Your Directors take pleasure in presenting the Board's Report of your 'Maharatna' Company along with the Audited Standalone and Consolidated Financial Statements for the Financial Year 2025-26. Your Company has completed yet another successful year and recorded overall growth in operations and sales in Rupee terms.

FINANCIAL PERFORMANCE

i. Financial highlights on Standalone Basis for FY 2025-26

Note(s): The following exchange rates have been used in calculations:

a) For FY 2025-26: Average rate 1 US$ = '90.15 & Closing rate 1 US$ = ' 94.81 (for book value per share only)

b) For FY 2024-25: Average rate 1 US$ = '84.45 & Closing rate 1 US$ = ' 85.48 (for book value per share only)

ii. Financial Highlights on a Consolidated Basis for FY 2025-26

In accordance with the provisions of the Companies Act, 2013 ("the Act"), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR") and applicable Accounting Standards, the Audited Consolidated Financial Statements of the Company for FY 2025-26, together with the Auditors' Report form part of this Annual Report. Key Highlights are as follows:

Note(s): The following exchange rates have been used in calculations:

a) For FY 2025-26: Average rate 1 US$ = '90.15

b) For FY 2024-25: Average rate 1 US$ = '84.45

BUSINESS OVERVIEW

Pipeline Transmission

i. Natural Gas Transmission

Your Company has expanded the network of Natural Gas pipelines to ~18,700 km across the length and breadth of our Country. The average gas transmission through this network during FY 2025-26 was 122.18 MMSCMD as against 127.32 MMSCMD in the previous financial year. Revenue from operations from the Natural Gas Transmission segment in FY 2025-26 increased to '1 1,206 crore compared to '11,068 crore in FY 2024-25, mainly due to upward revision in Natural Gas transmission tariff. Your Company's share in the Country's Natural Gas Transmission is ~65%.

PNGRB revised the tariff for the integrated network of your Company from '58.61 MMBTU to '65.69 MMBTU, w.e.f. 01.01.2026.

ii. Liquified Petroleum Gas (LPG) Transmission

Your Company owns and operates 2,040 km of LPG pipeline network, consisting mainly of 1,427 km Jamnagar-Loni Pipeline (JLPL) which connects the western and northern parts of India and 610 km Vizag-Secunderabad Pipeline (VSPL), which is in the southern part of the Country connecting the Eastern Coast.

JLPL and VSPL networks together recorded their highest-ever throughput of 4.60 MMTPA during the FY 2025-26, compared to 4.478 MMTPA in FY 2024-25. Revenue from operations from LPG transmission in FY 2025-26 increased to '916 crore compared to '835 crore in FY 2024-25, an increase of 9.7% YoY.

JLPL achieved its best ever annual LPG transportation of 3.26 MMT in FY 2025-26, surpassing the last best of 3.23 MMT. VSPL achieved its best ever Annual LPG transportation of 1.334 MMT in FY 2025-26, surpassing the last best of 1.323 MMT.

iii. Natural Gas Marketing

Natural Gas (NG) trading continues to be one of your Company's core businesses. During FY 2025-26, your Company achieved sales of 104.21 MMSCMD (including subsidiaries' 113.41 MMSCMD) compared to 101.49 MMSCMD (including subsidiaries' 111.11 MMSCMD) during FY 2024-25. Revenue from operations from Natural Gas Marketing in FY 2025-26 was '1,24,244 crore compared to '1,20,412 crore in FY 2024-25. GAIL's share in the Country's Domestic Gas Market is ~48%.

Sector-wise details of Natural Gas marketing are as below:

Fertilizer Sector: Your Company supplied around two-third of the gas consumed in the Fertilizer sector in the Country during FY 2025-26. Your Company has been supplying gas to 31 out of the 36 Urea manufacturing units in the Country and thereby enabling the production of indigenous urea in India.

Power Sector: Your Company supplied ~45% of the gas consumed by gas-based power plants in the Country during FY 2025-26. Over the past few years, your Company has successfully collaborated with various power producers to operationalize their stranded units. Your Company has also been successful in ensuring sufficient supply of natural gas, including short notice requirements to Power sector customers to meet the demand during crunch periods.

With an LNG portfolio of ~16.5 MMTPA from the USA, Qatar, Australia etc., your Company has emerged as one of the leading global LNG players and is actively involved in the LNG trading business in the international market.

During the financial year, your Company enhanced its domestic gas procurement through a diversified sourcing approach. While your Company procured its highest ever volume of ~334 MMSCM through the IGX platform, it also secured ~410 MMSCM by winning bids across various tenders by upstream suppliers. Additionally, your Company sourced ~33 MMSCM through bilateral agreements. Going forward, your Company continues to refine its procurement approach to ensure better availability of domestic gas at competitive prices for its downstream customers.

iv. Petrochemicals

Your Company made its entry into the Polypropylene segment by commissioning a 60 KTA Polypropylene plant at Pata on 4^th February, 2026. Your Company has launched this Polypropylene under the brand name 'G Pro'.

With this addition, the total polymer production capacity at Pata Petrochemicals has increased to 870 KTA (810 KTA Polyethylene and 60 KTA Polypropylene).

During FY 2025-26, Pata Petrochemicals produced a total of ~768 KTA of polymers. Until February 2026, the plant operated at its rated capacity. However, in March 2026, a shutdown was implemented as per directives issued by the Government of India through its Gazette Notification, due to a gas crisis triggered by the geopolitical situation in the Middle East.

Polymer sales for FY 2025-26 stood at ~785 KTA, while revenue from operations in this segment was ' 7,574 crore. Your Company has a nameplate polymer production capacity of 870 KTA at the Pata complex. Your Company's subsidiary, Brahmaputra Cracker & Polymer Limited (BCPL), having equity of 70%, has a capacity of 280 KTA. The marketing rights of the BCPL polymer products are with your Company, taking the total marketing portfolio to 1150 KTA.

In FY 2025-26, your Company's share in the Country's total Petrochemical production stood at ~13% and share in total Petrochemical sales at ~10.5 %. Market share in Petrochemical sales including BCPL is ~13.6%.

Your Company will be producing Polypropylene ('PP') products at its upcoming PP Plant at Usar. PP Produced by your Company will also be marketed under the brand name 'G-Pro'. Your Company is going to diversify its product range in the Polyester value chain through production of Purified Terephthalic Acid (PTA) at its wholly owned subsidiary, GAIL Mangalore Petrochemicals Limited (GMPL). Your Company's strategic initiative to revive the PTA plant at Mangalore is nearing completion, marking an important step in strengthening downstream petrochemical integration, unlocking value from existing assets and supporting India's growing demand for energy-linked petrochemical products. During the year, all utility plants were commissioned and key raw materials and utilities were secured to support sustained operations. With commissioning of the main process plant progressing well, commercial production is expected to commence very soon. This revival reflects our commitment to operational excellence, asset revitalisation and building a stronger, future-ready petrochemicals portfolio aligned with the nation's growth aspirations.

v. Liquified Petroleum Gas (LPG) and Other Liquid Hydrocarbon (LHC)

Your Company has four Gas Processing Units (GPUs) at three locations in the Country, to extract higher fractions from natural gas, having a total LPG & LHC production capacity of 1,343 KTA. During FY 2025-26, total production from GPUs was 813 TMT compared to 947 TMT in FY 2024-25 and sales including internal consumption were 815 TMT in FY 2025-26 compared to total sales including internal consumption of 951 TMT in FY 2024-25. Revenue from Operations in FY 2025-26 was '4,293 crore compared to '5,180 crore in FY 2024-25. The decrease in production was due to reduction in domestic gas allocation by the Government of India to meet the growing demand of the CGD Sector.

Your Company has a share of about 10% of LPG production and 7% of LPG sales in India.

vi. Exploration and Production (E&P)

Considering the prevailing scenarios within the oil and gas sector, your Company has demonstrated resilience in upstream activities by maintaining cautious investments. Additionally, your Company will continue to assess potential exploration opportunities and maintain active participation in forthcoming domestic and overseas bid rounds.

