GAIL Q1 Results: Should you buy/sell/hold largecap Maharatna stock after earnings?

GAIL Net Profit: Rs 1,886.34 crore (Down 30% YoY)
Petrochemical Losses: Widened to Rs 249 crore from Rs 42 crore
Gas Marketing Earnings: Declined to Rs 1,071.6 crore (nearly halved YoY)
Operating Revenue: Rose to Rs 34,792 crore from Rs 33,962 crore

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GAIL (India), the country's leading natural gas distributor, on Monday (July 28) reported a weak set of earnings for the first quarter of the financial year 2025-26. The Maharatna PSU firm's net profit declined by 30 per cent YoY, falling to Rs 1,886 crore in the quarter. The dip was largely due to widening losses in its petrochemical segment and lower margins in gas marketing.

What should investors do with GAIL stock?

Here is how global brokerages have reacted to GAIL’s Q1 performance:

Macquarie has maintained an 'outperform' rating with a target price of Rs 215. The brokerage stated that while Q1 was muted and petrochemical losses dragged earnings, there are expectations of improvement in gas transmission volumes going forward. The brokerage has expected that gas marketing margins to normalise and petrochemical losses will reduce.

JPMorgan has retained a 'neutral' stance with a target price of Rs 186.

Jefferies has maintained a 'buy' recommendation on the PSU stock, with a target price of Rs 210, indicating long-term confidence in the company’s fundamentals despite short-term setbacks.