Thank you. Good day, everyone.

Very warm welcome to Q3 earnings call of Gujarat Gas Limited. I am Sandeep Dave, Company Secretary and Head of Corporate Communication and GTL.

To give an update on the scheme of arrangement, since our last earnings call, the scheme of arrangement, HBO, filed the scheme of arrangement with the Ministry of Corporate Affairs. The Ministry of Corporate, we are expecting date of final hearing from Ministry of Corporate Affairs, which we have 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 in 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 mature and emerging CGD areas.

We have developed pipeline network of more than 44,500-plus kilometers, which provide natural gas to approximately 23.83 lakh 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 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 ISCALE for purchase of CBG. This takes us total tally of agreement signed for CBG to 27, including eight agreements signed during the quarter.

We have embarked on major digitalization 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 sales, we have reduced CO2 emission by approximately 21 lakh kg 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 & Company 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. GTL 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 GGL and GTL, I now request Mr.

Dipen Chauhan to share business updates. Over to you, Dipen.

Thank you, Sandeep. Good afternoon, everyone.

First, I will 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 commissioned customers in Q3 FY26 and registered 40,000 customers in Q3 FY26.

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.

GGL 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 MMSCMD for quarter ended 31st December 2025, whereas the sales volume during the previous quarter was 4.35 MMSCMD, an overall decrease of approximately 10%. The average Morbi volume during the quarter was 1.6 MMSCMD, and non-Morbi volume was 2.25 MMSCMD.

The Morbi volume reduced from 2.13 MMSCMD in Q2 FY26 to 1.66 MMSCMD in Q3 FY26. As anticipated, the propane prices remained considerably lower than the GGL's natural gas prices, due to which Morbi volumes were lower during the quarter.

The non-Morbi volumes of 2.25 MMSCMD for quarter ended 31st December 2025 has grown from 2.22 MMSCMD during the previous quarter. That is an increase of approximately 1%.

The non-Morbi volumes have shown a steady growth despite the Diwali festival, where majority of the non-Morbi market have lower consumption. The non-Morbi volumes have grown by approximately 7% as compared to the same period in the previous financial year.

The recent reduction in spot RLNG prices and crude prices enabled GGL to reduce the prices in Morbi ceramic segment by rupees 4 rupees 50 paisa per SCM with effect from January 1st, 2026. The reduction in natural gas prices, coupled with increase in propane prices, has enabled GGL to reduce the price differential to propane, that is 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 Morbi volumes to increase from the current levels during this quarter.

We continue to monitor the various aspects affecting the volumes, that is price movements of spot 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.

GGL reported a strong performance in Q3 FY26, driven by robust growth in CNG 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 deepening its presence across geographies.

As of December 2025, 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 sharp 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 advancements in AI-powered analytics and enhance decision-making and risk management capabilities. On the operations front, we have drawn up plans 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 collection 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 ensure 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.

Rajesh Sudarsan.

Good evening, ladies and gentlemen. I'm Rajesh Sudarsan, the Chief Financial Officer and Head of Investor Relationship at Gujarat Gas.

I welcome you to the earnings call for the third quarter of the financial year 25-26. Thank you for joining us today.

I trust you had the opportunity to review the financial results for the quarter ended 31st December, along with the accompanying press release and the investor presentation, which is uploaded 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 C 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 4,865 crores compared to 4,333 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 1,602 crores compared to 1,566 crores during the nine months of the previous year. The profit after tax accounted to 266 crores compared to 222 crores in the previous last year.

During the nine months, the PAT stood at 1,176 crores as compared to 1,159 crores in the nine months of the previous year. The EBITDA margin per SCM 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% shortfall in the CNG segment, resulting in an overall shortfall of 51% to the priority segment, that is domestic and CNG. The APM shortfall was mitigated through allocations from New Well Gas, HPCL, and sourcing gas through spot and long-term volumes.

The allocation of New Well Gas for Q3 for the financial year 25-26 was approximately 0.31 MMSCMD, down from 0.44 MMSCMD in Q2 of the current year. Gujarat Gas continues to maintain a strong credit profile with a triple-A stable rating and A1 plus rating from CRISIL, CARE, and India Ratings.

