Gujarat State Petronet's Earnings Miss: Motilal Oswal Issues Neutral Alert - What Investors MUST Know!

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Updated on 13 Nov 2025, 07:34 am

Motilal Oswal's latest research report on Gujarat State Petronet (GUJS) reveals that the company's financial performance for the second quarter of Fiscal Year 2026 fell short of expectations. Revenue stood at INR 2.3 billion, 9% below estimates, while EBITDA was INR 1.7 billion, 13% lower than projected. Total volumes were also soft, coming in at 28.5 million standard cubic meters per day (mmscmd), an 8% deficit against the brokerage's forecast. This volume weakness is attributed to subdued demand from the refining, petrochemical, and power industries. The implied tariff for the gas also registered at INR 839 per mmscm, marking an 8% decrease from estimates.

Impact: This report's findings suggest potential headwinds for Gujarat State Petronet in the near term, possibly impacting investor sentiment and stock performance as the market reacts to the lower-than-expected results and the brokerage's cautious Neutral rating. Investors will be watching for signs of demand recovery in key industrial sectors. Rating: 6/10

Difficult terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating performance. mmscmd: Million standard cubic meters per day. A unit used to measure the volume of natural gas. INR/mmscm: Indian Rupees per million standard cubic meters. This indicates the price or tariff for natural gas. FY26: Fiscal Year 2026, which in India typically runs from April 1, 2025, to March 31, 2026. Share swap ratio: An exchange where shareholders of one company receive shares of another company as part of a merger or acquisition. In this case, for every 10 shares of Gujarat State Petronet, shareholders would receive 13 shares of Gujarat Gas Limited. TP (Target Price): The price level at which a stock analyst or broker expects the stock to trade in the future. Neutral rating: An investment recommendation suggesting the stock is expected to perform in line with its sector or the market, neither a strong buy nor a strong sell.