Your Company has Participating Interest (P.I.) in 10 E&P blocks of which 8 are in India, 2 in Myanmar and 1 Shale Gas acreage in Eagle Ford Basin, Texas, USA [through wholly-owned subsidiary - GAIL Global (USA) Inc.]. These blocks hold an average of 2,668 KM² as per P.I. in various consortiums. Out of these, your Company is the Operator in three onland blocks viz. (i) CB-ONN-2010/11 and CB-ONHP-2017/12 in Cambay basin awarded during NELP-IX and OALP-I bidding rounds respectively and (ii) RJ-ONHP-2021/1 in Barmer-Sanchor Basin of Rajasthan awarded during OALP-VII bid round.

Revenue from the sale of hydrocarbons is being generated from 5 producing blocks namely A-1 & A-3 in Myanmar (Operator-Posco International), CB-ONN-2000/1 (Operator-GSPC), CB-ONN-2003/2 (Operator-GSPC) & CB-ONN-2010/11

(Operator-GAIL) in India in addition to production from shale gas acreage in Eagle Ford, USA (Operator-Texas American Resources II, LLC for 2,059 acres & Crescent Energy Company for 811 acres). Revenue from Operations of '1,157 crore has been generated from E&P activities during FY 2025-26 compared to ' 1,102 crore in FY 2024-25.

vii. City Gas Distribution (CGD)

CGD entities within GAIL group are operating across Pan India Geographical Areas (GAs). In the latest CGD round conducted by PNGRB, GAIL's group Company, Tripura Natural Gas Company Limited (TNGCL) secured 2 GAs - Mizoram State and Manipur State, marking a significant milestone in extending your Company's reach to the northeastern part of the nation. Presently, your Company along with its group companies is authorized to develop CGD networks in 72 GAs across the Country out of the total 307 GAs. Major GAs where your Company and its group companies are operating include Varanasi, Cuttack, Bhubaneshwar, Patna, Ranchi, Jamshedpur, Delhi, Mumbai, Pune, Bengaluru, Hyderabad, Lucknow, Kanpur, Agra, Dehradun, Vadodara, Indore, Kota, Gwalior, Mangaluru, Kolkata, Guwahati, North Goa etc. This year, your Company along with its group Companies have added 11.27 lakh domestic PNG connections and 506 CNG stations summing up to ~109 lakh domestic PNG customers and 3,400 CNG stations across the Country.

GAIL Gas Limited (a wholly-owned subsidiary of your Company) is executing and operating CGD projects in 16 GAs. Currently, GAIL Gas Limited has 6 Joint Venture Companies (JVCs) and these JVs are implementing CGD projects in 9 GAs. GAIL Gas Limited along with its JVCs has cumulatively connected 11.06 lakh households and is catering to clean fuel requirements for vehicles through 650 CNG stations. During FY 2025-26, GAIL Gas had turnover of ' 12,681 crore as against ' 12,229 crore in FY 2024-25. GAIL Gas Limited along with its JVCs has achieved 1.91 lakh domestic PNG connections and set up 120 CNG stations during FY 2025-26.

Your Company has accorded in-principle approval for transfer of six CGD GAs Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Khordha to GAIL Gas Limited as part of its strategic consolidation plan, subject to government and regulatory approvals.

• 100% reduction in Scope-1 and Scope-2 emissions by 2035

• 35% reduction in Scope-3 emissions by 2040.

Your Company continues to make steady progress towards achieving these targets through a strategic approach involving Electrification of Natural Gas-based equipment, Renewable Energy, Compressed Biogas (CBG), Green Hydrogen, Carbon Capture Utilization & Storage (CCUS), Energy Efficiency Improvement Projects, Nature based Offsetting etc.

To achieve Net Zero, your Company has identified three specific elements of Decarbonization, namely avoidance, mitigation and offsetting.

Towards meeting the Net Zero targets, it is considered that the new Expansion Projects should preferably be 'Net Zero by Design' so that the baseline emissions do not increase further. Considering this, your Company has developed its Net Zero Plan based on the following abatement levers.

a. Electrification

Your Company plans to achieve the ambitious goal of Net Zero Emissions through a strategic approach involving the Electrification of Natural Gas based equipment. Post Electrification on pilot basis, 01 Gas turbine driven Compressor is successfully running since January 2025 with 3.6 MW electric motor drive at Vijaipur. Electrification of additional 03 compressors of similar capacity is underway.

b. Renewable Energy (RE)

The RE portfolio has increased from 135 MW to 146 MW during FY 2025-26. Presently, the renewable capacity has increased to 154 MW. Your Company has set a target to attain 3600 MW of Renewable Energy by '2035.

Presently, the following RE Projects are under execution:

• 17.5 MW Floating Solar Plant at Pata, Uttar Pradesh

• 12.5 MW Rooftop Solar across various installations

• 178.2 MW Wind Power Project in Maharashtra

I n addition, the following Projects have been approved, and work shall be commencing shortly:

• 600 MW Solar Power Project along with a 550 MWh Battery Energy Storage System (BESS) in Uttar Pradesh

• 100 MW Solar Power Project with a 22 MWh BESS in Maharashtra

These Projects mark a significant milestone in GAIL's journey towards achieving its Net Zero targets, aligned with India's broader energy transition goals. Further, the integration of advanced energy storage systems will ensure efficient utilization of solar power by addressing intermittency challenges and enabling round-the-clock availability of Renewable Energy.

c. Green Hydrogen

Your Company has a 10 MW PEM Electrolyser based Green Hydrogen plant at Vijaipur, Madhya Pradesh. The Hydrogen produced from this unit is being blended with Natural Gas and used as fuel, for captive purpose in various equipment at the Vijaipur Plant. Further, anticipating the demand of green hydrogen from consumers particularly in pharma and auto ancillary sectors, GAIL is making provision for cascade filling of Green Hydrogen which is expected to be operationalized in FY 2026-27, enabling commercial sale of the product.

d. Carbon Capture Utilization & Storage (CCUS)

CO₂ Valorisation is an important lever to decarbonize the environment. It includes various technologies to capture, convert and utilize CO₂. However, CO₂ valorisation technologies are not established on a commercial scale and R&D work is under progress.

Your Company has implemented a pilot scale project of 1 Tonnes Per Day (TPD) for biological CO₂ capture using micro-algae at Pata Petrochemical facility.

Your Company is also looking at other options for conversion of CO₂ to Sustainable Aviation Fuel (SAF), Ethylene etc. GAIL Pata has undertaken a pilot project for conversion of 15 TPD CO₂ to Ethylene in collaboration with Entity1 Value Emission Private Limited (Entity1). Pilot project skid of 15 TPD CO₂ to Ethylene plant has been received at site. All necessary installations and water trials for leak check have been completed. Startup and commissioning activities are under progress.

e. Energy Efficiency Improvement Projects

Energy Efficiency is often called the 'first fuel' in clean energy transitions, as it provides some of the quickest and most cost-effective CO₂ emission reduction options while lowering energy bills. Energy Management System is implemented at major O&M locations and various energy efficiency improvement initiatives are being undertaken on a regular basis. Your Company's major installations are already ISO-50001 Energy Management System certified.

f. Nature Based Offsetting

Your Company aims to enhance its afforestation efforts by undertaking extensive tree-planting initiatives. More than 4 lakh trees have been planted in the last 03 years, including plantation of ~75,000 trees near Vijaipur (Guna), ~42,000 trees under 'Ek Ped Maa Ke Naam 1.0' and ~48,000 trees under 'Ek Ped Maa Ke Naam 2.0' across various GAIL locations.

ix. Bio-Gas/Compressed Bio-Gas/ Ethanol

The Government envisages a strategic role for biofuels and Biogas in particular, to strengthen India's energy security and provide access to clean and affordable energy for all. Your Company was mandated in April 2021 by the Ministry of Petroleum & Natural Gas to operationalize the CBG-CGD Synchronisation Scheme for offtake of Biogas/Compressed Biogas (CBG) produced across the Country and supply such Biogas/CBG to CGD entities on a pan India basis for use in CNG(T) and PNG(D) segments.

