Gujarat Energy Limited Q2 revenue rises 59% to Rs 9,826 crore

Gujarat Energy Limited reported Q2 FY27 revenue from operations of Rs 9,826.08 crore, up 59.4% year on year, while EBITDA margin declined to 10.37% from 13.84%. EBITDA, which includes other income, rose 19.5% to Rs 1,019.40 crore in the unaudited standalone results for the quarter ended September 30, 2026.

Why did GEL's Q2 FY27 EBITDA margin narrow?

GEL's Q2 FY27 EBITDA margin narrowed by 3.47 percentage points because revenue growth of 59.4% exceeded EBITDA growth of 19.5%. Revenue from operations increased by Rs 3,661.22 crore to Rs 9,826.08 crore from Rs 6,164.86 crore in Q2 FY26, whereas EBITDA increased by Rs 166.31 crore to Rs 1,019.40 crore from Rs 853.09 crore.

The company reported the EBITDA margin on an EBITDA measure that includes other income. The release does not provide a cost bridge or a stated reason for the margin movement, but it shows that the increase in EBITDA was lower than the increase in revenue during Q2 FY27.

Profit after tax rose 21.8% to Rs 639.27 crore in Q2 FY27 from Rs 524.72 crore a year earlier, an increase of Rs 114.55 crore. Earnings per share rose to Rs 6.81 from Rs 5.59, and GEL disclosed the unaudited results on November 5, 2026, following board approval.

How did GEL perform in H1 FY27?

GEL's revenue from operations for H1 FY27 rose 61.3% to Rs 19,496.34 crore from Rs 12,089.20 crore in H1 FY26. The Rs 7,407.14 crore increase covered the six months ended September 30, 2026, compared with the Rs 3,661.22 crore increase reported for Q2 alone.

H1 FY27 EBITDA increased 43.1% to Rs 2,501.57 crore from Rs 1,748.68 crore, while profit after tax increased 50.8% to Rs 1,637.24 crore from Rs 1,085.80 crore. The half-year EBITDA margin was 12.83%, down 1.63 percentage points from 14.46% in H1 FY26.

The half-year margin decline was smaller than the 3.47-percentage-point reduction reported in Q2 FY27. GEL reported H1 FY27 earnings per share of Rs 17.45, compared with Rs 11.57 in H1 FY26, a rise of Rs 5.88 per share.

What operating volumes supported GEL's Q2 FY27 performance?

GEL's city gas distribution, or CGD, volume rose about 24% year on year to 10.7 million metric standard cubic metres per day, or MMSCMD, in Q2 FY27. The company attributed the increase to industrial demand and compressed natural gas, or CNG, penetration; H1 FY27 CGD volume rose about 31% to 11.5 MMSCMD.

GEL's CNG volume increased about 11% year on year to 3.67 MMSCMD in Q2 FY27, while H1 FY27 CNG volume rose about 12% to 3.72 MMSCMD. The company added 13 CNG stations in the quarter, taking its total network to 857 stations as of the end of H1 FY27.

The company added about 49,000 domestic piped natural gas, or PNG, customers in Q2 FY27 and about 1.08 lakh in H1 FY27. Its medium-density polyethylene pipeline network reached 43,148 kilometres and its steel pipeline network reached 3,542 kilometres as of September 30, 2026.

What LNG sourcing actions has GEL approved?

GEL's board approved execution of long-term liquefied natural gas, or LNG, sourcing agreements with international suppliers for about 0.8 million tonnes per annum, or MTPA, for tenures of up to 10 years linked to Henry Hub. Chairman M K Das said the agreements are intended to reduce dependence on spot LNG cargoes and secure reliable and sustainable supply.

The board also approved a firm regasification agreement for LNG cargo slots at GSPC LNG Limited's Mundra LNG Terminal. GEL imported 14 LNG cargoes, including partial cargoes, in Q2 FY27 and 24 cargoes in H1 FY27, compared with 12 cargoes in H1 FY26.

Management said it had issued an expression of interest for franchisee partners to develop LNG stations in identified locations for long-haul transport. It also sought partners for compressed biogas plants with proposed capacity of 200 tonnes per day, split between 100 tonnes per day in Gujarat and 100 tonnes per day outside Gujarat.

How much is GEL spending on FY27 expansion?

GEL incurred capital expenditure of about Rs 181 crore in Q2 FY27, bringing H1 FY27 capital expenditure to about Rs 308 crore. The company reiterated capital-expenditure guidance of about Rs 1,000 crore for FY27, leaving about Rs 692 crore relative to that guidance after the first half.

The disclosed spending sits alongside expansion of the CNG network to 857 stations and the addition of about 1.08 lakh PNG customers in H1 FY27. Management said its focus is to use its gas-sourcing portfolio to expand the CGD network, strengthen CNG infrastructure and increase domestic PNG penetration across its geographical areas.

GEL described itself as an integrated energy company with more than 46,690 kilometres of gas pipelines and distribution of about 15.38 MMSCMD of natural gas in Q2 FY27. It said it served more than 25.3 lakh households across six states and one union territory at the time of the release.

Conclusion

GEL delivered 59.4% Q2 FY27 revenue growth to Rs 9,826.08 crore, supported by a 24% rise in CGD volume to 10.7 MMSCMD and additions to its CNG and PNG networks. However, EBITDA grew 19.5% to Rs 1,019.40 crore, below revenue growth, resulting in a 3.47-percentage-point year-on-year reduction in EBITDA margin to 10.37%.

The next disclosed items to watch are execution of LNG sourcing agreements for about 0.8 MTPA over terms of up to 10 years, use of firm Mundra terminal cargo slots and progress against FY27 capital-expenditure guidance of about Rs 1,000 crore. GEL had spent about Rs 308 crore by H1 FY27 and had imported 24 LNG cargoes in that six-month period.