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Revenue
₹3,979 Cr
verification pending
Revenue YoY
0.76%
reported change
EBITDA
₹520 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Gujarat Gas reported a subdued Q2 FY26 with revenue of ₹3,979 crore (flat YoY) and EBITDA of ₹520 crore (down 6% YoY), impacted by lower industrial volumes in Morbi due to propane competition and seasonal festival shutdowns. PAT fell 8% to ₹281 crore. Non-Morbi volumes grew 1% QoQ and 8% YoY, while CNG sales rose 13% YoY, with record CNG volumes of 3.934 mmcmd. Management maintained EBITDA margin guidance of ₹4.5-5.5/scm for FY26. The company is entering the propane distribution business to retain customers lost to cheaper alternatives. Capex guidance for FY26 is ₹800 crore, with similar levels expected in FY27. Key risk: sustained propane price advantage could further pressure industrial volumes and margins.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated the full-year EBITDA margin guidance of ₹4.5 to ₹5.5 per scm, despite current margins being at the higher end.
- The company plans to incur capital expenditure of approximately ₹800 crore in FY26, with a similar range expected for FY27.
- Management expects the MCA hearing and final order by December 2025, with relisting of GSPL taking 2-3 months thereafter.
- Discussions with capacity providers, fleet providers, and international propane suppliers are advanced; breakthrough expected in next few months.
Risks flagged
- Propane is currently ₹4-6/scm cheaper than natural gas, and management expects this gap to widen in winter, further pressuring industrial volumes.
- Overall priority sector shortfall was 51% in Q2, with CNG segment facing 64% shortfall, requiring costlier spot LNG purchases.
- Analyst questioned if entering propane could cannibalize natural gas sales; management acknowledged margins in propane are much lower than current gas margins.
- Management noted that competitive LNG pricing may not materialize until FY27, limiting ability to win back propane-switched customers.
Key quotes
- The reduction also enabled GGL to maintain the price differential to propane that is natural gas premium by rupees 4 to 5 per scm.
- We are expecting in the range of two to three lakh cmd in these areas in at least 18 months.
- We anticipate that 27 onwards there should be reasonable prices in the market.
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