Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Gujarat Gas Ltd (NSE: GUJGASLTD) Q3 2026 Earnings Call dated Jan. 21, 2026
Corporate Participants:
Sandeep Dave — General Manager, Secretarial & Legal and Corporate Communication
Dipen Chauhan — Senior Vice President, Marketing and Business Development
Devendra Agarwal — General Manager
Analysts:
Probal Sen — Analyst
Yogesh Patil — Analyst
Sabri Hazarika — Analyst
Amit Murarka — Analyst
Maulik Patel — Analyst
Mayank Maheshwari — Analyst
Achal Shah — Analyst
Unidentified Participant
Hardik Solanki — Analyst
Presentation:
Operator
Sadies and gentlemen, good evening and welcome to the Gujarat CAS Limited’s Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to the Company Secretary of Gujarat Gas, Mr.
Sandeep Dawe. Thank you. And over to you Mr. Dawe.
Sandeep Dave — General Manager, Secretarial & Legal and Corporate Communication
Thank you. Good day everyone. A very Warm welcome to Q3 earning call of Gujarat Guest Ltd. I am Sandeep Dawe, company head of corporate communication at GTN. Just to give you an update on the scheme of arrangement since our last earning call. The Scheme Mrs. We have filed the scheme of arrangement with the Ministry of Corporate affairs. The Ministry of. We are expecting date of final hearing from Ministry of Corporate affairs which we had received. There were certain queries from MCA which we have addressed and we are expecting that final hearing of the matter should come up somewhere around middle of February.
That takes us to completion of the scheme by end of April including allotment of shares to GGL and GTL shareholders. Coming back to ggl, Just to give a brief background on ggl. GGL is the largest city gas distribution company in India and is operating in 27 geographical areas spread across six states and one union territory. We have a good mix of matured and emerging CGD areas. We have developed pipeline network of more than 44,550 km which provide natural gas to approximately 23.83 lakh share households, 4,454 industrial customers and 15,900 commercial customers.
We also operate 833 CNG stations serving approximately 4 lakh vehicles per day. We are aggressively setting up CNG infrastructure as well as upgrading CNG infrastructure to promote use of clean and green fuel. GGL aims to deliver affordable, reliable and cleaner energy by operating responsibly and performing with excellence by while considering environment, social and governance factors. As part of our commitment to ESG initiative, we have signed eight new tripartite agreement with Biogas Producers and Ms.
Scale for purchase of CBG. This takes us total tally of agreement signed for CBG to 27 including 8 agreements signed during the quarter. We embarked on major digitization drive across various business operations and processes. Our major contribution to environment is by virtue of promoting use of gas for industrial customers. GGL by virtue of its average Q3 PNG sales to industrial customers reduced CO2 emission by approximately 56 lakh kg per day due to PNG utilization by customers instead of coal and through its CNG shale We have reduced CO2 emission by approximately 21 lakh kilograms per day due to natural gas utilized by customers instead of petrol and diesel.
We have been conferred with Supply Chain Champion Award in Gas Sector by Institute of Supply Chain Management. In supply chain ranking 2025 we are amongst top 10 supply chain champions as per ISME data. We are pleased to announce that the company has engaged McKinsey Co. As a strategic consultant to evaluate growth opportunities within our existing businesses as well as to advise on both organic and inorganic expansion initiatives. At Gujarat Gas we have highest standards of safety and a strong culture of safety.
GGL is an ISO certified organization for integrated quality, occupational, health, safety and environment management systems. We build, create and maintain a safe and reliable gas network in our areas of operation. With this brief background of GMGGL, I now request Mr. Deepen Chawan to share business updates. Over to you Deepening.
Dipen Chauhan — Senior Vice President, Marketing and Business Development
Thank you Sandeep. Good afternoon everyone. First I’ll update on the domestic and commercial segment. We are seeing a positive growth in the domestic segment. GGL’s customer base is now more than 23.83 lakh domestic customers. GGL has added 38,000 commission customers in Q3FY26 and registered 40,000 customers in Q3FY26. The commercial segment is showing a steady growth in connection numbers. We expect the numbers in the domestic and commercial segment to increase over a period of time as the new areas mature.
EGL at present has a customer base of 15,897 commissioned commercial customers. Now let me update on the industrial segment. In the industrial segment Sales volume were 3.93 mm as CMD for quarter ended 31st December 2025. Whereas the sales volume during the previous quarter was 4.35 mms CMD, an overall decrease of approximately 10%. The average morbi volumes during the quarter was 1.6 mmscmd and nor more B volume was 2.25 mmscmd. The morbi volume reduced from 2.13 mms CMD in Q2FY26 to 1.68 mms CMD in Q3FY26.
As anticipated, the proppant prices remained considerably lower than the GGL’s natural gas prices due to which Morbi volumes were lower during the quarter. The known mobi volumes of 2.25 mms cmd for quarter ended. 31st December 2025 is has grown from 2.22 mmscmt during the previous quarter, that is an increase of approximately 1%. The known Murbi volumes have shown a steady growth despite the Diwali festival where majority of the known Murbi markets have lower consumption. The known Murbi volumes has grown by approximately 7% as compared to the same period in the previous financial year.
