Gujarat Energy Limited (GEL) has had its long-term bank facilities reaffirmed with a ‘CRISIL AAA/Stable’ rating by CRISIL Ratings Limited. This rating reflects GEL’s strong business and financial risk profiles, stemming from its position as India’s largest city gas distribution (CGD) player and its third-largest gas trading entity. The reaffirmation follows the amalgamation of Gujarat State Petroleum Corporation (GSPC) entities with GGL, now renamed GEL.
CRISIL Reaffirms Top-Tier Rating for Gujarat Energy Limited
CRISIL Ratings Limited has reaffirmed the ‘CRISIL AAA/Stable’ rating on the long-term bank facilities of Gujarat Energy Limited (GEL), formerly known as Gujarat Gas Limited (GGL). This prestigious rating highlights the company’s robust financial health and strong market standing.
Key Strengths Driving the Rating
The rating is underpinned by GEL’s significant market presence, solidified by the amalgamation of Gujarat State Petroleum Corporation (GSPC) group entities. GEL is recognized as India’s largest city gas distribution (CGD) player and ranks as the country’s third-largest gas trading company. The company boasts an extensive network of 27 CGD licenses across 44 districts in six states and one union territory. As of March 31, 2026, GEL served over 24 lakh domestic connections, operated 839 CNG stations, and supplied to approximately 4,460 industrial units, demonstrating strong revenue diversity.
GEL also benefits from a strong financial risk profile, characterized by a net debt-negative position. Capital expenditure for CGD projects is expected to be funded through internal accruals, with no significant capex planned for its trading arm, further reinforcing its stable financial outlook.
Financial Performance Highlights
For fiscal 2026, GEL reported a revenue of Rs. 24,425 crore, compared to Rs. 28,313 crore in fiscal 2025. The profit after tax (PAT) stood at Rs. 1,678 crore for fiscal 2026, with a PAT margin of 6.86%. The company’s adjusted debt to adjusted net worth ratio was 0.16 times, and its interest coverage stood at a strong 12.16 times.
Outlook and Sensitivities
The ‘Stable’ outlook by CRISIL Ratings indicates confidence in GEL’s continued market leadership and robust operating performance. Potential downward rating factors include any significant dilution in the business risk profile or substantial delays in project execution. Additionally, large debt-funded capex or acquisitions that lead to a sustained net debt to EBITDA position exceeding 1 time could impact the rating.
About Gujarat Energy Limited
Gujarat Energy Limited operates India’s largest CGD network by gas sales volume. Its gas trading arm is a significant player in the Indian market. The company’s extensive reach and diversified customer base position it strongly within the energy sector.
Source: BSE
