Gujarat State Petronet Limited (GSPL) has announced a significant investment in its joint venture company, GSPL India Gasnet Limited (GIGL). The Board of Directors of GSPL approved two key financial commitments during a meeting held on November 11, 2025.

Investment Details

The approved investments include:

1. Subscription to GIGL's right issue of Redeemable Cumulative Preference Shares amounting to ₹35.77 crore.
2. An additional equity contribution in GIGL of up to ₹7.80 crore.

These investments bring GSPL's cumulative equity contribution in GIGL to ₹1,339.84 crore.

Shareholding Structure

GSPL currently holds a 52% stake in GIGL and will maintain this percentage after the additional equity contribution. The other joint venture partners in GIGL include:

• Indian Oil Corporation Limited (26%)
• Bharat Petroleum Corporation Limited (11%)
• Hindustan Petroleum Corporation Limited (11%)

GIGL's Operations

GIGL is engaged in the execution and implementation of cross-country natural gas transmission pipeline projects. The company is currently working on two major projects:

1. Mehsana-Bhatinda Pipeline Project
2. Bhatinda-Gurdaspur Pipeline Project

Both projects were awarded by the Petroleum and Natural Gas Regulatory Board.

Financial Assistance

In addition to the equity investment, GSPL has agreed to provide interim financial assistance to GIGL:

• An interest-bearing advance of ₹18 crore
• Interest rate: 7%
• Purpose: To support GIGL's operations until the issuance of preference shares

Impact on GSPL

This investment is expected to help GSPL serve customers beyond Gujarat and increase gas volumes transported through its gas grid. The company views this as a strategic move to expand its operational reach and enhance its market position in the natural gas transmission sector.

As the natural gas infrastructure continues to expand in India, GSPL's investment in GIGL underscores its commitment to strengthening its position in the growing market for natural gas transmission and distribution.

Gujarat State Petronet Limited (GSPL), a key player in India's natural gas transmission sector, has reported a mixed set of financial results for the second quarter of fiscal year 2026, reflecting the challenges in the current market environment.

Financial Performance Highlights

For Q2 FY26, GSPL reported:

The company experienced a decline across key financial metrics compared to the previous quarter. Net profit decreased by 17.14% quarter-on-quarter, while revenue saw a marginal dip of 2.19%. EBITDA fell by 13.99%, with the EBITDA margin compressing by 204 basis points to 14.76%.

Operational Performance

Despite the challenging quarter, GSPL maintained its operations in natural gas transmission. The company's extensive pipeline network continues to play a crucial role in India's gas distribution infrastructure.

Market Conditions

The decline in financial performance may be attributed to various factors affecting the natural gas sector, including fluctuations in gas prices and demand. However, GSPL's strategic position in the gas transmission market continues to be a key strength.

Corporate Developments

In a significant corporate move, GSPL's Board of Directors approved additional investments in its joint venture company, GSPL India Gasnet Limited (GIGL). These investments include:

1. Subscription to GIGL's right issue of Redeemable Cumulative Preference Shares amounting to ₹35.77 crore.
2. Additional equity contribution in GIGL of up to ₹7.80 crore, bringing the cumulative equity contribution to ₹1,339.84 crore.

GSPL will maintain its 52% stake in GIGL after these investments, with other joint venture partners including Indian Oil Corporation Limited (26%), Bharat Petroleum Corporation Limited (11%), and Hindustan Petroleum Corporation Limited (11%).

Future Prospects

While the quarter presented challenges, GSPL's strategic investments and its pivotal role in India's gas transmission infrastructure position it for potential growth as the country continues to emphasize cleaner energy sources.

Investors and stakeholders will be watching closely to see how Gujarat State Petronet navigates the current market conditions and leverages its investments for future growth.