AirLife Gases: Strategic M&A, High Valuation, and the Helium Shortage

29 July 2026

At each scanning session for patients in an MRI machine, when a semiconductor wafer is being etched, and also at the drawing of optical fiber cables, helium at -269°C is used to ensure that all machines work efficiently. India does not produce any commercial helium at all and all of it is imported. The fact is that commercial helium occurs only in a few places on the planet (for example, in Texas, Qatar, Algeria, and Canada). And it is five companies worldwide who monopolize 80% of total helium production. AirLife Gases Private Limited was founded by Kiran Karnawat, an industry veteran, to address the problem of India's dependence on helium supplies.

Key Pivot: Major Strategic M&A Moves
While AirLife’s success has been driven by the business model of arbitrage on the basis of sourcing and logistics, its recent bold move in M&A has completely transformed the future of the business:

• Acquisition of Royal Helium Ltd. (Canada): From October through November 2025, AirLife became involved in a significant fundraise round and completed the acquisition of a 52.9% controlling stake in Royal Helium Ltd., a Canadian E&P company with helium rights covering southern Saskatchewan and southeastern Alberta.
• Acquisition of GNG Infrastructure (US): In July 2026, AirLife entered into a definitive deal for the acquisition of a controlling stake in GNG, a helium gathering, processing, and liquefaction infrastructure company in the United States.

Within one year, AirLife has gone from being a middleman distributor to being fully vertically integrated as an upstream helium producer – owning everything from the reservoir to the liquefaction and transport process.

The Truth Behind the Financials & Fundraising
The pivot of strategy at AirLife won it much praise, raising about ₹143.5 crore between April and September 2025 at ₹900 per share. The marquee backers involved were Ashish Kacholia (who wrote a ₹15 crore check), Shiv Sehgal, and Neo Alternatives, giving it a post-money valuation of ₹958 crore. On the post-money ₹958 crore against FY25 PAT of ₹12.5 crore, P/E is closer to 77x.

FY25 Revenue was ₹183 crore (down 3% from ₹188 crore in FY24), showing stagnation in the top line in recent years. The operating margin fell from 26.4% in FY23 (due to the global helium shortage) to 8.6% in FY24 (when Russian supply came back into Asian markets) before inching up to 10.9% in FY25 with ₹12.5 crore PAT in FY25. At ₹900 per share, AirLife is trading at around 65x FY25 P/E multiple and an EV/EBITDA multiple in the mid-40s. The valuation of this fundraise depends greatly on optimistic internal forecasts (revenue in FY26 at ₹412 crore) and terminal multiples beyond FY30.

Conclusion
The demand for helium in India in the spheres of medicine, aerospace and technology has been growing, and its recent M&A activity solves the problem of molecule security by becoming a major supplier of the product. Nevertheless, entering upstream operations entails a great deal of execution, geological and recommissioning risks. The current market valuation of AirLife, at 65 times historical earnings, clearly speaks to the future rather than past success.

​