, which are at different stages of execution.
Over the years, your Company, as a major gas pipeline operator has contributed to the growth and development of natural gas pipeline infrastructure and natural gas market. Your Company owns ~ 18,700 kms of natural gas (NG) pipeline in the Country, transporting 67% of total NG transported in India. Your Companys existing natural gas pipeline network covers 20 States (Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Odisha, Punjab, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh Uttarakhand and West Bengal) and 3 UTs (Delhi, Puducherry & Dadra Nagar Haveli). MoP&NG constituted a taskforce comprising GAIL, IOCL, PLL, Adani Total and Shell Energy, to study LNG storage as strategic storage. The task force submitted a draft report to MoP&NG in Feb2026.
Progress status of approved projects is as under:
| S No Projects | Total Length (in km) | Commissioned as on Mar26 | States Covered |
| 1 Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline (JHBDPL) including Barauni Guwahati Pipeline | 3,290 | 3,128 | Uttar Pradesh, Bihar, Odisha, Jharkhand and West Bengal |
| 2 Kochi - Koottanad - Bengaluru - Mangaluru Pipeline Project Phase II | 902 | 608 | Kerala, Tamil Nadu and Karnataka |
| 3 Srikakulam Angul Pipeline Project | 744 | 469.5 | Odisha and Andhra Pradesh |
| 4 Dhamra Haldia Pipeline Project | 253 | 154 | Odisha and West Bengal |
| 5 Mumbai-Nagpur-Jharsuguda Pipeline Project | 1,707 | 1,504 | Maharashtra, Madhya Pradesh, Chhattisgarh and Odisha |
| 6 Gurdaspur-Jammu Pipeline | 153 | 0 | Punjab and UT of Jammu |
• Petrochemicals
Under the Petrochemical business vertical, your Company is in the process of setting up a 500 KTA Propane Dehydrogenation and Polypropylene (PDH-PP) Plant at Usar, Maharashtra, which is expected to be commissioned in FY 2027-28. This would be the first plant in India using Propane Dehydrogenation technology for the production of Propylene. Various project- related activities are in full swing.
Your Company is also diversifying in Polyester Value chain, through manufacturing of PTA at its wholly owned subsidiary, GAIL Mangalore Petrochemicals Limited, Mangalore. The plant is expected to be commissioned soon. Currently, sub-system & systems commissioning activities in phase-wise manner are in progress.
• LPG Pipeline
Vide letter dated 23.07.2025, PNGRB issued the approval for capacity expansion of Jamnagar-Loni LPG Pipeline from 3.25 MMTPA to 6.5 MMTPA under Regulation 12 of the PPPL Authorization Regulations, 2010. Further, your Company accorded approval for investment of Rs. 5,363.88 crore for JLPL capacity augmentation.
PNGRB has invited online application cum bids for authorization for nine (09) Petroleum and Petroleum Product (LPG) pipelines on 03rd July 2025 under Regulation 5 of PNGRB (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulation, 2010. Your Company has submitted bids for the following LPG Pipelines:
a) Cherlapally-Nagpur LPG Pipeline (~550 km)
b) Jhansi-Sitarganj LPG Pipeline (~605 km)
c) Shikrapur to Goa & Hubli LPG Pipeline (~620 km)
These pipelines will connect the LPG sources to LPG bottling plants in the states of Maharashtra, Karnataka, Goa, Telangana, Madhya Pradesh, Uttar Pradesh, Uttarakhand etc. Currently, PNGRB is in the process of concluding the bidding for these LPG pipelines.
• Fertilizer
Your Company continues to increase its footprint in the core gas value chain and forward integrate into the fertilizer segment with two proposed plants along the MNJPL corridor - one in Maharashtra and the other in Chhattisgarh. Each plant is planned with a capacity of 1.27 MMTPA of urea and 0.73 MMTPA of ammonia, for an estimated investment of 21,000 crore. These fertilizer plants will also act as anchor load for the MNJPL pipeline. MoU has been signed with Govt of Chhattisgarh & Govt of Maharashtra. Consultant has been appointed for preparation of DFR and pre-project activities. DFR will be submitted to the Department of Fertilizers (DoF) for consideration of the projects under the new Urea Licensing policy.
• Coal Gasification
In the area of coal gasification, your Company and Coal India Limited incorporated a joint venture, Coal Gas India Limited
(CGIL), in March 2025 for setting up a coal-to-SNG plant at ECL, Bardhaman, West Bengal. It aims to produce 633.6 million Nm3 of SNG annually. Various tendering processes asserting feasibility are currently under progress. Your Companys JV Talcher Fertilizers Limited is also constructing a 1.27 MMTPA gas-based urea manufacturing plant using Coal Gasification Technology at Angul district of Odisha targeted for commissioning by December 2027.
• Advocacy Initiatives
Your Company actively engaged with industry associations, trade chambers, regulatory bodies, policy forums and think tanks during FY 2025-26 to support the development of a Gas based secure, resilient and sustainable energy ecosystem in India. Your Company shared its industry perspectives, technical inputs towards policy formulation, regulatory reforms, infrastructure development, market expansion and energy transition initiatives aligned with national priorities and Viksit Bharat.
Key focus areas include:
• Promotion of natural gas as a greener and transition fuel and expansion of gas-based infrastructure for a gas-based Economy.
• Advocacy for market-oriented reforms towards rational and sustainable tariffs for gas transportation pipeline expansion and improved gas accessibility.
• Market development for PTA, PE & Liquid Hydrocarbons
• Support for development of CBG, Retail LNG for long- haul transportation, LNG Bunkering and other emerging energy segments.
To support evidence-based advocacy, your Company undertook several policy and advocacy consultancy studies in areas such as enhancement of gas-based power generation through Gas Price risk management, maturity assessment of CGD JVs & Subsidiaries, Natural Gas Demand assessment in Tamil Nadu, Kerala, Andhra Pradesh, Rajasthan, setting up of Centre for Excellence for Green Hydrogen at Vijaipur, Adoption of LNG as marine fuel and studies aimed towards identifying the product slate for Polyethylene and other Petrochemicals.
During the year, your Company participated in major industry conferences and policy dialogues including India Energy Week 2026, Gastech and meetings of the World Economic Forum, among others. Senior officials of your Company participated in panel discussions and strategic forums on global gas markets, Green Hydrogen, LNG, energy transition, biofuels, infrastructure development and emerging energy technologies.
The Company remained actively associated with various national and international industry bodies including FIPI, FICCI, CII, Energy Institute (EI), International Gas Union (IGU) and World Energy Council (WEC), US India Strategic Partnership Forum, International (USISPF), etc. During FY 2025-26, your Company was associated with over 29 national and international industry platforms supporting policy dialogue and sectoral development.
Your Company also provided inputs to various Government bodies and committees on policy and regulatory matters impacting the energy sector, especially the natural gas sector. This included submissions to NITI Aayog for non-financial regulatory reforms in the petroleum sector and towards
strengthening the global competitiveness of Indian PSUs. The Company maintained regular engagement with Petroleum and Natural Gas Regulatory Board, ministries and industry stakeholders on sectoral development and market reforms.
• Green Energy Initiatives
In line with Strategy 2030, your Company is exploring various opportunities for increasing its renewable portfolio through organic as well as inorganic routes.
Your Company will be setting up Indias first Liquefied Biogas (LBG) project at Sangrur, Punjab utilizing one of the SSLNG Skids owned by it. It has taken the lead to start a Pilot Project for liquefication of Biogas into LBG in order to create distributed supply centres and ensure higher offtake of Biogas for catering to distant demand centres across the Country. This LBG plant will be next to an existing Biogas plant in Sangrur, which shall be supplied ex-Sangrur to interested CGD entities under the CBG-CGD Synchronisation scheme for use in CNG (T) & PNG(D) segments.
Towards shaping a Net Zero future, your Company is exploring various business opportunities in the production of Compressed Bio Gas (CBG). The Company is an integral part of the MoP&NGs initiative SATAT (Sustainable Alternative Towards Affordable Transportation) and invited Expression of Interest (EOI) from various CBG Producers for providing marketing tie-up of CBG at the retail outlets of your Company, its CGD subsidiary and their JVs.
Further, the Company has made significant progress in securing land parcels through lease and sub-lease arrangements in coordination with Gram Panchayats and state agencies and in establishing project frameworks through concession agreements with state and municipal authorities for development of CBG plants across the Country.
