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GAIL Sets 132 Million Cubic Metres Per Day Target for FY26; Becomes First Maharatna to Adopt SAP S/4HANA

Written by: Nikitha DeviUpdated on: 27 Jun 2025, 4:42 pm IST
GAIL targets 132 mcmpd gas transmission in FY26 and completes SAP S/4HANA migration, becoming the first Maharatna PSU to do so.
GAIL Sets 132 Million Cubic Metres Per Day Target for FY26; Becomes First Maharatna to Adopt SAP S/4HANA
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GAIL (India) Ltd has set a transmission volume target of 132 million cubic metres per day (mcmpd) for FY26, with expectations to increase it to 135–137 mcmpd in the following year.

Sanjay Kumar, Director (Marketing), told NDTV Profit that the recent dip in power demand and delays in connectivity on the eastern front impacted volumes. Some fertiliser plants have also shut down or scaled back operations, further affecting gas usage. However, Kumar remains confident that power demand will recover with rising temperatures, and GAIL is already activating several new pipeline segments to support this expected surge.

GAIL Sets Ambitious Transmission Targets

Addressing global energy market concerns, Kumar noted that tensions in the Middle East, particularly fears of a blockage at the Strait of Hormuz, had temporarily driven up crude and LNG prices. Brent crude rose to around $80, while LNG prices tracked by the JKM marker surged to over $14.

However, with the geopolitical situation easing, prices are stabilising, Brent crude has dropped below $70, and LNG prices are softening to $12.50–$17. Kumar sees this as a favorable trend for India’s gas sector, expecting global LNG capacity to expand by 20% over the next two years. He predicts a new price normal of sub-$10 for LNG and $60–$70 for Brent crude, potentially aiding demand growth in India.

First Maharatna PSU to Go Live with SAP S/4HANA

In another development, GAIL (India) has officially gone live with SAP S/4HANA, marking a significant step in its digital transformation journey. The formal launch took place on June 25, 2025, and was inaugurated by Shri Sandeep Kumar Gupta, Chairman & Managing Director of GAIL. 

The event was attended by several top executives, including Directors of Finance, Projects, HR, Marketing, and Business Development, alongside the President & Managing Director of SAP India, Shri Manish Prasad, and other senior officials from both GAIL and SAP.

The implementation initiative, aptly named “Navodaya”, has made GAIL the first Maharatna PSU to successfully complete the full-scale migration to SAP S/4HANA Cloud. This transition involved replacing the company’s legacy ECC system with a next-generation, cloud-enabled intelligent ERP system, completed within a tight timeline of just one year.

GAIL Share Price Performance

On June 26, 2025, GAIL share price opened at ₹184.62 and closed at ₹186.99, up by 1.64%. The stock price touched its day’s high at ₹187.20.

Also ReadBest PSU Stocks in July 2025

Conclusion

With strategic volume targets and a successful digital upgrade, GAIL is positioning itself for stronger operational efficiency. These moves signal robust future growth.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 27, 2025, 8:33 AM IST

Nikitha Devi

Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.

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