Gujarat Energy Limited ($GUJGASLTD)

Ladies and gentlemen, good day, and welcome to Gujarat Energy Limited Erstwhile Icard Gas Limited Q4 and financial year ended on 31st March 2026 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Company Secretary of Gujarat Gas, Mr. Sandeep Dave. Thank you, and over to you, Mr. Dave.

Thank you. Good afternoon, ladies and gentlemen. A very warm welcome to Q4 and FY '25, '26 earnings call post effective date of scheme of arrangement under the ages of Gujarat Energy Limited. We have with us our Managing Director, Avantika Aulakh IAS. Now I request [indiscernible] to share business update.

Thank you, Sandeep. Our valued shareholders, distinguished analysts and representatives from the investor community, babies and gentlemen. On behalf of Gujarat Energy Limited, I Avantika Singh [indiscernible], extend a warm welcome to all of you to this earnings call. Thank you all for attending today's earnings call. We are here to discuss the company's operational and financial performance for the fourth quarter of FY '26 and also for the full financial year '25, '26. Q4 after financial year was marked by a contrasting situation with several positive developments in the form of progress on our scheme of arrangement as well as our highest-ever CNG segment sales and several difficult situations in the form of gas market instability caused by the contract in the East. I propose to first update you all about the scheme of arrangement. On 17th April 2026, we received the final order of Ministry of Corporate Affairs, approving the scheme of arrangement. After completing all formalities with a scheme of arrangement has become from first May 2026, which coincided with the Gujarat State Foundation Day celebration. So on first May 2026, Gujarat State Petroleum Corporation Limited, Gujarat State Petronet Limited and GSPC Energy Limited have been merged into Gujarat Gas Limited. Consequent to the merger into Gujarat Gas, GSPC, GSPL and GSPC Energy Limited has used to exist. Concurrently, with the merger of GSPL into Gujarat Gas, the gas transmission business undertaking has been demerged into GSPL Transmission Limited or GTL. As was envisaged under the scheme, the name of Gujarat Gas Limited, has been altered to Gujarat Energy Limited with effect from 14th May 2026. The new name reflects the positioning of Gujarat Energy Limited as a true integrated energy company. while the scheme has become effective from first May 2026, the appointed date for merger of GSPC, DSTL and FTC Energy Limited into Gujarat Gas first April 2024 and the appointed date for demerger of gas transmission business into GTL with first April 2025. From a financial reporting perspective, FY '26 financials and restated financials of FY '24, '25 do not provide a like-to-like comparison. This is so because the restated financials of FY '22 price include the financials of Gas Transmission business undertaking of GSPL as well, which does not form part of FY '20 '26 financials due to effect of demerger having been given from first April 2025. Getting back to progress on implementation of the scheme of arrangement, 12 May 2026 was declared as the record date for issuance of shares of Gujarat Energy shareholders of GSPC and GSL. The allotment has been made on 16th May 2026 an application to BSE and MSP has been made seeking listing permits for such additional of Bajaj Energy allotted to the shareholders of SBC and JSPL. We expect [indiscernible] listing permissions from [indiscernible] in next 7 to 10 days, which will enable us to initiate corporate actions for crediting the additional shares to DMAT accounts of shareholders of GSPC and GSPA. forward [indiscernible] actual listing and trading of additional shares of Gujrat Energy on BSE and NSE. In the meantime, will also commence steps for declaration of record date for issuance of shares of GTL to the shareholders of Gujarat Energy followed by listing and trading permission for GTL shares on BCS. We expect the entire process for listing and trading of GTL shares to be completed by end of July '26. I now propose to move on to our operational performance during the period. We now have 4 major business segments in the form of [indiscernible] gas distribution, gas trading, exploration and production and wind power generation. Out of the set 4 segments, the 2 segments of gas trading and city gas distribution all the lion's shares in our revenues and profits. I would like to begin with the Gas Trading segment. This segment is singularly the most value-accretive aspect of mergers of GSPC into Gujrat Energy. Just to give you all a heads-up on how significant this segment is pre-merger, GSPC Gas Trading segment revenues during the last 5 financial years of 2021 to 24.25% aggregated to more than INR 1 lakh crores, while the EBITDA for the same period was in excess of INR 9,000 crores. Our gas trading volume for FY '25, '26 stood at 10.2 mmscmd, of which approximately 5.3 mmscmd of gas was accounted for as intersegment sales since the set supply was made to our own CGD segment. That's the trading volume net of intersegment sales stood at approximately 4.9 mmscmd. In FY '24, '25, our gas trading volumes stood at approximately 12.6 mmscmd against which the FY '26 volumes fell by 1%. Despite this, due to our diversified sourcing portfolio, our Gas Trading segment was able to deliver strong profitability with earnings before tax from the segment, increasing to INR 1,354.61 crores in FY '26 from INR 1,222 crores in FY '25, demonstrating our resilience despite a challenging business environment. We already have access to competitively priced long-term LNG supplies from various international suppliers under different LSDs aggregating to approximately 2.96 [indiscernible] which translates to approximately 10.66 mmscmd of gas every year. We are committed to adding more volumes of competitively priced long-term LNG into our closing portfolio. During FY '25, '26, we have signed 2 long-term LNG SPAs, aggregating to a 2 1.36 [indiscernible] of LNG which translates to approximately 4.9 mmscmd of natural gas supplies with Qatar Energy and Uniper Global Commodities. We continue to pursue opportunities to add more long-term volumes. We also effectively managed our long-term regasification contracts at Petronet LNG, the age terminal, totaling perform capacity of 2.45 MMTPA, in highly volatile mobile spot markets and domestic demand shifts. Moving on to our next important business segment at the City Gas Distribution segment. The [indiscernible] segment is further sub-divided PNG, PNG domestic, P&G Commercial and PAD Industrial segments. Talking of the CMG segment, we achieved our highest ever PNG volume of 3.6 mmscmd during Q4 FY '26, representing a 12% year-on-year growth with Gujarat recording an 11% increase and areas outside Gujarat delivering a notable 18% growth in Q4 FY '16 compared to Q4 of FY'25 underscoring our success in deepening our presence across geographies. our CNG infrastructure expanded to 839 stations. As of March '26, the CNG vehicle base across our network reached approximately INR 17.68 lakh compared to INR 15.4 lakhs a year