GAIL operating cash rises as receivables reach Rs 14,305.90 crore

GAIL (India) Limited generated Rs 10,602.50 crore in operating cash during the half year ended 30 September 2026, up from Rs 5,869.22 crore a year earlier. Consolidated trade receivables rose Rs 5,700.79 crore from 31 March 2026 to Rs 14,305.90 crore, while inventories increased Rs 2,333.26 crore.

Why did GAIL’s operating cash flow rise in the half year ended 30 September 2026?

GAIL’s operating cash flow rose because cash generated from operations increased to Rs 11,822.16 crore in the half year ended 30 September 2026, from Rs 7,012.13 crore in the comparable 2025 period. Direct taxes paid were Rs 1,219.66 crore, compared with Rs 1,142.91 crore a year earlier, leaving net operating cash flow of Rs 10,602.50 crore. Profit before tax increased to Rs 12,367.85 crore from Rs 5,594.24 crore.

GAIL’s operating profit before working-capital changes was Rs 14,443.97 crore, compared with Rs 6,478.53 crore in the prior-year half. The cash-flow statement, prepared under Indian Accounting Standard 7 using the indirect method, includes Rs 1,999.22 crore of depreciation and amortisation and Rs 642.07 crore of finance cost among its adjustments. Working-capital changes reduced this cash measure by Rs 2,621.81 crore, rather than adding Rs 533.60 crore a year earlier.

How did receivables and inventory affect GAIL’s cash generation?

Receivables and inventories were the principal working-capital cash outflows for GAIL in the six months to 30 September 2026. Trade and other receivables used Rs 6,029.30 crore of cash, while inventories used Rs 2,333.26 crore. These outflows were partly offset by a Rs 5,740.75 crore cash increase from trade and other payables, producing the overall Rs 2,621.81 crore working-capital outflow.

The comparable period moved in the opposite direction for two major lines. Trade and other receivables provided Rs 575.68 crore of cash in the half year ended 30 September 2025, while inventories provided Rs 510.51 crore; both became outflows in 2026. Trade and other payables used Rs 552.59 crore in the 2025 period but added Rs 5,740.75 crore in 2026, changing the overall working-capital contribution from an inflow of Rs 533.60 crore to an outflow of Rs 2,621.81 crore.

How did GAIL’s current assets and liabilities change by September 2026?

GAIL’s balance-sheet trade receivables stood at Rs 14,305.90 crore on 30 September 2026, against Rs 8,605.11 crore at 31 March 2026. Inventories increased to Rs 7,488.19 crore from Rs 5,154.93 crore over the same period. Together, those two balances rose Rs 8,033.05 crore, while total current assets increased to Rs 28,864.24 crore from Rs 19,761.71 crore.

Several current liability lines also increased at 30 September 2026. Dues to suppliers other than micro and small enterprises were Rs 9,207.21 crore, up from Rs 5,833.51 crore at 31 March 2026, while dues to micro and small enterprises increased to Rs 444.80 crore from Rs 270.67 crore. Current borrowings declined to Rs 2,797.29 crore from Rs 6,335.74 crore, while current contract liabilities increased to Rs 1,814.83 crore from Rs 697.10 crore.

GAIL recorded a Rs 37.88 crore provision for doubtful debts in the half-year cash-flow reconciliation. The financial statements provide the Rs 14,305.90 crore trade receivables balance at 30 September 2026 but do not provide an ageing breakdown of that balance. Cash and cash equivalents rose to Rs 1,074.18 crore from Rs 959.23 crore at 31 March 2026 despite the working-capital outflow.

How did GAIL use cash for investment and financing activities?

GAIL used Rs 4,114.00 crore in investing activities in the half year ended 30 September 2026, lower than the Rs 5,912.74 crore outflow in the year-earlier period. Purchases of fixed assets and capital work-in-progress were Rs 3,689.66 crore, compared with Rs 4,038.01 crore a year earlier. Mutual-fund purchases were Rs 4,683.00 crore and sales were Rs 4,099.36 crore, resulting in a net Rs 583.64 crore outflow from those transactions.

GAIL recorded Rs 6,143.14 crore of net financing cash outflow, compared with Rs 736.66 crore in the prior-year half. It repaid Rs 4,581.72 crore of borrowings and raised Rs 113.13 crore, resulting in a Rs 4,468.59 crore cash reduction in borrowings. Borrowings in the financing-liability reconciliation were Rs 15,495.62 crore at 30 September 2026, down from Rs 19,964.21 crore at the beginning of the half year.

Lease liabilities increased to Rs 8,696.12 crore at 30 September 2026 from Rs 4,867.28 crore at the start of the period. The reconciliation includes Rs 4,272.69 crore of non-cash acquisitions under right-of-use assets and Rs 584.06 crore of lease-liability cash flows. GAIL’s net increase in cash and cash equivalents was Rs 345.36 crore, before a Rs 230.41 crore adverse effect from exchange-rate variances.

Conclusion

GAIL’s first-half cash flow combined higher operating profit with Rs 10,602.50 crore of net cash from operations despite a Rs 2,621.81 crore working-capital outflow. The increase in trade receivables to Rs 14,305.90 crore and inventory to Rs 7,488.19 crore coincided with higher supplier-related liabilities, while investment spending and borrowings repayment absorbed cash outside operations.

The next disclosures will show the effect of GAIL’s stated mitigation measures for disrupted liquefied natural gas supplies from the Middle East, including spot-market and alternative-source procurement. Petronet LNG Limited’s force majeure reduced GAIL’s contracted regasified liquefied natural gas allocation to zero from 4 March 2026, although about 190 million metric standard cubic metres were supplied during the half year ended 30 September 2026. GAIL also has pending tariff appeals before the Appellate Tribunal for Electricity, for which any adjustment will be recognised only after final decisions.