Due to resolute execution by your Company, the Synchronisation Scheme has today emerged as the most preferred option for Biogas producers and CGD entities across India. Your Company has commenced Biogas supplies in 124 Geographical areas in the Country and achieved sale of ~0.62 MMSCMD. Total 531 Tripartite Agreements are active all over India under the Synchronisation Scheme with 410 Biogas producers and 43 CGD entities. This growth momentum has shaped and will continue to shape the Biogas ecosystem in India.

The Synchronization Scheme represents a transformative shift in India's biogas sector and your Company is well placed to drive this shift towards a self-reliant and low-carbon energy economy. Going forward, your Company continues to make relentless efforts for growth of the Biogas ecosystem in India.

After a modest beginning in 2021, when the first injection of Biogas was started in a CGD network under the Synchronisation Scheme, your Company has today operationalized the Synchronisation Scheme all across the Country. Following are some of the key highlights of implementation of Synchronisation scheme:

• Achieved 210% of MoU Target for Biogas sale by selling 88,174 MT during FY 2025-26.

• Achieved ~176% increase in Biogas Sales over last FY.

• ~0.62 MMSCMD of Biogas/CBG is being supplied to CGD GAs across India under the CBG-CGD Synchronization Scheme.

• Achieved a market-share of more than 97% in Biogas sold in India.

• Commenced supply to 124 Geographical Areas (GA).

• Total 531 Tripartite Agreements (TPA) are active with 410 Biogas plants and 43 CGD entities under the Synchro Scheme.

• Cumulative Biogas/CBG sale under Synchro Scheme at the end of FY 2025-26 is the equivalent of over two LNG Cargoes (over 186 MMSCM).

Aligned with Net Zero aspirations and import reduction objectives, your Company made an investment of '13.54 crore in Leafiniti Bioenergy Private Limited (LBPL) and acquired 49% equity in LBPL, subsidiary of TruAlt Bioenergy Limited (TBL) for setting up of 10 CBG plants based on press mud. LBPL owns and operates one press mud based CBG plant located in Bagalkot, Karnataka.

Your Company has engaged with an experienced player in the CBG sector to explore the formation of a joint venture for setting up Municipal Solid Waste-based CBG plants across the Country. Further, your Company has signed a Memorandum of Understanding (MoU) with VERBIO India Private Limited (VERBIO) to jointly explore the establishment of Agri Residue-based CBG plants in India.

Your Company has been actively engaging with various Government departments, agencies and local bodies for allocation of land and assured feedstock to set-up CBG plants and to expand its CBG footprint across the Country. In this regard, your Company has achieved key milestones in securing land parcels and establishing enabling frameworks for project implementation. Land lease and sub-lease arrangements have been executed in multiple districts of Punjab in coordination with Gram Panchayats and Punjab Energy Development Agency (PEDA), ensuring readiness of project sites. Further, tripartite concession agreements have been executed with state and municipal authorities for projects in Bengaluru, Korba and Ambikapur, providing a robust institutional framework for project development and operations of CBG plants.

Your Company plans to set up 26 CBG plants, on its own or through JV mode. The 1^st CBG plant of 05 TPD capacity, based on 150 TPD Municipal Solid Waste (MSW) has been commissioned at Ranchi in 2025. Further, your Company is moving ahead with 06 (six) CBG projects under implementation across multiple states, covering both MSW, agri-residue and mixed feedstocks. These projects are located in Bengaluru (Karnataka), Sultanpur (Uttar Pradesh), SBS Nagar (Punjab), Moga (Punjab), Ambikapur (Chhattisgarh) & Korba (Chhattisgarh), with a combined planned capacity of ~94.6 TPD of CBG.

x. Start-Up

Your Company intends to take-up investment in Start-Ups to give a boost to the Government's efforts and to derive longterm benefits. Your Company's Mission for Start-Up

Initiative is to Identify, Invest and Nurture Start-Ups that can become successful companies in the long run and provide profitable returns from this diversification.

Your Company launched its Start-Up Initiative, 'PANKH,' in July 2017 as a strategic platform to foster innovation, promote entrepreneurship and facilitate the adoption of emerging technologies aligned with national priorities and your Company's business objectives. 'GAIL Pankh' underscores your Company's dedication to drive excellence through innovation, collaboration and meaningful community engagement.

The start-up investment corpus under the initiative was initially sanctioned at '50 crore, subsequently increased to '100 crore and further expanded to '500 crore in January 2025, reflecting your Company's strong commitment to nurturing the start-up ecosystem.

At regular intervals, your Company opens a new round for soliciting investment proposals from Start-Ups operating in the Focus Areas. Start-ups interested in equity investment from your Company can apply via the link 'GAIL Pankh' on your Company's website: https://gailonline.com. Your Company equity investment will be limited to 20% of the total equity of the Start-Up. Your Company invests in start-ups operating in various focus areas, including Natural Gas, Petrochemicals, Energy, Other areas related to the energy sector, Health, Social, Environment, Security and Safety, etc.

As of 31.03.2026, the 10^th solicitation round is in progress. Across these funding rounds, your Company has committed investments to 39 start-ups and the total committed amount as of 31.03.2026 stands ~'76 crore, of which '71.29 crore has been disbursed. Out of the total 39 start-ups supported by your Company as on 31.03.2026, the Company has exited from two start-ups. Of the remaining 37 funded start-ups, 19 start-ups have achieved annual revenues exceeding '1.00 crore, while 9 start-ups have reported positive Profit After Tax (PAT) in FY 2024-25, as per their audited financial statements.

As of date, your Company has committed investments to 41 start-ups, totaling '83.66 crore, of which '78.06 crore has been disbursed.

Further, 13 GAIL-supported start-ups have successfully raised follow-on funding at valuations higher than the initial investment, including five start-ups during the FY 2025-26, indicating strong financial performance and investor confidence.

In addition to direct investments in start-ups, your Company, along with other oil and gas PSUs to support MC² Foundation, a section 8 (non-profit) wholly owned subsidiary Company of Petronet LNG Limited incorporated to serve as a dedicated institutional mechanism for strengthening innovation and sustainable entrepreneurship and to promote startups across the energy sector. Further, the Company has released its full first-year committed contribution of '10 crore towards supporting the Foundation's initiatives and activities.

xi. Research & Development (R&D)

To significantly boost the R&D efforts under one umbrella, your company has acquired large land parcels to establish and build various testing & lab facilities, pilot plants etc. supporting R&D, innovation and incubation activities.

The Bhoomi Poojan ceremony for your Company's upcoming Research & Development (R&D) Centre at Sector 22, Industrial Model Township (IMT), Sohna, Haryana, was held on 22^nd February 2026, marking the formal physical possession of the land.

Envisioned as a state-of-the-art, future-ready innovation hub, the new R&D Centre will significantly strengthen your Company's technological and innovation capabilities across its core business areas as well as emerging clean energy domains. Spread across 30 acres, the R&D Centre is planned with world-class laboratory infrastructure, advanced analytical facilities and pilot-scale demonstration units aimed at bridging the gap between laboratory research, technology validation and field-scale deployment.

The proposed R&D Centre will serve as a focal point for advanced research, indigenous technology development, industry-academia collaboration, and sustainable energy innovations, reinforcing your Company's commitment towards technological excellence and energy transition initiatives.

xii. Project Execution

Your Company is firmly aligned with the Government of India's vision of developing a gas-based economy. To realize this vision, the Company continues to play a leading role in building and strengthening India's energy infrastructure, expanding the reach of clean and affordable natural gas, and integrating with the National Gas Grid. Pipeline projects remain a major thrust area, serving as critical enablers to provide reliable energy access, stimulate industrial growth, and support the transition toward a gas-based economy across the Country.

