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GAIL (India) Limited (GAIL) Fair Value & Analysis

Utilities · IN · Market cap ₹1.1T (≈ $12.1B) · ISIN INE129A01019

What is GAIL (India) Limited really worth?

GI GAIL (India) Limited GAIL · NSE
Price₹173.40
Fair Value₹130.21
Upside−24.9%
Quality51/100

A solid business, but trading 33% above our fair value of ₹130.21.

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Strengths

Low debt · generates free cash flow
Ranks above peers (9/14)

Risks

!Mixed Growth (revenue 5y +19.8 %/yr)
!Thin margins · 5.4% net margin
!Narrow moat 38/100

For context

·3.17% dividend yield
Evidence: High Range ₹111.25 – ₹222.96

Fair value as of: Aug 29, 2026

From 26 valuation models · updated 6 days ago

Share price −2.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹111.25 to ₹222.96) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹223.88 ₹67.78 Fair Value ₹130.21 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range ₹67.78 – ₹223.88 · fair‑value band ₹111.25 – ₹222.96 · the ₹173.40 price screens above the ₹130.21 fair value. Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

GAIL (India) Limited (GAIL) currently trades at ₹173.40, while our model-based Fair Value estimate is ₹130.21, implying the stock looks roughly 33.2% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of ₹184.06 per share, and 6 of the 26 models we run sit above the ₹173.40 price. Bear case: the Growth DCF group reads lowest at ₹65.37, and 20 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, GAIL (India) Limited generated revenue of ₹1.4T at a net margin of 5.4%. Revenue declined 2.4% year over year. It earns a return on equity of 8.7%. Net debt stands at ₹239B. Fundamentals as of Aug 29, 2026

Our scenario range runs from ₹111.25 (bear case) to ₹222.96 (bull case); at ₹173.40, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at −20% fair-value upside, at −25%, GAIL screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹2.59 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹116.69 ₹127.11 ₹166.99 76
FCF DCF ₹29.25 ₹66.52 ₹131.65 75
EPV ₹64.86 ₹79.70 ₹92.90 74
All 26 models by family
DCF Models
FCF DCF ₹29.25 ₹66.52 ₹131.65 75
Owner Earnings ₹32.60 ₹72.45 ₹142.09 72
5Y Revenue Exit ₹67.21 ₹140.79 ₹240.57 70
5Y EBITDA Exit ₹78.14 ₹162.63 ₹267.52 72
5Y P/E Exit ₹93.38 ₹193.11 ₹305.37 69
10Y Revenue Exit ₹50.64 ₹117.10 ₹217.99 63
10Y EBITDA Exit ₹61.62 ₹133.19 ₹240.40 65
10Y P/E Exit ₹71.83 ₹155.64 ₹271.87 61
Earnings-Based
Graham-Dodd ₹78.42 ₹324.52 ₹442.26 64
Lynch FV ₹81.86 ₹116.94 ₹152.02 61
PEG = 1.0 ₹81.86 ₹116.94 ₹152.02 57
EPV ₹64.86 ₹79.70 ₹92.90 74
Dividend Discount
Gordon GGM ₹57.71 ₹125.98 ₹211.97 65
DDM Multi-Stage ₹57.71 ₹103.20 ₹131.29 66
Multiples
P/E Multiple ₹155.68 ₹207.58 ₹259.47 63
P/S Multiple ₹147.03 ₹196.05 ₹245.06 58
P/B Multiple ₹147.03 ₹196.05 ₹245.06 55
EV/EBIT ₹112.05 ₹155.83 ₹199.60 66
EV/EBITDA ₹112.02 ₹155.79 ₹199.55 67
EV/Revenue ₹86.96 ₹132.48 ₹178.00 53
Asset-Based
NCAV (Graham) ₹67.72 ₹90.74 ₹135.44 54
Growth DCF
Growth DCF ₹29.45 ₹65.37 ₹128.27 73
Rev-Margin DCF ₹67.21 ₹138.25 ₹226.48 70
Economic Profit
Residual Income ₹116.69 ₹127.11 ₹166.99 76
ROIC Compounder ₹64.86 ₹79.70 ₹92.90 72
Growth Earnings
Growth-Adj P/E ₹128.84 ₹184.06 ₹239.28 67

Widest divergence: Growth Earnings (₹184.06) versus Growth DCF (₹65.37). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 15.0
P/S ratio 0.81 P/E × margin
EPS (TTM) ₹11.53 price ÷ EPS = P/E 15.0
Dividend yield 3.2% payout 47.7%
Net margin 5.4% FY2026
Return on equity 8.7% TTM
More key figures
Profitability
Return on assets (EBIT) 14.9% avg 5y
Operating margin 2.8% TTM
Growth
Revenue (TTM) ₹1.4T TTM
Revenue growth (YoY) −2.4% 3y avg −0.9%
EPS growth (YoY) −40.3%
Balance sheet & cash flow
Free cash flow ₹24.4B FY2026
Net debt ₹239B FY2026 · ≈ 9.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 52 · Market factors (momentum, volatility) 62

Profitability 44
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. It operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments.