earlier, reflecting a solid 15% growth. PNG continues to offer a compelling economic advantage being approximately 7% cheaper than petrol and 15% [indiscernible] diesel when compared to current pricing. Talking of the PNG Domestic segment continue to witness healthy growth in the segment during the quarter. In Q4 FY '26, we registered approximately 43,000 new domestic customers and commissioned more than 35,400 connections. With this, our cumulative domestic PNG customer base has crossed INR 24.18 lakh customers. In the wake of constrained LPG supplies caused by conflict in the Middle East government of India took policy measures to boost PND connections for domestic usage, a P&G penetration price was launched across India to replace LPG with PNG for domestic cooking ports. As a part of the P&G penetration price, we have taken various initiatives such as aggressive marketing campaign in print media and digital platforms, appointment of direct is to expedite customer registration process mobilizing additional contractors to execute new connections and prioritizing outreach to essential category customers, such as hospitals, hotels, community kitchens, et cetera. Our efforts have led to several visible results during March to May 2026. We could convert 86 residential societies comprising approximately 13,000 households as LPG proprieties with 100% PNG connectivity. As of May 26, we have cumulatively converted a total of 2,835 residential societies in our GAs comprising pot lately 4.86 lakh households as LPG feed society with 100% PNG connectivity. We also commissioned new commercial units, which increased from 152 in March to 527 by the last week company. The P&G Commercial segment has delivered steady growth. As on March '26, we serve more than 16,000 commissioned commercial customers across our network. We expect customer additions in both domestic and commercial segment remains robust as our newer geographical areas in Punjab, Haryana, [indiscernible], Rajasthan and Maharashtra continue to mature and enhance customer penetration level. In the P&G Industrial segment, sales volume was 4.19 mmscmd in Q4 FY '26, while the sales volume in Q4 FY '25 was 5.03% mmscmd. However, the sales volume in this segment has increased compared to Q3 FY '26, which was 3.93 mmscmd, registering an overall increase of approximately 7% quarter-on-quarter. As you are all aware, Morbi ceramic cluster remains our largest partner in P&G Industrial segment. Our successful supply strategy has provided significant support to the Morbi ceramic industry during the crisis period of March to May '26. The number of units of [indiscernible] in gas increased from 83 units with gas consumption of 0.6 mmscmd in March to [indiscernible] 710 units with gas consumption reaching approximately 8 mmscmd by the last week of May '26. The average volume in Morbi ceramic clusters during the quarter was 2.02 mmscmd and volume other than Morbi cluster was 2.17 mmscmd. The Morbi cluster volume registered an increase of 21% in Q4 FY '26 as compared to Q3. The volumes other than Morbi capture reduced marginally by 3.5% in Q4 FY '26 compared to Q3. Looking ahead, [indiscernible] suppliers are expected to remain impacted over the short to medium term, which may further encourage industrial customers to increasingly rely on natural gas to meet their fuel requirements. At the same time, we continue to closely monitor key market dynamics, including spot RLNG prices, availability of fortunate fuels and end consumer demand trends across industries in our operating leases. Our focus remains on maintaining the right balance between volume growth and sustainable margins while continuing to reliably serve our customers. I now propose to provide highlights of our financial performance. For Q4 FY '26, EBITDA stood at INR 943 crores compared to INR 790 crores in the corresponding quarter of the previous year. For the full year, EBITDA stands at INR 3,772 crores as compared to INR 3,241 crores in previous year. PAT for the full year stands at INR 2,299 crores as compared to INR 2,308 crore this year. We are pleased to announce that our Board of Directors has recommended a dividend of INR 8.9 per share, equivalent to 445% of face value with a total dividend outflow of approximately [indiscernible] crores reaffirming our commitment to delivering value to our shareholder. A year also marked our embarkment on the digital transformation journey. We have planned for a more integrated and [indiscernible] organization through planned ERP expansion, AI-enabled analytics, advanced metering infrastructure Carta implementation and broader automation initiatives. These investments will strengthen operational efficiency, enhanced decision-making capabilities and support sustainable growth in the years ahead. As a part of our business development strategy, we have engaged McKinsey as a strategic consultant to evaluate growth opportunities within our existing businesses as well as to advice on both organic and inorganic expansion initiatives. We have taken up the business development strategy initiated with the primary objective of setting up GEL for steady growth over the next decade. The initiative aims to accelerate core business growth, define expansion opportunities in adjacent and emerging energy segments and create a future-ready portfolio. the initiated seeks to strengthen organizational capabilities in the post-merger context and build a structured implementation plan to translate strategy into measurable outcomes. ESG consideration remains [indiscernible] to how we create long-term value for our stakeholders. As part of our commitment is we initiated, we have signed 24 new tripartite agreements with biogas producers for purchase of compressed biogas, taking the total value to 35 agreements with a total volume of approximately INR 1.6 lakh [indiscernible] of CBG. By virtue of our average Q4 P&G sales to industrial consumers reduced carbon aide emissions by approximately 6 million bring to P&G utilization by customers instead of coal and through its CNG sales reduced carbon ateemission to approximately 19 lakh kgs per day due to CNG utilization for transport instead of petrol or diesel. At Gujarat Energy, we have the highest standard and a strong culture of safety. CL is an ISO certified organization for integrated quality digital health safety and environment management system. It builds, create and maintain a safe and relative gas networks in our areas of operations, token ahead by global energy markets continue to face uncertainty due to geopolitical developments. We remain confident in our strategy, our diversified sourcing portfolio, strong infrastructure disciplined capital allocation and customer-centric approach positions us well to navigate challenges and capture growth opportunities arising from India's increasing transition towards cleaner energy solutions. I would like to thank you all for sparing your value prop time for attending this call. With this, I now request the moderator to start the Q&A session. My leadership team and I would be happy to respond to it. [indiscernible] queries that you may have. Over to you.

