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Informist, Saturday, Aug. 8, 2026

MUMBAI – Gujarat Energy Ltd. is expected to more than double its net profit and revenue for the June quarter. This will be driven by a robust increase in the use of piped natural gas by industrial users who switched to PNG due to the shortage of propane caused by the US-Iran war, according to brokerages tracking the company.

The company's net profit for the June quarter is expected to rise 128% to INR 7.47 billion from INR 3.27 billion in the year-ago quarter, according to the average of estimates from 10 brokerages. The highest estimate for the June quarter net profit is INR 10.9 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 5.05 billion from Dolat Capital Market Pvt. Ltd.

The company's top line for the June quarter is expected at INR 96.07 billion, according to the estimates, up 148% on year and up 67% sequentially. The highest estimate for revenue is around INR 123.38 billion from Equirus Securities Pvt. Ltd. and the lowest is INR 75.61 billion from Motilal Oswal. The company had reported net sales of INR 38.71 billion in the year-ago quarter.

Gujarat Energy's strong growth is likely to be driven by volumes from the Morbi ceramic industry, which is expected to improve to 6-7 million standard cubic meters per day. This will likely push total volume sequentially to 15 mscmd from 8.9 mscmd. The shortage of liquefied petroleum gas due to the war in West Asia resulted in consumers increasingly shifting to natural gas from LPG, brokerages said.

The oil and gas sector is expected to post a mixed performance in the June quarter, with gas utilities and city gas distribution companies seen under pressure due to higher input costs and supply disruptions, brokerages said. City gas distribution companies hiked prices of compressed natural gas to partially offset higher input costs. The availability of gas improved in the latter part of the quarter. While city gas distribution volumes continue to grow, costs remain high.

The company is expected to report earnings before interest, tax, depreciation, and amortisation of INR 9.86 billion for the June quarter, up over 70% on year and up 5% sequentially, according to the average of estimates. The highest estimate for the company's EBITDA is INR 11.88 billion from Motilal Oswal and the lowest is INR 6.64 billion from Dolat Capital. The EBITDA margin is likely to be weak as the price hikes were insufficient to fully pass through the increase in gas costs, brokerages said.

Gujarat Energy is an integrated energy company operating in 44 districts across six states and one union territory in India. The company underwent structural changes and rebranding during the June quarter. The Gujarat State Petroleum Corp. Ltd. and the Gujarat State Petronet Ltd. merged into the company on May 1, and the company's name was changed from Gujarat Gas Ltd. to Gujarat Energy on May 14. The company will detail its June quarter earnings Tuesday.

Shares of the company ended Friday at INR 265.3 apiece on the National Stock Exchange, down 3.7%. The share price is down 22% since the company announced its March quarter earnings on May 30. Of the 11 brokerage reports on the company available with Informist, seven have a 'buy' recommendation on the stock, with an average target price of INR 461.57 per share. This is 74% higher than the current market price. Three brokerages have a "hold" recommendation on the stock with an average target price of INR 420.67 and one has a "sell" call with an average target price of INR 326.

Following are the Apr-Jun earnings estimates for Gujarat Energy from 10 brokerages, in descending order of the estimates of net profit, in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Somen Bose

Edited by Pankaj Aher

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