GAIL Shares Plunge Over 6% On Lower Than Expected PNGRB Transmission Tariff Revision

GAIL's share price saw a steep drop of over 6% in early trade on Friday, as the Petroleum and Natural Gas Regulatory Board has completed its review and approved GAIL’s integrated pipeline tariff.

Against GAIL’s claimed tariff of Rs 77.98 per mmbtu, PNGRB has set the tariff at Rs 65.69 per mmbtu.

Street expectations were in the range of Rs 67–70 per mmbtu, making the approved tariff slightly lower than anticipated.

PNGRB has not factored in any potential increase in capital expenditure at this stage. The revision only accounts for higher costs related to System Usage Gas.

Additionally, the order further stated that the truing up of more factors including the actual and future capex and operating expenditure, transmission loss, working days, revenue sharing adjustments, along with other amendments will be considered in the next tariff review exercise, which will be done in financial year 2028, and take effect from April 1, 2028.

The scrip fell as much as 6.30% to Rs 172.22 apiece, paring losses to trade 5.23% lower at Rs 174.18 apiece, as of 10:00 a.m. This compares to a 0.14% advance in the NSE Nifty 50 Index.

GAIL's share price has fallen 8.84% on a year-to-date basis, and 11.52% in the last 12 months. The relative strength index was at 59.65.

Out of 33 analysts tracking the company, 25 maintain a 'buy' rating, five recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 19.5%.