The recent reduction in sport RLNG prices and crude prices enabled GGL to reduce the prices in more B ceramics segment by rupees 4 rupees 50 paisa per SEM with effect from 1-1-2026. The reduction in natural gas prices coupled with increasing propane prices has enabled GGL to reduce the price differential to propane I.e. Natural gas premium by rupees 2.40 per scm. The propane prices are expected to increase further during the month of February which shall further reduce the premium of natural gas.
We expect the more B volumes to increase from the current levels during this quarter. We continue to monitor the various aspects affecting the volumes I.e. Price movements of sport RLNG and alternate fuels and consumer demand across all our operating areas and shall adjust to such market dynamics so as to maintain balance between margins and volumes. Finally, let me update on the CNG segment. TTL reported a strong performance in Q3 FY26 driven by robust growth in ENG volumes and expanding infrastructure.
CNG sales rose by 11% year over year with Gujarat recording a 9% increase and areas outside Gujarat delivering a notable 22% growth, underscoring GGL’s success in deeponing presence across geographies. As of December 2005, the CNG vehicle base across GGL’s network reached approximately 16.94 lakh compared to 14.89 lakh a year earlier, reflecting a solid 14% growth. CNG continues to offer a compelling economic advantage, being approximately 45% cheaper than petrol and 23% cheaper than diesel, further reinforcing the attractiveness amid volatile fuel prices.
Looking ahead, GGL is well positioned to capitalize on increasing shift towards cleaner energy. With ongoing infrastructure development, a growing CNG vehicle base and strong customer adoption, the company remains confident in maintaining its growth trajectory and strengthening its leadership in the CNG segment. Finally, I’m happy to Update that during FY26 we marked significant milestones in our company’s digital transformation journey with a soft focus on innovation and operational excellence.
As we go for merger, we have planned to strategically expand our enterprise resource planning ecosystem to incorporate additional key business functions and achieve the benefits of seamless integration across verticals. Along with this, the planned technology transformation of ERP will help to leverage advancement in AI powered analytics and enhance decision making and risk management capabilities. On the operations front, we have drawn footprint for implementing a robust and secure SCADA system to enable centralized monitoring and control across all geographies.
An advanced metering infrastructure is also planned to facilitate data collections from industrial and commercial customers through various meter types and transmit consumption related data to ERP system for billing and to SCADA system for centralized monitoring and control. This scalable agile infrastructure is designed to support our evolving business dynamics and and ensured responsiveness in a rapidly shifting global environment. Furthermore, we have identified automation opportunities across multiple business processes that currently fall outside the scope of our ERP system.
These initiatives are designed to strategically address operational challenges and enhance overall process efficiency through seamless integration and robust monitoring mechanisms. Thank you very much. Now I’ll hand over the mic to our CFO Mr. Rajeshan.
Sandeep Dave — General Manager, Secretarial & Legal and Corporate Communication
Good evening ladies and gentlemen. I’m Rajesh Shudhasan, the Chief Financial Officer and the head of investor relationship at Gujarat Gas. I welcome you to the earnings call for the third quarter of the financial year 2526. Thank you for joining us today. I trust you had the opportunity to review the financial results for the quarter ended 31 December, along with the accompanying press release and the investor presentation which is put in our website and the stock exchanges. During the quarter the company added over 38,600 domestic connections bringing a total domestic connections of more than 23.83 lakhs.
Our pipeline infrastructure now spans approximately 44,540 kilometers of PE and steel networks which continues to be our key driver for our growth. During the nine months we have invested approximately 408 crores in gas infrastructure and for the full financial year we plan to incur a capital expenditure to the range of 650 to 700 crores. With respect to the financial highlights for. Q3, the revenue from operations stood at. 4865 crores compared to 4333 crores in the corresponding quarter of the previous year.
The EBITDA stood at 502 crores against 439 crores in Q3 of the previous year. During the nine months the EBITDA is 1602 crores compared to 1566 crores during the nine months of the previous year. The profit after tax accounted to 266 crores compared to triple 2 crores in the previous last year. During the nine months the patch stood at 1176 crores as compared to 1159crores in the nine months of the previous year. The EBITDA margin per SEM stood at 6.52 against 5.04 corresponding to the previous year.
For the entire financial year we estimate the EBITDA margins to be in the range of 5.5 to 6.5 per SCM. With respect to the gas allocation during the third quarter we have received 100% allocation for the domestic segment. However, there was a 64 percentage shortfall in the CNG segment resulting in an overall shortfall of 51% in to the priority segment that is domestic and CNG. The APM shortfall was mitigated through allocations from new well gas, SPHT and sourcing gas through spot and long term volumes.