Full company description

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. It operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. The company is involved in the transmission and marketing of natural gas through pipelines to the power, fertilizer, industrial, automotive, petrochemical, domestic, and commercial sectors; exploration and production activities; and marketing of compressed biogas, city gas, and biofuels. It also produces and markets liquefied petroleum gas (LPG), propane, pentane, naphtha, mixed fuel oil, ethylene, propylene, and polypropylene; and manufactures petrochemicals, such as high-density and linear low-density polyethylene under the G-Lex and G-Lene brands. In addition, the company generates wind and solar power. GAIL (India) Limited was incorporated in 1984 and is based in New Delhi, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

GAIL (India) Limited reported revenue of ₹1.4T in FY2026 versus ₹928B in FY2022, a compound +11.2%/yr. Reported net income was ₹75.8B in FY2026, compounding −11.3%/yr from FY2022.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹1.4T
Latest YoY
−0.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+19.8%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.3%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−0.5% (−3.7 + 3.2)
Revenue +11.2%/yr
FY22 ₹928B
FY23 ₹1.5T
FY24 ₹1.3T
FY25 ₹1.4T
FY26 ₹1.4T
Net income −11.3%/yr
FY22 ₹123B
FY23 ₹56.2B
FY24 ₹99.0B
FY25 ₹124B
FY26 ₹75.8B
Character of growth · EPS growth decomposed (2015-2026) +15.5 % p.a.
Revenue per share +11.5 %

of which total revenue +11.1 % · buybacks/dilution +0.3 %

EBIT margin −4.5 %
Tax rate +1.9 %
Residual (interest, one-offs) +6.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

GAIL screens 33% overvalued. Compare with Naturgy Energy Group →

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Cite: Fair Value Calculator (2026). "GAIL (India) Limited Fair Value". https://www.fairvalue-calculator.com/stock/GAIL

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Regulated Gas · 105 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Above median
Fair Value upside −25% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 3% · Bottom 25%
Revenue growth −2% · Above median
Dividend yield (TTM) 3.2% · Below median
Debt / equity 0.15× · Lower than median

Valuation Multiples vs Utilities - Regulated Gas median · lower = cheaper

P/E (TTM) 15.0× · Cheaper than median
P/B 1.28× · Cheaper than median
P/S (TTM) 0.80× · Cheaper than median
P/FCF 0.5× · Cheaper than median
EV/EBITDA 11.0× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 27
FUTURE0 · sector 0
PAST35 · sector 35
HEALTH92 · sector 87
DIVIDEND63 · sector 71

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Regulated Gas stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Naturgy Energy Group NTGY €29.60 €31.58 +7%
Atmos Energy Corporation ATO $166.65 $85.67 −49%
NiSource Inc NI $40.96 $28.59 −30%
Uniper SE UN0 €47.45 €48.32 +2%
The Hong Kong and China Gas Company 0003 HK$7.31 HK$4.79 −34%
Italgas S.p.A IG €8.67 €8.63 −1%
Adani Total Gas Limited ATGL ₹654.05 ₹101.36 −85%
ENN Natural Gas Co 600803 ¥17.51 ¥25.71 +47%
UGI Corporation UGI $38.01 $26.72 −30%
Southwest Gas Holdings SWX $88.69 $70.67 −20%

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Frequently asked questions

Is GAIL (India) Limited (GAIL) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of ₹130.21 versus a price of ₹173.40, about −25% upside (overvalued).
What is the fair value of GAIL?
Our model-based fair value for GAIL (India) Limited is ₹130.21 (as of Aug 29, 2026), built from audited fundamentals. The current price: ₹173.40.
What is the quality score of GAIL?
GAIL (India) Limited has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of GAIL (India) Limited (GAIL)?
GAIL (India) Limited reported trailing-twelve-month revenue of about ₹1.4T (latest available figure, as of Aug 29, 2026).
What is the net profit margin of GAIL?
The net profit margin of GAIL (India) Limited is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.
Does GAIL (India) Limited pay a dividend?
GAIL (India) Limited currently shows a dividend yield of about 3.17% relative to its recent price (as of Aug 29, 2026).
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