Gujarat Gas Q2 FY26: Revenue Flat at ~₹3,980 Crore, PAT Down ~9%

Gujarat Gas Q2 FY26: Revenue Flat at ~₹3,980 Crore, PAT Down ~9%

Gujarat Gas reported a largely stable quarter on top-line with revenue of ~₹3,979 crore, but profitability slipped — EBITDA at ₹520 crore (vs ₹553 crore) and PAT at ₹281 crore (vs ₹307 crore) for Q2 FY26.

*Headline numbers (company reported — Q2 FY26 vs Q2 FY25)*
* Revenue from operations: ~₹3,979 crore (Q2 FY26) vs ~₹3,949 crore (Q2 FY25).
* EBITDA: ₹520 crore (Q2 FY26) vs ₹553 crore (Q2 FY25).
* PAT (Profit after tax): ₹281 crore (Q2 FY26) vs ₹307 crore (Q2 FY25).

*Operational highlights — volumes & network*
* CNG volume: 3.32 mmscmd in Q2 FY26, up 13% YoY (vs 2.93 mmscmd in Q2 FY25).
* PNG (Domestic): 0.83 mmscmd in Q2 FY26 — +10% YoY.
* PNG (Commercial): 0.16 mmscmd — +7% YoY.
* Total distributed gas: ~8.65 mmscmd in Q2 FY26

*Network & customer metrics*
* CNG stations: 834 operational stations (company added 4 stations in the quarter).
* New domestic customers added in Q2: 42,400+.
* Households served: More than 23.44 lakh households.
* Pipeline network: 43,900+ km of steel pipeline (cumulative).

*Business initiatives mentioned by the company*
* FDODO (Franchise/ dealer) push: Gujarat Gas has signed 74 FDODO agreements to accelerate growth; one FDODO station became operational in Jamnagar during the quarter.
* Corporate action: Shareholders approved the Composite Scheme of Amalgamation and Arrangement at the meeting held on 17th October 2025; the company has filed the Chairman’s Report and confirmation petition with the Ministry of Corporate Affairs.

*What the numbers tell us*
1. Volume growth is healthy, especially CNG: CNG volumes grew 13% YoY to 3.32 mmscmd, showing strong consumer and transport demand — this is the positive operational story.
2. Top line is steady, but margins compressed: Revenue was almost flat (≈₹3,979 crore), yet EBITDA and PAT declined (EBITDA ₹520 crore, PAT ₹281 crore), indicating margin pressure or higher costs relative to last year.
3. Retail expansion continues: Network additions (4 new CNG stations) and 42,400+ new domestic connections in a quarter show steady on-ground growth and customer acquisition.
4. FDODO rollout is a focus: Signing 74 FDODO agreements and commissioning a station signals management’s push to scale via franchise models.

*Risks and near-term things to watch*
* Margin drivers: If fuel/ gas costs, spot LNG prices, or allocations change, EBITDA and PAT can move sharply — the quarter already showed profit decline despite volume growth.
* Execution of FDODO roll-out: Success of the franchise model will affect future station additions and cost structure.
* Regulatory/ allocation changes: Any government allocation changes for domestic/ priority segments could affect supply mix and economics.

*Conclusion*
Gujarat Gas delivered stable revenue (~₹3,979 crore) and good volume growth (CNG +13%), but profitability came under pressure with EBITDA at ₹520 crore and PAT at ₹281 crore. The company is expanding its network and pushing an FDODO strategy, but margin sustainability remains the key monitorable for the next quarters.

The image added is for representation purposes only