Operational Performance Highlights

Gas Trading Business:

  • Sourced 10 LNG cargoes despite geopolitical disruptions and supply constraints
  • Gas Trading segment EBIT increased to ₹726 crores in Q1 FY27 from ₹237 crores in Q1 FY26, representing 206% growth
  • Sales volume reached 12.22 mmscmd, with 8.9 mmscmd allocated internally to CGD segment

City Gas Distribution (CGD) Business:

  • CNG Segment: Volume of 3.76 mmscmd in Q1 FY27 vs 3.33 mmscmd in Q1 FY26 (13% growth)
  • Gujarat region: 12% growth
  • Areas outside Gujarat: 19% growth
  • CNG infrastructure expanded to 844 stations (6 new stations added, 9 upgraded in quarter)
  • Plan to add 75+ new CNG stations and upgrade ~70 stations during FY27
  • CNG remains 46% cheaper than petrol and 25% cheaper than diesel
  • PNG Domestic Segment: Added ~59,000 new domestic PNG customers in Q1, taking cumulative base to >24.77 lakh households
  • From January to June 2026: Connected ~91,000 domestic PNG + 1,000+ commercial PNG connections under PNG drive
  • PNG Commercial Segment: Volume of 0.17 mmscmd in Q1 FY27
  • Serving >16,600 commissioned commercial customers
  • PNG Industrial Segment: Volume increased to 7.17 mmscmd in Q1 FY27 from 4.71 mmscmd in Q1 FY26 (64% growth)
  • Morbi ceramic cluster: Average volume 5.67 mmscmd (181% increase vs Q4 FY26)
  • Outside Morbi cluster: 2.04 mmscmd
  • Morbi volumes rose from ~0.4 mmscmd in April 2026 to ~8 mmscmd during May-June 2026
  • Current Morbi run rate: ~3 mmscmd (gas) + 5.3-5.4 mmscmd equivalent as propane
  • Pricing: Gas at ₹78/scm vs propane at ₹65/scm

Financial Performance

  • Revenue from operations: ₹9,670 crores (Q1 FY27) vs ₹5,924 crores (Q1 FY26) - 63% growth
  • EBITDA: ₹1,482 crores (Q1 FY27) vs ₹896 crores (Q1 FY26) - 65% growth
  • Profit after tax: ₹998 crores (Q1 FY27) vs ₹561 crores (Q1 FY26) - 78% growth
  • Overall sales volume: 15.66 mmscmd
  • CGD segment contributed 12.34 mmscmd
  • External gas trading sales: 3.32 mmscmd

Infrastructure and Investments

  • Total pipeline network: ~45,900 kilometers across six states and one union territory
  • Q1 CGD infrastructure investment: ₹127 crores
  • FY27 capex guidance: ~₹1,000 crores for CGD business
  • Cash balance: ₹7,200 crores

Gas Sourcing Breakdown

  • Overall sourcing: 20% term contracts, 12.5% domestic gas, 67% spot
  • Long-term contracts: 20% Henry Hub linked
  • CGD segment sourcing: 14% APM gas, 6% new well gas, 2% GAIL pool gas, 9% long-term contract, 69% short-term/intersegment

Environmental Impact

  • PNG industrial sales helped reduce CO2 emissions by ~1.07 crores kg/day vs coal
  • CNG sales helped reduce CO2 emissions by ~21 lakh kg/day vs petrol/diesel

Strategic Initiatives

  • Planning propane import facility in Gujarat near Morbi market (sites shortlisted, studies ongoing)
  • Working on strategy to revive gas-based power plants (current PLF: ~1%)
  • Exploring power supply to data centers
  • Long-term gas sourcing targets: 4 million tons by 2030 (currently 2 million tons)
  • Signed contracts with Total, Uniper, Qatar; pursuing 2 more contracts

Guidance and Outlook

  • Gas trading business: Maintains ₹1,100-1,200 crores profit guidance for FY27
  • CGD EBITDA margin guidance: ₹5.5-6.5/scm (Q1 at ₹5.18/scm)
  • Non-Morbi industrial volumes expected to reach 3 mmscmd in 1.5-2 years
  • Third-party gas trading volumes expected to normalize to 4.5-5 mmscmd range by FY28-FY29

Corporate Updates

  • GSPL Transmission Limited listing expected by early September 2026 (requires exemption for listing without public issue)
  • Tax refund of ~₹900 crores expected for unabsorbed merger losses (revised returns being filed, may take ~1 year)
  • Dividend policy follows Government of Gujarat guidelines (₹835 crores dividend paid last quarter)
  • Concrete plan for cash deployment to be shared by Q3 FY27

Management Participants

  • Smt. Avantika Singh Aulakh, IAS - Managing Director
  • Shri Devendra Agarwal - Executive Director, Regulatory Affairs - Gas Sourcing & Gas Dispatch Centre
  • Shri Sandeep Dave - Company Secretary
  • Shri Rajesh Sivadasan - Chief Financial Officer
  • Shri Vikas Gangal - Senior Vice President - Commercial & Marketing, IT & ERP