Your Company is exploring setting-up new CBG projects on pan-India basis based on Municipal Solid Waste (MSW) as well as agri-residue on its own as well as through joint venture mode. Your Company has also entered into an MoU with M/s Verbio India Private Limited (VERBIO) for jointly exploring to set up agri residue based CBG projects in India, including possible equity acquisition in VERBIOs existing CBG plant in Punjab. Your Company has also engaged with a party to explore formation of Joint Venture for setting up of MSW based CBG projects.
• GAIL is setting up 178.2 MW Wind Project in Maharashtra, 600 MW Solar Project with 550 MWh BESS in Uttar Pradesh, 100 MW Solar Project with 22 MWh BESS in Maharashtra, floating solar project of 17.5 MW at Pata,
Uttar Pradesh, 12.5 MW Rooftop Solarisation project across various sites of GAIL.
• With the commissioning of these projects, GAILs renewable energy portfolio will reach over 1000 MW, underscoring its commitment to sustainable growth and Indias clean energy transition.
• Share Subscription cum Shareholders Agreement (SSSHA) dated 11.08.2025 signed among your Company, M/s Trualt Bioenergy Limited (TBL) and M/s Leafiniti Bioenergy Private Limited (LBPL) for 49% equity participation in LBPL and additional equity investment for setting up of new CBG projects. After DIPAM approval, on 18.03.2026, your Company made an investment of Rs. 13.54 crore and acquired 49% equity in LBPL.
• Your Company is also in discussion with a party for setting up of MSW based CBG projects through JV route.
Small-Scale Liquified Natural Gas (SSLNG)
Your Company continues to strengthen its position in the emerging Small-Scale LNG (SSLNG) segment through the successful commissioning of two SSLNG Skids in July 2024. These are first-of-their-kind portable and scalable natural gas liquefaction facilities in India. Leveraging proprietary mobile liquefaction technology, the skids provide operational flexibility and support the development of a distributed natural gas ecosystem across the Country.
As of 31 March 2026, your Company has dispatched 276 LNG tanker loads carrying 4,332.42 MT of LNG from its Vijaipur SSLNG facilities, reflecting the growing acceptance and utilization of LNG as a cleaner and efficient fuel across diverse industrial and commercial sectors.
Your Company has also achieved Mechanical Completion of its first LNG Dispensing Station. Post commissioning, it shall become operational during the current FY 2026-27, enabling the supply of LNG as an alternative vehicular fuel and supporting the transition towards cleaner transportation fuels.
Recognizing the rapid expansion of Indias City Gas Distribution (CGD) network and the corresponding growth in natural gas demand, the Company remains focused on developing a robust SSLNG ecosystem through virtual pipeline solutions and LNG refuelling infrastructure on a pan-India basis. In line with this strategy, one of the commissioned SSLNG skids has been relocated to Sangrur, Punjab, to enhance capacity utilization of the Compressed Biogas (CBG) plant. This strategic redeployment is expected to optimize asset utilization and create synergies between the LNG and CBG value chains. Furthermore, the Company is actively exploring opportunities to monetize stranded natural gas resources through SSLNG deployments and evaluating the feasibility of manufacturing liquefaction skids in India. These initiatives align with the Governments vision of strengthening energy security, promoting cleaner fuels and advancing self-reliance in critical energy technologies.
• Project Sanchay II
Your Company is advancing its digital transformation journey through the adoption of Industry 4.0 (IR 4.0) technologies across its diverse business domains. Under the organizationwide initiative "Sanchay-2," your Company is implementing a comprehensive portfolio of digital and analytical use cases aimed at operational optimization, asset reliability enhancement and corporate process efficiency. These
initiatives are transforming traditional workflows through AI/ ML-driven decision-making, real-time analytics and integrated digital systems.
The portfolio of digital use cases under implementation spans multiple business domains. In operational optimization, Advanced Process Control (APC) systems are being deployed to improve production efficiency and product quality through multivariate control, real-time analytics and predictive modeling. Asset Performance Monitoring leverages supervised ML and time-series analytics for condition-based maintenance of critical equipment, enhancing reliability and reducing unplanned downtime. Mass Balance and Utility Management platforms enable real-time tracking of energy and material flows to minimize losses and optimize resource consumption. In pipeline operations, advanced hydraulic modelling, integrated line pack optimization, compressor selection analytics and transient simulations support efficient gas transmission and demand-supply balancing. The City Gas Distribution (CGD) network is undergoing a digital overhaul with IIoT-enabled fleet management, decision-tree analytics and cloud-based command and control systems, reducing downtime and optimizing logistics.
Further, customer-centric initiatives like Customer 360 analytics and business growth dashboards are enhancing market intelligence, while corporate functions are being digitized through project management dashboards, KPI monitoring, knowledge management systems, policy chatbots and regulatory analytics. The foundational enabler across these use cases is the integration of Information Technology (IT) and Operational Technology (OT), creating a unified data and control ecosystem.
Through this holistic approach, your Company is building a digitally intelligent enterprise enhancing operational resilience, sustainability and profitability while positioning itself as a leader in digital transformation and automation in the oil and gas sector.
• Global/Regional Corporate Treasury Centers
During the year, GAIL Global IFSC Limited (GGIL) commenced operations within its first year of incorporation, reflecting steady progress in operationalization. The Company executed initial transactions through inter-corporate loans to Bengal Gas Company Limited (BGCL) and Vadodara Gas Limited (VGL), group companies of GAIL. This establishes GGIL as a functional financing platform for efficient intra group fund deployment.
4. THREATS, RISKS, CHALLENGES AND MITIGATION
4.1 Petroleum & Natural Gas Regulatory Board (PNGRB) Regulatory Framework
During FY 2025-26, PNGRB has notified various Amendments & Regulations in respect of City or Local Natural Gas Distribution Network, Natural Gas Pipelines and Petroleum & Petroleum Product Pipelines.
PNGRB has also issued various orders and decisions in relevant matters. The details of the said regulations, amendments, authorizations, orders and decisions are available on the official website of PNGRB (www.pngrb.gov.in ). These regulations, amendments, authorizations, orders, decisions of PNGRB are appealable before the PNGRB Bench, Appellate Tribunal and Courts and accordingly, some of them pertaining to your Company are also under various stages of appeals. The
timing and content of any final changes in regulations made by PNGRB is not in your Companys control. However, regular interactions with PNGRB on sectoral issues, participation in public consultation exercises conducted by the Regulatory Board and making logical submissions to the Regulator in writing helps your Company to anticipate or to minimize risks associated with any sudden or unforeseen changes in regulations.
During the year, PNGRB has issued a revised tariff order for your Companys Integrated Natural Gas Pipeline (INGPL), which is an integral part of the "Unified Tariff" system. The revised tariff of INGPL has been issued by PNGRB as an interim relief to your Company over its existing tariff on account of System Use Gas (including reduction on account of calorific value) and Capacity determination. PNGRB has further conveyed that truing up of all other factors such as Actual Opex & Capex, Future Opex & Capex, Transmission loss, working days, Revenue sharing adjustments etc. and other amendments as per regulations, shall be done in the next tariff review exercise in FY 2027-28 w.e.f. 01.04.2028
Vide notification dated 08.07.2026, which was published in the Gazette of India on 20.07.2026 and came into effect on that day, PNGRB has omitted the Regulation 5A of the PNGRB Affiliate Code pertaining to legal separation. Accordingly, there is no regulatory requirement of creating separate legal entity for carrying out the gas transportation activity i.e. there is no regulatory requirement of legal unbundling of gas marketing and transportation activities.
4.2 Natural Gas Prices
Your Company currently markets Natural Gas purchased from domestic and international sources. The natural gas from domestic sources predominantly consists of government regulated gases and the price of the gas is decided by the government from time to time. Other domestic gases which are directly sold by the gas producers through open tenders / e-auctions are purchased by your Company at discovered prices by participating in such open tenders / e-auctions. The purchase and sale prices of these gases are often linked to benchmarks such as Standard & Poor Platts West India Marker, Japan Korea Marker, Dated Brent etc. In addition to the above, your Company purchases imported Natural Gas mainly from PLL at Dahej, Gujarat & Kochi, Kerala. The purchase and selling prices of such Re-gasified Liquefied Natural Gas (RLNG) are based on international crude price indices. Further, your Company also directly imports LNG from various suppliers worldwide and gets it re-gasified at PLLs regasification terminals at Dahej, Gujarat, KLLs regasification terminal at Dabhol, Maharashtra, Shell Energy India Pvt. Ltd. terminal at Hazira, Gujarat and Dhamra LNG Terminal at Odisha. Such
LNG imports are either under a long-term agreement ranging above three years, medium-term agreement ranging up to three years or under spot cargo purchases. Under spot cargo imports, the selling price is dependent upon the demand and supply scenario and customer affordability. Import of LNG spot cargo is based on a thorough assessment of the affordability & requirement of the end consumers and the availability of LNG in the international markets.