Financial Year 2025-26 has been a remarkable year for pipeline project execution. Your company has expanded its operational network by commissioning ~2000 km of pipelines across the Country during the year. Among the major pipelines commissioned this FY, include ~1504 Km out of 1707 Km Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL) in four states (Maharashtra, Chhattisgarh, Odisha & Madhya Pradesh), ~470 Km out of 744 Km Srikakulam-Angul Pipeline (SAPL) Project in two states (Odisha & Andhra Pradesh) and balance comprising of LMCs & CGD hook ups in various part of the Country including connectivity to IOCL's refineries at Noonmati and Bongaigaon. Another major KKBMPL-II project in Tamil Nadu that is on the anvil has also seen steady progress with your Company making all efforts to complete it despite various challenges during execution. 29 Km out of 323 Km pipeline section between Singasadra to Krishnagiri has been completed & commissioned with nitrogen reflecting incremental advancement in the overall execution of the project. Balance project works of MNJPL, SAPL and KKBMPL-II are being expedited for their earliest completion, and your Company remains quite hopeful to complete these projects within the current calendar year. Your Company is executing ~1500 Km natural gas pipeline projects, which are at different stages of execution, as mentioned below:

• 162 Km Kolkata - Haldia section of Durgapur-Haldia Pipeline, part of integrated JHBDPL

• 99 Km out of 253 KM of Dhamra-Haldia Pipeline in West Bengal

• 203 Km of Nagpur-Jharsuguda Pipeline Section of MNJPL in Maharashtra

• 275 Km of SAPL Spurlines

• 294 Km of KKBMPL-II in Tamil Nadu

• 153 Km of Gurdaspur-Jammu Pipeline Project

• 300 Km other projects namely DUPL-DPPL capacity augmentation project (105 Km), Vijaipur-Bina Spurline (114 Km), JSW Bellary Spurline (115 Km)

• 65 Km Bidadi-Poonapalli Pipeline interconnecting GAIL's

Dabhol-Bengaluru and Kochi-Koottanad-Bengaluru-Mangaluru networks

In addition to above-mentioned natural gas pipelines, your Company is also executing LHC pipelines as below:

(i) Capacity of existing Jamnagar-Loni LPG Pipeline (JLPL) from 3.25 MMTPA to 6.5 MMTPA to strengthen India's LPG supply chain, ensuring reliable, efficient, and cleaner energy delivery to northern markets. The project involves laying ~1150 Km of Pipeline and augmenting pumping capacity at source and intermediate pumping stations. Project activities for this have already commenced.

(ii) ~400 Km of two liquid pipelines for captive use namely 357 Km Vijaipur-Pata C2/C3 pipeline and 44 Km Uran-Usar Propane Pipeline to cater to the feedstock requirement of GAIL's Pata Petrochemical Complex and upcoming PDH-PP Project at Usar respectively. The work on these pipelines is in advanced stage and inching towards completion.

Through these initiatives, your Company continues to play a pivotal role in expanding India's energy infrastructure, ensuring reliable access to clean fuels, and driving sustainable economic growth.

Under the Petrochemical business vertical, your Company is in the process of setting up a 500 KTA Propane Dehydrogenation and Polypropylene (PDH-PP) Plant at Usar, Maharashtra. This would be the first plant in India using Propane Dehydrogenation technology for the production of Propylene. All the equipment have been delivered at the site, and construction activities are in progress with a commissioning target in FY 2027-28. The 60 KTA Polypropylene (PP) plant at Pata was commissioned on 04^th Feb 2026.

Your Company continues to increase its footprint in the core gas value chain and forward integrate into the fertilizer segment with two proposed plants along the MNJPL corridor - one at Saoner in Maharashtra and the other at Rajnandgaon in Chhattisgarh with a capacity of 1.27 MMTPA each. These fertilizer plants will also act as anchor load for the MNJPL project.

xiii. Overseas Business

Your Company is constantly expanding its global presence through its participation in projects/ventures along the natural gas value chain.

Your Company is a part of a consortium in two offshore E&P blocks (A-1 & A-3) in Myanmar ~13.99 MMSCMD of gas is being produced from these blocks and supplied to China and Myanmar through South East Asia Gas Pipeline Company Limited (SEAGP), in which your Company is an equity partner.

Your Company holds equity interest in two CGD companies in Egypt, namely Fayum Gas Company (FGC) and National Gas Company (Natgas). Your Company is also an equity partner in China Gas Holdings Limited (China Gas), a retail gas company involved in city gas and CNG business in China and listed on the Hong Kong Stock Exchange.

Your Company formed GAIL Global (USA) Inc. ("GGUI") in Houston, Texas as its wholly-owned subsidiary and acquired Shale gas assets. GAIL Global (USA) LNG LLC ("GGULL"), a wholly-owned stepdown subsidiary was formed for sourcing of Natural Gas, pipeline transportation and liquification arrangements at Dominion Cove Point. Your Company also formed GAIL Global Singapore Pte. Ltd (GGSPL) as its wholly-owned subsidiary in Singapore for LNG trading.

Your Company holds 26% equity interest in LNG Japonica Shipping Corporation Limited ('Japonica'), a Company holding the charter rights of LNG vessel GAIL Bhuwan till 2038.

Your Company continues to explore the business environment and evaluate opportunities for partnership for expansion & growth.

SUBSIDIARIES / ASSOCIATES / JOINT VENTURES

To support its strategic business growth, your Company has established multiple Subsidiaries, Associate Companies, and Joint Ventures across key segments such as:

• City Gas Distribution:

♦ Subsidiaries: GAIL Gas Limited, Bengal Gas Company Limited and Tripura Natural Gas Company Limited.

♦ Joint Ventures: Indraprastha Gas Limited, Mahanagar Gas Limited, Aavantika Gas Limited, Bhagyanagar Gas Limited, Central UP Gas Limited, Green Gas Limited, Maharashtra Natural Gas Limited, Vadodara Gas Limited, China Gas Holdings Limited and Fayum Gas Company.

• Natural Gas Pipeline Transportation: Indradhanush Gas Grid Limited and South East Asia Gas Pipeline Company.

• Gas Production, Sourcing & Trading: GAIL Global (USA) Inc., GAIL Global (USA) LNG LLC, GAIL Global (Singapore) Pte. Limited, Indian Gas Exchange and LLC Bharat Energy Office.

• LNG Shipping: LNG Japonica Shipping Corporation Limited.

• Petrochemicals: Brahmaputra Cracker and Polymer Limited, ONGC Petro-additions Limited and GAIL Mangalore Petrochemicals Limited.

• Fertilizer, Power & Environment friendly use of Coal:

Ramagundam Fertilizers & Chemicals Limited, Talcher Fertilizers Limited, Coal Gas India Limited and ONGC Tripura Power Company Limited.

• Compressed Bio-Gas: Leafiniti Bioenergy Private Limited (acquired 49% stake in March, 2026).

• Re-gasification Terminal: Konkan LNG Limited and Petronet LNG Limited.

• Financing Activities: GAIL Global IFSC Limited, a wholly owned Subsidiary of your Company incorporated on 07.04.2025 to undertake activities including Global/Regional Corporate Treasury Centres activities and/or Ship Leasing activities.

Your Company has infused equity in Talcher Fertilizers Limited (TFL) of '2,169 crore. As per the revised and approved Detailed Feasibility Report (DFR) of TFL, the total approved Project cost of ' 19,062 crore is proposed to be financed through a mix of long-term debt and equity ratio of 65:35.

Coal Gas India Limited (CGIL) is a joint venture Company between Coal India Limited (CIL) and your Company with a shareholding in the ratio of 51:49 to develop coal-to-synthetic natural gas (SNG) at Bardhaman, West Bengal.

In Biogas space, your Company has acquired 49% equity in Leafiniti Bioenergy Private Limited (LBPL), subsidiary of TruAlt Bioenergy Limited (TBL) for setting up Compressed Biogas (CBG) plants through LBPL. LBPL owns and operates one press mud based CBG plant located in Bagalkot, Karnataka.

Konkan LNG Limited (KLL), a subsidiary of your Company, filed a Scheme for Reduction of Equity Share Capital before the Hon'ble National Company Law Tribunal (NCLT) in June, 2025. The Scheme proposes the reduction of KLL's existing equity share capital through the cancellation and extinguishment of an aggregate of 14,81,10,440 equity shares forming part of its issued, subscribed and paid-up share capital. These comprise 7,40,55,220 equity shares of '10 each held by your Company and an equal number held by MSEB Holding Company Limited (MSEB).

