Gujarat Gas PAT Rises 14 per cent QoQ to Rs 3.27 Billion

Gujarat Gas Limited reported record CNG volumes and Q1 FY26 financial performance, with revenue at Rs 11.07 billion and EBITDA at Rs 5.79 billion. Profit After Tax (PAT) was Rs 3.27 billion, a 14% increase from Q4 FY25. Gujarat Gas recorded its highest-ever CNG volume at 3.33 mmscmd, up 12% YoY. The company added over 35,000 new domestic PNG customers, increasing its household coverage to over 2.3. Gujarat Gas is advancing its FDODO model and entering the propane and LPG sourcing and sales business for industrial clients.

Gujarat Limited (GGL), one of India’s leading city distribution companies, has posted a robust 14% quarter-on-quarter (QoQ) rise in its Profit After Tax (PAT), reaching ₹3.27 billion for the latest quarter. This growth signals a stable recovery in industrial gas demand and efficient cost management amid a volatile energy market. The company’s revenue for the quarter also witnessed a healthy uptick, reflecting sustained demand from both industrial and domestic consumers.

Volume and Segment-wise Growth

The QoQ improvement is largely driven by higher gas sales volumes, especially in the industrial segment. The textile and ceramic clusters of Gujarat key demand centres for natural gas showed improved offtake compared to the previous quarter. Additionally, GGL’s compressed natural gas (CNG) segment continued to show strong traction, benefiting from an expanding network of CNG stations across urban and semi-urban Gujarat. Despite global LNG price fluctuations, Gujarat successfully managed its input costs through strategic sourcing and long-term supply arrangements. The company reported stable EBITDA margins, supported by operational efficiencies and digital initiatives aimed at improving distribution and customer servicing. Moreover, reduced pipeline losses and automation of billing and supply chains contributed to the improved bottom line. (Gas Infrastructure).

In alignment with global Environmental, Social, and Governance (ESG) norms, Gujarat has also stepped up its focus on sustainability. Through the promotion of CNG and PNG over fossil fuels like diesel and coal, GGL is actively contributing to India’s decarbonization roadmap. It has also initiated pilot programs for biogas blending and hydrogen-mixed fuels, aiming to explore greener alternatives in the long term.

Capex and Network Expansion Plans
Gujarat has maintained its focus on expanding its pipeline network across newly authorized geographical areas (GAs). The company is expected to continue its capex deployment to build out infrastructure in districts like Bhavnagar, Amreli, and Morbi. This aligns with the broader national push for natural gas adoption as a clean fuel under India’s Energy Transition Plan. The rise in GGL’s PAT comes at a time when the Indian city distribution sector is witnessing increased competition and regulatory reforms. Companies are under pressure to keep tariffs reasonable while scaling infrastructure. (Energy & Infrastructure).

Conclusion

The 14% QoQ rise in PAT to ₹3.27 billion underlines Gujarat strong fundamentals, strategic planning, and its pivotal role in India’s clean energy transition. With continuous network expansion, cost control, and increasing penetration into semi-urban and rural markets, the company is poised for long-term, sustainable growth. It also supports India’s long-term goal of increasing the share of natural gas in the energy mix to 15% by 2030. Gujarat Gas’s financial performance places it in a strong position to navigate this changing landscape.