Gujarat Energy Q4 FY26 Volumes Grow Post-Merger Completion

Scheme Effective Date: The scheme of arrangement became effective from May 1, 2026.
Appointed Dates: The appointed date for the merger of GSPC, GSPL, and GSPC Energy into Gujarat Gas was April 1, 2024. The appointed date for the demerger of the gas transmission business into GSPL Transmission Limited (GTL) was April 1, 2025.
Name Change: The name of Gujarat Gas Limited was changed to Gujarat Energy Limited effective May 14, 2026.
Share Allotment: Shares of Gujarat Energy were allotted to shareholders of GSPC and GSPL on May 16, 2026. Listing permissions for these additional shares from BSE and NSE are expected in 7-10 days from June 1.
GTL Listing: The entire process for listing and trading of GTL shares is expected to be completed by the end of July 2026.
Final Share Count: The total number of shares post-allotment will be approximately 93 crores.

1. Gas Trading Segment:

FY26 Volume: 10.2 mmscmd.
Intersegment Sales: 5.3 mmscmd (supplied to own CGD segment).
Net External Volume: 4.9 mmscmd.
FY25 Volume (for comparison): 12.6 mmscmd (a 19% YoY decline).
Segment Earnings Before Tax (EBT): ₹1,334.61 crores in FY26 vs. ₹1,222 crores in FY25.
Long-Term LNG Portfolio: Access to ~2.96 MTPA (~10.66 mmscmd) from various international suppliers.
New Contracts Signed in FY26: Two long-term LNG SPAs aggregating up to 1.36 MTPA (~4.9 mmscmd) with Qatar Energy and Uniper Global Commodities.
Regasification Capacity: Firm capacity of 2.25 MMTPA at Petronet LNG's Dahej terminal.
Q1 FY27 Run Rate: Net trading volume is close to 5.5 mmscmd.
Profitability: The segment typically makes a margin of 4% to 6%. Management expects an annual recurring profitability of ₹1,000-1,100 crores, excluding one-offs.

2. City Gas Distribution (CGD) Segment:

Total CGD Volume (Q4 FY26): ~14 mmscmd (includes APM gas, new well gas, etc.).
CNG:
Q4 Volume: 3.6 mmscmd (highest ever), representing 12% YoY growth.
Growth Breakdown: Gujarat +11%, areas outside Gujarat +18%.
Stations: 839 CNG stations as of March '26.
Vehicle Base: ~17.68 lakh vehicles, up 15% YoY.
Economic Advantage: ~47% cheaper than petrol and ~15% cheaper than diesel.
PNG Domestic:
Q4 Additions: ~43,000 new registrations and ~35,400 new connections commissioned.
Total Customer Base: Crossed 24.18 lakh customers.
LPG-Free Societies: By May '26, 2,835 residential societies (~4.86 lakh households) were converted to 100% PNG.
PNG Commercial:
Customer Base: Over 16,000 commissioned customers as of March '26.
Growth: Commissioned units increased from 152 in March '26 to 527 by the last week of May '26.
PNG Industrial:
Q4 Volume: 4.19 mmscmd (Q4 FY25: 5.03 mmscmd; Q3 FY26: 3.93 mmscmd, a 7% QoQ increase).
Morbi Ceramic Cluster:
Volume increased from 83 units consuming 1.66 mmscmd in March '26 to 710 units consuming ~8 mmscmd by the last week of May '26.
Q4 Average: 2.02 mmscmd (up 21% QoQ).
Pricing (May/June '26): ~₹75-78/SCM (indexed to exchange rate and calorific value).
Non-Morbi Volume: Q4 average was 2.17 mmscmd (down 3.5% QoQ).

3. Exploration & Production (E&P) Segment:

4. Power Segment (Renewables - Wind):

FY26 EBITDA: ₹46 crores.
Power Segment (Conventional - GSEG & GPPC):
Reported losses for FY26 due to exceptional items like forex losses and impairments.
Plant Load Factor (PLF): GPPC ~1%, GSEG ~6.5%.
Forex Losses: GSEG ~₹15 crores, GPPC ~₹23 crores (related to USD-denominated contracts with BHEL).
Capacity: 1,000 MW.
PPA Status: Existing PPA with GUVNL is valid until 2036. GUVNL pays a fixed cost for plant maintenance.
Turnaround Outlook: Management is exploring opportunities to revive the plants; a spot LNG price of $6-7/MMBtu would make operations viable.

Q4 FY26 EBITDA: ₹943 crores (Q4 FY25: ₹790 crores).
FY26 EBITDA: ₹3,772 crores (FY25: ₹3,241 crores).
FY26 PAT: ₹2,299 crores (FY25: ₹2,308 crores).
Dividend: Board recommended a dividend of ₹8.90 per share (445% of face value), involving a total outgo of ~₹835 crores.
Tax Loss Carry Forward (DTA):
Total tax losses at merger (Apr 1, 2024): ₹7,200 crores.
Absorbed in FY25: ~₹2,800 crores.
Absorbed in FY26: ~₹2,500 crores.
Balance as of Mar '26: ~₹1,900 crores (to be used within 8 years).
Advanced tax refund of ~₹900 crores is due.
Cash & Investments: Aggregate cash and financial assets (including fixed deposits) total ~₹6,800 crores.

Digital Transformation: Initiatives underway include ERP expansion, AI analytics, advanced metering, SCADA implementation, and automation.
Strategic Consultant: Engaged McKinsey & Company to evaluate growth opportunities (organic/inorganic) and define a strategy for the next decade.
ESG Initiatives:
Signed 24 new tripartite agreements for Compressed Biogas (CBG) offtake, taking the total to 35 agreements for ~1.6 lakh SCMD.
Daily CO2 emission reduction: ~60 lakh kgs from industrial PNG vs coal; ~19 lakh kgs from CNG vs petrol/diesel.
Propane Business: Evaluating entry into propane import and storage business to serve the Morbi cluster. Discussions are ongoing with ports and counterparties like Qatar Energy and Saudi Aramco.
Volume Guidance: Expects 25-30% growth in gas trading business by 2030-31.
Capex Guidance:
CGD Segment: ~₹1,000 crores for FY27.
E&P Segment: ~₹100 crores for FY27.
Trading Segment: No significant capex.

Management Participants: Smt. Avantika Singh Aulakh (IAS, Managing Director), Shri Devendra Agarwal (Executive Director), Shri Sandeep Dave (Company Secretary), Shri Rajesh Sivadasan (CFO), Shri Vikas Gangal (SVP - Commercial & Marketing, IT & ERP).
Analysts: Representatives from ICICI Securities, DAM Capital, Ambit Capital, Equirus, Nomura, CLSA, Avendus Spark, SBI Mutual Funds, Emkay Global, PhillipCapital, Axis Capital, and others.
Strategic Partner: McKinsey & Company.
Regulators: SEBI, Ministry of Corporate Affairs.
Key Subsidiaries/JVs: GSPC LNG, Sabarmati Gas.