Your Company is undertaking hedging transactions also to mitigate the price and index risk.
4.3 LNG Portfolio
Your Company has recently sourced significant LNG volumes on long to mid-term basis and has also been exploring more opportunities to enter into long term LNG contracts with the primary objective of meeting the demand of a growing Indian economy and ensuring the energy security of the nation. During FY 2025-26, your Company executed 2 LNG Sales and Purchase Agreements (SPA) of the deals which were concluded in previous FYs. First SPA was executed with Vitol Singapore Pte Ltd for supply of ~1 MMTPA from 2026 onwards. Second SPA was executed with Qatar Energy Trading (QET) for supply of ~0.8 MMTPA from 2025 onwards.
Your Company has successfully onboarded and chartered the long-term LNG vessel Energy Fidelity and extended the charter period of GAIL Bhuwan till year 2038. The vessel Energy Fidelity will be delivered to GAIL in Apr26 and shall be on GAILs charter till year 2038. Your Company has seven LNG carriers in its fleet and this will help the Company to meet the requirement of transporting US contracted LNG volumes to India.
There is a market risk of LNG in terms of adverse movement of crude oil price/LNG prices, shortage of LNG cargos, expected increase in domestic gas volumes and risk of LNG contract default by up-stream supplier(s). The risk is mitigated through hedging and back to back contracts- on a regular basis. Your Company is also taking steps for marketing development for direct use of LNG through new ventures such as LNG retail outlets. Your Company has been taking mitigation measures like imposing downstream supply cuts within the contractual frameworks, sourcing replenishment volumes wherever necessary from spot markets, etc. The Company is scouting the market for the possibility of contracting long-term LNG volumes with prominent producers/traders.
4.4 Power including Renewables
India is increasing its Renewable Energy capacity at a brisk pace with an aim to reduce carbon emissions. With an increase in Renewable Energy portfolio, the stability of the grid has become a major concern. Natural Gas-based power plants can act as a balance to provide grid stability as gas plants can respond more quickly to load changes than coal-based plants and also lead to reduction in emissions. However, Natural Gas-based power plants have few structural issues requiring resolution through policy intervention. Your Company has been working on a case-to-case basis and in close coordination with MoP&NG and the Ministry of Power to increase/revive off-take of Natural Gas by the power sector.
4.5 Polymer, Liquified Petroleum Gas (LPG) and other Liquid Hydrocarbons (LHC)
Your Company is also marketing petrochemicals, LPG and other LHC products. The prices of these products are influenced and determined by global and domestic factors influencing
demand and supply. Your Company has developed a range of market acceptable products to ensure steady consumption of the petrochemical products and has optimized its portfolio by having production facilities at Pata (UP) and Dibrugarh (Assam). LPG marketing is decided in close coordination with the PSU Oil Marketing Companies.
There is a risk of reduction in margin of Petrochemical due to lower price & high input cost and risk of unviable operations due to higher cost of feed-stock.
Continuous measures are taken towards managing margins across your Companys range of products:
• Cheaper availability of feedstock.
• Petrochemical sector is set to grow in the coming years.
• Polymer grade optimization.
• Coordination with Zonal Offices to ensure enhanced polymer sales.
• Periodical monitoring of international price benchmark viz. rupee dollar exchange rate, import landed price etc and taking suitable action.
• Export of Polymers to Nepal restarted
4.6 Foreign Exchange Fluctuation Risk
Your Company largely imports LNG, capital goods and stores & spares for various new projects and operation & maintenance.
Your Company has an approved Foreign Currency & Interest Rate Risk Management Policy to manage foreign exchange exposure which has been reviewed during the FY. The shortterm and long-term exposure of the foreign currency of your Company is being monitored as per the approved policy.
4.7 Commodity Price Risk
Your Company has a Commodity Price Risk Management Policy (CPRM Policy) to manage the price risk of commodities including Natural Gas. The price risk of commodities including natural gas being used for internal consumption as well as for selling to its various downstream customers is being monitored/hedged as per the approved CPRM Policy. Based on the opportunity available in the Over The Counter (OTC) Market from time to time, your Company has undertaken various derivative transactions to hedge the price risk arising due to fluctuation in the prices of commodities including imported Natural Gas.
4.8 Natural or Man-made Calamity Risk
Various risks are associated with gas transportation and distribution like blowout of Natural Gas pipelines, earthquake, tsunami, terrorist activities etc. These risks are being mitigated right from the designing stage of these projects. However, < such natural or man-made risks are emergent events and cannot be totally eliminated. If such an event occurs, it may f incur significant liabilities for the Company. To mitigate the impact of such incidents, the Company has an Emergency Response and Disaster Management Plan in place.
Your Company has transitioned to Mega Insurance/Large j Risk Insurance Policy from the Standard Fire and Special Perils insurance Policy (SFSP) along with add on coverage for earthquake & terrorism from Financial Year 2024-25. The mega insurance coverage is more comprehensive than SFSP and covers additional risk like machinery breakdown and pipeline including line pack on first loss basis. For FY 2025-26, the policy was awarded to M/s New India Assurance Co. Ltd.
(as lead insurer) for a sum insured of Rs. 1.69 lakh crore.
4.9 Risk Management Framework (RM)
Risk management is an ongoing process and your Company has established a comprehensive Enterprise Risk Management (ERM) framework with the vision of integration of risk management with its overall strategic and operational practices.
The components of Risk Management are defined by the Companys business model & strategies, organizational structure, culture, risk category and dedicated resources. Risk Management is a continuous and evolving process, which integrates with the culture and strategy of the Company.
The Company has formed a Risk Management Committee (RMC) of the Board and its role is as specified in SEBI LODR Regulations. The primary objective is to ensure sustainable and stable business growth, supported by a structured approach to risk management. The Enterprise Risk Management (ERM) framework includes designing, implementing, monitoring, reviewing and constantly improving the risk management procedures for the organization. The ERM framework at your Company is designed after incorporating the requirements of ISO 31000 (Risk Management - Principles and Guidelines) and recommendations of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The structure of Risk Management Framework of Company is as below:
Your Company has a Risk Management Policy and procedure to protect & add value to the organization & its stakeholders with the objective to establish a risk intelligence framework for objectively managing expected/ perceived & existing risk exposures by the decision-makers in compliance to prevailing statutory regulations so as to assure demonstrable achievement of objectives and improvement of financial stability of Company.
• Risk Management Approach
Your Company uses a structured Top-down and Bottom-up approach for managing risks. A Top-down approach helps to distill insights and provide clarity on the key risks whereas the Bottom up approach helps to ensure comprehensive risk identification and prioritization along with processes that
control decision making across the Company ensuring a robust risk management culture.
• Risk Identification
The purpose of risk identification is to identify, recognize and describe risks that might help or prevent an organization achieving its objectives. This stage involves identification of sources of risk, areas of impacts, events (including changes in circumstances) and their causes and their potential consequences. The aim of this step is to generate a comprehensive list of risks based on those events that might create, enhance, prevent, degrade, accelerate or delay the achievement of objectives.
It is important to identify the risks associated with not pursuing an opportunity. Comprehensive identification is critical, because a risk that is not identified at this stage will not be included in further analysis.
In the changing business scenario and expansion of your Company into various other activities, business risks and their mitigation plans are assessed on a regular basis. Top Corporate Level Key Risks are as under:
i. Risk of delay in Project Execution- Pipe line & Process Plant Projects.
ii. Risk of Underutilization of your Companys asset- Natural Gas.
iii. Restructuring Risk (Monetization & Unbundling risk of GAILs Pipeline assets).
iv. Inadequate controls to protect the systems against malicious attacks may result in loss of data and disruption of operations.
v. (a) Risk of reduction in margin of Petrochemical
due to increase in import, lower price & high input cost.
(b) Risk of unviable operations of the Pata plant due to higher cost of feed-stock .
