energy

GAIL India

GAIL · Nifty 50

175.03

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionenergy sector. Flow: outflow. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score85/100 (STRONG). 2 positive flags, 4 concerns.
Historical Context162 similar technical setups. Average outcome: -8.8% decline. 0% positive.

Fundamental

85/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

GAIL India scores 85/100 on fundamentals (strong). GAIL India: BROAD EXPANSION regime.

Fundamental Score: 85/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 9.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE9.1%=
5.7%Net Margin
×
1.0xTurnover
×
1.6xLeverage

ROE of 9.11% is modest efficiency-driven and stable. Net margin of 5.7% × asset turnover of 1.01x × leverage of 1.6x.

What This Means

Net margin of 5.7% means the company keeps ₹5.7 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 1.01x means the company efficiently uses its assets to generate revenue. Leverage of 1.6x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

16.8%

Operating

7.9%

Net

5.7%

declining

Gross margin 16.8% → operating margin 7.9% → net margin 5.7%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

ADEQUATE

Cash flow covers net income 1.4x — earnings are ADEQUATE quality. Cash conversion is reasonable.

Debt Sustainability

COMFORTABLE

Interest covered 12.5x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.7x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin at 1.7% — barely positive. Limited cash after capex.

Peer Comparison

GAIL India is compared against 10 peers in the energy sector.

Key Watchpoints

🟢

Breaks above ₹184 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹166 (-5%)

Further downside risk

🟢

Energy sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
➡️ Leverage Slowly Rising: Debt growing faster (15.0%) than equity (4.8%)

Risk Flags

🔴 2 Critical⚠️ 2 Warning2 Positive6 total flags
🔴Cash covers only 4% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Overall governance risk: 10/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

⚠️Audit risk elevated: 10/10
Governance

Potential accounting concerns. Cross-check with earnings quality flags.

⚠️Board risk elevated: 10/10
Governance

Governance structure concerns. Independent director representation may be weak.

High promoter holding: 64%
Governance

Strong insider alignment. Promoters have significant skin in the game.

Price/Sales: 0.8x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
14.8UNAVAILABLE
P/B Ratio
1.3HIGH
Market Cap
₹11210510.8L CrHIGH
From 52W High
90% of high
Sector Peers
10