As requested by new investors, the financials of GSPC for the half year for the financial year 25-26 has been uploaded in GSPC's website. Now I hand over to Devendra for the further updates on the gas sourcing.

Good afternoon, I am Devendra Agarwal, Executive Director Commercial. I will highlight the key strategic commercial metrics, gas sourcing updates, and market challenges we faced during Q3 2026.

Growth in priority sector, which is basically CNG and domestic PNG, has been robust, and it continues to grow at 11% vis-a-vis Q3 2025. On the sourcing side, APM gas allocation shortfall has increased from 45% to 51% of our total requirement.

Shortfall in CNG is currently 64% and the same is being met through spot as well as long-term contracts that we have, and the proportion has increased to 30% from 18% in the last quarter. As regards the revised trunk line tariff, the zonal tariff, we have analyzed the impact on our financials.

We believe that at the current operating volume level, which is 8.4 MMSCMD, we are currently even neutral, and will continue to be so till at least 0.3, 0.4 MMSCMD additional volume, which is 8.7, 8.8 MMSCMD level. On the Morbi side, the volumes have experienced a substantial contraction.

Volumes decreased 50% from 3.35 MMSCMD in Q3 2025 to 1.68 MMSCMD now. This represents 21% reduction from 2.1 MMSCMD in the immediately 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 Morbi consumers, decreased by 25%, making it, a price much more attractive option for the industrial consumers.

To counter this challenge, our parent company GSPC has identified locations for storage and handling of propane. We are currently in advanced talks to reserve unloading capacity, ensuring that we have access to physical infrastructure to capitalize on this opportunity.

To manage competition, we'll 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 Morbi and other industrial locations. On the LNG market side, the LNG market over the next two three years is likely to experience a significant supply glut driven by a massive wave of liquefaction capacities coming in, particularly from the U.S.

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 shipping routes, and cause price volatility.

Commissioning timelines for some of the projects, such as Golden Pass and North Field NFE of Qatar, they could be delayed. However, they are 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 Dave.

Moderator, please start the session.

Thank you for the opportunity, sir. Very good afternoon.

First, please, a couple of questions on Morbi. You mentioned that you have taken a two and a half rupees reduction in industrial prices at Morbi and the propane has come down.

Can we get a sense of what are the equivalent prices in rupees per SCM terms right now for your industrial segment in Morbi and equivalent propane price?

Presumably the propane price is around 38.6 against our gas price is 41. So,

sir, just a hypothetical question. At what price of propane does the industrial price and propane price coincide?

How much should NPG prices use in from here on in? Another 25-30 dollars a ton will do it roughly?

25 to 30 dollars per ton.

Okay. The second question was sir, with respect to the changing, you mentioned the growth rates for Gujarat and non-Gujarat.

Is it possible to get a sense of the volume split right now for CNG between Gujarat and non-Gujarat areas?

Gujarat is close to 2.95 and outside Gujarat is 0.51.

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, let's say, three, four quarters? We will be building in that kind of 50-20 percent in this particular part?

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. The base is lower, no?

And

just a couple more housekeeping questions. One was the EBITDA guidance seems to have been increased in this quarter.

If I heard you correctly, you mentioned about 5.5 to 6.5 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 pricing and volumes?

I think you can take the same rates. We'll update you when we come up with the March results wherein we will have the consolidated balance wherein we'll have a sense of the numbers which are there.

Okay. Last question was CAPEX, you mentioned about 700 crore for this year.

For the next couple of years also, is that the same run rate? At least for Sangrur, Gujarat, where CGD business, I know the next year will be not.

It's all picture. For Gujarat, where CGD business, 700-odd crore is the run rate which you will be building?

Yeah.

That's.

All right, sir. Thanks.

I'll come back if I have more. Thank you so much for your time.

Thanks for taking my question, sir. Sir, question related to gas cost.

Gas cost of Q3 FY26 versus Q2 FY26. Despite multiple favorable factors for the gas cost reductions on sequential basis, lower crude prices, lower APM prices, lower spot LNGs, our gas cost has reduced mere 20 paisa per SCM on sequentially.

In our calculation, it was indicating the gas cost reduction was a little bit higher. Can you correct us where we are missing anything?