The allocation of new well gas for the Q3 for the financial year 2526 was approximately 0.31 mmscmd down from 0.44 mmcmd in Q2 of the current year. Gujarat Gas continues to maintain a strong credit profile with a AAA Stable rating and a A1 rating from CRISIL Care and India Ratings as requested by investors. The financials of GSPC for the half year for the financial year 2526 has been uploaded in GSPC’s website. Now I hand over to Devendra for the further updates on the gas sources.
Devendra Agarwal — General Manager
Good afternoon, I am Devendra Agrawal, NGOC Director Commercial.
Sandeep Dave — General Manager, Secretarial & Legal and Corporate Communication
I will highlight the key strategic commercial metrics, new sourcing updates and the marketing market challenges we paid during Q3 2026. Growth in priority sector which is basically CNG and domestic PNG has been robust and it continues to grow at 11% with the ways Q3 2025 on the sourcing side PM gas allocation has shortfall has increased from 45 to 51% for total requirement. Shortfall in CNG is currently 64% and the same is being met through spot as well as long term contract that we have and the proportion increased to 30% from 18% in the last quarter.
As with regard to the revised trunk line tariffs, the zonal tariffs, we have analyzed the impact on our financials. We believe that at the current operating volume level which is like 8.4 MSMD we are currently revenue neutral and we’ll continue to be so till at least 0.3 0.4 MCMD additional volume which is like 8.7 8.8 Ms. CMD level. On the more B side the volumes have experienced a substantial contraction. Volume decreased 50% from 3.35 MSMD in Q3 2025 to 1.68 MSMD now. This represents 21% reduction from 2.1 in the immediate preceding quarter.
The decline was because of high volatility in spot prices over the past one year while spot prices saw 19% reduction. The price of propane, a key alternative fuel for especially the more B consumers, has decreased by 25% making it, you know, price much more attractive option for the industrial consumers. To counter this challenge, our parent company GSPC has identified locations for storage of storage and handling of propane. We are currently in advanced talks to reserve unloading capacity, ensuring that we have access to a physical infrastructure to basically capitalize on this opportunity to manage competition.
We will be actively offering propane as an alternate fuel solution ensuring that we retain our customers, maintain customer relationship and market share in the industrial belt of Moorby and other industrial locations on the LNG market side. The LNG market over the next two, three years is to experience a significant supply glut driven by massive wave of liquefaction capacities coming in particularly from the US and Qatar. And this surplus is expected to put downward pressure on spot prices in Europe and Asia.
Although the long term demand growth remains intact especially in emerging economies like China and India on some of the challenges, the ongoing geopolitical tension could have a negative impact. It could disrupt the supply chain, impact shifting routes and cause price volatility. Commissioning timelines for some of the projects such as Golden Grass and North Field NFP of Qatar, they could be delayed. However they’re already delayed quite a lot and so this we can highlight as a key challenge going forward.
Thank you very much. And now I hand over the mic to our company secretary Mr. Sandeep Dawe,
Dipen Chauhan — Senior Vice President, Marketing and Business Development
Moderator. Please start Q and A session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch two in telephone. If you wish to remove yourself from the question queue, you may press Star and two Participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prabhul Sen from ICCA Securities. Please go ahead.
Probal Sen
Thank you for the opportunity sir. Very good afternoon. Firstly couple of questions on Modi. You mentioned that you have taken a 4 and a half rupees reduction in industrial prices at more b and the sound to propane has come down. Can we get a sense of what are the equivalent prices in rupees? For FBL terms right now for your industrial segment in Modi and equivalent propane price.
Sandeep Dave
Assuming the propane prices are around 38.6
Probal Sen
Against
Sandeep Dave
Our gas prices of 41.
Probal Sen
Hypothetical question, at what price of propane does the industrial size and propane price sort of coincide? How much would NPG prices need to increase from here on in? Another 25. $30 a ton will do it. Roughly.
Sandeep Dave
25 to $30 per ton.
Probal Sen
Okay, Got it sir. Got it. The second question was with respect to the cng. You mentioned the growth rates for Gujarat and non Gujarat. Is it possible to get a sense of the volume split right now between Gujarat and non Gujarat areas?
Sandeep Dave
Yeah. Gujarat is close to 2.95 and outside Gujarat is 0.51.
Probal Sen
Okay. And can we expect or rather is your sense that non Gujarat will continue to grow at the kind of run rates we have been showing for the last three, four quarters. So we’ll be building in that kind of 15 to 20% in this particular part.
Sandeep Dave
Yeah. I think the double digit growth should go through in both the areas. Because outside Gujarat also we are growing at a higher rate. Because these are new areas.
Probal Sen
Right?
Sandeep Dave
Yeah. The base is lower.
Probal Sen
And just a couple more outspoken questions. One was the EBITDA guidance rate seems to have been increased in this quarter. If I heard you correctly, you mentioned about five and a half to six and a half being the expected rate for the full year. Can we build in a slightly higher run rate for 27 and 28 as well? Given the dynamics of rising and the volume.
