Gujarat Gas reported robust CNG volume growth of 13% year-over-year in Q2 FY26, with particularly strong performance outside Gujarat (26% growth). The company commercialized four new CNG stations during the quarter and noted that CNG offers a significant economic advantage over petrol and diesel. Management expects MCA approval for the merger by December 2025 and anticipates the scheme’s effective date will be within two to three months after this approval.
Business Performance Overview
In Q2 FY26, Gujarat Gas experienced a sales volume of 4.34 MMSCMD in the industrial segment. Average Morbi volume was 2.13 MMSCMD. The company commissioned 0.27 lakh new domestic customers in Q2 FY26, growing the customer base to over 23.28 lakh domestic customers. The company also signed a gas sales agreement with Bathinda Military Station.
CNG Segment Growth
Gujarat Gas reported robust CNG volume growth of 13% year-over-year. Gujarat saw an 11% increase, and areas outside Gujarat experienced a notable 26% growth. CNG sales volume touched a record high of 3.934 MMSCMD during the quarter. The CNG vehicle base reached approximately 16.22 lakh compared to 14.12 lakh a year earlier, reflecting a 15% growth.
Financial Highlights
Revenue from operations was INR 3,979 crores, compared to INR 3,949 crores in the corresponding quarter of the previous year. EBITDA was INR 520 crores compared to INR 553 crores in the prior year. Profit after tax amounted to INR 281 crores, compared to INR 307 crores in the same period last year. The company estimates an EBITDA margin in the range of 4.5 to 5.5 per SCM for the financial year 2025-2026.
Merger and Future Outlook
Gujarat Gas expects MCA approval for the merger by December 2025. The effective date for the scheme is anticipated within two to three months following MCA approval. The company is also strategically expanding its ERP ecosystem and plans to implement a robust SCADA system for centralized monitoring and control.
Looking ahead, Gujarat Gas aims to leverage competitively priced LNG volumes to expand its portfolio. Also, at the end of 2027 reasonable prices should be prevalent in the market.
Source: BSE