This article first appeared on GuruFocus .
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Revenue from Operations:INR9,670 crores in Q1 FY27, up 63% year-over-year from INR5,924 crores.
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EBITDA:INR1,482 crores, reflecting a 65% growth from INR896 crores in Q1 FY26.
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Profit After Tax:INR998 crores, registering a 78% increase from INR561 crores in the prior-year quarter.
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Gas Trading Segment Earnings Before Tax:INR726 crores, up 206% from INR237 crores in Q1 FY26.
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Overall Sales Volume:15.66 mmscmd for the quarter.
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Gas Trading Sales Volume:12.22 mmscmd, with 8.9 mmscmd allocated to the CGD segment.
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CGD Segment Volume:12.34 mmscmd, underpinned by a balanced volume mix.
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CNG Volume:3.76 mmscmd, up 13% from 3.33 mmscmd in the previous quarter.
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PNG Industrial Volume:7.17 mmscmd in Q1 FY27, up 64% from 4.71 mmscmd in Q1 FY26.
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PNG Commercial Volume:0.17 mmscmd in Q1.
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CNG Stations:Expanded to 844 stations, adding six new and upgrading nine during the quarter.
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Domestic PNG Customers:Added approximately 59,000 new customers, taking the cumulative base to more than 24.77 lakh households.
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CGD Infrastructure Investment:INR127 crores invested during the quarter.
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Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Strong financial performance with revenue up 63% YoY, EBITDA up 65%, and PAT up 78% in Q1 FY27.
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Gas trading segment delivered exceptional profitability, with EBIT surging 206% YoY to INR726 crores.
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CNG volumes hit a new benchmark of 3.76 mmscmd, growing 13% QoQ, with plans to add over 75 new stations this year.
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Industrial PNG sales volumes grew 64% YoY, driven by a 181% increase in the Morbi ceramic cluster.
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Robust cash position of INR7,200 crores, providing flexibility for future investments and diversification.
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Successful completion of merger and listing, positioning the company as a leading integrated energy player.
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Government policy support for PNG connections is driving strong growth in domestic and commercial customer additions.
Negative Points
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Morbi gas volumes have dropped to 3 mmscmd from 8 mmscmd due to improved propane availability and a price gap favoring propane.
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Third-party gas trading volumes declined to 3.3 mmscmd from 5 mmscmd due to high spot prices and reduced power demand.
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CGD segment EBITDA margin fell to INR5.18/scm, below the guided range of INR5.5-6.5, due to higher volumes and lower Morbi margins.
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Power plants continue to operate at very low PLFs (1-6%), with no clear revival strategy yet.
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Global energy market volatility and geopolitical disruptions pose ongoing risks to supply and pricing.
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Long-term LNG contracts are being signed, but the timeline for new supply has shifted to 2028, limiting near-term cost benefits.
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Propane infrastructure constraints in Morbi mean a floor of ~1.8-2 mmscmd for gas volumes, limiting upside.
Q & A Highlights
Q: What is the current run rate of gas volumes in the Morbi cluster, and how is the improved availability of propane impacting the business? A: Sandeep Dave, Company Secretary, stated that while the company sold over 8 mmscmd in the Morbi cluster during Q1, the current run rate has normalized to approximately 3 mmscmd of gas. The improved availability of propane, sourced from non-Middle East countries like the USA and Venezuela, has led to a shift, with about 5.3-5.4 mmscmd equivalent being delivered as propane. The current price for the company's gas is approximately INR78 per scm, while propane is priced around INR65 per scm.
Q: Can you explain the very high gas trading margin in Q1 FY27 and provide guidance for the full year? A: Sandeep Dave, Company Secretary, explained that the strong margin was due to sourcing gas at an advantageous time, particularly benefiting from long-term agreements linked to Brent on an aging basis. He reaffirmed the company's guidance of around INR1,100 crores of profit from the gas trading business for FY27, stating that despite the exceptional Q1, they are sticking to this conservative estimate and do not anticipate negative reversals in Q2.
Q: What is the company's strategy for sourcing long-term gas, and what percentage of volumes will be on long-term contracts going forward? A: Sandeep Dave, Company Secretary, clarified that the delay in signing long-term contracts is not due to a lack of confidence in demand but rather the shifting timeline for reasonable gas prices due to geopolitical shocks. The company has signed contracts with Total, Uniper, and Qatar and is in the market for two more. They are targeting sourcing gas starting 2028, with a goal of having around 2 million tons on term contracts by then, increasing to at least 4 million tons by 2030.
Q: What is the outlook for CNG volume growth for the rest of the year? A: Sandeep Dave, Company Secretary, stated that the company has been growing at close to 12-13% and expects to sustain this growth for the next couple of years. This confidence is supported by the company's plan to add more than 75 new CNG stations and upgrade approximately 70 existing stations during the current financial year.
Q: What is the breakup of gas sourcing for the CGD business, and what is the CapEx guidance? A: Sandeep Dave, Company Secretary, provided the sourcing breakup for the CGD segment: approximately 14% from APM gas, 6% from new well gas, 2% from GAIL coal gas, 9% from long-term contracts, and the remaining 69% from short-term or inter-segment sales. He also reaffirmed the CapEx guidance of close to INR1,000 crores for the CGD segment for FY27.
Q: What is the current cash balance, and how does the company plan to utilize it? A: Sandeep Dave, Company Secretary, stated that the company has a cash balance of around INR7,200 crores. While INR1,000 crores is earmarked for CGD CapEx, the company is working on a concrete plan for deploying the rest of the cash. This includes strengthening existing businesses like CNG and pipelines and exploring diversification strategies in the energy business. A concrete plan is expected to be presented by Q3.
Q: What is the status of the company's plans to set up its own propane import facility? A: Sandeep Dave, Company Secretary, confirmed that the company has plans to set up its own propane import and storage facilities near the Morbi market. They have shortlisted a few sites in Gujarat and are currently conducting studies. The CapEx for this project is not included in the current INR1,000 crores guidance, as it is in the early stages and will likely be incurred over the next two years.
Q: What is the current performance of the power business, and are there any strategies to improve it? A: Sandeep Dave, Company Secretary, reported that the gas-based power plants are operating at very low PLFs, around 1% for Pipavav and 6% for GSEG. Utilization only increases during peak summer demand. The company is working on a strategy to revive the business, including exploring options like behind-the-meter deals to supply power to data centers, and expects to share more details with investors in the coming months.
Q: What is the timeline for the listing of GTSG transmission? A: Sandeep Dave, Company Secretary, stated that the listing is taking slightly longer than expected due to the requirement for an exemption from the public issue route. The company is coordinating with BSE, NSE, and SEBI and now expects the listing to occur towards early September.
Q: What is the status of the tax refunds the company expects to claim from the merger? A: Sandeep Dave, Company Secretary, stated that the company is in the process of filing revised returns for FY24-25 and FY25-26. The process is expected to take at least a year to complete, and the expected quantum of refunds is around INR900 crores.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
