Gujarat Energy (GUJENERG IN) – Q2FY27 Result Update – Morbi volumes remain under pressure. – HOLD
Published on 09 Nov 2026
GUJENERG reported standalone EBITDA of INR8.0bn, down by 38.5% QoQ due to weaker Trading business margins and lower Morbi volumes but improved 24.0% YoY. EBITDA from the Trading business stood at INR3.3bn, down 54.9% QoQ, while CGD EBITDA declined 20.4% QoQ to INR4.6bn. Total CGD volumes declined 13.3% QoQ to 10.7mmscmd, as Morbi volumes normalized to 3.8mmscmd (PLe: 2.8mmscmd) from 5.7mmscmd amid increased LPG availability and seasonality monsoon impact in CNG. As per management, Morbi volumes are currently trending at ~1mmscmd. We value the company on SOTP basis using Sep’28E estimates, assigning 8x EV/EBITDA to the CGD business and 4x to the Gas Trading/E&P/Power businesses (all multiples unchanged), arriving at a revised TP of INR228 (previously: INR239). Maintain Hold.
