GAIL India Stock Rebounds Amid Supply Disruptions

GAIL India, a Maharatna PSU stock, rebounded on Thursday, March 5, snapping its four-day losing streak. Despite supply disruptions from one of its long-term suppliers, Petronet LNG, the company's stock price gained as much as 1.87% to hit the day's high of ₹157.60.

Supply Disruptions

Petronet LNG has issued a Force Majeure notice on March 3, 2026, under its Gas Sale and Purchase Agreement due to escalating tensions in the Middle East. This has affected the Strait of Hormuz and shut down Qatar's Ras Laffan facility. Additionally, QatarEnergy, PLL's upstream LNG supplier, has indicated a potential Force Majeure event due to recent hostilities in the region.

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Impact on LNG Supplies

India imported 27 million metric tons of LNG in 2024/25, accounting for about half of its overall gas consumption. The bulk of the LNG comes from Qatar. Due to supply restrictions imposed by PLL, the allocation of LNG quantities to GAIL under the said contract has been reduced to zero with effect from March 4, 2026.

Assessment and Impact

GAIL is currently assessing the situation with respect to any supply curtailment that may need to be imposed on its downstream customers. The potential impact of the ongoing Force Majeure situation cannot be quantified at this stage.

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Share Price Trend

GAIL shares have slumped 8.65% on a year-to-date (YTD) basis, while they remain in the red in the last one year, shedding 1.3%. On a longer time frame of three and five years, the Maharatna PSU stock has delivered 49% and 60% gains, respectively.