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EBITDA miss attributed to soft volume performance

• Total volumes declined 19% YoY to 8.9mmscmd in 1QFY26, below our est. of 9.5mmscmd.
• CNG volumes were in line with our estimate, whereas I&C-PNG volumes came in 7% below estimates.
• EBITDA/scm came in marginally below our est. at INR6.4.
• Realization decreased ~INR1.1/scm QoQ, while gas cost/opex declined INR1.7/INR0.5 per scm QoQ, leading to ~INR1.1/scm QoQ increase in EBITDA/scm margin.
• Resultant EBITDA stood 8% below our estimate at INR5.2b (flat YoY).
• PAT came in line with our est. at INR3.3b (flat YoY), driven by higher-than-estimated other income.
• GUJGA press release KTA’s:
• GUJGA expands into propane/LPG sales:
• With a vision to become a comprehensive energy solutions provider and a strong focus on empowering communities, businesses, and industries, the board of GUJGA has approved the sourcing and sale of propane/LPG to industrial customers. This move reinforces the company’s customer-centric approach and commitment to meeting diverse energy needs.
• Quarterly operational performance:
• CNG segment maintained strong growth momentum, with volumes rising 12% YoY to a record 3.33mmscmd in 1QFY26, supported by a network of 830 CNG stations.
• GUJGA is actively expanding through the FDODO model, having signed 69 agreements with various dealers to date, which is expected to further accelerate growth.
• In 1Q, the company added over 35,000 new D-PNG connections, taking the total number of households served to more than 2.3m.

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