Well,

this year I think the spot prices, if you compare it with the, on a, if you compare it vis-a-vis crude, is much higher than last year. Are you talking about the absolute numbers or?

So,

sir, our gas cost per unit has come down by 20 paisa per SCM on sequential basis, Q1 Q2. If we compare it on the crude level, spot LNG levels, everything is down on the Q1 Q2 basis.

That's why we wanted to understand for mere 20 paisa per SCM reduction versus there was a huge expectation of 1 rupee per SCM kind of a gas cost reduction.

I think it depends on the sources of gas and where you are sourcing the gas. I think only APM is 24% of the entire portfolio we are having.

The rest of the portfolio is from the long-term and the short-term gas we are having.

Great. Sir, could you please share the gas sourcing details, APM, spot, IGX, in terms of the MMSCMD?

That would be really helpful for us.

I'll tell you, of the 8.5 MMSCMD which we are purchased, of 24% is APM gas, Newwell gas is 4%, and long-term contracts are 39% and short-term is 33%.

In the short-term, IGX plus spot, is that a correct understanding?

Right. Understanding is right.

Okay. Sir, recently a cut in PNG industrial prices.

What is the response from the Morbi consumers? The PNG industrial volume from the level of Q3 1.66 MMSCMD has really gone up?

Any numbers if you could share for the January month? What is your expectation?

Go ahead.

It has actually, if we had not reduced the prices, it would have further reduced. From 1.68, it has basically increased to 2.2 MMSCMD.

We expect when the new Saudi CP would be announced for, already it is already there. Once it comes towards the end of January, probably we will see somewhere around close to 2.6, 2.7 MMSCMD, at least.

Any idea about February and March month, possible?

We are expecting close to 3, 2.3.2 MMSCMD in propane, in Morbi. On gas.

Yeah. The last question, sir, as you mentioned, the new gas transmission tariffs are revenue neutral as of now at the current volume.

Even if the 0.3 MMSCMD volume growth from the current level increases, it will hardly impact. A small kind of understanding we want from your side.

As the Morbi volume is going to increase, it will increase at least 1 MMSCMD as per your guidance in the next few months. Then how much it will impact to our gross profit margin, considering the new gas transmission tariffs?

Just one second. It is approximately one rupee per SCM.

Is it fair to understand one MMSCMD jump in the PNG industrial volume will have kind of a one rupee per SCM kind of a negative impact on the gross profit margins? Is that a correct understanding?

Yes.

Oh, thanks a lot, sir, and all the best.

Hi, good afternoon. On Morbi, just wanted to clarify the data point that you mentioned.

Did you say that Q4 volume is expected to be 3 to 3.2 MMSCMD, or did you say the exit quarter volume will be that?

We said in February the volumes would be close to 3, 3.2 MMSCMD, and it could be the same for February as well. March.

Currently where what would be the run rate?

Current run rate is 2.2.

Understood. Also on the price revision at Morbi, the 4.5 rupee cut, the 41 rupee price, which is there currently.

With the rupee depreciation that is happening and 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 cost pressures that could happen in the next few months?

Or how do you think about that? No,

I don't think. See, this sudden increase in spot price, I think it is going to be a very short-term phenomena, basically because of the severe winter that has hit Europe and U.S.

It has resulted into spot prices going up. We expect the prices to again come back to initially 9 dollar kind of a level.

Then going forward in middle of 2026, we expect a lot of term contracts to start 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.

Sure. Just lastly on the scheme of arrangement, by when you think that all of it will be completed and GSPL relisting can be expected by when now?

We are expecting final hearing from MCA somewhere in the month of February. That will be followed by, once we receive a final order from MCA and complete other formalities.

We expect that by the time we get into the next earning call, I think all formalities will be completed.

As in including the relisting of GSPL?

Including relisting of GSPL. That is GTL.

Yeah. Sure.

That's all from me. Thank you.

Thanks for the opportunity. A couple of things, what's the update on this F-gas scheme that under CNG stations was supposed to come up?

You got some clarification with the government of Gujarat also. Will that increase?

Because in the last couple of quarters, the CNG growth rate has been consistently around 11-12 percent a rate. By what kind of an percentage increase we can expect post commissioning of these stations?

Today is a very good day for us. Today we have commissioned our first EVDO online stations in Morbi.

