GTL Q2 revenue rises 8.4% as EBITDA margin falls 454 bps

GTL reported Q2FY27 revenue of Rs 289.6 crore, up 8.4% year on year on higher transported volumes, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose only 0.6% to Rs 169.1 crore as its EBITDA margin fell 454 basis points to 58.4%.

How did GTL’s Q2FY27 revenue and operating profit change?

GTL’s revenue increased to Rs 289.6 crore in Q2FY27 from Rs 267.2 crore in Q2FY26 and Rs 277.1 crore in Q1FY27. This represented 8.4% year-on-year growth and 4.5% quarter-on-quarter growth. GTL attributed the higher quarterly revenue to increased transported volumes across its high-pressure (HP), low-pressure (LP) and HAPi grid networks.

EBITDA, excluding other non-operating income, was Rs 169.1 crore, compared with Rs 168.2 crore a year earlier and Rs 193.8 crore in Q1FY27. Thus, operating profit was nearly unchanged from the prior-year quarter despite revenue growth, and was 12.7% below the preceding quarter. EBITDA margin declined from 63.0% in Q2FY26 and 69.9% in Q1FY27 to 58.4%.

Standalone profit after tax (PAT) rose 2.2% year on year to Rs 120.4 crore in Q2FY27, although it declined 12.6% from Rs 137.8 crore in Q1FY27. PAT margin was 41.6%, versus 44.1% in Q2FY26 and 49.7% in Q1FY27. Diluted earnings per share (EPS) increased to Rs 3.85 from Rs 3.77 a year earlier.

What drove GTL’s Q2FY27 revenue growth?

GTL transported 45.5 million metric standard cubic metres per day (MMSCMD) in Q2FY27, up from 40.4 MMSCMD in Q2FY26 and 43.2 MMSCMD in Q1FY27. Total volume therefore increased by 5.1 MMSCMD year on year and by 2.3 MMSCMD sequentially. Gas transmission revenue, net of gas transmission expenses, rose to Rs 243 crore from Rs 220 crore a year earlier.

The HP Grid remained GTL’s largest network, carrying 36.7 MMSCMD in Q2FY27 compared with 33.6 MMSCMD in Q2FY26. LP Grid volume increased to 7.8 MMSCMD from 5.9 MMSCMD, while HAPi Grid volume rose to 1.0 MMSCMD from 0.9 MMSCMD. GTL reported year-on-year volume growth of 9.3% for HP Grid, 30.8% for LP Grid and 16.5% for HAPi Grid.

City gas distribution (CGD) remained GTL’s biggest demand segment at 41% of Q2FY27 volumes. CGD’s share was lower than 47% in Q1FY27 but above 39% in Q2FY26. Refineries accounted for 20%, matching their Q2FY26 share and rising from 17% in Q1FY27, while fertilisers represented 13%, power 7% and other industrial customers 19%.

Why did GTL’s EBITDA margin decline despite higher revenue?

GTL’s EBITDA margin declined because other expenses rose sharply alongside the revenue increase. Other expenses were Rs 49.9 crore in Q2FY27, up 72.4% from Rs 28.9 crore in Q2FY26 and 91.0% from Rs 26.1 crore in Q1FY27. The Rs 21.0 crore year-on-year increase in this cost line was close to the Rs 22.4 crore increase in revenue.

Gas transmission expense declined 1.4% year on year to Rs 45.9 crore, but was 24.0% higher than Rs 37.1 crore in Q1FY27. Employee expenses rose 4.9% year on year to Rs 24.6 crore and 21.8% sequentially from Rs 20.2 crore. These movements left Q2FY27 EBITDA only Rs 0.9 crore above the Q2FY26 level.

For H1FY27, revenue increased 4.6% to Rs 566.7 crore, while EBITDA fell 0.2% to Rs 362.9 crore from Rs 363.5 crore in H1FY26. Other expenses increased 55.1% to Rs 76.0 crore during the half year. H1FY27 EBITDA margin was 64.0%, down 303 basis points from 67.1% in H1FY26, though above the 56.8% reported for FY26.

How did GTL’s consolidated result compare with standalone profit?

GTL’s consolidated PAT rose 17.4% year on year to Rs 99.5 crore in Q2FY27 from Rs 84.7 crore in Q2FY26. The consolidated growth rate exceeded the 2.2% increase in standalone PAT because GTL’s share of net loss narrowed to Rs 21.0 crore from Rs 33.1 crore. Consolidated PAT nevertheless remained below standalone PAT because the share of net loss was still negative.

Consolidated PAT margin increased to 34.3% in Q2FY27 from 31.7% a year earlier, while consolidated diluted EPS rose to Rs 3.18 from Rs 2.71. Sequentially, consolidated PAT declined from Rs 113.4 crore in Q1FY27, and margin declined from 40.9%, reflecting the lower quarterly EBITDA result.

For H1FY27, consolidated PAT rose 9.9% to Rs 212.9 crore from Rs 193.8 crore in H1FY26. The share of net loss narrowed to Rs 45.4 crore from Rs 61.3 crore over the same comparison. Standalone PAT for H1FY27 was Rs 258.3 crore, up 1.2% from Rs 255.1 crore.

What expansion programme is GTL pursuing?

GTL has disclosed an expansion-led capital expenditure plan of Rs 3,500 crore to enhance pipeline capacity in new geographical areas. Its existing network of about 2,900 kilometres, together with 700 kilometres of planned additions, is intended to take the network beyond 3,600 kilometres. In July 2026, GTL awarded engineering, procurement and construction contracts worth Rs 1,800 crore for the Anjar Palanpur Pipeline Project.

GTL incurred about Rs 300 crore of capital expenditure in H1FY27. Capital work in progress was Rs 582.9 crore on September 30, 2026, compared with Rs 349.4 crore on March 31, 2026. Plant, property and equipment declined to Rs 3,208.1 crore from Rs 3,253.7 crore, while the standalone balance sheet reported no current or non-current borrowings on either date.

GTL’s subsidiaries extend its network outside Gujarat. GSPL India Gasnet Limited operated about 1,439 kilometres of cross-country pipeline and had about 120 kilometres under construction; its Q2FY27 transportation volume was 5.49 MMSCMD, up 27% year on year. GSPL India Transco Limited operated about 365 kilometres, transported 1.68 MMSCMD, up 137%, and reported revenue of Rs 26.29 crore, up 18%.

Conclusion

GTL’s Q2FY27 results show that higher throughput translated into revenue growth, with total transported volume reaching 45.5 MMSCMD and revenue rising to Rs 289.6 crore. However, the increase in other expenses limited EBITDA growth to 0.6% and reduced margin to 58.4%. The narrowing of subsidiary losses supported a faster increase in consolidated PAT than in standalone PAT.

The next reported developments to watch are execution of the Rs 3,500 crore expansion plan, the Rs 1,800 crore Anjar Palanpur Pipeline Project contracts awarded in July 2026, and progress toward the planned 700 kilometres of network additions. GTL has also said that higher volumes and network utilisation can support future tariff determination under the regulated framework.