Hon'ble NCLT vide its order dated 3^rd June, 2026 sanctioned the said Scheme and the certified true copy of the same was received on 10^th June 2026. Consequent upon the implementation of the Scheme, the shareholding of MSEB in KLL shall be reduced to NIL and your Company's shareholding will increase to 100%.

Accordingly, upon payment of the consideration to the respective shareholders by KLL, equity shares held by MSEB in KLL stand cancelled and extinguished i.e. MSEB holding in KLL reduced to Nil and GAIL shareholding increased to 100% of the equity share capital of KLL and it has become wholly owned subsidiary of GAIL.

DIVIDEND

Your Company takes pride in being a consistent dividend-paying Company. The Board of Directors had approved payment of Interim Dividend during the financial year 2025-26 @ 50% of the paid-up Equity Share Capital of ' 6,575.10 crore i.e. ' 5.00 per Equity Share out of the profits of the Company for FY 2025-26 to the equity Shareholders amounting to '3,287.55 crore, which was paid in February, 2026.

The Board of Directors has also recommended the payment of Final Dividend @5% (' 0.50/- per equity share) on the paid-up equity share capital of the Company for FY 2025-26 subject to the approval of Shareholders.

The details of the Unclaimed Dividend are covered in the Corporate Governance Report section, which forms part of the Board's Report.

CONTRIBUTION TO EXCHEQUER

Your Company has contributed '15,031 crore in FY 2025-26 to the Central & State exchequer through duties, taxes and others as compared to ' 17,568 crore in FY 2024-25.

MEMORANDUM OF UNDERSTANDING (MOU) PERFORMANCE

The Memorandum of Understanding (MoU) is signed every year between your Company and its administrative ministry i.e. Ministry of Petroleum & Natural Gas (MoP&NG) to assess and enhance performance of your Company through the targets set therein. The MoU for FY 2025-26 was signed between Secretary (P&NG), Government of India and Chairman & Managing Director of your Company.

The evaluation of MoU of your Company for FY 2025-26 is under process. Evaluation of MoU for FY 2024-25 has been completed by DPE in which your Company has achieved 'Excellent' rating.

EMPLOYEE STOCK OPTION (ESOP)

Your Company has not provided any Employee Stock Option. Therefore, disclosure requirements in relation to ESOP under Rule 12(9) and Rule 16(4) of the Companies (Share Capital and Debentures) Rules, 2014 are not applicable.

DISINVESTMENT BY PRESIDENT OF INDIA

Your Company is promoted by the Government of India (GOI). Shareholding of GOI as on 31^st March, 2026 is 51.52 %. During FY 2025-26, no disinvestment of GAIL's shares was done by GOI.

CREDIT RATING OF THE COMPANY

• Domestic Rating

Your Company has been reaffirmed with the highest domestic credit rating of 'AAA' with stable outlook by ICRA, CARE and India Ratings. This signifies the highest domestic long-term credit rating in India and hence, signifies a very low credit risk of your Company.

• International Rating

International rating agency, Moody's International, Singapore, has assigned to your Company the Long-Term Corporate Issuer Rating of 'Baa3' with Stable Outlook, which is equal to the Sovereign Rating of India assigned by M/s Moody's. Further, Fitch Ratings has assigned to your Company, a Longterm Issuer Rating of 'BBB-' with a Stable Outlook, which is also equivalent to the Sovereign Rating of India assigned by M/s Fitch. They have mentioned that your Company's rating could be upgraded if India's sovereign rating is upgraded by respective credit rating agencies.

DEBT PORTFOLIO MANAGEMENT

Your Company efficiently managed its liquidity requirements through a prudent mix of long-term borrowings, short-term borrowings and internal accruals.

During FY 2025-26, your Company funded its capital expenditure requirements through a balanced mix of internal accruals and longterm funding amounting to '5,000 crore. The short-term liquidity mismatches were effectively managed through working capital borrowings and other short-term credit facilities, enabling smooth operational cash flow management. These measures result in reduction in overall cost of debt.

The debt-equity ratio continued to remain at a very comfortable level, reflecting your Company's strong balance sheet position and prudent financial management.

In line with its objective of maximizing returns on surplus funds while ensuring capital preservation, your Company relied on its existing treasury instruments namely investments in Mutual Funds, Term deposits, the Tri-party Repo System (TREPS) and the Clearcorp Repo Order Matching System (CROMS) which have continued to deliver strong, risk-adjusted returns.

PARTICULARS OF LOANS, INVESTMENTS AND CORPORATE GUARANTEES

Details of investments, loans and guarantees covered under Section 186 of the Companies Act, 2013 form part of the Financial Statements presented in this Annual Report.

VIGILANCE

The Vigilance Department of your Company is ISO-9001:2015 certified for having adopted Quality Management System in compliance with the requirements of ISO.

During the year, various steps were taken that focused on prevention of corruption and bringing in systemic improvements for ensuring greater transparency, fairness, efficiency and accountability. To sensitize and for competency building of employees about various aspects of contract management, procurement, cyber security and fraud prevention, specialized trainings were organized at different locations. Vigilance awareness programs for various stakeholders were organised through vendor and customer meets and Gram Sabhas. Vigilance Awareness Week (VAW) 2025 was observed at Corporate

Office and all site Offices from 27^th October to 02^nd November 2025, under the guidance of Central Vigilance Commission (CVC) on the theme 'Vigilance: Our Shared Responsibility'; 'Ýddidl: W^T

l^^dl^t'. A Summary of vigilance cases handled during the year 202526 is as under:

As a Preventive Vigilance measure, a total of 35 surprise / periodic inspections, 26 scrutiny of files, 51 scrutiny of Audit Reports,18 intensive inspections and 1,299 Scrutiny of Annual Property Returns have been carried out by the Vigilance Department in FY 2025-26.

INFORMATION SYSTEMS AND TECHNOLOGY

Your Company has successfully modernized its IT landscape through strategic cloud adoption to enhance agility, security and future readiness.

During the year 2025-26, your Company has migrated its SAP system to the latest SAP S/4 HANA, the next generation ERP suite, hosted on cloud. This transition has led to enhanced performance & improved user experience. On-premise e-mail and Microsoft Office solution has also been migrated to Office 365 in a cloud environment, leading to enhanced collaboration and cyber security. Moreover, this solution includes the Al-powered Copilot tool to enhance efficiency and productivity.

Several digital portals and dashboards have been launched to enhance transparency, monitoring, analytics and user experience across various business functions. Collectively, these implementations have strengthened process automation, governance, data driven decision making and operational efficiency across the enterprise. 'Samanvay Portal' has been implemented which is a digital platform enabling CGD entities to submit requests, upload required documents and track the entire CGD connectivity process with GAIL.

Your Company has migrated to latest version of ISO 27001 i.e. ISO 27001:2022 for Information Security Management Systems (ISMS) of its Primary (including SOC) and Disaster Recovery Data Centres. Your Company was conferred with the Special Jury Recognition Award under category 'The Game Changer' of SAP ACE AWARDS 2025 for Project Navodaya [SAP S/4 HANA Migration on Cloud].

On the employee side, a fully automated system for medical consultancy claims has been introduced, making the process simpler, quicker and more user-friendly.

CORPORATE COMMUNICATION

Your Company pursued a well-defined 360-degree communication strategy during the year, deploying a carefully curated mix of traditional and digital media to engage diverse stakeholder groups with a unified message advocating the adoption of clean, affordable, and sustainable natural gas.

During the year, your Company participated in prominent national and international events and exhibitions, including Gastech, ADIPEC and India Energy Week, through thematic stalls showcasing your Company's extensive presence across the Natural Gas value chain and beyond. These platforms were leveraged to showcase your Company's growing business portfolio through state-of-the art interactive digital interventions.

