Gujarat Energy Ltd (GUJENERGY) Q2 FY27 Results Analysis: Revenue Jumps 60%, Margin Compression Weighs
Gujarat Energy Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 9,857.33 Cr (+59.71% YoY) and PAT growth of +26.01% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 9,857.33 Cr (+59.71% YoY) |
| PAT (Q2) | Rs. 489.77 Cr (+26.01% YoY) |
| EBITDA margin | 8.56% (-232 bps YoY) |
| EPS (Q2) | Rs. 5.32 (+17.70% YoY) |
Quarter Snapshot
Revenue grew 59.71% YoY and H1 owners' PAT 48.00%, with gas trading at Rs.1,053.17 Cr already near the low end of the FY27 Rs.1,100–1,200 Cr guidance. However, Q2 deteriorated sequentially: EBITDA margin compressed to 8.56% from 14.13% in Q1 on a Rs.1,940.59 Cr inventory build, CGD profit fell both YoY and QoQ, and a 30.83% deferred-tax-heavy ETR left PAT-to-owners up only 17.70% YoY against 59.71% revenue growth. Cash conversion (CFO/PAT 1.64x) and low leverage remain supportive, but CGD's H1 pace of Rs.757.27 Cr makes its FY27 Rs.1,100–1,200 Cr aspiration a stretch.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue ahead on industrial substitution | "propane disruption worked for gas"; industry CGD sales +27% YoY in July (per pre-call note, web-sourced, dated) | Consolidated revenue +59.71% YoY (Rs.9,857.33 Cr) | Played out |
| CGD margin compression below the Rs.5.5–6.5/scm band | "further compression into and below the band is the directional risk for Q2" | CGD result −4.63% YoY / −27.81% QoQ; segment EBIT margin 4.69% vs 5.69% Q1 (Rs./scm not derivable) | Played out |
| Trading the swing factor; "no reversal of gains in Q2" | management quote per pre-call note | H1 trading Rs.1,053.17 Cr vs FY guide Rs.1,100–1,200 Cr; Q2 Rs.328.80 Cr = ~half of Q1 | Partially |
| Spot-cost margin pressure (JKM $24–26, APM $9.00, Rs.95/USD — all per pre-call note, web-sourced, dated) | "sharply higher marginal cost" | Cost of materials +121.24% YoY; EBITDA margin 8.56% vs 10.88% YoY; inventory build Rs.1,940.59 Cr | Played out |
| Morbi volumes ~3 mmscmd sustained | post-July run-rate per pre-call note | Not disclosed in filing | Not observable |
| H1 capex vs ~Rs.1,000 Cr FY27–28 guide; cash preview "by Q3" | pre-call watch-list | H1 capex Rs.332.74 Cr; cash + bank Rs.3,266.79 Cr; no investment plan disclosed | Partially |
| Contingent-liability movement | pre-call watch-list | Rs.1,685.54 Cr tax demand, Vedanta, Jubilant all restated unchanged — overhangs persist, no fresh charge | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| "No reversal of these gains in Q2" | Q1 FY27 earnings call | Q2 trading result Rs.328.80 Cr vs Q1 Rs.724.37 Cr (−54.61% QoQ), though +81.94% YoY; margin back to 4.32% from 10.16% — gains held vs year-ago, but the exceptional Q1 margin did not persist | Partially confirmed |
| Portfolio-level margin management ("we don't look at each segment") | Prior earnings calls | CGD margin compressed anyway; total segment results fell to Rs.609.86 Cr from Rs.1,150.56 Cr QoQ — the offset (trading strength) kept H1 group EBITDA up 47.5% YoY | Too Early |
| FY27 trading + CGD to deliver Rs.1,100–1,200 Cr each | Prior calls | H1: trading Rs.1,053.17 Cr; CGD Rs.757.27 Cr | Too Early / on-track pace |
Key Numbers, Quarter by Quarter
| Metric | Q1 FY27 | Q4 FY26 | Q3 FY26 | Q2 FY26 |
|---|---|---|---|---|
| Total CGD volume (mmscmd) | 12.34 | — | 8.37 | 8.65 |
| CNG (mmscmd) | 3.76 | 3.60 | 3.45 | 3.32 |
| CNG stations | 844 | 839 | 833 | — |
Key Investment Insights
Key Positives
- Revenue grew 59.71% YoY to Rs.9,857.33 Cr; H1 revenue up 60.65% YoY
- H1 PAT-to-owners grew 48.00% YoY to Rs.1,497.52 Cr; EPS up 48.00% to Rs.15.98
- H1 gas trading segment result of Rs.1,053.17 Cr is close to the low end of the FY27 Rs.1,100–1,200 Cr guidance
- E&P segment result turned to Rs.12.98 Cr from a loss of Rs.(4.61) Cr YoY
- H1 CFO of Rs.2,452.11 Cr was 1.64x PAT; FCF of Rs.2,119.37 Cr after Rs.332.74 Cr capex
- Non-current borrowings at 14.67% of total equity; cash and bank balances rose 143.59% since March to Rs.3,266.79 Cr
- Power segment revenue more than doubled, +107.07% YoY
Risk Factors
- EBITDA margin compressed to 8.56% from 14.13% QoQ and 10.88% YoY; PBT before exceptional fell 45.61% QoQ on flat revenue
- CGD segment result fell 4.63% YoY and 27.81% QoQ with segment EBIT margin down to 4.69% from 8.37% a year ago
- Gas trading result halved QoQ to Rs.328.80 Cr with margin reverting to 4.32% from Q1's 10.16%
- Power loss widened to Rs.(45.59) Cr despite revenue +107.07% YoY; regasification swung to a Rs.(3.81) Cr loss
- ETR rose to 30.83%, 99.65% deferred-tax driven; net deferred tax liabilities jumped from Rs.3.10 Cr to Rs.348.52 Cr
- Share of JV/associates swung from +Rs.37.69 Cr to −Rs.4.47 Cr YoY
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.