Gujarat Gas Limited (GGL) announced its Q3 FY26 earnings, highlighting domestic connection growth to 23.83 lakhs. The company invested approximately INR408 crores in gas infrastructure during the 9 months and plans total capex between INR650-700 crores for the full fiscal year. GGL reported revenue from operations at INR3,865 crores and EBITDA at INR502 crores for the quarter. The company aims to exceed 1,000 CNG stations in the next 2-3 years.
Financial Performance
Gujarat Gas Limited reported revenue from operations of INR3,865 crores for Q3 FY26, compared to INR4,333 crores in the same quarter of the previous year. EBITDA stood at INR502 crores, up from INR439 crores in the prior year. Profit after tax for the quarter was INR266 crores, compared to INR222 crores in the corresponding period. The EBITDA margin per SCM was ₹6.5. For the entire financial year, the company estimates EBITDA margins to be between ₹5.5 to 6.5 per SCM.
Operational Highlights
The company added over 38,600 new domestic connections, bringing the total to more than 23.83 lakhs. Pipeline infrastructure spans approximately 44,540 kilometers. CNG sales rose by 11% year-over-year, with Gujarat recording a 9% increase and areas outside Gujarat delivering a 22% growth. The CNG vehicle base reached approximately 16.94 lakh. The company reduced CO2 emissions by approximately 56 lakh kg per day through PNG sales to industrial customers and by approximately 21 lakh kg per day through CNG sales.
Strategic Initiatives
Gujarat Gas signed 8 new tripartite agreements with biogas producers and GAIL for the purchase of CBG, bringing the total to 27 agreements. The company engaged McKinsey & Company as a strategic consultant to evaluate growth opportunities and advises on organic and inorganic expansion initiatives. The company plans to strategically expand its enterprise resource planning ecosystem and implement a robust and secure SCADA system.
Morbi Market Update
Sales volume in the industrial segment was 3.93 MMSCMD. The average Morbi volumes were 1.6 MMSCMD, and non-Morbi volumes were 2.25 MMSCMD. The company reduced prices in the Morbi Ceramic segment by INR4.50 per SCM, effective January 1, 2026. They expect Morbi volumes to increase from current levels and the company is actively offering propane as an alternative fuel solution. Volumes in February are expected to reach 3 to 3.2 MMSCMD.
Expansion and Future Outlook
Gujarat Gas expects spot prices to be more reasonable after the winter and aims to have 60% to 70% of its volumes tied up on a long-term basis by the end of 2027. The company also expects to cross 1,000 CNG stations in the next 2 to 3 years. They have signed 78 agreements for FDODO stations and will connect more than 10 CNG stations in this financial year and balance in the next financial year. The company aims for an increase in CNG growth to at least 13%.
Source: BSE