Sandeep Dave
I think you can take the same rates. I think we’ll update you in the when we come with come up with the March results wherein we will have the consolidated balance. Wherein you’ll have a sense of the numbers which are there.
Probal Sen
Okay. Okay. And so last question was Apex, you mentioned about 700 for this year. For the next couple of years also is that the same run rate? I mean for at least the standalone Gujarat? We are CGD business. I know the next year will be nice. It’s all picture business. 700 odd crore is the Runway we should be building.
Sandeep Dave
Yeah, that’s.
Probal Sen
All right. So thanks. I’ll come back. Thank you so much.
Operator
Thank you. The next question is from the line of Yogesh Patil from Dollar Capital. Please go ahead.
Yogesh Patil
Thanks for taking my question, sir. The question related to gas cost. Gas Cost of Q3FY26 versus the Q2FY26 despite multiple favorable factors for the gas cost reductions on sequential basis. Like lower crude prices, lower APM prices lower spot LNGs our gas cost has reduced mere 20 paisa per ACM on sequentially in our calculation it was indicating the gas code reduction was a little bit higher. Can you correct us where we are missing any risk?
Sandeep Dave
Well this year I think the spot. Prices if you compare it with the. I mean on a. If you compare it vis a vis crude is much higher than last year. Are you talking about the absolute numbers or.
Yogesh Patil
So? Sir, our gas cost per unit has come down by 20 paisa per SCM on sequential basis Q1Q. So if we compare it on the crude levels, spot LNG levels everything is down on the Q and Q basis. So that’s why we wanted to understand a mere 20 pace upper HCM reduction versus the there was a huge expectation of 1 rupees per SEM kind of a gas cost reduction.
Sandeep Dave
I think it depends on the sources of gas and where you are sourcing the gas. I think only APM is only 24% of the entire portfolio we are having. The rest of the portfolio is for the long term and the short term gas we are having.
Yogesh Patil
Okay, great. Could you please share the gas sourcing details? APM spot IGF in terms of the MMS CMD that would be really helpful for us.
Sandeep Dave
I’ll tell you of the 8.5 mms cmd which you have purchased of 24% is APM gas. Nival gas is 4 percentage and long term contracts are 39 percentage and short term is 33 percentage.
Yogesh Patil
In short term IGS plus spot. Is that a correct understanding?
Sandeep Dave
Yeah, yeah right. Understanding is right.
Yogesh Patil
Okay. Sir, recently a cut in the PNG industrial prices. What is the response from the Murby consumers? So the PNG industrial volume from the level of Q3 1.66 mms has really gone up. Any. Any numbers if you could share for the January month And what is your expectation? Yeah, sorry, go ahead.
Sandeep Dave
Yeah, it has actually. If we had not reduced the prices it would have further reduced. So from 1.68 it has basically increased to 2.2 MSAMD and we expect when the new Saudi CP would be announced for already it is. It is already there. So once comes towards the end of January probably we will see somewhere around close to 2.6 2.7 SEMD at least.
Yogesh Patil
Any idea about the February and March possible?
Sandeep Dave
We are expecting close to 3 to 3.2 mcmd in propane in. In more b. Sorry on gas.
Yogesh Patil
Yeah. And the last question sir, as you mentioned the new gas transmission tariffs are revenue neutral as of now at a current Volume and Even if the 0.3 mms volume growth from the current level increases, it will hardly impact. But a small kind of understanding we want from your side as the more B volume is going to increase, I mean it will Increase at least 1 mm HCMD as per your guidance in the next few months. Then how much it will impact to our gross profit margins considering the new gas transmission tariffs.
Operator
Sorry to interrupt. So your voice is not audible. Yeah,
Sandeep Dave
Just one second. Is approximately 1 rupee per SCM.
Yogesh Patil
So is it a fair to understand 1 mm SCM? The jump in the PNG industrial volume will have a kind of a 1 rupees per STM kind of a negative impact on the gross profit margins. Is that a correct understanding?
Sabri Hazarika
Yes.
Yogesh Patil
Oh thanks. Thanks a lot sir and all the best.
Operator
Thank you. The next question is from the line of Amit Murarka from Access Capital. Please go ahead.
Amit Murarka
Hi, good afternoon on more B. Just wanted to clarify the data point that you mentioned. So did you say that Q4 volume is expected to be 3 to 3.2 mmsamd or did you say the exit quarter volume will be that.
Sandeep Dave
He said in February the volumes would be close to 3.3.2 LCMD and it could be, it could be the same for February as well. Sorry, March.
Amit Murarka
Okay. Okay. And currently what would be the run rate.
Sandeep Dave
Current is 2.2.
Amit Murarka
Understood. Also on the price revision at more b the 4.5 rupee cut or the 41 rupee price which is there currently. So with the rupee kind of depreciation that is happening and like there has been some jump in the spot LNG pricing also in the last week or so, is there any risk to that price going up with the, with the cost pressures that could happen in the next few months or how do you think about that?
