Gujarat State Petronet Performance Analyzed

Gujarat State Petronet (GSPL) experienced a drop in its stock value, falling 1.75% to Rs 297.05. This decline was largely due to a decrease in the company’s profits. The company’s standalone net profit decreased by 15.70% to Rs 114.26 crore during the third quarter of the fiscal year 2026.

Key Points

• Revenue increased 4.5% to Rs 272.19 crore YoY.
• Net profit decreased 15.70% to Rs 114.26 crore.
• Profit before tax fell 15.77% to Rs 152.97 crore.
• Total expenses rose 35.37% to Rs 162.49 crore.
• Gas transmission costs jumped dramatically by 119.76%.
• GSPL is a leading gas pipeline company in Gujarat.

Financial Overview

Despite a 4.5% rise in revenue to Rs 272.19 crore, GSPL’s profitability was significantly impacted. The profit before tax also saw a decrease of 15.77% to Rs 152.97 crore. This demonstrates a need to carefully manage expenses and operational costs.

Cost Analysis

A key driver of the decline was a substantial increase in total expenses, rising by 35.37% to Rs 162.49 crore. Specifically, gas transmission expenses grew dramatically by 119.76% and depreciation & amortization expenses rose 7.14%.

Business Context

GSPL’s core business is connecting businesses and homes in Gujarat that use natural gas, utilizing its extensive pipeline network. They hold a prominent position, being the leader in Gujarat’s natural gas transmission and a major player nationally. This makes them crucial to Gujarat’s economic growth and energy infrastructure.

Ultimately, GSPL’s results highlight the importance of controlling escalating transmission costs for sustained profitability.