Gujarat Gas Q3 Profit Rises 20% YoY To ₹265.6 Crore Despite Revenue Dip

Mumbai: Gujarat Gas Limited reported a 19.8 percent year-on-year rise in standalone net profit to Rs 265.6 crore in the December quarter (Q3 FY26), even as revenue from operations declined to Rs 3,865.1 crore. The city gas distributor posted lower volumes and softer realisations compared to the year-ago period, but profitability improved on a favourable cost structure. Sequentially, profit moderated from Rs 281.0 crore in Q2 FY26, reflecting quarter-on-quarter pressure.

For the quarter ended December 31, 2025, Gujarat Gas’ total income stood at Rs 3,919.7 crore, down 10.7 percent YoY and 3.3 percent QoQ. Profit before tax increased to Rs 358.0 crore, compared with Rs 300.2 crore in Q3 FY25, though it was lower than Rs 377.9 crore recorded in the preceding quarter. Net profit growth was supported by controlled operating expenses and stable employee costs, even as gas sourcing costs remained elevated.

Sequential performance moderates
On a sequential basis, revenue from operations declined 2.9 percent QoQ, while net profit slipped 5.5 percent. Total expenses during the quarter fell to Rs 3,561.7 crore from Rs 3,674.1 crore in Q2 FY26, aided by marginally lower gas purchase costs and stable overheads. Depreciation expense rose to Rs 135.2 crore, reflecting ongoing capital expenditure in distribution infrastructure. There were no exceptional items during the quarter.

Margins supported by cost discipline

Earnings per share for the quarter stood at Rs 3.86, compared with Rs 3.22 in Q3 FY25, underlining improved profitability despite lower topline. Tax expense for the quarter was Rs 92.4 crore, translating into an effective tax rate within the normal range. The company continues to operate as a single-reportable segment in natural gas distribution.

Nine-month performance

For the nine months ended December 2025, Gujarat Gas reported revenue of Rs 11,909.4 crore, down 7.6 percent YoY, while net profit increased 1.8 percent to Rs 873.4 crore. The steady nine-month profitability reflects operational resilience amid fluctuating gas prices and demand conditions, positioning the company with stable earnings momentum going into the final quarter of FY26.