Gujarat State Petronet announced its unaudited financial results for the third quarter of fiscal year 2026, ending December 31, 2025, presenting a mixed performance across its standalone and consolidated operations. The Board of Directors approved these results on January 22, 2026, following review by the Audit Committee.

Standalone Financial Performance

The company's standalone operations showed a decline in profitability during Q3 FY26. Net profit after tax decreased to ₹114.27 crores compared to ₹135.58 crores in the same quarter of the previous year, representing a decline of 15.73%. Revenue from operations remained relatively stable at ₹272.20 crores versus ₹260.43 crores in Q3 FY25.

For the nine-month period ended December 31, 2025, standalone net profit reached ₹639.22 crores compared to ₹736.89 crores in the corresponding period last year, showing a decline of 13.25%.

Consolidated Financial Results

The consolidated performance presented a contrasting picture with improved profitability. Net profit after tax for Q3 FY26 increased to ₹379.05 crores from ₹335.43 crores in Q3 FY25, marking a growth of 13.00%. Consolidated revenue from operations, however, declined to ₹4,091.70 crores from ₹4,540.09 crores in the previous year's quarter.

Operational Developments

The company continues to operate under revised tariff rates implemented by the Petroleum and Natural Gas Regulatory Board (PNGRB). The levelized tariff for GSPL's high-pressure gas grid was reduced from ₹34 per MMBTU to ₹18.10 per MMBTU, effective from May 1, 2024, impacting revenue from operations.

A significant corporate restructuring is underway involving a composite scheme of amalgamation and arrangement among Gujarat State Petroleum Corporation Limited, Gujarat State Petronet Limited, GSPC Energy Limited, Gujarat Gas Limited, and GSPL Transmission Limited. The scheme received approval from equity shareholders of the respective companies on October 17, 2025, and is subject to sanction from the Ministry of Corporate Affairs and other regulatory approvals.

Legal and Financial Obligations

The company has ongoing litigation with Fernas Construction Company Inc., where it obtained a conditional stay from the Gujarat High Court on an arbitral award. Gujarat State Petronet deposited ₹69.34 crores as the principal portion and furnished a bank guarantee of ₹50.61 crores for the interest portion with the High Court.

Nine-Month Performance Summary

For the nine months ended December 31, 2025, the company demonstrated resilience in its consolidated operations:

• Consolidated net profit: ₹1,232.92 crores versus ₹1,285.15 crores in the previous year • Standalone net profit: ₹639.22 crores compared to ₹736.89 crores last year • Total comprehensive income on consolidated basis: ₹1,237.84 crores • Maintained stable equity share capital of ₹564.21 crores across all periods

The financial results reflect the company's position as a key player in India's natural gas transmission infrastructure, operating under evolving regulatory frameworks while managing significant corporate restructuring initiatives.

Gujarat State Petronet Limited (GSPL) is facing a significant corporate restructuring that has caught the attention of credit rating agencies. CARE Ratings has placed the company's long-term bank facilities rating of CARE AA+ on Rating Watch with Developing Implications, signaling potential changes in the company's credit profile.

Credit Rating Action

CARE Ratings has taken the following actions on GSPL's bank facilities:

RWD: Rating Watch with Developing Implications

Reasons for Rating Action

The rating action follows:

1. The proposed amalgamation with Gujarat Gas Limited (GGL)
2. The subsequent de-merger of the transmission business into separate entities
3. A review of GSPL's operational and financial performance

Restructuring Details

The company's total bank facilities of Rs 300 crore include:

• Reduced long-term facilities of Rs 50 crore
• Long-term/short-term facilities of Rs 250 crore

The restructuring is expected to be completed by January 2026.

Financial Performance

Despite the rating uncertainty, GSPL's financial position remains robust. Key financial metrics from the latest balance sheet data include:

Implications and Outlook

The Rating Watch status reflects the potential impact of the corporate restructuring on GSPL's credit profile. The amalgamation with Gujarat Gas Limited and the subsequent de-merger of the transmission business could significantly alter the company's operational and financial dynamics.

Investors and stakeholders should closely monitor further developments, as the final impact on GSPL's credit rating will depend on the execution of these corporate actions and their effect on the company's financial strength and business profile.

CARE Ratings is expected to resolve the Rating Watch once the implications of the restructuring become clearer, providing a more definitive view on GSPL's credit quality going forward.