Sandeep Dave
I don’t think see this sudden increase in spot price is a very, I think it will be, it’s going to be a very short term phenomena. Basically because of the severe winter that is that has hit Europe and us it has resulted into spot prices going up. But we expect the prices to again come back to initially $9 kind of a level. And then going forward in 2020, middle of 2026, we expect lot of term contracts to you know, to start get delivering volumes into India. We expect spot prices to be much more reasonable once the winter is over, which is probably two months from now.
Amit Murarka
Just lastly on the scheme of arrangement, so by when you think that all of it will be completed and the GSPL relisting can be expected by When? Now.
Sandeep Dave
We are expecting here final hearing from MCA somewhere in the month of February. That will be followed by video once we receive a final order from MC and complete other formalities. So expect that by the time we get into the next earning call I think all formalities will be completed
Amit Murarka
As. An including the realisting of GSPL.
Sandeep Dave
Including relisting of gst. GSPL that is gtl.
Amit Murarka
Yeah, okay, sure. That’s all from me. Thank you.
Operator
Thank you. The next question is from the line of Molik from equidistance. Please go ahead.
Maulik Patel
Yeah hi. Thanks for the opportunity. A couple of things. What’s the update on this fdodo scheme that 100 CNG sessions were supposed to come up and you got some clarification for the government of Gujarat also And will that increase because in the last couple of quarters the CNG growth rate has been consistently around 11 12% kind of a rate. By what kind of percentage increase we expect post commissioning of this stations?
Dipen Chauhan
First of all today is a very good day for us. Today we have commissioned our first F dodo online stations in Moorbi. Before that also we have started one Fdodo station in Dwarka also we have signed total 77 agreements, 78 agreements for the MDODO and they are in the various stage of construction. And the way things are going we will connect more than 10 CNG stations in this financial year and balance in the next financial year.
Maulik Patel
What kind of increase one can expect in your assessment that CNG growth Can it go back go to the 13% kind of a rate because you have been see without last in last two years what you have done is you have converted a lot of your quarter booster station to the online stations which supported this growth. Right. And because the CNG stations per se has remain constant around 830 kind of level for the last 2, 3 years. Now with this number is increased by around 7080 stations over the next 23 quarters, 34 quarters.
Will this increase the growth rate from 11% to 13% 14% or it will be remain around 11%?
Dipen Chauhan
No, no, we are quite hopeful because the way if you look at the way CNG vehicles are being sold in the market apart from that There’s a huge 45% headroom for the CNG and petrol prices and the way new technologies are coming in CNG vehicles we are expecting 13% at least we would like to achieve.
Maulik Patel
And what’s your sense on Non Murbi? Because in Non Murbi after many many Since last 3, 4/4 it has been Growing at mid to high single digit kind of a growth. Always there has been an expectation that the growth will come from Ahmedabad, rural Thane and some of the other industrial areas. But it has not materialized to the extent what one could have expected earlier. Has the things have changed for better for the non Murabi volume and can we see a meaningful growth which can move the overall needle in needle in overall volume.
Anything has changed in non Moorabi where we can expect significant growth in next two to three years.
Dipen Chauhan
Yes, definitely. If you see means we have started connecting all our major market new major industrial market I.e. Ahmedabad, rural Dahij, Kutch Thane, UDI in Madhya Pradesh, Walsad and surrounding areas also we have started connecting. So we are expecting good volume growth because infrastructure is in place. We are in the process of getting cheaper gas compared to whatever we are getting right now. So yeah, quite hopeful about that.
Maulik Patel
One of the challenge was always the setting of the initial infrastructure. Has this been resolved in most of the gas which you mentioned that the initial infrastructure is already in place for all this? Ga.
Dipen Chauhan
Yes, we have started just to update you. We have just almost commissioned a steel pipeline for Dholera region also. Same way we are laying we are connecting various business parks in Daj and surrounding areas Thane of course we have to connect Boiser and surrounding areas also. So slowly but steadily we are connecting all the major potential markets through our steel pipeline.
Maulik Patel
Got it. Thanks.
Operator
Thank you. The next question is from the line of Vartarajan Shiva Shankaran from Antique Stock Broking Ltd. Please go ahead.
Devendra Agarwal
Thanks for the opportunity sir. So I want to once again look at this outlet addition. So you give some idea as to what what is going to happen next year. So effectively that 77 being commissioned. So if I were to look at next maybe like you know three year time frame. What is the kind of a potential addition in outlets one would be looking at? I mean I know not an exact number but kind of a number what you can give to the potential based on your assessment.
Dipen Chauhan
You. You are talking about CNG stations. Outlets in CNG stations.
Maulik Patel
That’s
Devendra Agarwal
Correct.
Dipen Chauhan
Okay. Yeah. I think I won’t be surprised it will enter into four digit number in coming two to three years. That is we may cross thousand CG stations.
Maulik Patel
Okay. And you are going to be dependent on entirely on f dodo motor from here on or.