Before that also we have started one FGDU station in Dwarka. We have signed total 77 agreements, 78 agreements for the FGDU, and they are in the various stage of construction.

The way things are going, we will connect more than 10 CNG stations in this financial year and balance in the next financial year.

What kind of increase one can expect in your assessment that CNG growth, can it go back to the 13 percent kind of a rate? Because you have been, in the last two years what you have done is you have converted a lot of your booster stations to the online stations, which supported this growth, right?

Because the CNG stations per se have remained constant around 30 kind of level for the last two-three years. Now with this number is increased by around 70-80 stations over the next two-three quarters, three-four quarters, will this increase the growth rate from 11 percent to 13 percent, 14 percent, or it will remain around 11

percent? No.

We are quite hopeful, because if you look at the way CNG vehicles are being sold in the market, apart from that there is a huge 45 percent headroom for the CNG and petrol prices, and the way new technologies are coming in the CNG vehicles, we are expecting 13 percent, at least we would like to achieve.

What's the sense on non-Morbi? Because non-Morbi after many, many quarters, since last three-four quarters, it has been growing at a 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. It has not materialized to the extent what one could have expected earlier.

Has things have changed for better for the non-Morbi volume, and can we see a meaningful growth, which can move the overall needle in overall volume? Anything has changed in non-Morbi where we can expect a significant growth in the next two to three years?

Yes, definitely. If you see means we have started connecting all our major markets, new major industrial markets.

That is Ahmedabad rural, Dahej, Kutch, Thane, UDI in Madhya Pradesh, Valsad and surrounding areas also we have started connecting. 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. Quite hopeful about that.

one of the challenge was always the setting up 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 these GAs?

Yes, we have started. Just to update you, we have just almost commissioned steel pipeline for Dholera region also.

Same way we are connecting various business parks in Dahej and surrounding areas. Thane, of course we have to connect Boisar and surrounding areas also.

Slowly but steadily, we are connecting all the major potential markets through our steel pipeline.

Got it. Thanks.

Thanks for the opportunity, sir. I want to look at this outlet addition.

You give some idea as to what is going to happen next year, specifically that 77 being commissioned. If I were to look at next maybe a three-year time frame, what is the kind of a potential addition to outlets one would be looking at?

I know not an exact number, but ballpark kind of a number what you can give as to the potential based on your assessment.

You are talking about CNG stations, outlets? CNG stations?

That's correct.

Okay. I think I won't be surprised if we enter into four-digit number in coming two to three years.

That is, we may cross 1,000 CNG stations.

Okay. You are going to be dependent entirely on FGDU model from here on, or are we also looking at...

No, no, no. In fact, we are coming out with various options, whatever available in the market and to us, and FGDU is one of them.

My second question was on this case pending in the Delhi High Court with regard to regulations as well as, issues. Has there been any kind of a progress on that, and are we having any outcome, and what is the ground reality today in terms of people putting up, let's say, even the LNG or any other infra structure?

How is that?

You are referring to the litigation pending in Delhi High Court related to open access guidelines for CNG?

That's correct.

Right. PNGRB has initiated this regulatory process for open access since early 2021.

That case has gone ahead and optimism order from Delhi High Court. This order was continued till 2024, where PNGRB repealed earlier regulation and came up with a new set of regulation.

We again moved Delhi High Court and obtained the no coercive order, it'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 2025. Thereafter they have reserved the order.

Then they also was indicated in the open court that they are not going to pronounce this open guideline principle regulation only. They are also going to deal with the associated regulation, access code.

There are some issues associated with exclusivity regulation as well. They are hearing those regulation regulatory matters.

Hearing is still going on. Once they conclude hearing, and then only they will give a final verdict on this.

It will difficult to predict the time frame. Not likely to happen at least in very near future.

Pending that, there is no infrastructure creation in Bhuj? Is there a stay in order as of now?

There is no stay in order. Infrastructure creation is going on.

It's going on very well.

Okay. Fair enough.

Thank you.

Thank you.

Yes, good afternoon. Two questions.

Firstly, your CNG volume growth over the last two three years has been quite strong, although the addition of CNG stations has been not to that extent. Are you able to increase the throughput per outlet considerably, or is it that large format outlets are coming up?

