GAIL (India) Limited (GAIL.NS) stock analysis

In our weekly check, GAIL (India) Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About GAIL (India) Limited

GAIL (India) Limited is an Utilities company (Regulated Gas) based in India, listed on NSE as GAIL.NS.

What our checks show for GAIL.NS

Red flags

• The net margin fell by 6.5 points over 5 years, to 6.7%: the company keeps less of each sale as profit.
• The gross margin fell by 8.4 points, to 15.4%: costs are rising faster than prices.
• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.4 years.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Analysts expect the net margin to shrink by 0.2 points from today's 6.7%.
• Revenue grew only 0.4% a year over the last 3 years.
• The net margin is only 6.7%: little room if costs rise.
• Free cash flow is only 1.7% of revenue.

Strengths

• Debt is low: 0x equity.
• Operating profit covers interest 10.4 times over.
• Earnings per share grew 20.8% a year over the last 3 years.
• Net profit grew 20.7% a year over the last 3 years.
• The dividend takes 8% of profit: there is a cushion.
• The price is 11.2 times earnings (P/E), reasonable for its growth.

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Questions

What grade does GAIL (India) Limited (GAIL.NS) have?

In our weekly check, GAIL (India) Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GAIL.NS stock?

This week's biggest flags for GAIL (India) Limited: Margins falling, Gross margin falling, Deep past fall. In total 9 of 25 checks show a warning or a red flag.

What does GAIL (India) Limited do?

GAIL (India) Limited is an Utilities company (Regulated Gas) based in India, listed on NSE as GAIL.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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