Gujarat State Petronet Limited stands as the second-largest natural gas transmission player in India and one of the largest players in the natural gas transmission business in India together with its leadership position in Gujarat. The company was incorporated in 1998 and is based in Gandhinagar, India, operating as a Government Company u/s 2(45) under the Companies Act, 2013.
Gujarat State Petronet Limited, along with its subsidiaries, is primarily engaged in transmission of Natural gas through pipeline on an open access basis. The company operates around 2,704 km of natural gas transmission pipeline in the state of Gujarat as of Q1 FY24, making it one of the major players before 2007, when the natural gas network was dominated by GAIL (India) Limited and Gujarat State Petronet Limited (GSPL).
The company has strategically positioned itself by connecting to all major supply sources in Gujarat. GSPL has invested significantly in developing its natural gas pipeline network, which is now connected to major natural gas supply sources in Gujarat, including designated collection points near the various natural gas fields in Hazira, regassified liquefied natural gas (RLNG) from Shell's terminal at Hazira, Petronet LNG Limited's terminal at Dahej, GSPC LNG Limited's (GLL) terminal at Mundra, along with Swan LNG floating storage regasification unit (FSRU) (Phase-1) and Chhara LNG terminal.
GSPL operates as the first Pipeline Company in India operating on an open access basis and is a pure transmission network. The company maintains exceptional operational efficiency with 71% capacity utilization, significantly higher than industry averages where capacity utilization stands at 40-50% for most of the major gas pipelines.
The company serves diverse industrial segments, transporting gas to approximately 102 customers, including refineries, steel plants, fertilizer plants, petrochemical plants, power plants, glass industries, textiles, chemical, city gas distribution (CGD) companies, and other miscellaneous industries. Beyond gas transmission, GSPL also sells electricity generated through its 52.50-MW windmills.
As of June 2025, the market capitalization of Gujarat State Petronet Ltd (GSPL) is ₹17,970.13 Crore. The company maintains a strong financial position with an almost debt-free status and has been maintaining a healthy dividend payout of 19.9%.
The company's latest financial results for FY25 show mixed performance:
- Sales rose 0.44% to ₹17,370.11 Crore in the year ended March 2025, as against ₹17,294.84 Crore during the previous year ended March 2024.
- Net profit declined 33.05% to ₹1,111.08 Crore in the year ended March 2025, as against ₹1,659.53 Crore during the previous year ended March 2024.
- The board of directors recommended a dividend of ₹5 per equity share of ₹10 each, representing a 50% payout for the financial year 2024-25.
The fourth quarter results reflected operational challenges:
- Sales declined 5.33% to ₹4,290.52 Crore in the quarter ended March 2025, as against ₹4,532.20 Crore during the previous quarter ended March 2024.
- Net profit of Gujarat State Petronet declined 53.62% to ₹220.30 Crore in the quarter ended March 2025, as against ₹474.97 Crore during the previous quarter ended March 2024.
- The company reported a 22.8% decline in Q4 transmission volumes, which stood at 25.76 million metric standard cubic meters per day (mmscmd), compared to 33.38 mmscmd in Q4 FY24.
GSPL's strategic advantage lies in its leadership position in Gujarat and strategic location with connection to all major natural gas supply sources. The company continues to expand its network infrastructure, with recent developments including expansion of capacity of GSPL's High Pressure Gujarat Gas Grid by laying of Anjar Palanpur Pipeline as authorized by PNGRB in March 2025.
The company's operational metrics show resilience with P/E (price-to-earnings) ratio of Gujarat State Petronet Ltd (GSPL) is 16.17 and P/B (price-to-book) ratio is 1.25. The stock has shown volatility with 52-week high of Gujarat State Petronet Ltd (GSPL) is ₹469.70 and the 52-week low is ₹261.45.
GSPL's business model benefits from Gujarat's robust gas infrastructure where the fuel accounting for about a quarter of its energy mix, against a national average of 6.2%. With the government's push to increase natural gas share in India's energy mix, GSPL is well-positioned to capitalize on the growing demand for clean energy infrastructure.