[Operator Instructions] The first question comes from the line of Probal Sen from ICIC Securities.

I hope I'm audible.Sir, a couple of questions. Firstly, on Morbi earlier indications in terms of the gas equivalent demand in the entire region, has been that it is around 8% to 8.5% in C&D. And as per the guidance given by DMA, the volumes have already reached close to 8. So is it fair to assume that at least in the near term volumes are hitting a peak level? Or can further grow the expected, assuming propane continues to be tight as far as supply is concerned in the region.

Okay. So as of now, we are selling close to CMD. But I think what we hear from the customers that it can reach up to 8. 9, 8. 8 [indiscernible] so there's still is a gap of almost 10% or so.

Okay. And can we get a [indiscernible]of what is the pricing in Morbi and other than Morbi [indiscernible] regions, what the range would also be [indiscernible]

So basically, we are selling currently in Morbi close to INR 75 per SCM. And non-morbiwould be close to INR 8 per SCM.

INR 78, if I heard you correctly?

Non-Morbi would be close to INR 68 per SCM.

Okay. Non-Morbi is INR 68 and Morbi is around INR 75. Right?

Yes. Yes.

Okay. Got it. And sir, the other question was basically with respect to the sourcing like, if we can kindly get a sense of what the sourcing mix is right now in terms of different -- what are the arrangements in terms of LNG Brent [indiscernible] or [indiscernible] link. And how much was the APM and new well gas that [indiscernible] if you can kindly break it down [indiscernible].

Is this for the CEB or...

For the entire company also defines if you can give us a percentages.

SPM would be close to INR 2 [indiscernible]. New well gas would be close to 0.5 per mmscmd, 0.4 to 0.5 mmscmd. We have long-term volume -- long-term [indiscernible] close to 3.5 mmscmd and short term, almost 3.5 mmscmd.

So sir, these long term are all [indiscernible] or in terms of pricing benchmark.

Majority of them are [indiscernible].

Okay. One last question, sir, if I may. With respect to the blend between the trading and the net volume that was mentioned. So out of the 10.2 mmscmd, I think what was mentioned was 5.3 was the intersegment sales, which basically means the LNG that was procured by the company for a gas [indiscernible] business. and the net volume was 4.9 or so. What's the current run rate in terms of the trading business? Is it possible to share for Q1 so far?

It's close to -- I mean, whatever increase is there is basically Morbi. So around more trading volume is close to 55 mmscmd. And the rest would be like -- total volume is close to 14 million which includes APM, new well gas and others and the trading business of GSPC is close to 5 million.

Okay. So the net volume for trading is 5.5 out of the 14 that [indiscernible] gas is doing in the CGD business right now roughly?

Yes.

[Operator Instructions] Next question comes from the line of Hardik with ICICI Security.

Sir, two questions basically on the tax benefit that is coming out of the merger, it's only the 164 that is left at -- INR 164 crores is left as on March '26 or is there an additional jumping? The second question is on the CapEx. What would be your CapEx [indiscernible] for the [indiscernible] business and as well as the trading segment? if you can just give some [indiscernible]

You are talking about -- there is no CapEx [indiscernible]. And with respect to your tax issues, basically, we had a tax losses of close to INR 7,200 which came in at the time of merger on first of April 2024. Of that, close to INR 2,800 were observed in '24, '25. And in '25, '26, we got up around INR 2,500 crores. there is a balance of close to INR 1,900 crores which is remaining. So any profits of INR 1,900 crores, there will be no tax over and above that [indiscernible].

Okay. Sir, CapEx guidance on CGD and Trading segment.

Yes, CapEx guidance from CGD, will be close to INR 1,000 crores. And with respect to the E&P business, we will be close to INR 100 crores, we will be drilling few wells. So to the extent of that, basically, we'll be having close to INR 100 crores of E&P operations in CapEx.

Next question comes from the line of Kishan Mundhra with DAM Capital.

Congratulations to the entire team on getting the merger through, sir. I have 2 questions. So firstly, if you could -- on the power business, so from what I gather, I think the PLF load factors in our power plants are in single digits. So -- and I think we've reported losses in the segment for the financial year as well. So if you could throw some light on the business? And what is the outlook on the business from here on?

Yes. I think the losses which they have reported is related to certain exceptional items which came in, especially the ForEx loss with respect to the contracts which they have with BHEL and one other is basically the impairment they have done to some extent. Yes, there was a PLF low with respect to [indiscernible] because the PLF was 1% [indiscernible] respect it was close to 6% second half. Yes, we are looking at kind of overall level, we are looking at the strategy of reviving this company, basically assigning or aligning it with some other businesses so that the power plant can be done on the maximum capacity and which will also help in trading activities also because we'll be putting gas to that extent. So we are in a session to relook at this opportunity there. We don't look at it as a drag. But yes, on a long-term basis, it will be an opportunity for us which practically we are having 1,000 megawatts of [indiscernible] power, which is think that's an opportunity to sell also to sell gas to there also. Yes, we are looking at certain combinations over there. So basically we come back to you gradually on this.

Okay. And is it possible to quantify what the quantum of ForEx losses and one-offs [indiscernible] this year or quarter?

The. ForEx losses with respect to GSC is close to INR 15 crores, and with respect to GPC is close to INR 23 crores. Losses in the sense, they have a contract with [indiscernible] that APC contract, in certain, the value of the contract to be paid is denominated in U.S. dollars. So that is the [indiscernible] they have had at this time.