Dipen Chauhan
No, no, no, no, no. In fact we are coming out with various options whatever available in the market and to us and FDODO is one of them.
Devendra Agarwal
My second question was on this case is pending in the Delhi High Court with regard to regulations as well as like you know any kind of a progress on that and are we outcome and what is the ground reality today in terms of people putting up let’s say even the LNG or any other infrastructure. How is that
Sandeep Dave
Refer to referring to. The litigation in pending in Delhi account related to Open Access guidelines for.
Devendra Agarwal
That’s correct.
Sandeep Dave
Right. So PNDRB has initiated this regulatory process for Open Access since early 2021. Has. Gone ahead and obtained a stay order from Delhi High Court. This stay order was continuing till 2024 where PNGRP repinned the earlier regulation and came up with a new set of regulation. They again moved Delhi High Court and obtained no order. So that’s interim protection available to us. Subsequent to that Delhi High Court has decided to hear this matter fully. In fact they have concluded the hearing on Open access guideline final hearing since May May 2025.
Thereafter they have reserved the order. Then they also. It was also indicated in the open court that they are not going to pronounce this open guideline principal regulation only. They are also going to deal with the associated regulation like. Like access code. There are some issues associated with exclusivity regulation as well. So they are hearing those regulation regulatory matters hearing is still going on. So once they conclude hearing and then only they will give a final verdict on this.
So it’ll be difficult to predict the time frame. Not likely to happen at least in very near future.
Devendra Agarwal
So pending that like you know there is no infrastructure creation in the GA’s. So is there a stay in order? As of now
Sandeep Dave
There’s no stay in order. Infrastructure creation is going on. It’s going on very well.
Devendra Agarwal
Thank you.
Sandeep Dave
Thank you.
Operator
Thank you. The next question is from the line of Sabri Zarika from MK Global. Please go ahead.
Sabri Hazarika
Yes, good afternoon. Two questions. Firstly, your CNG volume growth over the last two, three years have been like quite strong. Although the addition of CNG stations has been like not to that extent. So are you able to like increase the throughput per outlet considerably or is it that large format outlet coming up? Is there any particular reason behind growth being much faster than infrastructure additions?
Dipen Chauhan
Yes, I think we have focus on upgradation of our cngc. You have converted so many router booster to online stations and if you just see that will increase our compression capacity just like getting a few more. This is just like adding few more CNG stations but at a lesser cost or I can say operational hazards. So we are focusing on our existing CNG network And CNG stations. And that’s the reason why we are getting this growth. Apart from that, whatever we have planned for coming two to three years.
As I mentioned earlier that we are planning to cross thousand CNG stations in coming two to three years. This will further increase our growth.
Sabri Hazarika
Okay. And second question is when you say Victor per STM guidance. So this includes the other income also, right?
Sandeep Dave
Yeah. Yes.
Sabri Hazarika
I mean if I were to compare it with this Q3, it’s basically 6.5 is the number which is for Q3. Right. Dividing 502 crore with 8.4 mm estate. Is that right?
Sandeep Dave
Yeah, you’re right.
Sabri Hazarika
Okay. And. And just last small question, your volume. Are you in a position to give a volume growth guidance for next year given that there is some stability in the industrial. Industrial side. And. And if the price cut that you have taken is for both Morbi as well as non Morbi industrial or it’s just more industrial.
Sandeep Dave
I think the volume growth guidance depends on how the prices move in with respect to propane and gas. I think we’ll give you. You’ll be in a better position guidance by March, April for the next year.
Sabri Hazarika
Okay. The price cut is for the entire industrial or it’s just more B.
Sandeep Dave
It’s only for more B.
Sabri Hazarika
Okay. For the rest of the model
Sandeep Dave
It’s a premium. That.
Sabri Hazarika
How much? Around 2 rupees premium to Mi.
Sandeep Dave
It’s around. Yeah. Close to 3 rupees. Thank you so much.
Sabri Hazarika
Thank you so much.
Operator
Thank you. The next question is from the line of Lokesh Manik from Valum Capital. Please go ahead.
Devendra Agarwal
Yes. Hi. Good afternoon. Thank you for the opportunity. So my question is a little more broad based. If you can give us a sense of what is the volume potential of the Gujarat market for CFG and PNG and similarly for non Gujarat market. That is one and second is when do you expect these gas to mature?
Sandeep Dave
What is
Devendra Agarwal
The time frame that you know you’re taking three years, five years. So guidance from that front would be very helpful.
Sandeep Dave
I think you’re. You are talking of the entire potential of the CNG market in Gujarat.
Devendra Agarwal
Yes. Yes. Yeah.
Sandeep Dave
Yeah. That’s little difficult to predict because the number of vehicles being added every quarter. It’s. It’s surprising to us Also
Dipen Chauhan
This is 10 to 11% growth rate or 12% is being followed by all the companies. So you can guess it if you have numbers.
Devendra Agarwal
Understood. And you’re also seeing volume coming from commercial vehicles. Is that picking up for you for your GS?
