Financial Performance Highlights

Q2 FY27 Performance:

  • Revenue from operations: ₹9,826 crores (59% YoY increase)
  • EBITDA: ₹1,019 crores (20% YoY increase)
  • PAT: ₹639 crores (22% YoY increase)
  • Capital expenditure: ₹181 crores

H1 FY27 Performance:

  • Revenue from operations: ₹19,496 crores (61% YoY increase)
  • EBITDA: ₹2,502 crores (43% YoY increase)
  • PAT: ₹1,637 crores (51% YoY increase)
  • Total capex: ₹308 crores

Business Segment Performance

City Gas Distribution (CGD) Business:

  • Q2 FY27 CGD volumes: 10.7 MMSCMD (24% YoY growth)
  • H1 FY27 CGD volumes: 11.5 MMSCMD (31% YoY growth)
  • Industrial PNG volumes: 6.1 MMSCMD in Q2 (39% YoY growth)
  • CNG volumes: 3.67 MMSCMD in Q2 (11% YoY growth)
  • CNG stations: 857 at H1 FY27 end (added 18 new stations in H1)
  • Domestic PNG connections: ~25.3 lakh
  • Commercial connections: ~17,000
  • Industrial connections: ~4,500

Morbi Ceramic Cluster Update:

  • Q2 FY27 volumes: 3.8 MMSCMD (reduced from ~8 MMSCMD in Q1 FY27)
  • Current run rate: ~1 MMSCMD
  • Price differential vs propane: INR 7-8 currently, was INR 10-12 in September

Gas Trading Business:

  • Q2 FY27 gas trading revenue: ₹7,615 crores (84% YoY growth)
  • H1 FY27 gas trading revenue: ₹14,749 crores
  • Q2 FY27 gas trading EBITDA: ₹329 crores (89% YoY growth)
  • Total gas sourced: 12.31 MMSCMD in Q2
  • External customer sales: 4.67 MMSCMD
  • Internal CGD supply: 7.63 MMSCMD

Sourcing Mix (Q2 FY27):

  • Imported gas: 55%
  • Other domestic gas and RLNG: 29%
  • APM gas: 10%
  • New well gas: 6%
  • HPHT volumes: 1.3 MMSCMD
  • APM gas: 1.61 MMSCMD
  • New well gas: 0.8 MMSCMD

Strategic Initiatives and Updates

Long-term LNG Contracts:

  • Board approved execution of long-term LNG sourcing agreements aggregating 0.8 MTPA
  • Tenure: Up to 10 years
  • Pricing: $7-$9 per MMBTU DES basis (Henry Hub linked)
  • Purpose: Regain market share in Morbi cluster competing with propane
  • Target total LNG book: 4 MTPA (including existing contracts)

Existing LNG Contracts:

  • Shell: 1 MTPA (expires 2038, price review clause)
  • Qatar: 1 MTPA (new contract, until 2042)
  • Qatar: 0.3 MTPA (expires 2028)
  • Uniper: 0.4 MTPA (starts January 2028, 10-year contract)
  • TotalEnergies: 0.4 MTPA (started 2026, 10-year contract)

New Business Initiatives:

  • Compressed Biogas (CBG): Initiated entry into CBG ecosystem, issued EOI for partners
  • CBG capex: ~₹100 crores maximum
  • LNG stations: Exploring development of 6 LNG stations in GAs for long-haul transportation

LNG Terminal Utilization:

  • Q2 FY27 utilization: 24%
  • GSPC LNG: Achieving cash profits at 24-25% capacity utilization

Treasury and Cash Management

  • Cash and cash equivalents: ₹7,000-7,500 crores
  • Deposits with GSFS: ₹3,300 crores
  • Investment policy: Board-approved, allocates based on highest interest rates from banks
  • No linkage between GSFS deposits and GSPC LNG loan of ₹3,100-3,200 crores
  • No guarantees provided to subsidiaries for their debts

Tax Matters

  • Expected tax refund: ~₹900 crores
  • Expected timing: Before end of FY27

Guidance and Outlook

  • FY27 capex guidance: ~₹1,000 crores (reiterated)
  • CNG station addition target: 75+ stations in FY27
  • Gas trading margin guidance: 5-6% for FY27
  • CGD EBITDA/SCM guidance: INR 5-6 (excluding other income)
  • Q2 FY27 CGD margin: 4.7/SCM

Awards and Recognition

  • Special Jury Award for Top Target Achiever Geographic Area (Narmada District GA)
  • Best Performing GA during PNG Drive 2.0 (Bathinda District GA)
  • Golden Peacock Award for Risk Management for 2026

Environmental Impact

  • Q2 PNG industrial sales helped reduce CO₂ emissions by ~84.5 lakh kg/day
  • Q2 CNG sales helped reduce CO₂ emissions by ~20 lakh kg/day

Subsidiary Performance

  • Power plants: Running due to energy shortage, working on turnaround plans
  • GSPC LNG: Achieving cash profits at 24-25% utilization

Next Earnings Call

Scheduled for first week of February 2027 for Q3 FY27 results.