(c) Risk of unviable operations of Pata/Vijaipur (C2-C3) plant due to less availability of C2-C3 in feed gas.
vi. Market Risk of LNG in terms of adverse movement of crude oil price/ LNG prices & expected increase in domestic gas volumes.
vii. Explosion/ high fatality in case of leakage risk in/ from -
(a) LPG & NG pipelines and their RT / SV Stations (all locations).
(b) Plants: Petrochemical and GPU/C2-C3 recovery plants (all locations).
(c) Risk of Explosion and Fatality due to Gas leakage in CGDs NG pipeline.
viii. Risk of Third-Party Damage & Encroachment.
ix. Risk of unfavorable Regulatory changes.
x. Natural Gas (Domestic) Business Risk.
Effect on your Company business on account of
(a) Reduction of APM allocation
(b) Decrease in market share of domestic gas
(c) Inability to acquire new volume of domestic gas
(d) Shutdown of ONGC facilities
All above Top Corporate Key Risks along with mitigation measures are being monitored closely by the Top Management. Identified risks are examined and quarterly reviewed by the Corporate Level Risk Steering Committee (CLRSC), Bi-annually by the Risk Management Committee (RMC), and annually by the Audit Committee and the Board.
5. INVESTOR RELATIONS AND ENGAGEMENT (IR)
Investor Relations (IR) plays a pivotal role in todays dynamic business environment by enabling companies to effectively manage investor expectations. The primary objective of the Companys IR function is to build trust and confidence among stakeholders including shareholders, investors and analysts through transparent disclosures and continuous two-way communication. Regular dissemination of relevant information, along with sustained engagement initiatives, forms the cornerstone of your Companys IR approach. Through proactive interaction with the investor community, your Company seeks to strengthen credibility and maximize the value derived from its IR efforts.
Your Company continues to witness increasing interest from the investor community and has been addressing their queries in a transparent and compliant manner. In addition,
your Company organizes site visits for analysts and investors, offering them first-hand exposure to project developments and enabling a deeper understanding of the Companys operations.
During FY 2025-26, the Company carried out several key investor relations and engagement initiatives, including:
a. Hosted the Investors & Analysts Meet 2025 in May 2025 to discuss annual audited financial results for FY 2024-25.
b. Conducted earnings calls immediately following the announcement of quarterly financial results for Q1 FY26, Q2/H1 FY26 and Q3/9M FY26.
c. Participated in 16 domestic investor conferences, 02 domestic non-deal roadshows, 02 international investor conferences and 01 international non-deal roadshow, organized by top brokerage houses.
All these meetings and conferences were attended by the Companys Top Management and Senior Executives, reflecting strong leadership engagement with the investor community. In addition to organizing such interactions and conducting earnings calls, your Company also facilitated 29 one-on-one office meetings with investors during FY 2025-26.
The investor presentations are shared with the Stock Exchanges and are also made available on your Companys website for wider access. The Companys consistent efforts to disseminate timely and relevant information have been well received and appreciated by the investor and analyst community, underscoring its commitment to transparency and effective stakeholder engagement.
In line with SEBI (Prohibition of Insider Trading) Regulations, 2015, Structured Digital Database System (SDD) is already in place at GAIL websites Intranet containing the nature of UPSI, names of such persons who have shared the information, names of persons or entities with whom information is shared etc. This database is being maintained internally with adequate internal controls and checks.
6. CAPABILITY DEVELOPMENT
6.1 Human Capital
Your Companys focus with regard to human capital management is to provide a safe and healthy work environment to deliver the performance required for business continuity while pursuing individual aspirations. Through strategic and targeted development programmes and employee engagement initiatives, your Company is building an employee base that can leverage their potential and talents to create a world where access to clean energy is given in an affordable manner.
As on 31st March 2026, your Company had 5356 (including CMD, Whole-time Directors & CVO) employees on its roll. Your Company understands that the more investment a Company makes in human capital, the chances of its productivity, innovation and success become higher.
Your Company has dedicated resources to develop its human capital through training and mentoring. Some of the important initiatives taken by your Company towards this end includes:
i. OJAS, your Companys youth engagement platform, launched to foster the development, collaboration and active participation of young executives serves as a dynamic forum for channelling the energy and
creativity of executives below 35 years of age through a wide range of cultural, intellectual and socially impactful initiatives. Under the aegis of OJAS, several events have been organized across various locations, including the Inter Regional Youth Festival 2025, Dance and Skit Competitions, Painting Contests, Case Study Competitions, Fitness Challenges, Waste to Wisdom, QuizMania and Book, Cloth and Food Donation Drives- all led and driven by Young Executive Interest Groups.
ii. More than 31 Townhall Meetings were held with employees of work centres, led by Director (HR) during FY 2025-26. This initiative proves to be a pivotal step towards facilitating open dialogue and constructive engagement of employees.
iii. Initiative "Spandan" is a testament to your Companys commitment towards employees holistic wellbeing and creating an inclusive culture of care in the organization. It entails observance of a "Monthly Wellness Hour", a distinctive practice wherein employees, across all locations, convene to dedicate time towards enhancing their physical, mental and emotional well-being through a spectrum of activities within the working hours. In the said series, Spandan 3.0 was launched in September 2025, which was marked by the observance of the 2nd Wellness Week across all locations. Over 550 plus wellness sessions have been organized in 2025-26, including 140 activities during the 2nd Wellness Week in the month of January 2026.
iv. Project" Samanvaya", a part of HR outreach efforts, wherein HR representatives from Delhi/NCR offices visited various sites/plants to understand the pressing HR issues/matters and gather employees feedback/ opinions to improve HR service delivery.
v. Initiative "Aarohan" aimed at enhancing skills of young HR professionals through interactive and mutual learning. It seeks to broaden their knowledge base, introduce new approaches to their roles and drive improved performance through knowledge-sharing sessions organized to deepen understanding of your Companys business and the evolving energy landscape.
vi. Your Companys initiative Inquizzitive is aimed at enhancing employees awareness and understanding of the Companys operations, policies, achievements and future goals in a gamified manner. Conducted in the form of engaging quizzes, the initiative not only educates employees about your Companys history, vision, operations and key business areas but also fosters a sense of belonging and active participation.
vii. Online Masterclasses exclusively curated for the leadership of your Companys Joint Ventures and Subsidiaries focusing on critical areas such as Corporate Social Responsibility (CSR), the Companies Act, Ethics, Corporate Governance, Vigilance, Finance etc. These high impact session series are designed to empower senior executives with in-depth insights and practical knowledge essential for informed and strategic decision-making. By bringing together expert-led discussions on regulatory frameworks, ethical leadership and governance best practices, the initiative aims to strengthen organizational alignment, ensure compliance excellence and foster a culture of responsible leadership across the extended ecosystem of your Company.
viii. A major deciding factor in improving human capital is improving the quality of life being offered at various work locations through the quality of infrastructure provided to the employees and their families. The Company puts this aspect on high importance and makes sure that employees have access to the best of facilities like Township, Hospital, School, Clubs, Sports facilities etc.
6.2 Leadership Development Program
Taking cognizance of the challenges of the coming years, the Company has defined its business strategy till 2030 to continue the unstinted growth pattern. The new projects will need to be spearheaded by leaders who have the fortitude to act entrepreneurially by actively looking and advocating for new opportunities for the Company. The Board has approved Succession Planning and Leadership Development Plan to be followed for executives at 3 levels below the Board. The policy lists in detail the approach and methodology to be adopted for the Succession Planning Process. It identifies Unique Role (UR) between E-7 to E-9 grade. For URs in the said levels, specification in terms of essential and desired qualification and experience has been prepared.
Succession and Staffing for all the identified critical Roles in E-7 to E-9 grade is conducted through extant Career Progression/ DPC and Placement/APE Policy Framework. Role Specifications for each of the target UR is referred to assess readiness level of the potential successor at the time of APE/DPC.
Your Company believes that capacity building and enhancing the competency of employees is the key to the successful execution of its strategic plans. As a part of preparedness for future challenges, your Company has put an Integrated Leadership Development Framework and Succession Planning Framework for facilitating leadership development and career planning.