Dipen Chauhan
Most of the volume is coming from commercial vehicles in the new GS at least.
Devendra Agarwal
Okay, okay, understood. That’s it. From my side sir. Thank you so much.
Operator
Thank you. The next question is from the line of Mayank Maheshwari from Morgan Sandy, please go ahead.
Mayank Maheshwari
Hi Samyank here. One quick question was related to the long term using of gas. Is there. Source gas to a higher proportion versus the bigger exposure to spot that you already have right now?
Sandeep Dave
So basically right now our share of long term gas is 39% which obviously we want to increase it to much higher level. So our parent company has signed a few contracts. Volumes of that will start getting delivered this year onwards partially. So I think the objective is to have stable price, less reliance on spot and maybe on an overall basis have 60 to 70% volume tied up on long term basis.
Mayank Maheshwari
Got it. So do you think you will get to like that 70% target or so in the next couple of years because you’re growing your CNG volumes as well and EPM is coming down. So when do you see that kind of filtering in terms of your grass sourcing?
Sandeep Dave
So maybe by end of 27 we should be there I think. I guess.
Mayank Maheshwari
Okay. And this other question was in terms of the entire CNG market as well as industrial outside of Moore B, can you give us in terms of the infrastructure that you have created or you’ll be creating over the next years outside of Movie, what kind of capex you’ll be spending on Long Moorby and some of these infrastructure you’re creating in the industrial side and how much of that will be split into the CNG side?
Sandeep Dave
I think the more b. I think we had the infrastructure is already late.
Devendra Agarwal
Most
Sandeep Dave
Of the infrastructure presently is going in outside.
Mayank Maheshwari
The propane infrastructure. Etc you don’t need much capex. What you’re saying
Sandeep Dave
No propane interest, that is separate. That’s a separate investment which you’ll be looking at that will come to you separately.
Mayank Maheshwari
Okay.
Sandeep Dave
Presently we are not planning, we don’t have propane.
Mayank Maheshwari
I was saying. Okay, so outside of Movie how much is the capex for industrial and then obviously on the CNG side what is the value of the 700 odd?
Sandeep Dave
No, no we don’t. We don’t differentiate between industrial and domestic because the steel pipelines are laid which are catered to both industrial as well as the domestic connections. From there on the PE network starts.
Mayank Maheshwari
Okay, thank you sir.
Sandeep Dave
Yeah.
Operator
Thank you. Is from the line of Somayavi from Evander Spark. Please go ahead.
Devendra Agarwal
Thanks for the opportunity sir. So my first question is on Bharti. So you did mention in terms of pricing difference, around two, two and a half currently. Whereas volumes maybe you’re expecting around 3.2 odd. So in case we need to get to let’s say four or five. So what are the kind of price differential that needs to exist? What kind of cash should be at a discount of what rate?
Sandeep Dave
The differential should not be there if you want to achieve five.
Devendra Agarwal
So we should be cheaper by. I mean if you are neutral, will we still be able to get to five or we have to be at a discount? Yes,
Sandeep Dave
Yeah. Yes.
Devendra Agarwal
At neutral we can get to five on the same day.
Sandeep Dave
Yes, yes.
Devendra Agarwal
Okay, so second question is on this 4 and a half rupees price cut. So this is an entire cost pass through or there is also some bit of margin that we have slightly given off for this 4.5 cut.
Sandeep Dave
Basically the reduction in spot pricing is, is what we have passed on to the consumers.
Devendra Agarwal
So there is no, it’s a complete pass through. So there is no impact on margins for this, at least for this level of cut. Unless there’s going to be a spot price increase from here.
Sandeep Dave
Yes.
Devendra Agarwal
Okay sir. Also in terms of propane, so I mean what is the thought process there in terms of selling propane or in terms of progress here? If you give some clarity, you would mention in the opening remark in terms of the parent, you know, coming up with infrastructure for storage. So in terms of work that has been done here, what we are expecting FY27, any volumes that were expected in terms of propane fix.
Sandeep Dave
So basically the board has decided that we should have our own infrastructure so that that’s for the slightly longer term. So we are in talks with the relevant port authorities to have our own infrastructure which includes the storage of unloading and storage of propane. In the meantime, we are talking to some of the existing infrastructure providers and we have got some positive indications for importing and storing propane at one of the terminal that we should be that we will be using in the short term to, you know, to start our propane journey.
So it could be not. I think we’ll be gaining some market share out of the propane market that is being, that is there in the, in the Murbi region and gradually we’ll have to build from there.
Devendra Agarwal
Okay. In terms of this propane that you’re referring to any investments from our side or it will be done by the parent and we have a agreement with them to take it from.
Sandeep Dave
So there is no infra investment which is required. It’s basically they’ll be putting will Be basically booking some capacities. Some capacity charge would be payable to the infrastructure owner and which obviously will build that in the price and sell token in the market. So there’s no investment which is required.