Your Company published a diverse range of communication materials to strengthen outreach and stakeholder engagement including an array of corporate and product brochures, departmental publications, and compendiums. During the year, your Company's website was improvised with a refreshed and contemporary design. The revamped platform has been developed to provide enhanced user experience through improved accessibility and intuitive navigation. It offers comprehensive and up-to-date information across all business verticals, thereby strengthening transparency and stakeholder engagement. The initiative reflects GAIL's continued commitment to effective communication and digital excellence.

Embracing newer modes of communication, your Company undertook digital outreach through influencer marketing campaigns and flagship digital campaigns such as 'Habit Badlo, Hawa Badlo, 'Switch Karo, Chill Karo', 'Meter Prover Facility' and 'AkalkiEnergy'.

Your Company also launched the National PNG Drive 2.0, a digital and social outreach campaign in collaboration with the PNGRB to boost Piped Natural Gas and CNG adoption. A focused campaign promoting GAIL's Meter Prover Facilities at Dibiyapur (Uttar Pradesh) and Hazira (Gujarat) was also undertaken to showcase its state-of-the-art calibration facilities which ensures clear timelines, optimized scheduling and dedicated support.

Your Company's digital footprints and subscriber count in this period grew substantially, reaching a combined audience of more than 150 million across various digital and social media platforms with positive messaging on natural gas advocacy, clean energy transition and environmental sustainability. Your Company received the YouTube Silver Button Award for reaching 1 lakh subscribers in both its official and Hawa Badlo handle.

In keeping with the times, use of AI interfaces to automate processes for system improvements as well as to develop creative work in-house through CoPilot, ChatGPT, Canva AI etc. has been adopted.

REPRESENTATION OF PRIORITY SECTION

Your Company has been complying with the Presidential Directives on Reservation and other instructions/guidelines issued from time to time pertaining to Policies and Procedures of Government of India. Group-wise details with regard to total number of employees and the representation of Scheduled Castes, Scheduled Tribes, Other Backward Classes, Economically Weaker Sections, Persons with

Benchmark Disabilities amongst them as on 31^st March, 2026 are given in the table below:

A total of 594 new employees joined your Company during FY 2025-26. Total Manpower of the Company as on 31^st March, 2026 stood at 5,356 (including CMD, Whole-time Directors & CVO) with 16.97% of its employees belonging to the SC category, 6.64% to the ST category & 28.06% to the OBC category. Further, out of total employees 7.00% belong to the Minorities and 2.24% of the total workforce belong to the Persons with Benchmark Disabilities (PwBDs) category. Your Company's workforce comprises 410 women employees (representing 7.65% of its employees). Your Company's attrition rate is 0.75%, which is a testament to its strong human capital management.

OFFICIAL LANGUAGE

The Official Language Implementation Committee meetings are being conducted at the Corporate and Work Centre level every quarter to monitor and review the progress made for achieving the targets fixed in the Annual Program issued by the Official Language Department, Ministry of Home Affairs, Government of India.

As many as 196 Hindi workshops were conducted during FY 2025-26 in which 3,270 employees were imparted training. Hindi Fortnight was observed across your Company from 14^th to 29^th September, 2025 to propagate linguistic harmony and to motivate the employees for the progressive usage of Hindi in their day-to-day work. Vishwa Hindi Diwas was celebrated across the Company on 10^th January, 2026. Annual Rajbhasha Sammelan was conducted on 15-16 December, 2025 at Lucknow under the chairmanship of Director (HR). An All India Oil PSUs Seminar was also conducted on 25.03.2026 under the chairmanship of Director (HR) at GAIL Training Institute, Noida. Participants from all Oil PSUs attended the Seminar.

The first Sub-Committee of Committee of Parliament on Official Language inspected your Company's Mumbai, Vijaipur, Khera, Bhubaneswar, Hyderabad & Jubilee Tower Noida Office(s). The draft and evidence sub-committee inspected your Company's Corporate Office, Chennai, Karaikal & Kochi Office(s) to review the steps undertaken to promote the Official Language at these locations. Your Company's Jaipur Office was also awarded with the First Prize for FY 2024-25 under the Regional Rajbhasha Puraskar Yojana of Department of Official language, Ministry of Home Affairs in the Public Sector Undertakings category North Region for best implementation of Official Language Policy of Government of India on 20^th February, 2026 during the Regional Rajbhasha Sammelan at Agartala. Apart from this, the Town Official Language Implementation Committee (TOLIC) has awarded various Company's offices such as Corporate Office-Delhi, Vizag, Vadodara, Dibiyapur, Vaghodia, Samakhyali, Gandhar, Mumbai, Hazira, Madanpur Khadar & Khera for the effective implementation of Official Language.

DISCLOSURE IN RELATION TO SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

Your Company has in place a robust Policy on Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 with respect to FY 2025-26 is as under:

1. Number of complaints pending at the beginning of the 0 financial year

2. Number of complaints filed during the financial year 2

3. Number of complaints disposed off during the financial year 1

4. Number of cases pending for more than ninety days 0

5. Number of complaints pending at the end of the financial 1

year

MATERNITY BENEFIT ACT

Your Company has complied with all applicable provisions of the Maternity Benefit Act, 1961 and subsequent amendments.

RIGHT TO INFORMATION (RTI)

To strengthen transparency and accountability in its operations, your Company has established a robust framework in accordance with the provisions of the Right to Information (RTI) Act, 2005. At the Corporate Office, one Central Public Information Officer (CPIO) and one Link-CPIO / Nodal Officer (RTI) have been designated. Additionally, across various units/offices, 57 Assistant CPIOs (ACPIOs) and 25 First Appellate Authorities (FAAs) have been nominated to ensure prompt and efficient dissemination of information to citizens. Your Company has made comprehensive RTI-related resources available on its official website (https://gailonline.com/RTI.html) which include:

• RTI Guidelines

• MIS reports on RTI applications

• Record Retention Schedule

• Contact details of CPIO, Link-CPIO/Nodal Officer and ACPIOs

In compliance with Section 4 of the RTI Act (Suo motu disclosure), your Company maintains a dedicated webpage to proactively disclose a wide range of information in the public domain. This initiative enhances transparency and significantly reduces the need for individual RTI applications.

Further, your Company has been integrated with the Government of India's DoPT Online RTI Portal since July 2016, enabling citizens to file applications electronically. Currently, more than 80% of RTI applications and first-stage appeals are received online, reflecting increased digital adoption.

All RTI requests received through online or offline mode are processed strictly as per the provisions of the RTI Act, 2005, within the prescribed timelines.

During FY 2025-26:

• 100% disposal rate achieved for RTI applications and first-stage appeals.

• 932 RTI applications received and disposed of.

• 111 first-stage appeals received and disposed of.

• 16 hearings were held before the Central Information Commission (CIC).

• All second-stage appeals (hearings) decided in favour of the Public Authority.

• No adverse remarks received or penalties imposed by Central Information Commission.

PROCUREMENT FROM MICRO AND SMALL ENTERPRISES (MSES)

Your Company is a socially responsible business organization and offers ample opportunities via its Public Procurement Policy (PPP) for vendors and suppliers. This gives fair opportunities to MSEs, encouraging participation and cultivating sustainable growth.

While implementing its PPP for MSEs, your Company focuses on the following minimum allocation viz. 25% of the procurement from MSEs, 4% from MSEs owned by the SC/ST entrepreneurs and 3% from MSEs owned by the women entrepreneurs.

In terms of the said policy, during FY 2025-26, your Company made total procurement of ' 1,691 crore from MSEs, which is 58.57% of the total eligible value of annual procurement of '2,887 crore. The procurement made from MSEs owned by SC/ST Entrepreneurs is ' 117.30 crore, which is 4.06% of the total eligible value of annual procurement and that from MSEs owned by women entrepreneurs is '181.95 crore, which is 6.3% of the total eligible value of annual procurement.

Further, 20 Vendor Development Programmes for MSEs (including 4 Special Vendor Development Programmes/Hand Holding Sessions especially for MSEs owned by SC/ST & Women Entrepreneurs) were conducted.