Okay. And second question on the outlook of the gas trading business. So I mean, what are the nature of contracts that we have there with our with our customers. And I mean, are these like back-to-back contracts with respect to the long-term agreements that we have signed with our suppliers. So just wanted to understand, I mean, because given the fact that we have one of the highest profitability in trading on a per unit basis. So what is the outlook there? Can we maintain the current profitability run rate in that segment? Or can there be a lot of volatility as well?

We do have long-term contracts in line with the long-term purchase agreement that we have. So for example, in Fertilizers segment, we have contracted in 2028, and then we are talking to all the fertilize for extension beyond 2028. In addition to that, we have long-term contracts with at companies other than Gujrat gas as well. And industrial clients like refineries and other industrial customers. So we do have a mix of fertilizer, [indiscernible] companies, industry consumers have long-term contracts. Obviously, we'll not like to expose ourselves because we have purchased some a few volumes on a long-term contract basis. So yes, there is a good mix of back-to-back contracts based on whatever purchase we have, we have sold it on a back-to-back basis deep [indiscernible] consumers.

Okay. So the current profitability levels, we are confident that we can maintain those, right?

Absolutely. Okay. And these long-term contracts that we were earlier referring to of 2.6 million tonnes of LNG portfolio and then additional 1.3. So this 2.6 includes 0.36 million of this 1.6 [indiscernible] tonnes over and above the 2.6 million? So this 2.6% is existing and 1.3 is in addition to that. Sorry, sorry, 1.36 includes -- is within this 2.6 mmscmd.

Okay. When is the starting as it only started.

So the one has already started. The other one starts in 2028.

Okay. And are there any contracts that are expiring then?

So on Qatar contract contract expires in 2028, but we have the new contract, which will replace that with higher volumes.

Next question comes from the line of Achal Shah from Ambit Capital.

So what was the EBITDA without the impact of the [indiscernible] basin for either FY '26 or 4Q FY '26 for the CGD segment?

For the entire year, it was close to 6.16.

Got it. And sir, can you reiterate as to how we boost in margins will be there or modernizing RM cost in the CGD segment due to the malathion structure, like there will be some at elimination, and I'm assuming that there is some margin uplift due to lower sourcing costs because the trading segment will not earn any margin while supplying to is understanding correct? And what is the -- if you can quantify some...

Yes, I think the businesses will be running as it is. So that will be that [indiscernible] we show you now that the segment sales, which happens. The same way it will be happening going forward. Yes. With respect to the sourcing advantage, definitely we'll be having with this [indiscernible] going forward, that advantage will anyway be reflected in the profitability also.

Next. Question comes from the line of Maulik with Equirus.

Just a couple of questions. on the trading profitability in FY '26, it's approximately around INR 1,350 CR or something. Are there any one-off in that? - that's number one. Number two, we have some of the exceptional item related to the LNG regasification business, particularly with, [indiscernible] Can you just explain that in detail what are those from an accounting perspective, those exceptional items? I think exceptional item.

The LNG trading business, that-- Yes, in industry financially '25, '26. The only one thing is that, basically, we have this -- we have a refund of the customers duty, which is there.

Okay. So if I adjust at the recurring profitability is [indiscernible]

Yes, it will be maintaining that 100 crores, INR 1,100 of profitability would be there.

But in the segment, it's [indiscernible] crores or something, that number. So are there any more -- if you look at the standalone business for FY '26, gas trading EBIT is in INR 34 crores Yes. And you're saying around INR 1,100 crores will be the run rate. So there that between -- is there any one-off in that LNG tradaing bussiness.

Yea. That one-off see, we have this Petra. We have an agreement with Petronet LNG with respect to the regasification facilities. In GSPC, LNG, we have diverted certain cargoes over there. So basically, we had a back-to-back agreement with them any liability coming into practically, they will have a full field. To that extent, 1 one-off is the tax cost 200 crores.

Okay. So that is close to INR 200 crores. And this INR 30 crore it from refund which you --

Yes.

I mean what's the additional stake we got because of arrangement in [indiscernible] LNG.

No, basically, this outstanding was converted into equity by the there is an increase in the equity shareholding of [indiscernible]

Now the stake will be over to earlier it used to be 25%, if I remember [indiscernible]

At the time of the merger announcement, it was 14%, now it is close to 36.8%.

That's why it's in a part of the subsidiary and you have to report [indiscernible]

Yes. Beyond 25% stake of [indiscernible] Group, it becomes a subsidiary.

Got it. And that's one I think that this also covers part of your exceptional items also which you mentioned. And just 1 more question, the last question. We have close INR 26,000 crores plus kind of a cash on the book, and you will be paying INR cores to INR 9 crores of dividend, which reduced approximately INR 900 crores from the cash balance. The normal CapEx, what we spend [indiscernible] INR 809 crores. And but at the same time, our operating cash flows are significantly higher than that. I remember that in the last discussion, you mentioned that we will come out with some kind of a thoughtful or at the board level, what we are going to do with this cash. Any update on that?

I think this updated you in the earlier opening remarks. Basically, we have appointed [indiscernible]. We are working on that. basically, we'll come back to the investors and all with respect to day forward on that, maybe in the next quarter or subsequent quarter where we have definite plans on that.

Next question comes from the line of Amit Murarka with Axis Capital.

On Morbi volumes, I just wanted to get a concept how do you see the sustainable volumes at Morbi right now across open is not available and we have therefore been able to [indiscernible] the volumes quite sharply, almost to full utilization levels. But let's say, one thing normalize and coping comes back in the market, what would be your things of suction in an Morbi? And also secondly, are you still looking to kind of get into the propane business, which you have highlighted last year.

