Gujarat Energy targets 25–30% gas trading growth by 2031 despite FY26 volumes down 19% and two LNG cargoes hit by Middle East tension. Management sees price normalisation from 2028-29.
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Gujarat Energy Ltd is targeting 25% to 30% growth in its gas trading business by 2030-31, even as volumes slipped in the last fiscal year under pressure from global gas markets.
Management told investors this month that the company currently moves about 10 to 12 million metric standard cubic metres per day (mmscmd) and expects that to rise by a quarter to a third within five years. “We do expect good growth in the gas trading business. We expect prices to be reasonable starting in 2028-29,” the management said.
FY26 trading volumes averaged 10.2 mmscmd, down roughly 19% from 12.6 mmscmd in FY25. The company said its annual recurring profit from the segment, after stripping out one-off items reported in FY26, should stay in the range of Rs 1,000 to 1,100 crore.
Gas trading has become a central earnings driver since the merger that created Gujarat Energy. Managing Director Avantika Singh Aulakh called it “the most value-accretive aspect” of the combination, noting that the predecessor business had generated more than Rs 1 lakh crore in revenue and over Rs 9,000 crore in EBITDA over the prior five financial years.
To support the growth target, Gujarat Energy is expanding its long-term LNG sourcing. The company said it now has access to about 2.96 million tonnes per annum (mtpa) under long-term contracts and signed additional agreements in FY26 with QatarEnergy and Uniper Global Commodities. Management said it continues to pursue further long-term LNG deals and is evaluating contracts linked to various global benchmarks to secure competitive, stable supplies.
More than half of the trading volumes are sold to city gas distribution companies. Fertiliser manufacturers account for about 27% of sales. The rest goes to refineries and power plants, along with other industrial users.
The company also disclosed that geopolitical tensions had disrupted supply. Two LNG cargoes scheduled for delivery this year were affected by the conflict in the Middle East, management said.
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