Shares of GAIL (India) are in focus after brokerages maintained positive views on the stock despite a softer third-quarter performance, pointing to improving transmission volumes and tariff-related developments.
Nomura maintained a Buy rating on GAIL with a target price of ₹209. The brokerage said the company reported a soft third quarter due to weakness in gas marketing. However, Nomura believes earnings are likely to bottom out in the third quarter as gas transmission volumes have started to recover. The brokerage also highlighted that higher transmission tariffs from the fourth quarter onwards are expected to support performance.
CLSA retained an Outperform rating on the stock with a target price of ₹185. The brokerage said core EBIT for 3QFY26 was a significant miss, driven by weak gas trading and petrochemical performance, even as gas transmission volumes were slightly ahead of estimates. CLSA noted that management has guided for a further 7–8% increase in transmission volumes in FY27.
CLSA added that GAIL has filed for a review of its recently announced transmission tariff hike, though the brokerage said there is uncertainty around when the regulator may take up the review. Factoring in lower gas trading profits and the lower-than-expected tariff hike, CLSA cut its EPS estimates by 11–21%.
At the current market price of ₹160.55, Nomura’s target price implies an upside of around 30%, while CLSA’s target price suggests an upside of approximately 15%.
Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of the respective brokerages and do not constitute investment advice or recommendations by the publication.
