Gujarat Gas Q2 FY26 earnings: Revenue up, profit down amid strategic moves

Gujarat Gas Limited reported Q2 FY26 revenue from operations at INR 3,979 crores, a slight increase from INR 3,949 crores in the prior year's corresponding quarter. EBITDA for the quarter was INR 520 crores, down from INR 553 crores, with a margin per SCM of 6.54 compared to 6.86 previously. Profit after tax stood at INR 281 crores, a decrease from INR 307 crores year-on-year. For FY26, the company estimates an EBITDA margin in the range of 4.5 to 5.5 per SCM and plans a capital expenditure of approximately INR 800 crores, with similar investments projected for FY27 in PNG infrastructure.

Industrial sales volume for Q2 FY26 was 4.34 MMSCMD, an 8% decrease from the previous quarter's 4.71 MMSCMD. Morbi volumes fell from 2.51 MMSCMD in Q1 FY26 to 2.13 MMSCMD in Q2 FY26. CNG sales, however, demonstrated strong growth, rising 13% year-over-year, with Gujarat experiencing an 11% increase and other areas achieving 26% growth. The company added 0.27 lakh commissioned customers in Q2 FY26, bringing its total domestic customer base to over 23.28 lakh.

The company is progressing with its scheme of arrangement, with shareholders of GSPC, GSPL, and Gujarat Gas approving the merger with overwhelming majority. Final approval from the Ministry of Corporate Affairs is anticipated by December 2025. Additionally, Gujarat Gas is actively pursuing entry into the propane sale and distribution market, engaging in advanced discussions with capacity providers and international suppliers.