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India's largest gas distributor GAIL (India) on Tuesday posted a bigger-than-expected rise in quarterly profit, buoyed by a boost in its gas transmission volume.

The company's net profit after tax rose more than 56% year-on-year to 24.05 billion rupees ($288.99 million) in the three months ending Sept. 30, beating analysts' average estimate of 18 billion rupees, as per LSEG data.

"During the quarter the company has performed well, specially on the strength in gas transmission segment which will continue to perform better," Chairman Sandeep Kumar Gupta said in a statement.

Natural gas transmission volume stood at 120.31 million metric standard cubic metre per day, 3.4% higher than last quarter.

The state-run company's revenue from natural gas transmission segment rose 56% year-on-year.

Performance, however, was constrained due to lower realisation in polymers and liquefied natural gas (LNG) which are expected to improve going forward, Gupta added.

India saw a record power demand in August due to unusually dry weather and a sharp decline in hydro and wind energy output, resulting in the country's widest electricity shortage in 16 months.

To address the surging power demand, GAIL last month said it will tap spot LNG markets.

Last year, GAIL had to cut gas sales to fertiliser and industrial clients after supplies under its long-term deal with the German unit of Russia's Gazprom were hit when it was taken over by Berlin, which diverted volumes to its own market.

GAIL shares, which have gained nearly a quarter of their value so far this year, rose more than 2% after the results.

($1 = 83.2210 Indian rupees)