So on propane, I think at least in the short to medium term, we don't see propane coming back to normal levels. So we are reasonably sure of good amount of sale of gas in or market. And if things get to normal, we would again -- we will likely see a dip in spot prices as well. So I think we are in a good position to compete with [indiscernible] whenever it comes. So we -- so if propane comes back, would be gas. So I think we'll be in a good position to compete. But as of now, in the short and medium term, we see a good amount of sale of gas in Morbi. Second question -- can you repeat the second question you [indiscernible] business the propane business on propane business. Yes, we are basically talking to various ports for setting up the infrastructure, dedicatedly for us. In the meantime, we have already initiated discussions with various counterparties to import of propane contraries like Qatar Energy in Saudi Aramco and others. We have had discussions on draft of contracts with various companies. But as far as infrastructure is concerned, we are very much interested in setting up our own infrastructure so as to be able to import and store coping without any hindrances. So we are looking at setting up 4 facilities close to Morbi. So investigations are currently on. So we are in discussions with -- we are in discussions with both authorities in Gujarat. So that is very much on the card. So propane business, we have not -- I mean we are [indiscernible] that one seriously.

Got it. And just lastly on margin, given that there's a lot of movement in raw material prices as well as your selling prices, what is the margin that one can expect that in the near term on a per basis [indiscernible]

Margin be maintaining it. There's some volatility that that's definitely for sure. But I think we'll be able to maintain the trading volumes, the margins in the trading, which we have been maintaining earlier also.

CGD will still be like INR 5 crores, INR 5.5 [indiscernible]

Yes. Yes. That's the guidance for CGD would be close to 6 would be there, 5.5% to 6%, 6.5%.

Next question comes from the line of Varatharajan Sivasankaran from Antique Limited.

In Morbi, what is the mechanism currently? So the players enter into a contract or what period? And how often do you roll that contract over basically, right now, they are signing for a month. So it started somewhere in the middle of April after the [indiscernible] shutdown. So right now, they are continuing. And this month and next month, we expect good volumes. Really on the E&P side, we seem to be booking losses if you can highlight how it is going on currently? And what is your plan in terms of the pet profitability?

Yes. See, if you look at E&P on an operational level, we are making profits only after the depreciation, which is then only we are making losses. For example, last year ended, we have made an operating profit of close to INR 29 crores after depreciation, the negative, which is I think we have -- we also have a tail leg of that thing, which 10% of that asset we are moving on to for which we have an operational loss over there. For the other assets, particularly we are making profits. With respective [indiscernible]

In case you do have some reserve estimates right now, which you can share it would be great. Or what we have currently is what you shared [indiscernible]

Yes, we have the results. Basically, the results -- the 1 million barrels of oil liquidates close to 6.7 months. That is the 2Q results.

Next question comes from the line of Yogesh Patil with Dolat Capital.

My question is related to power segment and mostly to the 700-megawatt combined cycle power plant, where we have signed the PPA. On a steady state, how much one can expect the operating profit from this power plant? That's one. And as per my knowledge, the PPA for this power plant are expiring then are we looking for merchant power selling or we are planning to enter into the new PPAs?

The PPA is expiring to the 36, not in 28.

Okay. And sir, steady state, how much 1 can expect the operating profit from the power plant 700 megawatts?

See, the thing is presently there is no loan specifically the loans were there, basically [indiscernible] was adoring to the fixed cost regime, which was the utility entity are paying them the fixed cost, which is excluding of the the ROE of that project practically. So still continues basically we need to explore other options of utilizing this brand, which we are underway, we are actively looking and pursuing them. Subsequent to that, basically, we'll be able to tell you what the steady state of profit because the steady state of profit also includes the ROE which presently is not available because [indiscernible] has funded for that over a period of [indiscernible] when the plants are not functioning. So subsequently, once we identify an opportunity, we'll be discussing with [indiscernible] and basically coming up with the best plan for these projects

So [indiscernible] is paying fixed costs, that would be approximately INR 2.5 to INR 3 per unit.

Yes. That's fixed. That's the minimum fixed cost we are paying. That's the maintenance of the plant and the insurance, et cetera.

Okay. And sir, second question is related to -- in the current state, we are selling close to 8 mmscmd kind of gas to Morbi industry. How one can see the EBITDA margins for this Morbi volume? Because our back calculations are suggesting at EBITDA level, the margins would be approximately INR 3 to INR 3.5 per -- is that the correct calculation? Or you can correct me on that side?

I can make a talk on the quarter 1 numbers, then we can talk on those numbers.

Next question comes from the line of Probal Sen from ICICI Securities.

[indiscernible] question in terms of the number of shares that we've spoken about, what will be the final number of shares post the listing of the new shares for the the approval is pending.

Close to INR 93 crores sales total.

INR 93 crores.. All right. SP1 sir, another was on the [indiscernible], what was the LNG volumes that have shipped in FY '26? And any outlook you can share for [indiscernible]

No, I think the regasification facility, which is there gain facilities there. So they are not importing carbon their utilization was close to 17% of the capacity. And with the terminal being operational now using.

I think right now, they are doing close to 35% to 38%. -- of utilization starting in May and probably June, July would be the same, I guess.

Next question comes from the line of Nitin Tiwari with PhillipCapital India.

Just a bookkeeping question from my end, sir. If you can give us the operating profit for also this year as well as last year and also this quarter if possible?

Yes. I'll just -- it is operating profit for the last year was around 7 I think on the EBITDA numbers, I suppose.

Yes, EBITDA number for all segments, sir, because we want to be given the PBT number, I suppose. So if we can also [indiscernible]

Okay. The EBITDA numbers Yes, for the gas trading business is close to INR 1,300 crores for the gas trading business. CGD is close to INR 1,500 crores. The exploration business E&P business, INR 29 crores and renewable INR 6.6 crores.

Great, sir. And sir, secondly, how should we look at the gas selling business in terms of growth in this volume any guidance that you can go over this because CGD guidance, but in case of gas savings can provide us some guidance, what kind of growth we are looking at?

I think growth, we do expect good growth in gas trading business. we expect prices to be reasonable starting 28, '29. Once the conflict gets resolved, I think we right now are doing close to 10 to 7, but we do expect by 2030, 31 or maybe 25% to 30% growth in gas trading business.