The Development strategy comprises of multi-pronged Talent Development Interventions which includes:
• 360 Degree Feedback Exercise
• Senior Management Development Centre (SMDC) Exercise
• Focused development programmes
• Executive Development Programmes in collaboration with Institutes like IIMs, SCOPE, MDI Gurgaon and others
360 Degree Feedback is aimed to provide effective feedback to the concerned executive(s) via his/her peers, subordinates and seniors. Senior Management Development Centre (SMDC) exercise has been undertaken for senior executives in Chief Manager (E-5) Grade & above. SMDC is an aid to ensure better and inspiring leadership in the organization. Based on the input of SMDC exercise, the executives are provided competency specific training in leading institutions & premier B-schools and supplemented with books & e-learning modules.
Additionally, a structured Management Development Program is also imparted to all newly promoted General Manager/Chief General Manager (E-7 and E-8) level Executives.
Your Company is grooming the senior level executives at the level of Executive Director and Chief General Manager (E-9 and E-8) for the Board Position through capability building programs like Master Class for Directors and Board Room Effectiveness.
6.3 Learning and Development
Learning and Development at your Company has a strategic significance w.r.t the professional development of executives & workmen working in the Oil & Gas sector. The GAIL Training Institute (GTI) serves as the core of your Companys Learning & Development ecosystem, supporting capability building for both your Companys employees and the wider Oil & Gas industry.
Your Company has organized/ conducted 288 training programs through GTI and 338 programs through external interventions, during FY 2025-26 for its employees with a coverage of 92.24% and efficacy score of 93.96 %, based on the Training Need Assessment (TNA) and other Business requirements. The average man-days of training per employee was 4.77 days (average two training per employee).
GTI has extended its wings to cater to the requirement of Human Resource development and professional training, to the entire Oil & Gas fraternity especially in the domain of Gas Transmission and Distribution, City Gas Distribution, Gas Processing, Petrochemicals and LNG.
Focused programs for different grades and roles of employees were conducted during FY 2025-26. Management Development Programs (MDPs) for executives at the level of E-6 & E-7 were conducted through esteemed Institutes like IIMs and ASCI. A four-week Comprehensive Orientation Program was conducted for the 120 newly joined executive Trainees and a week-long Orientation Program was conducted for 90 Lateral Entrants. Under the Mentorship program Saarthi, a total of 139 Executive Trainees were enrolled in the mentoring journey with their mentors. A unique six layered program for E-6 level executives was conducted in collaboration with IIM-Calcutta. A Dedicated Program to rejuvenate the employees working in Round the Clock Shift was conducted at International Art of Living Centre, Bengaluru.
In line with the Global Business environment and Indias future growth trajectory, Capability building programs were organized in the emerging areas such as Renewable and Alternate Energy (Solar and Wind Energy), Hydrogen Transport in NG Pipeline, Industry 4.0 & Automation and
Role of Hydrogen in Emerging Economy during 2025-26 with the help of reputed Institutions like, IIT Bombay, IIT Roorkee and ICT Mumbai, National Institute of Wind Energy (NIWE) Chennai , TERI and EIL etc. So far, over 1600 GAIL Engineers at different levels have been trained in these emerging energy domains. E-learning modules, including Hydrogen Technology courses and a Film on Hydrogen have equipped engineers with the skills needed to cope with the changes in upcoming technology of Energy Transition to a cleaner fuel.
GTI plays a pivotal role in designing and executing L&D interventions across your Company and beyond. Its responsibilities include:
• Promotion of inclusive and continuous learning culture
• Conducting domestic and international training programs
• Organizing seminars, conferences, workshops and study tours
• Strategic alignment with Strategy-2030 for training intervention of employees
• Focus on emerging domains such as AI, Industry 4.0, Hydrogen and Renewable energy
• Expanding L&D outreach through inclusive platforms and stakeholder engagement
Under Digital learning Framework, GTI has significantly advanced digital learning through:
• AI-enabled platforms such as AI Tarang, the first of its kind program which has equipped over 3,700 employees with foundational AI capabilities, leading to the identification of nearly 800 potential use cases demonstrating strong adoption and innovation across the workforce.
• Harvard Manage Mentor (HMM) serves as a shared learning initiative aimed at empowering Public Sector Enterprise (PSE) executives. Through HMM, learners can enhance their management and leadership competencies across various business modules, supported by concise learning content, expert-led videos, practical tools and personalized learning experiences that facilitate realtime workplace application
• The infrastructure is equipped for Virtual classrooms and sessions for Knowledge dissemination across your Company.
Your Company is strengthening capability building by embedding a reinforced suggestion scheme GAIL Manthan that nurtures a sustained culture of ideation across the organization. Through structured Ideathons and continuous engagement, it is enabling employees to translate ideas into impactful, performance-driven outcomes. Under Work Centre Ideathons, Intensive brainstorming sessions are conducted to invite solutions from employees with diverse backgrounds, skills and interests, along with senior management, to diagnose pre-defined problems, identify the best opportunities and ideate the most viable solutions.
For further strengthening the learning infrastructure your Company has plans for a Digital Experience Learning Centre at GTI Noida and setting up of a new GAIL Training Institute at Nagpur. The overwhelming response to these initiatives clearly reflects the curiosity and readiness of Team GAIL to embrace new digital tools and modern ways of working.
Complementing the above programs various other initiatives such as GAIL Got Talent (Cultural engagement platform), Spandan (Health and Wellness program) and GAIL ABHA (entrepreneurship initiative for spouses of your Companys employees) and Eminent Leadership talks were organised which are innovative and impactful initiatives in its own right and have strengthened employee engagement, wellness and family participation across the organization.
GAIL through GTI will continue focusing on:
• Hydrogen and Renewable Energy, AI-driven learning ecosystems , Sustainable Business development
• Global collaborations & certifications and Industry-wide capability building
• GTI is also planning for a Energy Leadership Factory program, for the Energy Sector Leadership development program.
• With its emphasis on digital transformation and sustainability, GTI is positioned to play a major role in building a future-ready workforce for Indias evolving energy landscape.
6.4 Skill Development Programs
Your Company is also playing a proactive role to support the Skill India Mission through active participation of Hydrocarbon Sector Skill Council (HSSC) and other Sector Skill Councils for providing Skill Trainings at Skill Development Institute (SDI) at Raebareli (now at Maigalganj, Lakhimpur Kheri) and GAIL Institute of Skills at Guna and Nagaram.
Through these Institutes, your Company has been consistently contributing towards creation of a skilled, industry-ready workforce aligned with the objectives of Pradhan Mantri Kaushal Vikas Yojana and the larger vision of "Skill India" and "Atmanirbhar Bharat". These institutes are focused on enhancing employability, entrepreneurship and livelihood opportunities for youth through industry-oriented skill training, hands-on practical exposure and certification programs in relevant sectors. The initiatives have significantly contributed
towards bridging the skill gap, promoting inclusive growth and empowering youth from diverse socio-economic backgrounds.
During FY 2025-26, Skill Development Institute (SDI), Raebareli was accredited and affiliated with 5 star rating. A total of 523 youths (including 191 females) were skillfully trained for gainful employment (497 Nos). A large number of youths were trained in various job roles for getting gainful employment at various GAIL Institute of Skills at Guna- 214 Nos (and ongoing), Nagaram-165 Nos.
The PM Internship Scheme, as per the Directives received from the Ministry of Corporate Affairs, was launched across your Company, through GTI- Noida. The target provided under the scheme was met during the year.
7. HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT
7.1 Corporate HSE Policy
Your Companys Health, Safety and Environment (HSE) Policy endeavors to generate value through sustainable development by placing commitment to Occupational Health, Safety and Environment of business areas and various stakeholders. The HSE Policy of the Company is endorsed by the Chairman and Managing Director. It is a statement outlining its commitment to health, safety and environmental protection, detailing responsibilities, procedures and compliance measures. Your Company is committed to be a leader in Safety, Occupational Health and Environment Protection by adopting latest Technology and Digitalization by complying statutory rules and regulations. Design, construction, operation and maintenance of plants, pipelines and their facilities in accordance with National & International Standards to provide adequate safety in all spheres of business areas.
A Health, Safety and Environment (HSE) Management System is in place, which provides the set of guidelines and procedures to fulfill the top managements commitment and employees responsibilities with regard to HSE. This has been developed in accordance with Oil Industry Safety Directorate Standards & PNGRB Regulations. The HSE Management System of your Company also encompasses elements of Process Safety Management of International Codes and Standards like OSHA 3132 (Process Safety Management), CCPS Process Safety Management System and API RP 1173 (Pipeline Safety Management System).
