GAIL (India) Limited, a prominent player in the natural gas sector, made headlines on May 13 with its announcement of a final dividend for the fourth quarter of the 2024-25 financial year. The Maharatna public sector undertaking revealed a dividend of ₹1 per share, marking a 10% payout on its paid-up equity share capital. This decision is pending approval from shareholders at the upcoming Annual General Meeting.
GAIL’s Dividend Announcement
In its recent filing, GAIL stated, “The Board of the Company has recommended the payment of Final Dividend @10% (Re 1.00 per equity share) on the paid-up equity share capital of the Company.” The date for determining eligibility for this dividend will be shared later, as confirmed by the company.
Dividend Yield and History
According to data from Trendlyne, GAIL (India) boasts a dividend yield of 3.5% over the past year, having distributed a total of ₹6.50 in dividends during that time frame. Notably, since January 2003, the company has declared 45 dividends, showcasing its commitment to returning value to shareholders.
Financial Performance in Q4
When examining GAIL’s Q4 results, the company reported a consolidated net profit of ₹2,492 crore for the March 2025 quarter, reflecting a slight increase of 0.9% compared to ₹2,469 crore from the same quarter last year. However, on a quarterly basis, the profit saw a significant decline of 39% from ₹4,082 crore in the preceding quarter of FY25.
- Revenue Growth: Despite the profit stagnation, GAIL saw an 11.3% year-on-year increase in consolidated revenue, reaching ₹36,551 crore in Q4 FY25, up from ₹32,833 crore a year earlier. However, this figure dipped slightly from ₹36,937 crore recorded in the previous quarter.
Market Reaction
Following the release of these results, GAIL’s stock experienced a downturn, trading down by 2% to ₹184 per share around 3:25 PM. The stock hit a low of ₹183.20 and peaked at ₹189.50 during the trading session.
In summary, while GAIL continues to show resilience in revenue growth, its profit margins have faced challenges, leading to cautious investor sentiment. As the company navigates these fluctuations, the upcoming Annual General Meeting will be crucial for shareholders to discuss the future direction and dividend approvals.