Mumbai: Gujarat Gas Limited (GGL) reported robust third-quarter financial results for FY 2025-26, achieving its highest-ever CNG volume of 3.45 million metric standard cubic meters per day (mmscmd) and registering a 20% year-on-year rise in net profit. The company’s EBITDA also grew 14%, driven by expansion in its CNG network and domestic customer base, though sequential industrial volumes saw a significant dip.
Record CNG and PNG Growth
The company’s CNG segment continued to witness strong momentum, with an 11% increase in volumes compared to Q3 FY25. PNG (Domestic) volumes rose by 11% to 0.83 mmscmd, while PNG (Commercial) volumes increased by 8% to 0.17 mmscmd. Gujarat Gas added over 38,600 new domestic customers during the quarter, serving more than 23.83 lakh households across its operational areas.
The company currently operates 833 CNG stations and is aggressively expanding its FDODO (Fully Dealer Owned Dealer Operated) model, having signed 78 FDODO agreements. One FDODO station became operational in Jamnagar during the quarter, with more expected to open soon.
Financial Highlights of Q3 FY26
- Revenue from Operations: ₹3,865 crore, compared to ₹4,333 crore in Q3 FY25
- EBITDA: ₹502 crore, up 14% from ₹439 crore in Q3 FY25
- Net Profit (PAT): ₹266 crore, up 20% from ₹222 crore in Q3 FY25
Despite these year-on-year gains, the company reported a sequential 3.2% dip in revenue to ₹3,658 crore and a 4.6% fall in net profit to ₹267 crore. Operating profit margins expanded slightly to 12.2% from 11.9% in the previous quarter.
Industrial Segment Faces Sequential Pressure
While the CNG and domestic PNG segments performed strongly, industrial volumes declined sharply by 19.7% sequentially to 3.93 mmscmd. This decline weighed on overall investor sentiment, causing GGL shares to fall by 2.8% to ₹395.95, reflecting subdued market enthusiasm despite meeting tempered expectations.
Strategic Initiatives and Expansion
Gujarat Gas has appointed McKinsey & Company as a strategic consultant to support its expansion and operational efficiency. The company also boasts a cumulative pipeline network of approximately 44,540 inch-kilometers, positioning it well for continued growth in the natural gas distribution sector.
About Gujarat Gas Limited
Gujarat Gas Limited is one of India’s largest state-owned natural gas distribution companies, supplying CNG and piped natural gas (PNG) to industrial, commercial, and residential customers. With an extensive network of pipelines and CNG stations, GGL plays a pivotal role in promoting clean energy adoption and supporting India’s transition to greener fuel solutions. The company focuses on sustainable growth, operational excellence, and expanding its footprint in both domestic and commercial segments.