Next question comes from the line of Kishan Mundhra with Dan Capital.

Thanks for the opportunity again. So 2 questions. So firstly, in the segmental bifurcation, sir, where are we including the profitability from Sabermutigas? And also in which segment are we incorporating the take-or-pay charges of INR 200 crores?

I think it has been shown as an unallocated expenditure with respect to the consolidated numbers [indiscernible] or we can see that. But with respect to the [indiscernible], which is there. Other than that, it has been allocated to the respective segments in the stand-alone.

So [indiscernible] say, where is it included, it's unallocated or it's part of [indiscernible].

[indiscernible] So it's an equity tie-up which happens. So basically 1 line comes with the profit profit statement. The kind of line by line accounting with respect to the [indiscernible]

Yes. But in the segmental breakup, it should be a part of other [indiscernible] expenditure?

Yes, I do the part of that.

Correct. And the 2 wheeler -- INR 200 crores of take or pay that we have paid would be?

We have not paid the corporate, [indiscernible] LNG trade was, so that is part of the consolidation unallocated number which is there. That's close to 200, which is coming in.

Okay. And the second question is we were talking about setting up infrastructure for supply and propane business. So what kind of infrastructure is it that we're talking about like setting up tankages and pipelines to Morbi what is it exactly?

It's basically setting up the import JT and storage tanks.

Next question comes from the line of Vinit [indiscernible] with [indiscernible]

Sir, on the gas trading business, how do we look at the margin [indiscernible], I think they have something like $0.20 per MMBtu for LNG segment trading. So any number that you can share for the trading to margin?

We have been making a margin of around 4% to 6% in the gas trading business. I think we can go with that percentage.

But you don't see any per unit item because that will be blended from the imported LNG as well as the domestic gas. So that [indiscernible] helpful.

Yes, but today, we'll share with you this percentage, which is there.

Okay. And on the tax loss, I think there is a INR 200 crore of tax loss that you mentioned earlier. So in the balance sheet, where can I be this backlog at it?

We have created a deferred tax asset. I think the detail schedule, which comes in. There is a different schedule for the deferred tax and the tax calculation which is there.

Okay. And how many years you have to use that INR crore, INR 100 crores?

We have to use that in 8 years, but we already used close to INR 5,000 crores in the last 2 years, but '24, '25, '26. So practically for the last 2 years, between the tax -- advanced tax we paid close to INR 900 crores of refund would be available.

The balance is around INR 2,000 crores odd.

Yes, close to INR 1,900 crores is balance, yes.

Okay. And sir, lastly, on the balance sheet. I think in the presentation, you mentioned that the cash balance of around INR 5,000 crores. But if you add the numbers in the consolidated balance sheet, cash and cash value is around INR 1,300 crores, and there is another item financial assets, other financial applies around INR 5,500 crores. So that gives you around INR 6,800 crores. So I'm a bit confused what is the correct number?

No, no. I think from last 2 years, we have changed the representation of that. Basically, the long term the fixed deposals which are more than 1 year, we are showing it as the financial asset reuse there. [indiscernible]

So if we add the cash balance, less the financial assets, the total comes to around INR 6,800 crores kind of, and you have mentioned INR 5,000 crores in the presentation.

Yes, See other financial assets. One of the line items is with respect to the GSF funds which we have placed. So once you get the detailed schedule of accounts, basically, this gain is clear.

Okay. Okay. And one more question, sir. At current spot LNG price of, say, $17, $18 at INR 95. And I think the [indiscernible] price selling price in the [indiscernible] around INR 70 per mmscmd. So are we making money at the EBITDA level on these numbers? Because if I do the math, I'm looking at negative margin.

If we are in a [indiscernible] business of making profits, so we cannot be making losses.

Sir, so what is the selling price of margin? Is it INR 73 higher than that?

INR 73 is at a particular exchange rate at a particular net calcific value. So depending on the correct value and the exchange rate at that point of time, the prices are basically indexed. So basically exchange rate is pass-through and [indiscernible] yes.

At current exchange rate, what to be the price, the INR 73 becomes INR 77, INR 78, what would be that number?

Around INR 76, I guess.

INR 76. But I think even at INR 76 and $17 spot price, I don't think we'll be making margin of INR 5 or INR 6 per [indiscernible], which we have [indiscernible].

No, no, but we -- I mean, we will -- we are not selling at a loss for sure. That's not possible for us to sell -- to be selling at a loss. And we are making...

[indiscernible] price is valid for the whole month and can start of month or it changes even during the month?

It doesn't change during the month. So the price for May was fixed, the price for June is also fixed.

Okay. Can you say June price if possible?

I think we have increased by INR 1.5.

Okay. So INR 77, INR 78 kind of number?

Yes, Yes.

Next question comes from the line of [indiscernible] Jain with CLS.

On the Gas Trading business segment that is there, when you show that the 4Q volume was between 4.6% mmscmd or so. The volume that you procure and use within city gas, is that also part of 4.6% or that is over and above that? I want to understand that. There was an arrangement where you would care for [indiscernible] Gas. How does that work in the most entity, if you procure LNG, does it [indiscernible] seen [indiscernible] gas volume for city gas or it goes through [indiscernible]

No. I think in the press release also, it's very clear what is the volumes, which -- the total volume of the company and what is the volume, which is intersegment sales, which is there -- that's very clear in the past. So then the debt trading volume of 4.9%, excluding the [indiscernible]. The total is goes to 10.9%.

Okay. And so when there is an intersegment over there, like the segmental EBIT that you have given that would be including the margin for the intersegment transfer is that going to be like you have given a segment a lead for [indiscernible]?

No, we are not giving you the EBITDA for [indiscernible]

EBIT, EBIT, the segment results, whatever you call. So that is EBIT right? Because what you call a segment result gas trading [indiscernible]

Yes. Yes. Yes, INR 1,300. Yes, it includes the segment -- you're right to include the profit from the [indiscernible]

So it includes the margin that [indiscernible] from Yes, you're in the gas to cities. Is that right?