Devendra Agarwal
Okay sir, if a current customer is taking from an existing supplier, so what kind of. I mean I know it’s completely commoditized so what kind of edge that we can have to get? You know our volume sold there any differentiation that we can bring onto the tables?
Sandeep Dave
So basically we all. So all these users are already registered with us with GST with Gujarat Gas. They already have a security arrangement in place. So if they buy propane from any other supplier they have to pay in advance. Whereas in case of Gujarat Gas, since we already have the financial securities we’ll give them some credit which is very valuable for these consumers.
Devendra Agarwal
Okay, got it. Any thoughts on FY27 volumes that we can have on propane and also how do we look at margin profile compared to gas?
Dipen Chauhan
I
Sandeep Dave
Think this too early to comment on it. Basically maybe in the next call by the time we’ll be in a position to tell you that we have been able to book capacities etc, we’ll be able to tell you that push.
Devendra Agarwal
Okay, last question is on this CNG station addition you did mention the conversion of or poster stations. So how much has been converted and how much to there to get converted to one station?
Sandeep Dave
Of the eight we total today we have around 833 stations. Of that close to four then 415 stations are online today. That is almost 50% of the stations are online today.
Devendra Agarwal
And last. Sorry,
Sandeep Dave
Yeah,
Devendra Agarwal
Last couple of years number of stations got converted.
Dipen Chauhan
We have converted more than 40 stations
Devendra Agarwal
Last two years.
Dipen Chauhan
Yes, from daughter booster or daughter to online stations.
Mayank Maheshwari
Thank you sir. Quite. Thank you.
Operator
Thank you. The next question is from the line of Archul Shah from Ambit Capital. Please go ahead.
Achal Shah
Sir, am I audible? I just wanted to know that what is the volume in MMS AMD in the Morbix Murby ceramic cluster? Overall volume like propane plus natural gas. And what do you expect this volume to be in the next three, four years? Is it increasing or has it stagnated over the last few years?
Unidentified Participant
The
Sandeep Dave
Overall volume is close to 7.55
Unidentified Participant
Of
Sandeep Dave
That natural gas volume in the Q2 Q3 was around 1.65. Rest was with respect to prop.
Achal Shah
And. Sir, like this around 7 to 8 mms cmd. Is it like last 5 years? Has it increased and do you see it increasing in the next five years?
Sandeep Dave
So there’s a lot of investment coming into more B. Some of the older units are getting closed down because their products are no more in in use but simultaneously new units are being set up. So what our experience is that the total installed capacity in terms of mmcmd is still in excess of 8ms. CMD capacity utilization is close to 7 and a half msmd. 7 to 7 and a half msmD.
Achal Shah
Got it. Thank you.
Operator
Thank you. The next question is from the line of Hardik from ICICI securities. Please go ahead.
Hardik Solanki
Yeah, thank you. Thank you sir for the opportunity. Just want to check on the blended realization for the quarter. For this quarter, you know, on Q. On Q basis it was in flatiest realization despite. You know we have taken a. You know the full impact we have seen on the industrial gas prices. So just want to know why the realization was higher despite the price cut.
Unidentified Participant
The
Sandeep Dave
Price cut was was run on 1st of January.
Hardik Solanki
No, no, I’m talk. So I just. So in last quarter the banded realization was 47.5. Right. And even in this quarter if we talk about the realization is on similar line but the full impact even in the last in Q2 we have taken a price cut and part of it was, you know, yet to get expected in Q3. Right. Despite that there’s a slightest realization.
Sandeep Dave
Yeah. The. The volumes have come down but we realize that the prices were not reduced. So that’s the reason for the flat distribution. If you look at the volumes which is the car come down it’s more than 40 to 50%. There is a regression. The volumes if you look at the Q2 numbers.
Hardik Solanki
Yeah. From
Sandeep Dave
2. From around 2.13 we have come down to 1.68.
Hardik Solanki
Got it, got it. And so what will be your Volume value for FY27 Overall volume value?
Sandeep Dave
I think the only thing is the volume changes which happens is industrial volumes. The rest of the volumes we can estimate tend to double digit growth for the CNG segment and the domestic segment. But with respect to industrial that will be dependent on the propane and these prices how it plays out. So by March, April we’ll be in a better position to tell you that volume.
Devendra Agarwal
Sure. Thanks. That is very helpful.
Operator
Thank you. Ladies and gentlemen. As there are no further questions from the participants. That concludes the question and answer session. I now hand the conference over to Mr. Sandeep Dave for the closing remarks. Thank you. And over to you, sir.
Sandeep Dave
Thank you. Favorable gas price regime coupled with our efforts to increase gas volume numbers. We expect to have better numbers in Q4. We look forward to interact with you with you all in numbers environment and when we meet for next earning call with full financial result somewhere around May 2026. Thank you all for your time.
Operator
Thank you very much. On behalf of Gujarat Cash Ltd. The that concludes this conference. Thank you for joining with us today. And you may now disconnect your lines.