On a standalone basis, GAIL (India) reported a 51.56% drop in its profit to Rs 1,412 crore, while net revenue from operations declined 14.24%% YoY to Rs 32,212.09 crore in Q1 June 2023 over Q1 June 2022.

State-owned GAIL (India) is one of the largest petrochemical players of country with more than 15% domestic market share. It is amongst top 10 global LNG portfolio marketers with LNG portfolio of around 14 MMTPA from Qatar, USA, Australia and Russia. In year 2022-23, the company transmitted 107 MMSCMD of natural gas through its 15,413 Km network of natural gas pipeline across the country. The Government of India held 51.91% stake in GAIL (India) as on June 2023.

A foreign broker double-upgraded the GAIL (India) stock to "buy" from "sell", citing revenue gains due to revision in tariffs. According to the media reports, the foreign broker has put a price target of Rs 150 on GAIL arguing that the utility nature of the business could lead to re-rating in the stock.

The broker also predicts that GAIL's upcoming pipelines and India's increasing gas demand will drive an 8% volume compound annual growth rate. Additionally, the broker sees GAIL's business transitioning from cyclical to structural in nature. The broker mentioned in a note that the zonal revenue recognition could lead to higher tariffs and further revisions. Currently, GAIL's stock is trading at a discount of 24% to 50% compared to its 10-year average price-to-book value and price-to-earnings ratio, making it an attractive investment opportunity.

Shares of GAIL (India) rose 1.74% to Rs 119.60 on the BSE.