Gujarat Gas Limited has informed the Exchange about Credit Rating
GUJGASLTD · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings has reaffirmed Gujarat Gas Limited's rating on its long-term and short-term bank facilities of ₹2,900 crore at 'CARE AAA; Stable / CARE A1+', the highest investment-grade rating. The company remains debt-free, with only ₹150 crore in lease liabilities as of March 2025, and holds strong cash reserves of ~₹2,000 crore as of June 2025. FY25 revenue grew ~5% to ₹16,488 crore, though profit margins slightly moderated due to lower APM gas allocation; Q1FY26 revenue dipped ~13% YoY to ₹3,871 crore due to weaker volumes from the Morbi industrial cluster, where customers shifted to cheaper propane. The rating outlook is supported by GGL's leading market position in India's CGD business, strong liquidity, and a favourable industry outlook, though the proposed merger with GSPC entities and ability to pass on gas price hikes remain key monitorables.
The reaffirmation of the highest AAA rating signals continued strong financial health and low credit risk, which is positive for shareholders. No immediate impact on stock price is expected, but investors should watch the upcoming GSPC merger completion (expected Q4FY26) and any margin pressure from rising reliance on costlier imported gas.