Gujarat Energy Ltd (GUJENERGY) Q1 FY27 Earnings Call: Guides 1,100-1,200 Cr Gas Trading Profit, CNG Volume Hits Record 3.76 MMSCMD

Gujarat Energy Ltd held its Q1 FY27 earnings call on August 11, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Revenue & Profit in a Volatile Quarter

• Consolidated revenue of Rs.9,670 Cr in Q1 FY 2026-2027, up 63% YoY, driven by higher gas trading volumes and strong CGD offtake.
• EBITDA of Rs.1,482 Cr (+65% YoY) and PAT of Rs.998 Cr (+78% YoY) — both all-time quarterly highs for the company.
• Gas trading EBT surged 206% YoY to Rs.726 Cr, supported by sourcing 10 LNG cargoes despite supply-side disruptions in the Middle East.
• CNG volume hit a record 3.76 MMSCMD in Q1 FY 2026-2027, up 13% QoQ, as the network expanded to 844 stations.
• ~59,000 domestic PNG customers added in the quarter, taking the cumulative base to >24.77 lakh; ~91,000 domestic and >1,000 commercial connections were made from Jan-Jun 2026 under the government's LPG-substitution policy push.
• Geopolitical uncertainty remains a risk to global energy markets, though management expressed confidence in diversified sourcing and integrated operations.

Exceptional Trading Margins; Long-Term Contracts in Pipeline

• Gas trading EBT of Rs.726 Cr in Q1 FY 2026-2027 (vs Rs.237 Cr in Q1 FY 2025-2026) — driven by advantageous sourcing timing and Brent-linked contracts on an 18-day basis; management expects no reversal in Q2 FY 2026-2027.
• Full-year FY 2026-2027 gas trading profit guidance maintained at Rs.1,100-Rs.1,200 Cr despite the strong Q1; management reiterated that there will be "exceptional quarters deviating from" the targeted 4%-5% margin range.
• Gas trading revenue per SCM reached Rs.6 in Q1 FY 2026-2027, nearly double the Rs.3.5 recorded in Q1 FY 2025-2026.
• Sourcing mix in Q1 FY 2026-2027: ~20% term contracts, ~12.5% domestic gas (HPHT), balance from spot purchases; ~20% of term volumes are Henry Hub-linked.
• New long-term LNG contracts with Uniper, Qatar, and Total approaching — management plans to sell most long-term volumes on a back-to-back basis, expected to reduce spot exposure and support business expansion.
• Targeting 4 million tonnes of term-contract gas by 2030 (from ~2 million tonnes currently); management stated it is "targeting 4 million tonnes by 2030" as part of the long-term sourcing strategy.

Morbi Volumes Normalise; Non-Morbi Industrial Pipeline Builds

• Morbi cluster sales of >8 MMSCMD in Q1 FY 2026-2027 — surged 181% QoQ as the company secured uninterrupted supply during an alternate-fuel crisis; post-July run-rate is ~3 MMSCMD of gas and ~5.3-5.4 MMSCMD of propane equivalent.
• Morbi gas pricing at ~Rs.78/SCM in Q1 vs propane at ~Rs.65/SCM; management expects Morbi gas volumes to stay near ~3 MMSCMD in Q2 FY 2026-2027 due to elevated spot LNG (~$20/mmBtu).
• Morbi demand floor of 1.8-2.0 MMSCMD considered sustainable — contracts structured on a one-month basis; ~3 MMBTU of current Morbi volumes are from units lacking propane infrastructure.
• Industrial sales (ex-Morbi) running at 2.0-2.2 MMSCMD; management targets ~3 MMSCMD within 1.5-2 years (by ~FY 2028-2029), contingent on stable LNG prices.
• 86 new industrial customers added in non-Morbi areas during Q1 FY 2026-2027, with pipeline network expansion at an advanced stage in GNH, Ahmedabad Rural, Dahej, Kutch, and Thane.
• Government mandate for mandatory gas usage currently applies only to domestic and commercial segments — no near-term regulatory push for industrial gas conversion was cited by management.

CNG Network Adds 844 Stations; PNG Volumes Surge 64% YoY

• CNG volume of 3.76 MMSCMD in Q1 FY 2026-2027 (+13% QoQ); management expects to sustain ~12% annual growth for the next couple of years, supported by new station additions.
• CGD network at 844 stations as of Q1 end; guidance to add >75 stations and upgrade ~70 stations in FY 2026-2027.
• PNG industrial volumes rose 64% YoY to 7.17 MMSCMD in Q1 FY 2026-2027, with total CGD segment volumes reaching 12.44 MMSCMD (including inter-company transfers of 8.9 MMSCMD).
• CGD gas sourcing mix (Q1 FY 2026-2027): APM gas ~14%, new well gas ~6%, RLNG pooled ~2%, long-term contracts ~9%, and short-term/inter-segment sales ~69%.
• CGD EBITDA margin of 5.18% in Q1 FY 2026-2027 — below the guided range; management reiterated full-year FY 2026-2027 guidance of 5.5%-6.5%, attributing the lower Q1 margin to a higher volume base.
• Internal gas transfer between trading and CGD carries a markup (not at cost) even post-merger, providing pricing flexibility; trading segment EBITDA reflects the entire 12.22 MMSCMD handled in Q1.

Rs.7,200 Cr Cash; Rs.1,000 Cr Capex Plan; Rs.900 Cr Refund Expected

• Cash on balance sheet of Rs.7,200 Cr as of Q1 FY 2026-2027 end; management plans to communicate a concrete deployment plan by Q3 FY 2026-2027, focused on strengthening CNG/pipeline and diversifying in energy.
• Capex of Rs.1,000 Cr for CGD in FY 2026-2027; propane infrastructure capex excluded and to be deployed over the next two years post-DRHP.
• Gross block of ~Rs.12,000 Cr as of 30 June 2026 (Q1 FY 2026-2027 end).
• Dividend policy unchanged following Government of Gujarat guidelines; Rs.835 Cr dividend announced in Q4 FY 2025-2026.
• Refund claims of ~Rs.900 Cr expected from revised tax returns for FY 2024-25 and FY 2025-26 related to merger-related unabsorbed losses; process estimated to take ~1 year.
• GTAS listing delayed to early September 2026 from end-July as the company coordinates with BSE, NSE, and SEBI for an exemption from a public issue.

FY 2026-2027 Guidance Reaffirmed; Power Turnaround in Focus

• Gas trading full-year FY 2026-2027 profit guidance of Rs.1,100 Cr (Rs.1,100-Rs.1,200 Cr range per Segment 17) — maintained despite a strong Q1, with margin visibility deferred to Q2 due to Middle East price volatility.
• CGD EBITDA margin guidance of 5.5%-6.5% for FY 2026-2027 reaffirmed; Q1 came in at 5.18% but management sees no specific segment weakness.
• Long-term third-party gas volumes guided at 4.5-5 MMSCMD by FY 2027-2028 as LNG pricing normalises; new LNG supply wave originally expected in FY 2026-2027 and FY 2027-2028 has shifted later due to the Iran situation.
• Power business turnaround strategy to be shared in a few months; management is exploring options including data centre supply deals — GSEC (51 MW) PLF was 6% and Pipavav 1% in Q1 FY 2026-2027, with utilisation only during summer peak.
• Propane import terminal in Gujarat progressing — sites shortlisted near the Morbi market, though no timeline has been provided.
• Q2 FY 2026-2027 results expected around mid-November 2026, as confirmed at the call's conclusion.