GAIL (India) Limited, a Maharatna public sector enterprise, saw its shares drop by 6.5% in early trading on Friday, November 28, after the Petroleum and Natural Gas Regulatory Board (PNGRB) sanctioned a tariff increase that fell short of both market forecasts and the company’s request, impacting investor confidence.
Following months of postponement, PNGRB has declared a 12% increase in tariffs for GAIL’s integrated natural gas pipeline (INGPL), effective January 2026. This rise falls short of the anticipated 15% and is significantly lower than the 33% hike GAIL had requested.
PNGRB has stated that to prevent abrupt tariff increases, it will grant GAIL only temporary relief at present, with all other parameter adjustments to be fully incorporated during the next tariff review in FY28.
According to UBS, the recent tariff increase is based solely on two factors: a ₹5.16/mmbtu rise due to higher system-use gas (SUG) costs, and a ₹1.92/mmbtu rise resulting from a reduced volume divisor under the latest capacity assessment.
The brokerage also pointed out that the 12% increase does not necessarily translate to an equivalent rise in actual tariffs, which may end up being lower.
GAIL stock value
GAIL India's shares dropped to ₹171.80 on the BSE today, marking a 6.5% decline from the previous close of ₹183.80. Despite the fall, global brokerage firms UBS and Citi have reiterated their 'Buy' recommendations for the PSU stock, setting a target price of ₹215.
GAIL's stock has shown subdued performance over the past year, remaining in negative territory across various time periods. The share price has declined by 11% in the past six months, 9.5% so far in 2025, and 12% over the last year. However, BSE data indicates that the stock has surged 153% over the past five years.
According to Osho Krishan, Senior Analyst for Technical and Derivatives at Angel One Ltd., the stock has dropped beneath its 200-day simple moving average, indicating increased susceptibility to the latest market changes.
He noted that the intermediate support lies between 170 and 167, which could offer limited stability. However, a continued decline might threaten the chart’s overall structure. On the higher side, resistance is observed between 175 and 179, with a downward gap stretching toward the 183 area. The short-term outlook remains pessimistic, and the expert recommended proceeding with caution.
As of 3:30 PM, GAIL shares were trading 4.09 % lower at ₹176.28 apiece.
Disclaimer: This article is intended solely for educational purposes. The opinions and suggestions presented reflect the perspectives of individual analysts or brokerage firms and do not represent The Bridge Chronicle. Investors are encouraged to seek guidance from certified professionals before making any investment choices, as market conditions can shift quickly and individual situations may differ.