7.2 Safety Performance
In order to ensure the effective implementation of HSE Management System and Management Governance pertaining to HSE matters, HSE Score System has been developed to
measure the HSE Performance for operational installations like Petrochemicals, Gas Processing Plants, Cross Country Natural Gas & LPG Pipelines and City Gas Distribution Networks of your Company.
HSE Performance in terms of HSE Score System measures your Companys effectiveness in managing safety, reducing accidents and ensuring HSE compliance through Key Performance Indicators (KPIs). HSE Score System involves examining both lagging indicators and leading indicators to drive continuous improvement, enhance worker safety,and minimize risks. The HSE Score is computed quarterly, through pre-defined parameters with specific weightage on HSE aspects like significant legal/statutory requirement, monitoring critical Operation and Maintenance Parameters, Compliances of Safety Audit Recommendations, Emergency Preparedness, Training & Awareness etc. to enable, monitor and keep track of HSE Performance of your Companys Installations and derive the improvement areas for strengthening the Health, Safety and Environment Management System of your Company.
Your Company achieved an "HSE Score" of 96.78 % in FY 2025-26 as against the Target of 96.37%.
7.3 Safety Training & Awareness
HSE Training and Awareness in your Company has been identified as one of the important elements of HSE Management System with an objective to identify Operational and Safety Training needs and to provide training for effective implementation of HSE Management System.
Your Company has excellent training institutes located at Noida and Jaipur to provide Technical, Behavioral, Management & Functional Training to its regular employees. Further, an Internal Operational and Safety Training System at O&M Installations level has been established, in accordance with OISD & PNGRB Codes/Standards to provide structured training to various levels of employees and other stakeholders.
Your Company imparted 5018 Man-Days of Internal Operational and Safety Training to Regular Employees in FY 2025-26 against the target of 4800 Man-Days. Further, as per the target of MoU 2025-26 compliance, two HSE related workshops were also organised.
Your Company organized various programs during the year 2025-26 to provide HSE Training and Awareness to employees:
• Process Safety Workshop and CMD Trophy Award Felicitation program organized at Corporate Office, New Delhi on 16th September 2025, with the objective of promoting process safety awareness, operational excellence, safety culture and teamwork. The Workshop was inaugurated by the Chairman and Managing Director in presence of Directors.
• Disaster Management Workshop cum Tabletop Exercise was conducted at Pata Petrochemicals in association with National Disaster Management Authority (NDMA) & National Institute of Disaster Management (NIDM) on 3rd September 2025 to ensure effective Disaster Preparedness and Response.
• 03 Electrical Safety Workshops/Webinars on Earthing & Battery Safety and Static Electricity were organized for employees during the year 2025-26.
• Monthly HSE Bulletin & Worldwide Industrial Accident Case Studies circulated among all employees to enhance safety awareness.
• 32 familiarization programs conducted on EHSM Functionalities (Incident Management System, Risk Assessment, Management of Change & Safety Audit/ Activity) in SAP S4/HANA covering more than 1000 O&M personnel during the year.
• 10 Knowledge Sharing Sessions organized for Young Fire & Safety Executives as a part of "NURTURE YOUNG MINDS DEVELOP SAFETY CULTURE" initiative.
• Training programs on "BBS: Train the trainer" organized through British Safety Council, UK for your Companys employees at GAIL Training Institute Noida.
• Certified Internal Safety Auditors Training was organized through OISD, at Vijaipur, for your Companys employees.
7.4 Safety Audits
Your Company undertakes Safety Audits of operational installations to find the gaps with respect to applicable Codes & Standards and identify the improvement areas. Various Audits of installations/facilities were carried out by Third Party Inspection Agencies (TPIA), in accordance with the applicable Central and State Regulations:
• Oil Industry Safety Directorate (OISD), a technical wing of MoP&NG, Government of India, also conducts Safety Audits of Gas Processing Plants, Petrochemicals and Natural Gas/LPG Pipelines every 3-4 years to check the conformity with various OISD Standards and Guidelines. Accordingly, OISD has conducted 09 External Safety Audits of your Companys Installations during FY 2025-26.
• In accordance with the requirement of PNGRB, Technical and Safety Audits of Gas Processing Plants, LPG Storages and Handling facilities, Natural Gas/LPG Pipelines and City Gas Distribution Networks & its associated facilities
are being carried out by PNGRB approved TPIA to ensure compliance wrt applicable PNGRB Regulations. 15 PNGRB T4S (Technical Standards and Specifications including Safety Standards) Audits were carried out by approved TPIAs for your Companys Installations during FY 2025-26.
• To meet the requirements of Manufacturer, Storage and Import of Hazardous Chemical (MSIHC) Rules, 1989 and Factory Act/Rules, External Safety Audit (ESA) of Major Installations is carried out once in a year. 30 ESAs other than OISD and PNGRB have been carried out during FY 2025-26.
Compliance Reports on External Safety Audits (ESAs) are being submitted to OISD, PESO & PNGRB, periodically.
Your Company has established a structured procedure to carry out Internal Safety Audit of operational facilities. Internal Safety Audit (Proactive Safety Audit and Internal Audit-Corporate) is being conducted at least once a year by an in-house team to identify the gaps and improvement areas w.r.t PNGRB and other regulations, OISD Standards, Management Governance etc. 27 Internal Technical and Safety Audits covering Pipelines and Gas Processing Plants were carried out by Corporate Team during the FY 2025-26.
7.5 Occupational Health
Your Company has an Occupational Health Guideline to implement occupational health, hygiene measures and medical surveillance programs to monitor and enhance occupational health of employees. To evaluate the effectiveness of the Occupational Health Programs in your Company, the Corporate Occupational Health Committee headed by HSE Head meets once in three months. Occupational Health Audit was also conducted by in-house multi-disciplinary teams at Petrochemical Pata, Natural Gas Compressor Station, Auraiya and Gas Processing Unit, Vijaipur in FY 2025-26, to check the effectiveness of Occupational Health System / Facilities. Occupational Health check-up of regular employees was also conducted during the FY 2025-26.
7.6 HSE Initiative and Achievements
Your Company has taken various initiatives to further improve the HSE Management System. Some of the important HSE initiatives and achievements are:
• 09 HSE Review Meetings at corporate level were conducted to review HSE Exceptions, Non-Conformities w.r.t PNGRB Regulations etc., if any.
• Sustainable Development Committee of the Board Meetings conducted periodically to review HSE Performance and Emergency Preparedness.
• A document on Contractor Safety Management has been developed and implemented to further strengthen the HSE Management System in Contract Works/ Services.
• Revision of HSE Management System, Work Permit System and Internal Operation & Safety Training System reviewed by committee to incorporate best practices and to incorporate the revised requirements of OISD.
• 20 Toolbox Talks Videos developed to reinforce Basic Safety Procedures at your Companys installations.
• Certified Internal Safety Auditors Training was organized through OISD from 24th - 25th February 2026 at Gas Processing Plant, Vijaipur.
• Disaster Management Subgroup (DMSG) Workshop and Table Top Exercise conducted through NIDM at Jubilee Tower, Noida for DMSG members on 23rd January 2026.
• Northern Region HSE Workshop was conducted on 21st January 2026 for O&M employees of NCR and Jamnagar-Loni Pipeline (JLPL).
8. INNOVATION
Your Company continues to remain committed towards fostering innovation and strengthening indigenous research and development capabilities to support Indias evolving energy requirements and long-term sustainability goals. Accordingly, your Companys Research & Development (R&D) strategy is focused on technological excellence, operational efficiency improvement, development of low-carbon technologies and strengthening capabilities across the natural gas value chain. During the year, your Company continued to undertake collaborative research programmes with premier academic institutions, IITs and CSIR laboratories in strategic thrust areas including natural gas valorization, hydrogen technologies, advanced pipeline materials, carbon dioxide capture and utilization and waste valorization.
Under Natural Gas Valorization studies, your Company, in collaboration with CSIR-Indian Institute of Petroleum (IIP), Dehradun, is pursuing research on direct conversion of methane to olefins through Oxidative Coupling of Methane (OCM). The project focuses on the development and scale-up of catalyst systems for single-step conversion of methane to ethylene with improved methane conversion and higher C2 selectivity.