Is there any particular reason behind growth being much faster than infrastructure additions?

Yes, I think we have focused on upgradation of our CNG stations. We have converted so many booster to online stations.

If you just see, that will increase our compression capacity, just like adding a few more CNG stations, but at lesser cost, or I can say operational hassle. 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 1,000 CNG stations in coming two to three years. This will further increase our growth.

Okay. Second question is, when you say EBITDA per SCM guidance, this includes the other income also, right?

Yes.

If I were to compare it with this Q3, basically 6.5 is the number which is for Q3, right? Dividing 502 crore with 8.4 million SCM.

Is that right?

You are right.

Okay. Just last small question, are you in a position to give a volume growth guidance for next year, given that there is some stability in the industrial side?

If the price cut that you have taken is for both Morbi as well as non-Morbi industrial, or is just Morbi industrial?

I think the volume growth guidance depends on how the prices move in with respect to propane and gas. I think we will have a better position guidance by March, April for the next year.

Okay. The price cut is for the entire industrial, or it's just Morbi?

It's only for Morbi.

Okay. For the others,

is a little, there's a premium to that.

How much around? Two rupees premium to Morbi?

It's around, yeah, close to three rupees.

Three rupees premium. Okay.

Thank you so much.

Thank you so much.

Yes, hi, good afternoon. Thank you for the opportunity.

My question is a little more ground-based. If you can give us a sense of what is the volume potential of the Gujarat market for CNG and PNG, and similarly for non-Gujarat market, that is one.

Second is, when do you expect these GS to mature? What is the time frame that you are taking?

Three years, five years? Any guidance on that front would be very helpful.

I think you are talking of the entire potential of the CNG market in Gujarat?

Yes, we are.

That's a little difficult to predict because the number of vehicles being added every quarter, it's surprising to us also.

There is

10 to 11 percent growth rate, or 12 percent is being followed by all the companies. You can guess it if you have numbers.

Understood. You are also seeing volume coming from commercial vehicles?

Is that picking up for you, for your GS?

Most of the volume is coming from commercial vehicles in the new GS at least.

Okay. Understood.

That's it from my side, sir. Thank you so much.

Hi, I'm Mayank here. One question was related to the long-term sourcing of gas.

Is there long-term sourcing of gas to a higher proportion versus the bigger exposure to spot that you already have right now?

Long-term sources. Basically right now our share of long-term gas is 39%, which obviously we want to increase it to a much higher level.

Our parent company has signed a few contracts. Volumes of that will start getting delivered this year onwards partially.

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.

Target. Do you think you will get to that 70% target or so in the next couple of years, because we are growing our CNG volumes as well and LPG is coming down.

When do you see that kind of filtering in terms of your gas sources?

Maybe by end of 27 we should be there, I think, I guess.

Okay. The other question was in terms of the entire CNG market as well as industrial outside of Morbi, can you give us in terms of the infrastructure that you have created or will be creating over the next two years outside of Morbi, what kind of capex will be spending on long Morbi and some of these infrastructure you are creating in the industrial side, and how much of that will be split into the CNG side?

As far as Morbi, I think the infrastructure is already laid. Most of the infrastructure presently is going in the outside Morbi.

The propane infrastructure, etc., you don't need much capex is what you're saying.

No. Propane infrastructure, that is separate.

That's a separate investment which we'll be looking at. That will come to you separately.

Okay.

Presently we are not, we don't have any—

I was saying, okay, outside of Morbi, how much is the capex for industrial and then obviously on the CNG side, what is the 700-odd?

No, no, 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 connection. From there on the PE network starts.

Thank you, sir.

Yeah.

Thanks for the opportunity, sir. Sir, my first question is on volume.

You did mention in terms of pricing difference around 2, 2 and a half currently, whereas volumes should be you expecting around 3.2 odd. In case we need to get to, let's say, 4 or 5 million CNG, what is the kind of price differential that needs to exist?

What kind of cash should we have a discount of what rate?

The differential should not be there if you want to achieve 5.

It should be cheaper by, if you are neutral, we'll still be able to get to 5, or we have to be able to discount.

Yes. Yes.

At neutral we can get to 5 on the CNG.

Yes.

