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View Promises →Gujarat Gas Limited — Q3 FY26
Gujarat Gas reported Q3 FY26 revenue of ₹4,865 crore (+12% YoY) and EBITDA of ₹502 crore (+14% YoY), driven by strong CNG growth (11% YoY) and steady non-Morbi industrial volumes.
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Gujarat Gas reported Q3 FY26 revenue of ₹4,865 crore (+12% YoY) and EBITDA of ₹502 crore (+14% YoY), driven by strong CNG growth (11% YoY) and steady non-Morbi industrial volumes. However, Morbi industrial volumes collapsed 50% YoY to 1.68 MMSCMD due to propane price advantage, partially offset by a price cut of ₹4.50/SCM effective January 1. EBITDA margin per SCM improved to ₹6.52 (vs ₹5.04 YoY). Management guided for Morbi volumes to recover to 3.0-3.2 MMSCMD by March, aided by rising propane prices and spot LNG moderation. Full-year capex guidance maintained at ₹650-700 crore. Key risk: sustained propane price advantage could delay Morbi volume recovery, pressuring margins.
गुजरात गैस ने वित्त वर्ष 2026 की तीसरी तिमाही में 4,865 करोड़ रुपये का कारोबार किया, जो पिछले साल से 12% ज्यादा है। कंपनी की कमाई (EBITDA) 502 करोड़ रुपये रही, जो 14% बढ़ी। इसकी वजह CNG की बिक्री में 11% का उछाल और मोरबी के बाहर औद्योगिक गैस की मांग स्थिर रहना है। लेकिन मोरबी में औद्योगिक गैस की बिक्री 50% गिरकर 1.68 MMSCMD रह गई, क्योंकि प्रोपेन सस्ता होने से ग्राहकों ने गैस छोड़ दी। इसकी भरपाई के लिए कंपनी ने 1 जनवरी से गैस की कीमत 4.50 रुपये प्रति SCM घटा दी। हर SCM पर कमाई बढ़कर 6.52 रुपये (पिछले साल 5.04 रुपये) हो गई। कंपनी को उम्मीद है कि मार्च तक मोरबी में गैस की बिक्री 3.0-3.2 MMSCMD तक पहुंच जाएगी, क्योंकि प्रोपेन महंगा हो रहा है और LNG सस्ती हो रही है। पूरे साल का निवेश लक्ष्य 650-700 करोड़ रुपये रखा गया है। खतरा: अगर प्रोपेन सस्ता रहा, तो मोरबी में गैस की बिक्री उबरने में देर हो सकती है और मुनाफा कम हो सकता है।
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Sustained propane price advantage
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Read Transcript →Quarter Snapshot
CNG Sales Growth
11%
+11% YoY
CNG volumes grew 11% YoY, with Gujarat up 9% and outside Gujarat up 22%.
Morbi Industrial Volume
1.68 MMSCMD
-50% YoY
Morbi volumes halved from 3.35 MMSCMD in Q3 FY25 due to propane price advantage.
CNG Vehicle Base
16.94 lakh
+14% YoY
CNG vehicle base grew 14% YoY to 16.94 lakh, supporting long-term demand.
APM Gas Shortfall
51%
+6pp YoY
APM shortfall increased to 51% (64% for CNG), met via spot and long-term contracts.
What Changed vs Last Quarter
NEW
Morbi volume recovery to 3.0-3.2 MMSCMD by March 2026
Management expects Morbi industrial volumes to reach 3.0-3.2 MMSCMD by March 2026, driven by price cuts and rising propane prices.
NEW
Target 60-70% long-term gas contracts by end of 2027
Management aims to increase long-term gas sourcing to 60-70% of total portfolio by end of 2027 to reduce spot exposure.
UPDATED
Full-year EBITDA margin guidance of ₹5.5-6.5 per SCM
CFO guided EBITDA margin per SCM for FY26 in the range of ₹5.5 to ₹6.5.
UPDATED
Capex of ₹650-700 crore for FY26
Company plans capital expenditure of ₹650-700 crore for the full financial year.
DROPPED
Scheme of arrangement expected to close by December 2025
Management expects the MCA hearing and final order by December 2025, with relisting of GSPL taking 2-3 months thereafter.
DROPPED
Propane business entry in advanced stages
Discussions with capacity providers, fleet providers, and international propane suppliers are advanced; breakthrough expected in next few months.
NEW RISK
New transmission tariff impact on margins
Analyst noted that every 1 MMSCMD increase in Morbi volumes could reduce gross profit by ₹1/SCM due to new tariffs.
NEW RISK
Geopolitical risks to LNG supply
Ongoing geopolitical tensions could disrupt LNG supply chains and cause price volatility, delaying project timelines.
RISK GONE
Propane business may dilute margins
Analyst questioned if entering propane could cannibalize natural gas sales; management acknowledged margins in propane are much lower than current gas margins.
RISK GONE
Global LNG supply may not ease until FY27
Management noted that competitive LNG pricing may not materialize until FY27, limiting ability to win back propane-switched customers.
Fast read
Guidance and risk preview
Management expects Morbi industrial volumes to reach 3.0-3.2 MMSCMD by March 2026, driven by price cuts and rising propane prices.
Propane prices remain lower than natural gas, causing Morbi customers to switch.
View Risks →