Yes, you're right.

Yes. Okay. And sir, just maybe 1 suggestion because as now it's multiple segments, which are there. deal to make a lot of sense if you add EBITDA in your press release because that is -- that's what most companies with multiple segments also do it helps the analysis because the multiple that each of these segments will get would be very different.

Yes, I understand. Yes, we'll try to improve. Thank you.

Next question comes from the line of [indiscernible]

Sir, you did give the EBITDA breakup for the full year numbers. Could you just provide the same for Q4 segment level EBITDA breakup.

Yes, Yes. For Q4 of '26, it's a gas study is close to 400 CGD is close to 450. E&Ps posed to 14% and renewables is. [indiscernible]

Got it. And in terms of the gas trading business, if you could just -- I then you did mention the beginning in terms of contracts on either side, I was also standpoint currently the long-term contract into what point we have? And also from a new consumer did you mention about refineries and fertilizers through what point are these contracts? And if you can provide the quantum, that would be helpful.

For sourcing contracts we have 2 contracts with Qatar 1 with Shell and 1 with Uniper and total also. So the existing contracts mean Shell and Data, they run up to 28 and 30 the new contract from Qatar start in 26 and is valid for a period of years, I guess -- sorry, 17 years. Total energy contract is from 2026, it goes up to 35 million Uniper 28 to 37%. So that's on the sourcing side. One of the Cafarcontracts expired in 28 well contracts can expire in 2030. On the sales side, on the customer side, we have a contract till with fertilizer companies, which are a until 2028. And we are obviously talking to deeper the companies per extension, not only extension, but increasing volumes as well. We hope to do much more volume than what we are doing right now. And we have contracts with some other CGD companies other than [indiscernible]. For example, [indiscernible], Indian oil [indiscernible] Certas, IRM, IGL and Mega. These are long-term contracts, then we have as far as investor customers are concerned, we have contacts with JSW then we have contract with deeper fertilizer than PGP Glass, Indovijing, [indiscernible] there are many industrial customers which with whom we have long-term contracts. And obviously, after this contract expire, we are talking to them for renewal is there.

Just 1 additional thing. If you could just help you the quantum on these contracts of restatement. So what would be the exact quantum and also the 3 new contracts that you mentioned, what we on term of paras on trade?

So the contract with Qatar that we signed is 1 million tonne, but it has a ramp-up starts in '26 and goes up to 1 million then total energy is like 6 cargos per year. Shell, we have 15 cargoes per year, and Uniper, we have 6 cargoes per starting in 2028.

And 1 maintain because of the conflict, do you see at this tends to [indiscernible]

So yes, there will be impact this year because of the conflict Yes. I think we have already lost 2 cargoes which were scheduled this year [Audio Gap] May [indiscernible]

Next question comes from the line of Raj Kiran Gandhi, SBM Mutual

On this demerger scheme, from what I understood, you mentioned that the shareholder of [indiscernible] GSPC and GSPL will get the shares of transmission entity. So in effect, that 12 May the ex date was also the exit for the transmission sell. If I buy the shares today of Gujarat Energy, which is listed, I will not get the transmission entity shares. Is that correct?

The shares of transmission in tips, we are yet to fix a record rate for GTL. So once you have credited shares to the shareholders of GSC and [indiscernible], we are going to fix the date for record and whoever is holding shares from the given record debt will be LC to get shares of details.

Okay. Okay, sure. And given the quantum of that other financial asset is huge, possible to share the breakup so that people can make assessment in terms of underlying how much to take us cash in.

Yes. definitely [indiscernible] mail, we can give it's part of the part of the account.

Sure, sure. And this INR 900 crore tax refund that we are due on this past losses that we have set out by when should we get that?

It's an assessment which happens to the income tax department. So that will take its time.

Okay. But against this future, you have over INR 1,900 crores of pending losses here, you will straight or may not pay any tax rate? So there, it would be a question of --

No, no, we'll not be paying any taxes.

Okay. Perfect. And for this power plant, which is there in your assessment, what level of spot LNG gas will help turn us around the PLF and all that.

I think yes close to what they generally tell us is that $6, $7 gas will make things work for them.

Okay. Sure. And this gas trading business, which is the last question. Here, you will try to now incrementally grow it as an independent business in itself or it will largely be to kind of just support our CGD and other businesses? Or we should see it like just like Gil has a big trading business in denying that it will be kind of directly we run that way.

That's business as usual for us. I mean, obviously, 1 of the bigger customers would be our own companies, but we will be intently trying to sell additional volumes to other customers also.

Ladies and gentlemen, as there are no further questions. We have a question that is from the line of Sabri Hazarika from Emkay Global.

Thank's for the opportunity. Just a small question is, I mean, less [indiscernible] gas trading, I wanted to know, when we talk about the trading EBITDA and trading EBIT. So that is on a total volume of 13, 14 mmscmd, right, not this 4, 5 [indiscernible] volumes. Is that right?

Yes, INR 1,300 crores you're talking about.

Yes. So that would be 13.5%.

Yes, you're right. You are right.

Yes. So the trading margins, even for our own entity, that part is [indiscernible] of the [indiscernible]

No, no. Just a bit, that INR 1,300 crore would be for the gas trading volumes on the previous year. That would be [indiscernible] 100 [indiscernible].

Okay. That is 10 [indiscernible] for the full year?

Yes. Yes.

And like -- I mean, if I add the CGD and trading volumes, then I think the number comes at 13 [indiscernible]. so that is the [indiscernible] I mean what you have reported in your press release?

Yes, because the project the CGD are also getting APM gas allocation also.

Okay. Okay. So that is another [indiscernible]

For the total volume of gas being sold or purchased for the company that will also be included as a part of this.

