Gujarat Energy Limited has completed the distribution of net sale proceeds from fractional shares arising out of its composite scheme of amalgamation and arrangement. The company credited the amounts to eligible shareholders on August 7, 2026, following the sale of consolidated fractional entitlements by the appointed independent trustee.

The distribution relates to shareholders of erstwhile Gujarat State Petroleum Corporation Limited and Gujarat State Petronet Limited who held fractional entitlements after the scheme became effective on May 1, 2026. Under the sanctioned scheme, 62,27,14,719 equity shares of face value ₹2 each were allotted to shareholders of GSPC and GSPL based on the record date of May 12, 2026.

Scheme Mechanics and Share Exchange

The allotment followed specific share exchange ratios approved under Sections 230 to 232 of the Companies Act, 2013. The Ministry of Corporate Affairs sanctioned the scheme via an order dated April 8, 2026. The key exchange parameters were:

• GSPC Shareholders: Received 10 fully paid equity shares of ₹2 each for every 305 fully paid equity shares of ₹1 each held.
• GSPL Shareholders: Received 10 fully paid-up equity shares of ₹2 each for every 13 fully paid equity shares of ₹10 each held.

A total of 35,20,17,714 equity shares were allotted to GSPC shareholders, while 27,06,97,005 equity shares were allotted to GSPL shareholders.

Fractional Share Consolidation and Sale

IDBI Trusteeship Services Limited was appointed as the Independent Trustee to manage the fractional entitlements. The trustee consolidated and aggregated the fractional shares, allotting the corresponding whole shares in trust for the benefit of eligible shareholders.

The trustee executed the sale of these consolidated fractional shares on July 20, 2026, at prevailing market prices. After deducting applicable expenses and charges, the net sale proceeds were transferred to Gujarat Energy for distribution. The company completed the credit of these proceeds to eligible shareholders on August 7, 2026, after deducting applicable tax at source (TDS) where required.

What the Numbers Show

The scale of the share consolidation highlights the significant restructuring involved in the demerger. With over 62 crore new equity shares issued to transferor company shareholders, the fractional share mechanism was essential to ensure equitable value distribution without issuing sub-unit holdings. The timely completion of the sale and distribution within three months of the scheme’s effective date indicates efficient execution of the post-sanction logistical requirements.

Shareholder Verification

Shareholders are advised to verify the credited amounts against their bank statements or passbooks. In case of discrepancies or non-credit, shareholders may contact their banks using the electronic credit reference numbers provided in the intimation email. TDS certificates will be issued as per statutory timelines under the Income Tax Act, 2025.

For further clarifications, shareholders may contact the Registrar and Share Transfer Agent, M/s. KFin Technologies Limited, quoting their Folio number or DP-Client ID.

Gujarat Energy Limited reported a standalone net profit of ₹998 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 78% surge from ₹561 crore in Q1FY26. The company’s revenue from operations climbed 63% year-on-year to ₹9,670 crore, while EBITDA grew 65% to ₹1,482 crore from ₹896 crore previously. This financial performance followed the completion of its Composite Scheme of Amalgamation, which integrated Gujarat State Petroleum Corporation Limited (GSPC), Gujarat State Petronet Limited (GSPL), and GSPC Energy Limited into the entity, renamed from Gujarat Gas Limited effective May 14, 2026.

Key Financial Highlights

The Board of Directors approved the unaudited results on August 11, 2026. Statutory auditors Ashok Chhajed & Associates issued an unmodified review report on both standalone and consolidated financials. M/s. Kailash Sankhlecha & Associates was appointed as Cost Auditor for FY27.

During the earnings conference call held on August 12, 2026, management clarified that the consolidated net profit stood at ₹1,007.40 crore compared to ₹546.95 crore in the prior year. The strong top-line growth was underpinned by an overall sales volume of 15.66 mmscmd, with the gas trading segment contributing 12.22 mmscmd and the city gas distribution (CGD) segment delivering 12.34 mmscmd.

Segment Performance and Operational Updates

The gas trading segment remained a key profit driver, with earnings before tax rising 206% to ₹726 crore from ₹237 crore in Q1FY26. Management attributed this to successful sourcing of 10 LNG cargoes despite geopolitical disruptions. Of the 12.22 mmscmd traded, 8.9 mmscmd was allocated internally to the CGD segment, while external sales accounted for the remainder. The CGD segment generated standalone revenue of ₹7,729.08 crore, nearly doubling from ₹4,065.41 crore in Q1FY25.

In the CNG vertical, volumes reached a new benchmark of 3.76 mmscmd, up 13% from 3.33 mmscmd in Q1FY26. Growth was observed across geographies, with Gujarat recording a 12% increase and areas outside Gujarat delivering 19% growth. The company added six new CNG stations and upgraded nine during the quarter, bringing the total infrastructure to 844 stations. Management plans to add more than 75 new stations and upgrade approximately 70 existing ones in FY27.

The PNG domestic segment saw healthy customer additions, with approximately 59,000 new connections in the quarter, taking the cumulative base to over 24.77 lakh households. Between January and June 2026, the company connected approximately 91,000 domestic PNG connections and over 1,000 commercial connections under the government-backed PNG drive. Industrial PNG sales volumes surged 64% to 7.17 mmscmd from 4.71 mmscmd, largely driven by the Morbi ceramic cluster, which consumed an average of 5.67 mmscmd during the quarter.

What the Numbers Show

The divergence between the surge in industrial volumes and the moderation in third-party gas trading highlights the impact of global supply shocks on margin structures. While the Morbi cluster volume increased 181% quarter-on-quarter due to propane shortages, management noted that post-July propane availability has improved, reducing current run rates to close to 3 mmscmd for gas. Despite this, the company maintained high trading margins by leveraging long-term agreements linked to Brent crude, avoiding negative reversals in subsequent quarters. The integrated model allowed Gujarat Energy to secure critical LNG volumes when spot prices were elevated, translating into higher profitability despite lower external trading volumes.

Guidance and Strategic Outlook

Management reaffirmed its guidance for a profit of ₹1,100 crore from the gas trading business for FY27, describing it as a conservative estimate. For the CGD segment, the company expects to sustain CNG volume growth of around 12-13% for the next couple of years, supported by infrastructure expansion. Capex for FY27 is guided at close to ₹1,000 crore, primarily focused on CGD infrastructure, with no significant capex planned for the gas trading segment in the near term.

On sourcing, the company currently operates with approximately 20% of volumes on term contracts, 12.5% on domestic gas, and the remainder on spot markets. Management is actively negotiating new long-term contracts with partners like Total, Uniper, and Qatar, aiming to increase term contract volumes to 4 million tons by 2030. The company holds cash reserves of around ₹7,200 crore, with plans to deploy surplus funds towards business strengthening and diversification, with concrete plans expected by Q3FY27.

Contingent Liabilities and Legal Matters

The filing highlights material contingent liabilities, including disputed income tax demands totaling ₹1,686.91 crore. Vedanta Limited has invoked arbitration proceedings claiming over ₹1,200 crore regarding natural gas supply allocations, a matter pending before the Delhi High Court. Additionally, the company has fully provided ₹527.00 crore against receivables from Jubilant Offshore Drilling Pvt Ltd (JODPL) due to liquidation proceedings. Subsidiary GSPC LNG Limited has not provided for ₹89.66 crore in interest on delayed EPC payments, awaiting final settlement negotiations.