In the hydrogen domain, your Company is undertaking research work with IIT Delhi on the development of advanced Anion Exchange Membrane (AEM) systems and non-platinum group metal catalysts for efficient green hydrogen production through water electrolysis. Further, in collaboration with CSIR- IIP and with partial funding support from CHT, your Company is also developing lightweight High Entropy Alloy (HEA) materials for hydrogen storage applications to support future hydrogen economy initiatives.
In the area of advanced pipeline materials, your Company, in collaboration with IIT Madras, is developing lightweight and corrosion-resistant spoolable Reinforced Thermoplastic Pipes (RTPs) for transportation of natural gas and hydrogen with improved flexibility and mechanical strength.
Carbon dioxide capture and utilization continue to remain key focus areas of your Companys R&D initiatives. In this regard, your Company, in collaboration with IIT Hyderabad, is developing advanced porous adsorbent materials for efficient CO2 capture applications. Further, studies are also being undertaken on catalytic conversion of CO2 into value-added chemicals such as polycarbonate diol in association with IISER Tirupati and electrochemical conversion of captured CO2 into formate in collaboration with IIT Madras.
To promote circular economy initiatives, your Company, in collaboration with BITS Pilani Hyderabad and CSIR-CBRI, Roorkee, is undertaking research on utilization and value addition of industrial insulation waste for development of sustainable construction and composite materials.
During FY 2025-26, your Company filed five patent applications covering hydrogen-enriched natural gas burner systems, mixed matrix membrane technology for CO2
separation, biomass-based hydrogen-rich syngas generation, fibre optic-based intrusion and leak detection systems, and novel catalyst systems for methanation processes. Further, two patents relating to hydrate dissociation processes and solid oxide electrochemical cells were granted during the year. As on date, your Company holds a portfolio of 39 active patents, comprising 35 Indian patents and 4 foreign patents, along with 6 copyrights, demonstrating its continued commitment towards innovation, technology development and intellectual property creation.
9. TOTAL QUALITY MANAGEMENT
Your Company is committed to enhancing customer satisfaction and standardizing business processes through the implementation of Quality Management System. Your Company endeavours for continual and sustainable improvement through the implementation of effective quality practices, innovation and standardization. Quality Management System and Energy Management System have been implemented along various Pipelines & Process units, also at Corporate and Marketing offices. Your Company undertakes Quality Circle Projects with engagement of its employees resulting in high employee morale and increased productivity. Voice of customers is being captured through Customer Value Management and Customer Satisfaction Index surveys. Your Company is proud to share that the Customer Satisfaction Index for FY 2025-26 is 92 %.
10. SUSTAINABILITY INITIATIVES
In alignment with Indias commitment to achieve Net Zero Emissions by 2070, your Company has adopted an ambitious decarbonization target to achieve:
• 100% reduction in Scope-1 and Scope-2 emissions by 2035
• 35% reduction in Scope-3 emissions by 2040.
Your Company continues to make steady progress on achieving its Net-Zero Emissions target.
Your Company plans to achieve this ambitious Net Zero goal through a strategic approach involving Electrification of Natural Gas based equipment, Renewable Energy, Compressed Biogas (CBG), Green Hydrogen, Carbon Capture Utilization & Storage (CCUS), Energy Efficiency Improvement Projects, Nature based Offsetting etc.
11. ENVIRONMENT PROTECTION AND CONSERVATION
• Extended Producer Responsibility (EPR) compliance under Plastic Waste Management (PWM) Rules, 2016: GAIL Pata is registered as an Importer since June 2023 with the Uttar Pradesh Pollution Control Board under Plastic Waste Management Rules, 2016. EPR obligations as brand owner and importer fulfilled by procurement of EPR Certificates as per the Annual EPR Target. Your Company has paid an amount of ~Rs. 44.8 Lakhs for compliance of EPR as Brand Owner & Importer under Plastic Waste Management Rules 2016 for FY2025-26.
In addition to the above, compliance w.r.t EPR Obligations as Manufacturer of Plastic Raw Materials is still pending in absence of resolution of pending issues by CPCB.
• Zero Liquid Discharge (ZLD): Zero Liquid Discharge project having capacity of 450 m3/hr to treat the effluent for recycling and reduce freshwater consumption with an investment of over Rs. 352 crore is under implementation at Pata (U.P).
• GreenCo Rating: The CII Green Company (GreenCo) Rating System endorses an approach that is based on sustainable performance. The rating system evaluates the ecological aspects of companies based on criteria such as Energy Efficiency, Renewable Energy, GHG mitigation, materiality conservation etc.
Your Company has implemented CII GreenCo rating across its major operational sites which provides leadership and guidance on how to make products, services and operations more sustainable. The Companys internal and external stakeholders are trained in the latest green concepts so that they can implement global best practices in their operations.
In recognition of consistent effort and dedication toward Sustainability, your Company was conferred with the GreenCo Champion Award during the CII GreenCo Summit 2025 held in Hyderabad in June2025.
The following 12 sites have been accredited with CII GreenCo rating/certification:
• Platinum Certification: JHBDPL-Ranchi, KKBMPL- Kochi and Dabhol-Bengaluru Pipeline and Cauvery Basin Pipeline, Karaikal
• Gold Certification: Pata Petrochemical Plant
• Silver Certification: Vijaipur Gas Processing Plant, Vaghodia Gas Processing Plant, Gandhar Gas Processing Plant, Jhabua Compressor Station and Vizag-Secunderabad Pipeline
• Bronze Certification: Chhainsa Compressor Station
• Certification: Abu Road
• Life Cycle Assessment (LCA):
Your Company has also adopted lifecycle-based approaches to improve resource efficiency and reduce environmental impacts. The Centre of Excellence in Oil, Gas and Energy (CoEOGE) under the aegis of IIT Bombay, conducted a study titled "Decarbonization of Petrochemical, Gas Processing and Petroleum Refineries: Technology evaluation and Life Cycle Assessment" for your Company, in line with its Net Zero 2035 Vision. The Life Cycle Assessment (LCA) was conducted for the Pata Petrochemical Complex to evaluate environmental impacts across the value chain from natural gas extraction and transportation to processing into products such as Propane, LPG, Naphtha, HDPE and LLDPE and finally to their end-of-life stages including recycling or disposal. This assessment helped identify opportunities to enhance process efficiency, optimize resource utilization and incorporate circularity considerations into production and product management.
• ESG Ratings
Your Companys exemplary initiatives and achievements in the areas of ESG and sustainability have been widely recognized across various forums, earning prestigious awards and accolades from reputed organizations. During FY 2025-26, your Company was included in the FTSE4Good Index Series for the eighth consecutive year as part of the London Stock Exchange Group Sustainability Index, reflecting its strong ESG
performance in the Oil & Gas sector. Your Company is also a constituent of the NIFTY100 ESG Index. Further, the Companys ESG score improved to 66 in FY 2024-25 from 62 in FY 2023-24, as assessed by NSE Sustainability Ratings & Analytics, while its ESG score under CRISIL ESG Ratings & Analytics increased to 57 in FY 202425 from 54 in FY 2023-24, demonstrating continuous progress in its sustainability and governance practices.
12. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
Your Company has an independent and integral Internal Audit department having diligent professionals covering various aspects relating to commercial and technical domains. The Internal Audit department functionally reports to the Audit Committee and administratively reports to the Director (Finance). The audit assignments are conducted as per the annual audit program approved by the Audit Committee. The Internal audit department has its own internal audit manual and checklist which is being updated periodically. The Internal Audit team examines the effectiveness of internal controls through a risk-based audit of business processes. In congruence with the mission of internal audit "To provide comprehensive and quality audit services, which facilitates efficiency of business operation, enhance integrity of information and result in recommendations that improves operating procedures, to enable the Company to achieve its objective", the significant audit observations are reported to the management. The Audit Committee reviews the significant findings of internal audit of various departments / functions and C&AG audit periodically
13. CORPORATE SOCIAL RESPONSIBILITY (CSR)
As a socially responsible corporate entity, your Company recognises and deeply acknowledges its obligations towards the communities it serves, the environment it operates within and the broader ecosystem of stakeholders integral to its functioning.
The CSR function at your Company is anchored in the conviction that sustainable business growth and societal well-being are inseparable. Accordingly, it is dedicated to promoting social good and to seamlessly integrating economic, environmental and social objectives with the Companys core operations and long-term growth strategy.