Your Company is registered on the Trade Receivable e-Discounting System (TReDS) portal of all the five service providers (i.e. M/s C2TReDS, M/s Mynd Solutions, M/s A TReDS, M/s RXIL and M/s DTX) for making payment to MSEs vendors through the TReDS portal.

Your Company has made timely payment to MSE vendors in FY 2025-26.

PROCUREMENT THROUGH GOVERNMENT E-MARKETPLACE (GeM)

The GeM is a Government-run e-commerce portal. It is a one-stop platform to facilitate and enable easy online procurement of Goods & Services that are needed by various Government Departments, Organizations and PSUs.

All work centers of your Company are registered on GeM Portal and are procuring the Goods & Services available on the portal through GeM only. During the FY 2025-26, your Company has made procurements worth '2,697 crore from GeM Portal which is 38.75% of total procurement and thus surpassing the target of 37.5% by 1.25%.

RISK MANAGEMENT

The details on the Risk Management activities including the implementation of risk management policy, key risks identified and their mitigations are covered separately in the Management Discussion and Analysis section, which forms part of the Board's Report.

PARTICULARS OF EMPLOYEES

The provisions of Section 134(3)(e) of the Act w.r.t. to Company's policy on Directors' appointment and remuneration are not applicable to a Government Company. Consequently, details on Company's policy on Directors' appointment and other matters as required under Section 178(3) of the Act, are not provided. Similarly, Section 197 of the Act w.r.t. to managerial remuneration is also exempt for a Government Company. Consequently, there is no requirement of disclosure of the ratio of the remuneration of each Director to the median employee's remuneration and other such details, including the statement showing the names and other particulars of every employee of the Company, who if employed throughout/part of the Financial Year, was in receipt of remuneration in excess of the limits set out in the Rules are not provided in terms of Section 197(12) of the Act read with Rule 5(1) & (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

ANNUAL RETURN

Annual Return is hosted on Company's website at https://gailonline. com/IZAnnualReports.html

DIVIDEND DISTRIBUTION POLICY

As per Regulation 43A of the SEBI LODR, your Company has formulated a Dividend Distribution Policy. The dividend pay-out is made in accordance with the Company's Dividend Distribution Policy.

The Dividend Distribution Policy of the Company is available on the Company's website, at https://gailonline.com/pdf/InvestorsZone/ GAIL Dividend Distribution Policy w.e.f. 30.01.2025.pdf

ACCEPTANCE OF DEPOSITS

Your Company has not accepted any Deposit from Public during FY 2025-26 and as such, no amount of principal or interest was outstanding as on 31^st March, 2026.

FUND RAISING

During FY 2025-26, your Company has not raised equity funds through preferential allotment or through qualified institutional placement.

FOREIGN EXCHANGE EARNINGS AND OUTGO

During FY 2025-26, foreign exchange earnings were '19,839.43 crore and outgo was '62,079.68 crore as compared to foreign exchange earnings of ' 19,179.51 crore and outgo of '54,732.57 crore during FY 2024-25.

REGULATORY OR COURTS ORDER

During the FY 2025-26, there was no order or direction of any court or tribunal or regulatory authority either affecting your Company's

status as a going concern or which significantly affected your Company's business operations.

MATERIAL CHANGES AFFECTING THE COMPANY

There have been no material changes and commitments affecting the financial position of your Company between the end of the Financial Year and date of this report. There has been no change in the nature of the business of your Company.

COMPLIANCE WITH SECRETARIAL STANDARDS

Your Company has followed the applicable Secretarial Standards, with respect to Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India.

AUDITORS AND AUDIT REPORTS

i. Statutory Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). Ravi Rajan & Co. LLP, New Delhi and Arun K Agarwal & Associates, New Delhi were appointed as Joint Statutory Auditors for the FY 2025-26.

Notes on Financial Statements referred to in the Statutory Auditors' Report are self-explanatory. There are no qualifications on the financial statements by the Statutory Auditors for FY 2025-26.

ii. Comptroller and Auditor General of India (C&AG) Audit

Comptroller and Auditor General of India (C&AG) conducts Supplementary Audit of Financial Statements of your Company. Review and Comments of C&AG, if any, on the Company's Financial Statements for the financial year ended 31^st March, 2026 form part of the Financial Statements.

C&AG paras from other Audits: In addition to the supplementary audit of the financial statements mentioned above, the C&AG conducts audits of various nature. As on 31^st March 2026, there are thirteen (13) C&AG published paras pending for closure related to irregular payment of stagnation relief, irregular payment of income tax on perquisites to employee, benefit extended to private power producers, nonrecovery of additional charges from RIL on account of over drawal of gas, abandoned E&P blocks, irregular payment towards encashment of Half Pay leave/Sick leave/Earned leave, irregular payment towards employer's share of EPF contribution on leave encashment, Petrochemical Production and Project Management, safety preparedness of Oil & Gas transmission pipelines, special monetary appreciation to its employees, benefit extended to the executives in the form of shift allowance, infructuous expenditure due to noncompliance with O&M guidelines, benefit extended to the executives in the form of payment of running and maintenance expenses of vehicles.

iii. Cost Auditors

Your Company is maintaining Cost Accounting Records as prescribed under the Companies (Cost Records and Audit)

Rules, 2014, specified by the Central Government under section 148(1) of the Companies Act, 2013.

Your Company appointed Cost Auditors for FY 2025-26 as follows:

M/s Narasimha Murthy & Co., Hyderabad is the lead Cost Auditor.

The cost audit reports are filed by the Lead Cost Auditor with the Central Government in the prescribed form within the stipulated time.

There are no qualifications in the Cost Audit Report by the Cost Auditors for FY 2025-26. The Cost Audit Report for the financial year ended March 31, 2026 will be filed within the prescribed time period under the Companies (Cost Records & Audit) Rules, 2014.

iv. Internal Auditor

Your Company has an in-house Internal Audit Department, which is headed by an Executive Director. The audit assignments are carried out as per Annual Audit Program covering every business process, Joint Venture, Subsidiary and Associates Companies as approved by the Audit Committee.

The Internal Audit Department has a mix of officials from Finance, HR, C&P, Marketing and Engineering functions, who carry out extensive risk based audits. System driven online audits of all automated employees claims on quarterly basis are being carried out as per approval of the management. Further, Technical audits of pipelines, O&M facilities, gas processing plants and construction audit are also being conducted to review the system procedure and compliances of PNGRB and other applicable regulations. Further, promoter audits of various companies are being conducted periodically as per the audit program approved by the audit committee to safeguard the funds invested in these companies and to strengthen corporate governance and compliances of applicable regulations.

The significant audit observations are being reported to the management on a periodic basis and unsettled audit observations are being reported to the Audit Committee. The audit reports are also shared with the Statutory Auditor and C&AG. All these have resulted in strengthening of Internal Control systems.

v. Secretarial Auditor

Your Company appointed M/s Agarwal S. & Associates, New Delhi as Secretarial Auditor for FY 2025-26 for five consecutive years starting from Financial Year 2025-26. Secretarial Audit Report confirming compliance by Practicing Company Secretary to the applicable provisions of the Companies Act, 2013, SEBI LODR and other applicable laws forms part of the Board's Report as Annexure-D.

As per the provisions of the Section 134(3) of the Companies Act, 2013, the Board of Directors in their Board Report is

required to provide explanations or comments on every qualification, reservation or adverse remark made by the Secretarial Auditor in his report.

The observations made by Secretarial Auditor in his Audit Report and Company's response thereon are included in Annexure-DI.

REPORTING OF FRAUDS BY AUDITORS

The Auditors in their report for the year have not reported any instance of fraud committed by the officers/employees of the Company.

CODE OF CONDUCT

Pursuant to the requirements of SEBI (LODR) Regulations, 2015 and DPE Guidelines on Corporate Governance, the Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct for the financial year ended 31^st March, 2026.

INSOLVENCY AND BANKRUPTCY CODE, 2016

No application has been made under the Insolvency and Bankruptcy Code, 2016 (IBC), hence the requirement to disclose the details of the application made or any proceeding pending under the IBC during the year along with their status as at the end of the financial year is not applicable.

