Prabhudas Lilladher Recommends 'BUY' on GAIL India, Sets Target Price at Rs 190

• Prabhudas Lilladher reiterates a 'BUY' rating for GAIL India, citing intact volume guidance for FY27E and an attractive risk-reward profile after recent price correction.
• GAIL's Q4FY24 saw transmission volume at 125.5 mmscmd, up 1.5% QoQ, while trading volume was 104 mmscmd, down 1.4% QoQ.
• EBITDA declined 16.8% QoQ and 6.4% YoY to Rs 26.6 billion, mainly due to poor trading segment performance and petrochemical losses.
• PAT fell 27.7% QoQ and 58.6% YoY to Rs 16.0 billion, impacted by the absence of a one-off arbitration settlement income from Q3FY25.
• GAIL maintains FY27 transmission volume guidance of 134-135 mmscmd and expects approximately 5% growth in trading volume, with PNGRB tariff revision projected to add Rs 12 billion annually in transmission revenue.