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Gujarat Energy Profit Plummets Amid West Asia Conflict
30 May
Summary
- Net profit dropped 48% to ₹1,678 crore in FY26 due to global gas market turmoil.
- Revenue fell 14% to ₹24,425 crore, with CGD and gas trading significantly impacted.
- Company restructured, merging GSPC entities into Gujarat Energy Ltd.
Gujarat Energy Ltd., formerly Gujarat Gas Ltd., announced a substantial 48% decrease in its consolidated net profit for FY26, reporting ₹1,678 crore. This downturn is attributed to the ongoing conflict in West Asia, which disrupted global gas markets and adversely affected the company's core city gas distribution and gas trading operations.
Consolidated revenue from operations also saw a 14% decline, settling at ₹24,425 crore for FY26. Revenue from city gas distribution fell by 7%, and gas trading revenue dropped by 19.5%. The exploration and production segment was a positive outlier, with revenue increasing by 13%.
Despite the challenging annual performance, the company returned to profitability in the fourth quarter of FY26, posting a profit after tax of ₹152 crore compared to a loss in the prior year. The board has recommended a final dividend of ₹8.90 per equity share, subject to shareholder approval.
FY26 was marked by a significant restructuring within the Gujarat government's energy portfolio. The Ministry of Corporate Affairs approved the amalgamation of Gujarat State Petroleum Corporation (GSPC), Gujarat State Petronet Ltd (GSPL), and GSPC Energy Ltd (GEL) with Gujarat Gas, forming the new, integrated Gujarat Energy Ltd. The gas transmission undertaking was demerged into GSPL Transmission Ltd, separating the pipeline infrastructure business.