MANAGEMENT DISCUSSION AND ANALYSIS

In terms of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and clause 4.5 of DPE Guidelines on Corporate Governance, the detailed Management Discussion and Analysis forms part of the Board's Report at Annexure- A.

CORPORATE GOVERNANCE

Your Company believes that good corporate governance plays a critical role in establishing a positive organizational culture. Pursuant to the SEBI LODR and DPE guidelines of Corporate Governance, a report on Corporate Governance forms part of the Board's Report at Annexure- B.

The details of the meetings & composition of the Board, Statutory Committees of the Board including the terms of reference, Company's policy on Directors' appointment and their remuneration, their shareholding in the Company, the establishment of whistle-blower mechanism, Annual General Meeting, information pertaining to Dividends declared, Investor Education & Protection Fund (IEPF) and other matters etc. are part of the report on Corporate Governance.

The Statutory Auditors of the Company have examined and certified your Company's compliance with respect to conditions of Corporate Governance enumerated in SEBI LODR and DPE guidelines on Corporate Governance. The certificate forms part of the Board's Report at Annexure- C

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT (BRSR)

Your Company has been publishing its Business Responsibility and Sustainability Report (BRSR), which encompasses crucial disclosures concerning Environmental, Social and Governance practices and is aligned with the 9 principles of the National Guidelines on Responsible Business Conduct. In line with SEBI Circular, the BRSR core KPIs have

been reasonably assured by "Social Responsibility Asia" (SR Asia). Your Company also publishes its third party assured Sustainability Report in alignment with the GRI standards. The annual Sustainability Report underscores your Company's commitment to transparency, accountability and responsible business practices in tackling environmental and social challenges while striving for a sustainable future. The BRSR is hosted on the website of the Company on the link https://www.gailonline.com/Annual Report.html

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your Company firmly believes that the commitment towards playing a defining role in the development of its stakeholders extends to uplifting lives of the marginalized segments of the society living in and around its areas of operation. The principles of Corporate Social Responsibility (CSR) are deeply imbibed in your Company's corporate culture. In accordance with provisions of Section 135(5) of the Companies Act, 2013, your Company was required to spend 2% of average net profit of the preceding three financial years after setting off the excess expenditure of the previous financial years i.e. ' 154.03 crore (' 188.74 crore - '34.71 crore). To amplify outreach efforts, your Company has incurred an expenditure of ' 179.59 crore for CSR. Excess expenditure of ' 25.56 crore incurred in FY 2025-26 is available for set off in subsequent years.

Your Company's CSR initiatives continue to create meaningful social impact by enhancing access to quality healthcare in underserved communities, promoting clean energy and sustainable practices and empowering youth through education and skill development, thereby fostering inclusive growth and long-term community resilience. Annual Report on CSR activities as required under Companies (Corporate Social Responsibility Policy) Rules, 2014 is placed at Annexure-E.

Your Company's CSR Policy is also available on Company website at https://www.gailonline.com/CSRPolicy.html.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

As per the requirement of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014, details of Conservation of Energy and Technology Absorption, Foreign Exchange Earnings and outgo form part of the Board's Report at Annexure- F.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

Your Company has formulated the policy on dealing with Related Party Transactions and the same is also hosted on the Company's website at https://www.gailonline.com/pdf/InvestorsZone/GAIL%20 Related%20Partv%20Transaction%20Policv%20-%2005.03.2026.pdf During the Financial Year, all RPTs were on arm's length basis and in the ordinary course of business. Therefore, there is no RPT which required approval of the Board / Shareholders under Section 188(1) of the Companies Act, 2013. As such, no RPTs need to be reported in e-Form AOC-2, in terms of Section 134(3)(h) read with Section 188 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

The following changes took place in the Board of Directors/ Key Managerial Personnel of your Company since 01^st April, 2025:

Appointment(s)/Re-appointment(s)

• Ms. Kamini Chauhan Ratan, Government Nominee Director w.e.f. 19.06.2025

• Shri Deepak Gupta, Chairman & Managing Director w.e.f. 01.03.2026*

• Shri Rohit Mathur, Government Nominee Director w.e.f.

09.03.2026

• Shri Deepak Asija, Company Secretary w.e.f. 06.03.2026

• Shri Kushagara Mittal, Government Nominee Director w.e.f.

04.06.2026 and upto 10.08.2026

• Shri Satish Kumar Sinha, Director (Finance) & CFO w.e.f.

01.07.2026

Cessation(s):

• Shri Asheesh Joshi, Government Nominee Director upto

18.06.2025

• Ms. Kamini Chauhan Ratan, Government Nominee Director upto 21.11.2025

• Shri Sandeep Kumar Gupta, Chairman & Managing Director upto 28.02.2026

• Shri Mahesh Kumar Agarwal, Company Secretary upto

05.03.2026

• Shri Akhilesh Jain, Independent Director upto 27.03.2026

• Shri Sanjay Kashyap, Independent Director upto 27.03.2026

• Smt. Kangabam Inaocha Devi, Independent Director upto

27.03.2026

• Shri Yajurvendra Anil Mahajan, Independent Director upto

27.03.2026

• Shri Kushagra Mittal was earlier appointed as Government Nominee Director for a period of 3 years w.e.f. 16.05.2023 and he ceases to be Director of the Company w.e.f. 16.05.2026.

• Shri Rakesh Kumar Jain, Director (Finance) & CFO upto

30.06.2026

*MOP&NG appointed Shri Deepak Gupta, Director (Projects), GAIL to the post of the Chairman and Managing Director of GAIL. Shri Deepak Gupta assumed the charge as Chairman and Managing Director of the Company w.e.f. 01.03.2026.

The Board placed on record its deep appreciation for the valuable guidance and significant contribution made by outgoing Directors during their association with the Company.

PERFORMANCE EVALUATION OF DIRECTORS

As per notification dated 5^th June, 2015 issued by the Ministry of Corporate Affairs, Government of India, Government Companies are exempted from complying with provisions of Section 134(3)(p) of the Companies Act, 2013. Your Company is a Central Public Sector Enterprise (CPSE) and appointment/nomination of all the Directors including Independent Directors are being done by the Government of India. Therefore, such particulars are not included in the Board's Report.

INDEPENDENT DIRECTORS' DECLARATION

Your Company has received necessary declaration from Independent Directors in accordance with Section 149(7) of the Companies Act, 2013 and Regulation 25(8) of the SEBI LODR, confirming that:

• They meet the criteria of independence as laid out in Section 149(6) of the Act and Regulation 16(1)(b) of the SEBI LODR.

• They have registered themselves with the database of Independent Directors maintained by the Indian Institute of Corporate Affairs under the Ministry of Corporate Affairs.

FAMILIARIZATION PROGRAM FOR INDEPENDENT DIRECTORS

The details of Independent Directors' training/familiarization programmes are available on the Company's website at https:// gailonline.com/pdf/InvestorsZone/Website 21052025.pdf

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Sections 134(3)(c) and 134(5) of the Act, it is hereby confirmed that for the financial year ended March 31, 2026:

i) In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

ii) The Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and the profit and loss of the Company for that period;

iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv) The Directors have prepared the Annual Accounts on a going concern basis;

v) The Directors have laid down Internal Financial Controls to be followed by the Company and that such Internal Financial Controls are adequate and are operating effectively; and

vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGMENT

Your Directors express their gratitude for the help, guidance and support received from the Government of India, especially the Ministry of Petroleum and Natural Gas as well as the various State Governments, regulatory and statutory authorities.

Your Directors acknowledge the constructive suggestions received from Comptroller and Auditor General of India and Auditors and are grateful for their continued support and cooperation.

Your Directors also thank all the shareholders, business partners and members of the GAIL family for reposing their faith, trust and confidence in your Company.

All that has been achieved would not have been possible without the relentless and focused efforts of your Company's employees. We place our deep appreciation for their commitment.

Your Directors also express their gratitude for the help, guidance and support received from the outgoing Board Members.

Your Directors and employees look forward to the future with confidence and stand committed towards creating a mutually rewarding future for all stakeholders.