Gujarat Energy Q2 FY27 Results (NSE: GUJENERGY)
Signal: Growth decelerated
The read
The growth inflection is real but margin quality weakened: revenue rose 59.4% YoY to ₹9,826.08 crore and PAT rose 21.8% to ₹639.27 crore, yet gross margin contracted 406bps as purchase costs grew 118.7%; this reverses the recent Q1FY27 operating-margin improvement and leaves the next quarter dependent on cost pass-through or mix.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9,826.08 Cr | +59.4% | +1.6% |
| Net profit | ₹639.27 Cr | +21.8% | |
| EPS | ₹6.81 | +21.8% | |
| EBIT margin | N/A |
P&L walk
Revenue rose to ₹9,826.08 crore, +59.4% YoY and +1.6% QoQ, led by gas trading and CGD; gross margin compressed to 12.3% from 16.4% as purchase costs rose 118.7% YoY versus revenue growth of 59.4%, while PAT still increased 21.8% to ₹639.27 crore.
Segments
Gas Trading drove the YoY uplift, with revenue rising 83.5% to ₹7,615.08 crore and segment result rising 88.7% to ₹329.00 crore, while CGD revenue rose 70.2% to ₹6,771.12 crore but its result fell 4.6% to ₹317.48 crore.
Key positives
- Revenue from operations reached ₹9,826.08 crore, up 59.4% YoY, led by Gas Trading revenue growth of 83.5% to ₹7,615.08 crore and CGD revenue growth of 70.2% to ₹6,771.12 crore.
- PAT increased 21.8% YoY to ₹639.27 crore despite gross-margin compression, while EPS tracked PAT at ₹6.81 versus ₹5.59.
- Operating cash flow rose 76.3% YoY to ₹2,483.16 crore in H1FY27 versus ₹1,408.82 crore, supporting liquidity.
- The company approved 0.8 MTPA of LNG sourcing for up to 10 years and a regasification agreement at GSPC LNG Limited's Mundra LNG Terminal.
Key concerns
- Gross margin compressed 406bps YoY to 12.3%, with purchase costs rising 118.7% YoY to ₹10,305.85 crore versus revenue growth of 59.4%; the filing does not disclose the cause.
- CGD segment result declined 4.6% YoY to ₹317.48 crore despite 70.2% revenue growth, indicating weaker profitability in the distribution business.
- Gas Trading segment result fell 54.7% QoQ to ₹329.00 crore, and consolidated standalone PAT fell 35.9% QoQ to ₹639.27 crore.
- The filing shows total assets rising 23.2% YoY to ₹27,628.15 crore while depreciation stayed flat at ₹145.89 crore, requiring monitoring of asset utilisation and depreciation recognition.
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