GAIL gas supply drops 9% as overseas sales nearly halve

GAIL (India) Limited supplied 95.53 million metric standard cubic metres per day (MMSCMD) of gas on a sector-wise basis in H1 FY27, down 9% from 105.47 MMSCMD in H1 FY26. GAIL’s city-gas distribution supply rose 12% to 32.19 MMSCMD, but lower overseas sales, fertiliser volumes and supply to other customers outweighed that increase.

Why did GAIL’s total gas supply decline in H1 FY27?

GAIL’s sector-wise gas supply declined by 9.94 MMSCMD, or 9.42%, to 95.53 MMSCMD in H1 FY27 from 105.47 MMSCMD in H1 FY26. The presentation separately reports natural-gas marketing physical performance of 96 MMSCMD for H1 FY27, while the sector-wise table allocates gas supply among fertilisers, power, city-gas distribution, overseas sales and Others.

The largest movement was in overseas sales, which fell by 6.16 MMSCMD to 7.42 MMSCMD from 13.58 MMSCMD. Fertiliser-sector supply declined by 3.60 MMSCMD to 31.18 MMSCMD, and the category labelled Others declined by 3.27 MMSCMD to 14.06 MMSCMD. Those reductions exceeded the 3.33 MMSCMD rise in city-gas distribution supply and the 0.24 MMSCMD reduction in power supply.

The sector changes reconcile to the lower total: the four declining lines reduced supply by 13.27 MMSCMD, while city-gas distribution added 3.33 MMSCMD. GAIL’s total of 95.53 MMSCMD in H1 FY27 was therefore below every annual natural-gas marketing volume shown for FY23 to FY26, which ranged from 95 MMSCMD to 104 MMSCMD, although those are separately reported measures and periods.

How much did GAIL’s city-gas supply increase?

GAIL’s supply to city-gas distribution, or CGD, rose 11.54% to 32.19 MMSCMD in H1 FY27 from 28.86 MMSCMD in H1 FY26. CGD’s share of sector-wise supply increased to 34% from 27%, making it the largest sector by share in the H1 FY27 supply breakdown, ahead of fertilisers at 32%.

CGD overtook fertilisers in volume as well. Fertiliser supply was 31.18 MMSCMD in H1 FY27, compared with CGD supply of 32.19 MMSCMD, whereas fertilisers had received 34.78 MMSCMD in H1 FY26 against CGD’s 28.86 MMSCMD. This changed the ranking of the two largest domestic sector destinations disclosed in the presentation.

The CGD increase came from both domestic gas and regasified liquefied natural gas, or RLNG. Domestic supply to CGD increased by 0.51 MMSCMD to 19.63 MMSCMD, while RLNG supply increased by 2.82 MMSCMD to 12.56 MMSCMD. RLNG accounted for about 85% of the 3.33 MMSCMD increase in CGD supply, based on those two disclosed components.

Power supply moved differently from CGD. It fell by 0.24 MMSCMD to 10.68 MMSCMD in H1 FY27 from 10.92 MMSCMD, although its share of total supply increased to 11% from 10% because the overall supply total declined. CGD was the only sector in the disclosed comparison that increased in both volume and share.

Which sectors reduced GAIL’s gas deliveries?

GAIL’s overseas sales nearly halved, declining 45.36% to 7.42 MMSCMD in H1 FY27 from 13.58 MMSCMD a year earlier. Overseas sales’ contribution to total sector-wise supply dropped to 8% from 13%, a five-percentage-point change that was the largest share reduction among the listed sectors.

Fertilisers remained a major destination at 31.18 MMSCMD, or 32% of H1 FY27 supply, but volumes were 10.35% below the 34.78 MMSCMD reported for H1 FY26. Domestic fertiliser supply declined to 5.53 MMSCMD from 6.43 MMSCMD, while RLNG supply declined to 25.65 MMSCMD from 28.35 MMSCMD.

The Others category declined 18.87% to 14.06 MMSCMD from 17.33 MMSCMD, and its share fell to 15% from 17%. Domestic supply within this category decreased by 2.25 MMSCMD to 5.33 MMSCMD, while RLNG declined by 1.02 MMSCMD to 8.73 MMSCMD. The presentation does not provide a further definition of Others.

Together, overseas sales, fertilisers and Others reduced supply by 13.03 MMSCMD between the two half years. That combined reduction was nearly four times the 3.33 MMSCMD increase in CGD and explains why the changing sector mix still resulted in a lower total of 95.53 MMSCMD.

Did GAIL become more reliant on RLNG in H1 FY27?

GAIL’s RLNG share of supply increased to 54% in H1 FY27 from 49% in H1 FY26, even though RLNG volume declined by 0.94 MMSCMD to 51.33 MMSCMD. The higher percentage reflects a smaller decline in RLNG than in total sector-wise supply, which fell by 9.94 MMSCMD.

Domestic gas supply fell by 2.84 MMSCMD to 36.78 MMSCMD from 39.62 MMSCMD, while its supply share remained 38% in both half years. Overseas supply declined by 6.16 MMSCMD to 7.42 MMSCMD, reducing its mix share to 8% from 13%. The mix change was therefore associated chiefly with the contraction in overseas sales.

The destination-level pattern was uneven. CGD RLNG supply rose by 2.82 MMSCMD, but fertiliser RLNG fell by 2.70 MMSCMD and Others RLNG fell by 1.02 MMSCMD. GAIL’s H1 FY27 supply mix thus showed a larger RLNG proportion without a larger absolute RLNG volume.

How does GAIL’s gas supply compare with other physical metrics?

GAIL reported natural-gas transmission of 126 MMSCMD in H1 FY27, compared with 122 MMSCMD in FY26 and 127 MMSCMD in FY25. This is a separate physical-performance measure from the 95.53 MMSCMD H1 FY27 sector-wise supply figure, which is divided among the five supply destinations shown in the presentation.

The presentation also reports physical metrics in thousand metric tonnes, or TMT, rather than MMSCMD. Petrochemical sales were 226 TMT in H1 FY27, liquid hydrocarbons sales were 483 TMT, and liquefied petroleum gas transmission was 2,207 TMT. These figures should not be combined with natural-gas supply volumes because the reported units differ.

For the full FY26, GAIL reported 785 TMT of petrochemical sales, 815 TMT of liquid hydrocarbons sales and 4,600 TMT of liquefied petroleum gas transmission. H1 FY27 reported 226 TMT, 483 TMT and 2,207 TMT respectively, while the gas-supply analysis remains focused on the H1 FY26 and H1 FY27 MMSCMD comparison.

Conclusion

GAIL’s H1 FY27 sector-wise gas supply fell to 95.53 MMSCMD because the 6.16 MMSCMD decline in overseas sales, 3.60 MMSCMD fall in fertiliser supply and 3.27 MMSCMD reduction in Others exceeded CGD’s 3.33 MMSCMD gain. RLNG’s share rose to 54% from 49%, despite RLNG volume declining to 51.33 MMSCMD.

The next disclosed event to watch was GAIL’s Q2 FY 2026-27 earnings conference call, scheduled for 30 October 2026 at 4:30 PM Indian Standard Time. The presentation provides the H1 mix figures but does not disclose a target or forecast for overseas sales, CGD supply or total gas supply beyond H1 FY27.