Company Update : Gujarat Gas Ltd by Motilal Oswal Financial Services Ltd
EBITDA in line; other income drives a beat on PAT
* Total volumes came in line with our estimate at 8.7mmscmd (down 12% YoY).
* CNG/I&C-PNG volumes were in line with our estimate, whereas D-PNG volumes came in 15% above estimates.
* EBITDA/scm came in line with our est. at INR5.6.
* Realization decreased ~INR0.6/scm QoQ, while gas cost/opex increased INR0.2/INR0.1 per scm QoQ, leading to ~INR0.8/scm QoQ decrease in EBITDA/scm margin.
* Resultant EBITDA stood in line with our estimate at INR4.5b (down 13% YoY).
* However, PAT came in 15% above our estimate at INR2.8b (down 8% YoY), driven by higher-than-estimated other income.
* Press release KTAs:
* GUJGA continues to expand its CNG network, adding 4 new stations in 2QFY26; CNG volumes rose 13% YoY, supported by 834 operational stations.
* Aggressive rollout of the FDODO model with 74 agreements signed; the first FDODO station operational in Jamnagar, with more to follow.
* Shareholders approved the Composite Scheme of Amalgamation and Arrangement with an overwhelming majority on 17 Oct’25; filings were submitted to MCA.
* Added 42,400+ new domestic customers during the quarter, taking total connections to over 2.3m households.
* The pipeline network expanded to 43,900 inch-km cumulatively.
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