In alignment with the Companys overarching vision, its CSR initiatives are designed to enhance meaningful value creation within society and across the communities in which the Company operates, through the quality of its services, the integrity of its conduct and the impact of its targeted interventions. These initiatives are firmly oriented toward alleviating poverty, fostering sustained and inclusive growth and uplifting those at the base of the economic pyramid, all in service of the long-term goal of contributing to the development of a prosperous and equitable India.
14. AWARDS & ACCOLADES
Your Company has been conferred with the following awards: • GAIL Pata conferred with Diamond Award under Apex India Green Leaf Award 2025 for Environment Excellence in Petrochemical Sector.
• GAIL Pata awarded with "Excellent Energy Efficient Unit Award" at 26th CII National Award for Excellence in Energy Management 2025.
• GAIL Pata stood 2nd runner up in 9th National Energy Efficiency Circle Competition - 2025 by Confederation of Indian Industries (CII).
• GAIL Pata won Platinum Award at 10th Apex India Occupational Health & Safety Awards 2025, a national level safety excellence recognition in petrochemicals (Oil & Gas) sector.
• GAIL Pata received "Diamond Award" for Performance Excellence in Green Manufacturing consistently for 3 years at 11th India Green Manufacturing Challenge (IGMC) 2025.
• GAIL Pata received "Platinum Award" in Petrochemical Sector at Honourz Environment Excellence Award 2025.
• GAIL Pata conferred with "Platinum Award" in Petrochemical category in GEEF Global Environment Awards 2026.
• GAIL has been conferred with PNGRB Excellence Award 2025 in recognition of its performance as "Gas Transporter of the year" (Category: Natural Gas Pipeline Network more than 1500 kms) and "Leader in Operations and HSSE" (Category: Natural Gas Pipeline Network less than 1000 kms) for Gujarat Regional Network
• Your Company has been conferred the IINA Awards 2025 - Best CSR Practices for its project on conversion of petrol/diesel engine boats to CNG-propelled boats at Varanasi, Uttar Pradesh.
• Your Company has been awarded the 16th Asias Best CSR Practices Awards 2025 in Singapore for its overall CSR initiatives and impact.
• Your Company has been honoured with the SCOPE Eminence Award 2025 (for 2022-23) under Corporate Social Responsibility & Responsiveness, recognizing impactful CSR initiatives benefiting over 14.5 lakh lives across healthcare, education, skill development and sustainability.
• Your Company has been conferred the Mahatma Award 2025 for CSR Excellence for its significant contributions towards social responsibility, sustainability and inclusive development across sectors such as healthcare, education, environment and women empowerment.
• Your Company leadership has been recognized with the Distinguished Leadership Honour awarded to Director (HR) at the TOI National CSR Summit 2026, acknowledging commitment to responsible energy leadership and impactful social investment
• GAIL Training Institute (GTI) is recipient of ISTD Award and IFTDO Award in recent past. GTI received the Safety Innovation Award 2025 from The Institution of Engineers (India) for its innovative Safety Management Initiatives.
• Your Company has been conferred with APEX India Green Leaf Platinum Award 2025 for Afforestation project at Guna (M.P).
• Your Company was conferred with 3rd Prithvi Awards 2025, recognizing its efforts in the field of ESG and Sustainability.
• Your Company was conferred with 2nd Rank among Indias Most Sustainable Companies in Oil & Gas sector by BW Business World.
• Your Company was conferred with Sustainability Symposium & Excellence Award 2025 from Indian Chamber of Commerce.
• Your Company was honoured with the prestigious "Sustainable Best Initiative of the Year 2025 Award- Achieve Net Zero" by UBS Forums in acknowledgement of your Companys proactive initiatives toward achieving an ambitious Net Zero Emissions target.
• Your Company was conferred with the prestigious GreenCo Champion Award during the CII GreenCo Summit in Hyderabad for its continued efforts and unwavering commitment towards Sustainable practices.
• Acknowledging your Companys commitment to Sustainable practices and Environmental stewardship, your Company was conferred with "Sustainability Organization Award 2024" at the 24th Global Greentech Environment & Sustainability Awards organized by the Greentech Foundation.
• Gas Processing Unit, Vijaipur was conferred with the "Sarvashrestha Suraksha Puraskar - 2025" by the National Safety Council of India (NSCI) in recognition of its outstanding safety performance.
• GAIL Vaghodia was honored with the "Prashansa Patra Award-2025" from National Safety Council in Group A under the Manufacturing Sector.
• GAIL Pata was honored with the Platinum Award in the Petrochemical Category at the Global Energy & Environment Foundation (GEEF) Global Environment Awards 2026.
• GAIL Gandhar was honored with the Diamond Award at the 10th APEX India Safety, Quality, HR & Business Excellence Awards 2025.
• GAIL Gandhar has once again demonstrated its unwavering commitment to safety and operational excellence by securing the British Safety Councils International Safety Award 2024 - with Distinction, for the fourth consecutive year.
• GAIL Gandhar has received the FICCI Silver (Third)-2024 Prize in the Manufacturing - Large (Hazardous) Sector.
• GAIL Gandhar has been conferred with the Gold Award in the Gas Processing Unit Sector the Grow Care India Occupational Health & Safety Award 2025.
• GAIL Dibiyapur received the Safety Innovation Award for the second consecutive time from Institution of Engineers (India) - Safety & Quality Forum, for the year 2025.
• KG Basin was awarded The Grow Care India OHS Award 2025 In Platinum Category for Outstanding Achievement in OHS Management
• Your Company became the first PSU to receive the prestigious SAP ACE Award 2025 for the third consecutive year, including a Special Jury Recognition under "The Game Changer" category for Project Navodaya-our SAP S/4HANA cloud migration.
• Your Company was adjudged the best Company in Asia (excluding mainland China) in the Chemicals, Oil & Gas sector for Best CEO, Best CFO and Best IR Program by Extel, a leading global investor relations platform.
• GAIL Pata and CGD Units received Cost Excellence Award 2025 from ICMAI at the 19th National Award for Excellence in Cost Management 2025.
• Your Company won the 5th PSU Transformation Awards 2025
• Project Navodaya - Enterprise Digital Transformation through RISE with SAP S/4HANA Cloud at your Company under the category Outstanding Leadership in Transformation for Shri R.K. Jain, Director (Finance).
• BIS - Project Navodaya - Enterprise Digital Transformation through RISE with SAP S/4HANA under the category Cloud & AI Leadership Award securing the Silver distinction.
• BIS - Safeguarding GAILs Digital Infrastructure with Advanced Cyber Defense under the category Cybersecurity Vanguard Award securing the Silver distinction.
• Director (Finance) conferred with the CFO - Outstanding Performer Award in the Public Sector - Manufacturing - Mega category at the 8th CMA-CFO Awards 2024, instituted by the Institute of Cost Accountants of India (ICMAI), in recognition of exemplary financial leadership, strategic acumen and sustained commitment to governance and value creation.
• Your Company was conferred the "Best Overall Financial Performance" award at the Governance Now - 12th PSU Awards. The Director (Finance) was also honoured with the "Financial Leadership Award," recognising exemplary leadership in public sector finance.
• Your Company has been honored with the Public Sector Excellence Award 2025 in "Transport Services - Gas (Central PSU)" by Dun & Bradstreet at the PSU & Government Summit themed "The Digital State: Indias Path to Prosperity," held on 26th September 2025 at New Delhi.
• At the National Finance Conclave & Awards 2026 organised by ICPA, GAIL was conferred the Award for Excellence in Financial Performance. Additionally, the Director (Finance) received the ICPA Best CFO Award, while the Executive Director (Finance) was honoured with the ICPA Best Cost Management Excellence Award, reinforcing leadership excellence in finance.
CAUTIONARY STATEMENT
Statements in the Boards Report and Management Discussion & Analysis, describing the Companys objectives, strategies, projections and estimates, expectations, etc. may be "forward looking statements" and progressive within the meaning of the applicable laws and regulations. By their nature, forward looking statements require your Company to make assumptions and are subject to inherent risks and uncertainties. Forward looking statements which involve a number of underlying identified/ non-identified risks and uncertainties that could cause actual results to differ materially from the expectations. Critical factors that could influence the Companys operations include global and domestic demand and supply conditions, changes in Government regulations/tax laws, economic developments within the Country and factors such as litigation and industrial relations. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also likely to change accordingly. These forwardlooking statements represent only your Companys current intentions, beliefs and expectations. Your Company assumes no obligation to revise or update any forward looking statement, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on the forward-looking statements.
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