GSPL - Guj.St.Petronet

📊 NSE: GSPL 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 22:42

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) declined 45.3% YoY to INR 1,111 Cr in FY25 from INR 2,032 Cr in FY24, primarily due to a 46.7% reduction in the levelized tariff for the High Pressure gas grid. Natural gas transmission volumes remained stable at 11,032 MMSCM in FY25 compared to 11,159 MMSCM in FY24.

Geographic Revenue Split

The company operates a ~2,795 km statewide gas grid exclusively in Gujarat, which is the largest natural gas-consuming state in India, contributing approximately 100% of its transmission revenue.

Profitability Margins

Profitability remained healthy with a PAT margin of 72% in FY25, an improvement from 63.23% in FY24, despite the significant revenue drop. This was supported by the absence of interest costs and strong operational control.

EBITDA Margin

PBILDT margin stood at 73% in FY25, a slight decrease from 74.05% in FY24. The margin remains robust due to the low-cost nature of the transmission business once infrastructure is established.

Capital Expenditure

GSPL has planned a capital expenditure of INR 3,380 Cr through FY29 for network expansion, new spur lines, and capacity augmentation. Additionally, INR 200 Cr in equity support is estimated for the GIGL JV in FY26.

Credit Rating & Borrowing

The company maintains a CARE AAA (Stable) / CARE A1+ rating. Borrowing costs are effectively zero as the company repaid its entire outstanding term loan in FY23 and remains debt-free with unutilized fund-based limits of INR 25 Cr.

⚙️ Operational Drivers

Raw Materials

The primary 'raw material' for operations is Natural Gas (Transmission Volumes), while Steel Pipes and related infrastructure components represent the bulk of capital expenditure costs (INR 3,380 Cr plan).

Import Sources

Natural gas is sourced from domestic fields and imported LNG terminals across the Indian coast, particularly in Gujarat.

Key Suppliers

Promoter GSPC is a key partner in the value chain, engaged in gas trading. Other suppliers include domestic E&P companies and international LNG providers through regasification terminals.

Capacity Expansion

Current network spans ~2,795 kms of natural gas transmission pipeline as of September 2025. Expansion plans include new spur lines and capacity augmentation funded by internal accruals.

Raw Material Costs

As a transmission utility, direct raw material costs are minimal; however, the company faces project implementation risks for its INR 3,380 Cr capex plan, which could be impacted by steel price volatility.

Manufacturing Efficiency

Transmission volumes stood at 11,032 MMSCM in FY25. Efficiency is maintained through an open-access operating model and connectivity to major supply sources.

Logistics & Distribution

The company owns the logistics infrastructure (2,795 km pipeline), serving as the primary distributor for the GSPC group and other third-party users.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be achieved through a restructuring scheme expected by August 2025, involving the amalgamation of GSPC's trading business with GGL and the demerger of GSPL's transmission business into GSPL Transmission Ltd (GTL) to unlock shareholder value and improve business synergies.

Products & Services

Natural gas transmission services via high-pressure pipelines and electricity generated from 52.50-MW windmills.

Brand Portfolio

GSPL, GSPC (Parent), Gujarat Gas Limited (Subsidiary), Sabarmati Gas Limited (Associate).

New Products/Services

Consolidation of gas trading with the distribution business of GGL is expected to improve margins and sourcing expertise.

Market Expansion

Expansion of the statewide gas grid in Gujarat and operationalizing JV pipelines (GIGL achieved COD for 1,417.80 km in August 2024).

Market Share & Ranking

GSPL is the leader in natural gas transmission in Gujarat and the second-largest player in India.

Strategic Alliances

Joint Ventures include GSPL India Gasnet Limited (GIGL) and GSPL India Transco Limited (GITL), with GSPL holding a 52% stake in each.

🌍 External Factors

Industry Trends

The industry is shifting toward a unified tariff regime. There is an increased government thrust on expanding the City Gas Distribution (CGD) network across India.

Competitive Landscape

GSPL maintains a dominant position in Gujarat, competing primarily with national players like GAIL on a pan-India basis.

Competitive Moat

Moat is sustained by a 2,795 km critical infrastructure network, strategic location in a high-demand state, and an open-access model that makes it a preferred carrier.

Macro Economic Sensitivity

Highly sensitive to global natural gas prices; high prices in FY23 led to a 25% decline in transmission volumes (from 12,369 to 9,253 MMSCM).

Consumer Behavior

Increasing demand for cleaner fuels is driving industrial and domestic segments to switch to natural gas, supporting long-term volume growth.

Geopolitical Risks

Global supply chain disruptions affecting LNG prices directly impact the volume of gas transmitted through GSPL's network.

⚖️ Regulatory & Governance

Industry Regulations

Operations are strictly governed by the Petroleum and Natural Gas Regulatory Board (PNGRB), which determines transmission tariffs and approves pipeline expansions.

Environmental Compliance

GSPL operates 52.50 MW of wind power and integrates ESG into its operational strategy to minimize environmental hazards.

Legal Contingencies

GSPL has filed an appeal before the Appellate Tribunal for Electricity (APTEL) against the PNGRB tariff order dated April 19, 2024, which reduced tariffs from INR 34 to INR 18.10/MMBTU.

⚠️ Risk Analysis

Key Uncertainties

Regulatory risk regarding tariff resets (potential 45% revenue impact) and project implementation risks for JVs (GIGL/GITL) involving potential cost overruns.