GAIL Settles Arbitration with SEFE Marketing for $285 Million

On January 15, 2025, state-owned gas utility GAIL (India) Ltd announced the resolution of a long-standing arbitration dispute with SEFE Marketing & Trading Singapore Pte Ltd. As part of the settlement, SEFE Marketing will pay $285 million to GAIL (India), effectively bringing the dispute to an end. The agreement also includes the withdrawal of ongoing arbitration proceedings before the London Court of International Arbitration.

In a regulatory filing, GAIL (India) confirmed the terms of the settlement, which include the $285 million payment and the cessation of legal proceedings in the international arbitration court. This marks a significant development in the legal dispute between the two entities.

Stock Performance 

On January 16, 2025, GAIL India share price traded up by 1.43% at 10:05 AM (IST) at ₹180.55, while the BSE benchmark Sensex gained 229.59 points to 76,953.67.  GAIL India’s share price reached a 52-week high of ₹246.35 on July 31, 2024, and a 52-week low of ₹155.85 on January 23, 2024.  As per BSE, the total traded volume for the stock stood at 1.04 lakh shares with a turnover of ₹1.87 crore.

At the current price, GAIL India shares are trading at a price-to-earnings (P/E) ratio of 11.40x, based on its trailing 12-month earnings per share (EPS) of ₹15.84, and a price-to-book (P/B) ratio of 1.68, according to exchange data. 

Q2 FY25 Performance

GAIL (India) reported an increase in its net profit for the second quarter of FY24, posting a profit of ₹2,672 crore. This is an improvement from ₹2,442.18 crore in the same quarter of the previous fiscal year. The rise in profit reflects strong operational performance and financial management.

Revenue and EBITDA Performance

The company’s revenue from operations surged to ₹32,912 crore during the second quarter, reflecting a positive financial trajectory. Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a significant rise, reaching ₹3,744 crore. This marked an increase from the previous fiscal year, with the EBITDA margin improving slightly to 11.37%, up from 10.97% in the same period in the previous year.

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