Highlights

• Shares gained after reporting higher EBITDA and strong operational performance
• Q4 FY26 EBITDA increased to ₹943.00 crore from ₹790.00 crore a year ago
• Record CNG volumes reached 3.60 MMSCMD during the quarter
• Final dividend of ₹8.90 per share recommended for FY26

Merger Completion Marks a Major Milestone

Gujarat Gas Limited (NSE: GUJGASLTD) remained in focus after completing a major corporate restructuring that transformed the company into an integrated energy platform. The composite scheme became effective from May 1, 2026, with shares allotted to eligible shareholders during May.

The merger is expected to strengthen the company's presence across the energy value chain and enhance long-term growth opportunities through greater operational integration.

Earnings Growth Supports Positive Sentiment

The company reported a strong operational performance during Q4 FY26. EBITDA rose to ₹943.00 crore compared with ₹790.00 crore in the corresponding period last year, reflecting growth of nearly 19.00%.

For the full financial year, EBITDA improved to ₹3,772.00 crore from ₹3,677.00 crore in FY25. The company also achieved earnings per share of ₹24.50 during FY26, supported by resilient demand across key customer segments.

Record CNG Volumes Drive Operational Momentum

One of the key highlights during the quarter was the achievement of the highest-ever CNG volume of 3.60 MMSCMD, compared with 3.22 MMSCMD in the previous year period.

The expanding CNG network and growing adoption of cleaner fuels continue to support demand growth. The company now operates an extensive network of CNG stations, helping strengthen its position in India's city gas distribution industry.

PNG Expansion Enhances Long-Term Demand Outlook

The company has also accelerated the adoption of piped natural gas across residential markets. Thousands of households transitioned from LPG to PNG between March and May 2026, supporting the broader objective of increasing cleaner energy consumption.

Industrial demand also remained encouraging, particularly from the ceramic manufacturing segment, where gas consumption expanded significantly as more units adopted natural gas solutions.

Dividend Reward Reflects Financial Strength

The board recommended a final dividend of ₹8.90 per share for FY26, representing a substantial increase from the previous year's payout.

The dividend announcement reflects healthy cash generation, operational resilience, and management's confidence in future growth prospects following the completion of the merger process.

Technical Structure Continues to Improve

Gujarat Gas Limited (NSE: GUJGASLTD) is currently trading near ₹402.55 while remaining above its 21-day SMA of ₹381.14, indicating an improving near-term technical structure. Recent price action suggests the stock is attempting to extend its recovery after successfully holding above key moving average support levels.

The 14-day RSI stands near 62.56, reflecting positive momentum conditions while remaining below extreme overbought territory.

Key Technical Levels

Immediate support is placed near ₹382.42, while a stronger support zone is positioned around ₹362.30. On the upside, immediate resistance is visible near ₹422.68, and a sustained move above this level could open the path toward ₹442.81.

Key Risks

• Volatility in global natural gas prices
• Changes in regulatory policies affecting the gas distribution sector
• Supply disruptions linked to geopolitical developments
• Industrial demand fluctuations across key end-user segments
• Infrastructure expansion and execution risks

Summary

Gujarat Gas shares moved higher after the company delivered solid Q4 FY26 results, supported by higher EBITDA, record CNG volumes, and expanding PNG adoption. The completion of the merger process, stronger operational performance, and higher dividend payout have further strengthened investor confidence. As the company transitions into a broader integrated energy platform, market participants will closely monitor volume growth and execution of future expansion initiatives.

FAQs

Why are Gujarat Gas shares rising?

The stock gained after reporting strong EBITDA growth, record CNG volumes, merger completion, and a higher dividend recommendation.

What dividend has the company announced?

The board recommended a final dividend of ₹8.90 per share for FY26.

What are the important technical levels to watch?

Support levels are placed near ₹382.42 and ₹362.30, while resistance levels are located around ₹422.68 and ₹442.81.