Okay. Got it. So the [indiscernible] portfolio is mostly LNG portfolio, I mean, which is around 10, 11. And anything top of this that is basically [indiscernible] plus NWC and all, which is coming from [indiscernible]

Yes, yes, you will guess plus whatever is allocable to the CGD business, that will be coming in separately to the CGD business yet.

Okay. So for the full year, the [indiscernible] volume is around 10.5%, is that right?

Yes, 10.1. Yes, you're right.

Next question comes from the line of Hardik with ICICI Securities.

I just want to know what would your investment so far in assisting LNG?

[indiscernible]

Yes [indiscernible] value [indiscernible]

Yes, we have 38 percentage investment over there.

Amount, amount?

Yes. They are close to around INR 1,700 crores.

ok, INR 1,700 crores.

Next question comes from the line of [indiscernible] Securities.

For the [indiscernible], what is sir, the wider industry breakdown of the...

Sorry, of interrupting Mr. , [indiscernible] we cannot hear you. Can you speak a little louder?

Am I audible now?

Yes, better than before.

So just [indiscernible] for the FCC, what is the user industry-wise breakdown in FY '26 here?

Yes. Basically, you are talking about the segment which we sold gas. That's what you're trying to tell us. [indiscernible]

Yes, sir.

basically city gas distribution companies, then we have fertilizers and then refinery, power and other industries. [indiscernible] it 52 percentage -- Yes, 50% to 53% goes to the -- if yes, is 27% which goes to the fertilizer and rest is others.

And sir, my second question is that as [indiscernible] because of the [indiscernible]sir, what is the risk to plan? I mean to say that -- I mean the [indiscernible] cost you're retiring or be a short-term LNG, but I think you do from India from a long-term contract to volatility in compute or pending [indiscernible] so on the plan over the next 1 year, we...

I'm sorry, Mr. Dixit, we cannot hear you. Your voice is breaking. Can you come to the range and talk.

Yes. Is it agile now?

Yes.

Yes. So I just want to move back your [indiscernible] the ramp-up of the Morbi volume. So I think near-term dependency on the short-term LNG will increase you -- so what is the risk mitigation plan for that because your volume activity to convert into the medium term and long-term contract in 1 year down the line, to avoid the volatility in the gas cost, something like that, if we try to see in 1 or 2 years down the line, sir?

So basically, what we are doing is we are -- we have signed a few long-term contract that has brought about with Qatar and [indiscernible]. These volumes are linked to bank and at a very attractive linkage. Propane also broken prices also vary along with oil prices. We understand that these prices are competitive vis-a-vis propane. And we will be able to match the propane prices with these volumes. In addition to the contracts already signed, we are also looking for volumes on [indiscernible] so as to provide a stable pricing we'll be able to pass on to propane consumers. So we are looking for long-term volumes. So if we have a stable kind of applies in [indiscernible] be able to complete it [indiscernible].

Next question comes from the line of Vinit [indiscernible] with Nomura.

Since there is a from the line Mr. Banka, will move to the next [indiscernible] Nitin Tiwari, Capital India.

So like we are eliminating intersegment -- how is that adjustment happening in the case of your PBT margins because as you mentioned that gas savings, the INR 1,300 crores is the total margin for all the volume of all the 10.5 [indiscernible] but the net volume is only 4.5% -- around 4.5%. So how is the margin adjustment taking place if we can put some light on that?

I think we are showing the revenue adjustment with the intercompany sales over there.

Yes, revenue is intersegment sales that I understood. When we come to the margin, which is your EBIT or PBT margin. So their gas seating margin is the total margin for the entire volume, right? So -- but if it clearly, it would be for the net volume, right? So how is the extra margin getting compensated, I mean, adjusted.

So that segment will be having their own profitability. So that is reflected as a cost in other segments, CGD business. So you need to understand that for '24, '25, '25 '26, the companies are operating separately. So the [indiscernible] basically are flowing from the accounts itself.

So basically, that becomes a cost for the city at margins Okay. Got it. Yes. And if you can help us with the EBITDA number for FY '25 as well the segment EBITDA for 25 years.

Yes, 25 gas trading is close to INR 200 crores. CGD, you would is close to INR 2,000 crores. at renewables is close to INR 39 crores.

Next question comes from the line of Amit Murarka with Axis Capital.

So just on the whole transfer pricing that you're following for trading to CGD business, there's a element of profit within that, of course, I understand. But is there any thought or consideration that to transfer the volume to the CGG business on a cost basis given that it is 1 company now and the volumes you're netting off to show only the external sales? Or will it continue to be booked as a trading business EBITDA, like how it has been done currently?

Yes, we will be optimizing that, but to what extent we'll be doing because these are 2 separate business segments as such, being evaluated separately with respect to their performance, et cetera. So to that extent, basically, we'll be transferring the profits, et cetera, that will be over a period of time, we will come to know with the results we [indiscernible] out.

Sure. And just a follow-up to an earlier question. I think to put it in another way. I mean, is the margin similar for when you transfer to the CGD business as well as to third parties? Or is it lower for the CGD business?

Basically, we -- when we sell to any consumer, it's basically depend basically the pricing that we do is basically depending on the opportunity that is available in the market. For example, if we are able to sell lateritic is higher. And obviously, we'll be selling at a higher price. So obviously, it would be same always. Yes. Only thing to add is basically now we have flexibility of basically doing an intersegment sale without that onething so that -- that obvious optimization will definitely happen with respect to the CGD and the gas siding business.

Right. So hard to say that you will try to then maybe book more profits in the CGD business in the future years than the trading business?

I'm not saying that, but you can always interpret what I'm saying.

Ladies and gentlemen, that was the last question of today, we have reached the end of question-and-answer session. I now hand the conference over to Mr. Sandeep Dave, Company Secretary for Project Conference

We'll take this opportunity to thank everyone for sparing their valuable time. We look forward to interact with you in early August with results. Thank you all.

Thank you. On behalf of Gujarat Energy Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.