Okay. Sir, second question is on this 4 and a half rupees price cut.

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?

Basically the reduction in spot pricing is what we have passed on to the consumers. There is no— it's a complete pass-through, there is no impact on margins, at least for this level of cut, unless there is good spot price increase from here.

Okay. Sir, also in terms of propane, what is the thought process there in terms of selling propane, or in terms of progress here, if could you, you mentioned in the opening remark in terms of the parent, coming up with infrastructure for storage.

In terms of what has been done here, what we are expecting in FY27, any volumes that we're expecting in terms of propane? So

Basically, the board has decided that we should have our own infrastructure. That's for the slightly longer term.

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 terminals.

That we will be using in the short term to start our propane journey. It could be not, I think we'll be gaining some market share out of the propane market that is there in the Morbi region, and gradually we'll have to build from there.

Okay. In terms of this propane infra that you're ramping to any investments from our side, or it can be done by the parent and we have an agreement with them to take it from?

There is no infra investment which is required. It's basically they'll be putting, we'll 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 propane in the market.

So

this is no investment which is required.

Okay. Sir, is current customers taking from an existing supplier?

What kind of, I know it's completely commoditized. What kind of edge that we can have to get our volumes sold there?

Any differentiation that we can bring on to the table?

basically, all these users are already registered with us, with Gujarat Gas. They already have a security arrangement in place.

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.

Got it, sir. Any thoughts on infrequently seven volumes that we can have on propane, and also how do we look at margin profile compared to gas?

I think it's 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.

Okay. The last question is on the CNG station addition.

You did mention the conversion of daughter booster stations. How much has been converted and how much still to be there to get converted to online stations?

Of the eight, total today we have around 833 stations. Of that, close to 415 stations are online today.

That is almost 50% of the stations are online today.

the last couple of years, number of stations that were not converted?

We have converted more than 40 stations

last two years.

Yes. From daughter booster or daughter to online stations.

Thank you so much. Thank you.

Sir, am I audible? Yeah.

I just wanted to know that what is the volume in MMSCMDs in the Morbi ceramic cluster overall volume, propane plus natural gas? 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?

The overall volume is close to 7.55. Of that natural gas volume in the Q2, Q3 was around 1.65.

Rest was with respect to propane.

sir, this around 7 to 8 MMSCMD, is it last five years has it increased? Do you see it increasing in the next five years?

There is a lot of investment coming into Morbi. Some of the older units are getting closed down because their products are no more in use.

Simultaneously new units are being set up. What our experience is that the total installed capacity in terms of MMSCMD is still in excess of 8 MMSCMD.

Capacity utilization is close to 7.5 MMSCMD. 7 to 7.5 MMSCMD.

Got it, sir. Thank you.

Thank you. Thank you for the opportunity.

Yes, I want to check on the blended realization for this quarter. For this quarter, on Q-on-Q basis it was flat realization despite, we have taken, the full impact they have seen only in industrial gas prices.

I just wanted to know why the realization was higher despite the price cut?

The price cut was given first of January.

No. In last quarter the blended realization was 47.5, right?

Even in this quarter, if we talk about the realization, is on similar lines, but the full impact, even in last Q2 we have taken a price cut, and part of it was, yet to get reflected in Q3. Right?

Despite that there is a flat realization.

Yeah. We did not reduce the volumes have come down, but we realized the prices were not reduced.

That's the reason for the flat realization. If you look at the volumes, which have come down, it's more than 40-50% there is a reduction in the volumes if you look at the Q2 numbers.

From around 2.13, we have come down to 1.68.

Got it.

Yeah. And

sir, volume year volume-wise is more at 27 overall volume-wise...

I think the only thing is the volume changes which happens with respect to our industrial volumes. Rest of the volumes we can estimate it and we tend to double-digit growth for the CNG segment and the domestic segment.

With respect to industrial, that will be dependent on the propane and gas prices, how it plays out. By March, April, we will be in a better position to tell you that volume guidance.

Sure. Thanks.

That is really helpful.

Thank you all. Favorable gas price regime coupled with our efforts to increase gas volume numbers, we expect to better numbers in Q4.

We look forward to interacting with you all in numbers environment when we meet for next earning call with full financial result, somewhere around May 2026. Thank you all for your time.