Gujarat State Petronet Q3: Profit rises 10% YoY but down sequentially; margins widen over Q2

Gujarat State Petronet Ltd

(GSPL) reported a mixed consolidated performance for the December quarter, with profit easing sequentially and revenue declining, even as margins showed a marginal improvement on better cost control.

The company announced its Q3 results on Thursday, January 22, with its consolidated net profit declining 1.5% quarter-on-quarter to ₹256.7 crore in FY26, compared with ₹260.7 crore in the September quarter. On a year-on-year basis, profit rose nearly 10% from ₹234.1 crore in the corresponding quarter last year.

Revenue from operations fell 2.7% sequentially to ₹4,091 crore, down from ₹4,206 crore in Q2FY26, and was lower by about 10% year-on-year, reflecting the impact of reduced gas transmission tariffs and softer volumes. GSPL had earlier said that the revised levelised tariff for its high-pressure gas grid, cut by PNGRB effective May 2024, continues to weigh on topline growth.

Operating performance remained under pressure, with EBITDA slipping 1.2% quarter-on-quarter to around ₹613 crore, compared with about ₹620 crore in the previous quarter. Despite this, the EBITDA margin improved sequentially to 15.8% from 15.5%, aided by cost efficiencies and lower operating expenses, although margins remained lower than last year.

Profit before tax stood at ₹510 crore, marginally lower on a sequential basis, while the company also reported a modest contribution from other income during the quarter. GSPL said gas transmission continues to remain its core business, with the group also having limited exposure to city gas distribution and wind power generation.

Separately, the company reiterated that the proposed composite scheme of amalgamation involving Gujarat State Petroleum Corporation, Gujarat Gas and GSPL remains subject to final approvals from the Ministry of Corporate Affairs.

Shares of the company ended 1.73% higher at ₹302.55 ahead of the result announcement on Thursday.