Gujarat Gas Reports Profit Surge Despite Revenue Dip in Q1

2 min read     Updated on 05 Aug 2025, 08:07 PM
scanxBy ScanX News Team
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Overview

Gujarat Gas Limited (GGL) reported a 14% increase in net profit to ₹327.00 crore for Q1, despite a 5.2% decline in revenue to ₹4,065.00 crore. The company achieved its highest-ever CNG volume of 3.33 mmscmd, up 3.4% from the previous quarter. EBITDA rose 11% to ₹579.00 crore. GGL added over 35,000 new domestic PNG connections, expanding its customer base to 23.02 lakh households. The Board approved plans to enter the Propane/LPG market for industrial customers. The company continues to focus on CNG network expansion through the FDODO model.

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*this image is generated using AI for illustrative purposes only.

Gujarat Gas Limited (GGL), a leading natural gas distribution company, has reported a significant increase in profitability for the first quarter, despite a slight decline in revenue. The company's financial results, approved by its Board of Directors on August 5, reveal a mixed performance with improved bottom-line figures.

Quarterly Financial Highlights

GGL's net profit for Q1 stood at ₹327.00 crore, marking a substantial 14% increase from ₹287.00 crore in the previous quarter. This profit growth is particularly noteworthy given the challenging market conditions and a marginal decrease in revenue.

The company's revenue from operations for Q1 was ₹4,065.00 crore, down from ₹4,289.00 crore in the previous quarter, representing a 5.2% quarter-on-quarter decline. Despite this top-line contraction, GGL managed to improve its profitability through effective cost management and operational efficiencies.

Operational Performance

Gujarat Gas demonstrated strong operational performance, particularly in its CNG (Compressed Natural Gas) segment. The company achieved its highest-ever CNG volume of 3.33 mmscmd (million metric standard cubic meters per day) in Q1, up from 3.22 mmscmd in the previous quarter, reflecting a robust 3.4% growth.

The company's domestic PNG (Piped Natural Gas) customer base continued to expand, with over 35,000 new connections added during the quarter. GGL now provides natural gas to more than 23.02 lakh households across six states and one union territory.

Financial Metrics

GGL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 reached ₹579.00 crore, an 11% increase compared to ₹524.00 crore in the previous quarter. This improvement in EBITDA margin indicates the company's ability to manage costs effectively and maintain operational efficiency.

Business Development Initiatives

In a strategic move to diversify its energy portfolio, the Board of Directors has approved plans for Gujarat Gas to undertake sourcing and sale of Propane/LPG to industrial customers. This initiative aligns with the company's commitment to providing comprehensive energy solutions and strengthens its position as a total energy solution provider.

Future Outlook

Gujarat Gas continues to focus on expanding its CNG network, with plans to accelerate growth through the FDODO (Franchise-Owned Dealer-Operated) model. The company has already signed agreements with approximately 69 dealers, which is expected to boost its market presence and service delivery.

Milind Torawane, IAS, Managing Director of Gujarat Gas Limited, commented on the results, stating, "Our Q1 performance demonstrates the resilience of our business model and our ability to drive profitability even in challenging market conditions. The growth in CNG volumes and the expansion of our customer base reflect the strong demand for clean energy solutions. Our venture into Propane/LPG supply for industrial customers is a strategic step towards becoming a comprehensive energy provider."

As Gujarat Gas continues to navigate the dynamic energy market, its focus on operational excellence, customer base expansion, and diversification of energy offerings positions the company for sustained growth in the coming quarters.

Note: All figures are in Indian Rupees (₹) and 'crore' denotes 10 million.

Historical Stock Returns for Gujarat Gas

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Gujarat Gas Partners with Waree Energy for Sustainable Energy Solutions

2 min read     Updated on 31 Jul 2025, 05:39 PM
scanxBy ScanX News Team
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Overview

Gujarat Gas Limited has signed a Gas Sales Agreement with Waree Energy to supply 50,000 scmd of Piped Natural Gas for a Lithium-ion cell manufacturing unit in Valsad, Gujarat. The plant is expected to be commissioned in Q4 FY 2025-26. This collaboration aims to reduce carbon footprint, decrease India's dependence on lithium-ion battery imports, and promote cleaner fuel usage in manufacturing processes. The partnership combines Gujarat Gas's expertise in gas distribution with Waree Energy's focus on renewable energy technologies.

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*this image is generated using AI for illustrative purposes only.

Gujarat Gas Limited , India's largest City Gas Distribution (CGD) company, has announced a significant collaboration with Waree Energy to develop sustainable energy solutions aimed at reducing carbon footprint. This partnership marks a pivotal step towards environmental sustainability and aligns with the growing focus on green energy initiatives in India.

Key Highlights of the Collaboration

  • Gas Sales Agreement: Gujarat Gas has signed a Gas Sales Agreement with Waree Energy for PNG (Piped Natural Gas) supply of 50,000 scmd (standard cubic meters per day) at Valsad, Gujarat.
  • Lithium-ion Cell Manufacturing: The PNG supply will be utilized for Waree Energy's Lithium-ion cells manufacturing unit in Valsad.
  • Project Timeline: The plant is currently under construction and is expected to be commissioned in Q4 of the fiscal year 2025-26.

Impact on Sustainable Energy and Carbon Footprint Reduction

This collaboration between Gujarat Gas and Waree Energy is set to have a significant impact on sustainable energy production and carbon footprint reduction:

  1. Reduced Dependence on Imports: According to a report by CareEdge, India's import dependence on lithium-ion batteries is expected to drop to 20% by FY 2026-27. This partnership contributes to this goal by boosting domestic production.
  2. Applications in Green Technology: Lithium-ion batteries produced at this facility will be used in electric vehicles, portable electronics, and Battery Energy Storage Systems (BESS), which are crucial for integrating renewable energy sources and stabilizing the power grid.
  3. Promotion of Cleaner Fuel: By supplying PNG, Gujarat Gas is supporting the use of cleaner fuel in manufacturing processes, further reducing the overall carbon footprint.

About the Companies

Gujarat Gas Limited (GGL)

  • India's largest City Gas Distribution company
  • Operates in 44 districts across 6 states and 1 Union Territory
  • Supplies gas to over 22.67 lakh households and 4000+ industrial units
  • Operates more than 828 CNG stations

Waree Energy

  • Part of the Waaree Group, India's largest manufacturer of solar PV modules
  • Has an aggregate installed capacity of 13.3 GW
  • Provides sustainable energy solutions in over 20 countries
  • Expanding into Lithium-ion cells, hydrogen cells, and solar wafers manufacturing

This strategic partnership between Gujarat Gas and Waree Energy represents a significant step towards a greener future, combining Gujarat Gas's expertise in natural gas distribution with Waree Energy's focus on renewable energy technologies. As India continues to push for reduced dependence on energy imports and increased adoption of sustainable technologies, collaborations like this are expected to play a crucial role in shaping the country's energy landscape.

Historical Stock Returns for Gujarat Gas

1 Day5 Days1 Month6 Months1 Year5 Years
+1.48%+0.80%-9.14%-2.86%-30.68%+39.24%
Gujarat Gas
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