Gujarat Gas Limited , India's largest City Gas Distribution (CGD) company, has outlined an ambitious growth strategy while reporting its financial results for the second quarter of fiscal year 2026.

Growth Strategy

The company has set its sights on achieving double-digit volume Compound Annual Growth Rate (CAGR) over a three-year period. This growth plan focuses on several key areas:

1. Volume Recovery: Gujarat Gas aims to boost volumes across its industrial and Piped Natural Gas (PNG) segments.

2. Infrastructure Expansion: The company is investing in expanding its gas infrastructure to support growth.

3. CNG Station Network: Gujarat Gas is actively developing its Compressed Natural Gas (CNG) station network.

4. Cost Efficiency: The company is focusing on cost optimization measures to sustain margins.

5. LNG Contract Optimization: Gujarat Gas plans to optimize its long-term Liquefied Natural Gas (LNG) contracts.

Q2 FY26 Financial Highlights

For the quarter ended September 30, 2025, Gujarat Gas reported the following financial results:

Operational Performance

Gujarat Gas demonstrated strong growth in its CNG and PNG segments:

• CNG Volume: 3.32 mmscmd in Q2 FY26, up 13% from 2.93 mmscmd in Q2 FY25.
• PNG (Domestic) Volume: 0.83 mmscmd in Q2 FY26, a 10% increase from 0.76 mmscmd in Q2 FY25.
• PNG (Commercial) Volume: 0.16 mmscmd in Q2 FY26, up 7% from 0.15 mmscmd in Q2 FY25.

Expansion Initiatives

Gujarat Gas is expanding its CNG network through the Fully Dealer Owned Dealer Operated (FDODO) model:

• The company has signed approximately 74 FDODO agreements with various dealers.
• During Q2 FY26, one FDODO station became operational in Jamnagar, with more stations set to open soon.

Corporate Developments

The company reported progress on its Composite Scheme of Amalgamation and Arrangement:

• A meeting of equity shareholders was held on October 17, 2025, as directed by the Ministry of Corporate Affairs.
• Shareholders approved the scheme with a significant majority.
• Gujarat Gas has filed the Chairman's Report and Confirmation petition with the Ministry of Corporate Affairs.

As India's leading CGD company, Gujarat Gas continues to focus on expanding its infrastructure and customer base. The company currently operates 834 CNG stations and provides natural gas to over 23.44 lakh households across six states and one union territory.

Gujarat Gas's strategic focus on volume growth, infrastructure expansion, and operational efficiency positions it well to capitalize on the growing demand for natural gas in India's energy market.

Gujarat Gas , a prominent player in the Indian natural gas distribution sector, has announced its financial results for the quarter and half year ended September 30, 2025, revealing a significant decline in profits.

Revenue and Profit Analysis

Gujarat Gas reported a standalone quarterly net profit of ₹281.01 crores for Q2, marking a substantial 36% decrease from ₹439.87 crores in the same quarter of the previous year. The company's total income for Q2 stood at ₹4,052.02 crores, slightly down from ₹4,124.77 crores in Q2 of the previous year.

Half-Year Performance

For the half year ended September 30, 2025, Gujarat Gas reported a standalone net profit of ₹609.77 crores, compared to ₹817.80 crores in the corresponding period of the previous year.

Consolidated Results

On a consolidated basis, the Q2 net profit mirrored the standalone figures, coming in at ₹281.01 crores versus ₹439.87 crores in the same quarter last year.

Key Financial Metrics

Here's a summary of Gujarat Gas's key financial metrics for the quarter:

Market Challenges

The significant decrease in net profit suggests that Gujarat Gas is facing substantial challenges in the current market environment. These challenges may be attributed to various factors such as fluctuations in gas prices, changes in demand patterns, or increased operational costs.

Despite the profit decline, the company's ability to maintain its revenue levels with only a marginal year-on-year decline indicates some resilience in its market position and customer base.

Corporate Governance

The Board of Directors approved these unaudited financial results in a meeting held on November 10, 2025. The company continues to operate primarily in the Natural Gas Business segment.

As Gujarat Gas navigates through these challenging times, its ability to maintain its revenue stream while facing profit pressures will be crucial in the coming quarters.