GSPL Transmission Ltd (GSPLTRANS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the GSPL Transmission Limited earnings call, Q2 and H1 FY '27, hosted by EY. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Vikas Verma from EY. Thank you, and over to you, sir.
Vikas Verma (EY): Thank you, Ashi. Good evening, everyone. On behalf of GSPL Transmission Limited, I welcome you all to the company's quarter two and H1 FY '27 earnings conference call. To discuss the performance of the company, we are we have with us from the management team, Mr. Prakash Karnik, Chief Executive Officer, Mr. Lokesh Agarwal, General Manager and Chief Financial Officer, Smt. Rajeshwari Sharma, Company Secretary, Mr. Devendra Agarwal, Head Commercial, Mr. Sarthak Gautam, Head Procurement and O&M. Before we proceed with this call, I would like to draw your attention to the fact that today's discussion may contain some forward-looking statements that are subject to various risks, uncertainties, and other factors which would be beyond management's control. We kindly request to bear in mind that there might be some uncertainties while interpreting such statements. We will now start the session with the opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I will now hand over the conference call to Mr. Prakash for his opening remarks. Thank you, and over to you, sir.
Prakash Karnik (GSPL Transmission Ltd): Thank you,
Prakash Karnik (GSPL Transmission Ltd): Good evening, everybody, and warm welcome to earnings conference call of GSPL Transmission Limited. On behalf of the board and the entire management team, I thank our shareholders, investors, analysts and stakeholders for joining us today. I will begin by explaining who we are, how our busi- business creates value, why our network is strategically important, and how we intend to build the next phase of growth. GTL is a focused, pure-play natural gas transmission platform operating on an open access basis. In simple terms, we provide infrastructure that transports gas from domestic production sources, LNG terminals, gas marketers to gas distributors, refineries, fertilizer plants, power producers, and industrial customers. GTL has a strategic and difficult-to-replicate network. Our Gujarat network extends approximately 2,900 kilometers, covering 26 districts, making it India's second largest natural gas network, serving 100-plus customers to 200-plus customer exit points with financial year '26 contractual volumes of 40 MMSCMD. Our network is connected to major district domestic gas supply sources, LNG terminals, and consumption centers across Gujarat. What makes our network particularly strategic is its positioning within Gujarat, India's largest gas consuming state. Gujarat accounted for approximately 22% of India's natural gas consumption in financial year '26 and host four operational LNG terminals. GTL is the only grid connected to all operational LNG gateways in Gujarat. This connectivity enables us to link multiple sources of gas with diversified base of CGD, refinery, fertilizer, power and industrial customers. Our bidirectional network design and SCADA-led operations further support system flexibility, reliability, and 24/7 monitoring. GTL is positioned for India's gas-led growth. India aspires to be to increase natural gas share in its energy mix from approximately 6% currently to 50- 15% by 2030. Natural gas consumption is projected to increase from 188 MMSCMD in financial year '26 to 297 MMSCMD by 2030, supported by urbanization, industrial and manufacturing activity, cleaner fuel adop- adoption, pipeline expansion, and development of LNG infrastructure. Within our customer portfolio, we maintain diversified exposure across these and end-use segments. GTL is positioned to participate in this opportunity because our network connects supply with several several of country's key demand segments. Equally important, our customer portfolio is diversified, which limits dependence on any single end-use category and gives us exposure to multiple sources of gas demand. Coming to our business performance, Q2 financial year '27 saw broad-based growth in transportation volumes across our key grids. Overall GTL volumes increased from 45 MMSCMD compared with 40 MMS MMSCMD in quarter two of financial year '26, representing 12% growth. HP grid volumes grew 9% year-on-year. LP grid volumes increased 30 per- percent, while Happy grid volumes increased 16%. Our presence beyond Gujarat is supported by two of our joint venture companies, GIGL and GITL. GIGL operates approximately 1,439 kilometers of cross cross-country pipeline across Gujarat, Rajasthan, Haryana, and Punjab, while GITL operates approximately 365 kilometers of pipeline connecting Andhra Pradesh and Telangana. Another important focus for us is creating capacity for the next phase of the growth. We are progressing on expansion-led capex program of approximately Rs. 3,500 crores covering more than 10 pipeline and connectivity projects aggregating to 700 kilometers. Combined with o- with our existing approximately 2,900 network, these additions are expected to expand our overall Gujarat network to 3,600 kilometers. Project execution is gaining momentum with several projects now at advanced stage of implementation. In July 2026, we awarded EPC contracts worth Rs. 1,800 crores for Anjar-Palanpur pipeline project. Other projects under implementation include Jamnagar-Dwarka, Vapi-Tarapur, Dahej-Bhadbhut, and multiple spur lines and customer connectivity projects. Our approach going forward remains centered around expanding network reach, improving utilization, maintaining asset integrity, disciplined
Prakash Karnik (GSPL Transmission Ltd): Our established infrastructure, strategic connectivity and planned expansion provide a strong platform to participate in growth of India's natural gas ecosystem. Over the next 2 years our focus remain on disciplined execution and maintaining operational and financial stability. As the ongoing expansion projects are commissioned, we expect additional capacity to progressively contribute to the growth. Looking ahead, our priorities are clear. First, expand network reach and connectivity. Second, improve utilization across our existing and new assets. Third, maintain safe and reliable operations through automation, preventive maintenance and strong asset integrity practices. Fourth, broaden our customer base and fifth, preserve financial discipline as we execute our investment program. We believe GTL combines the characteristics investors expect from high quality infrastructure, a strategic and difficult to replicate network, a regulated and asset backed business model, diversified demand exposure, visible expansion opportunities and a debt free balance sheet that provides financial flexibility. With this overview, I will now hand over to our CFO for detailed discussion on operational and financial performance for Q2 and H1 FY '27. Lokesh.
Lokesh Agarwal (GSPL Transmission Ltd): Thank you, sir. Good evening everyone. We will have a brief overview of the financial performance for the quarter and 1/2 year ended 30th September 2026. In terms of key financial metrics, our stand-alone revenue from operations for Q2 '27 stood at 290 crores, representing a growth of 8% year-on-year versus previous year Q2 actuals of 267 crores. On a sequential basis, the growth was at 4.5% versus 277 crores in Q1 '27. On a half year basis, the H1 '27 revenue stood at 2 567 crores compared to 542 crores in the same period last year, registering a growth of again 4.5%. EBITDA excluding nonoperating income, which primarily includes interest from deposits, stood at around 169 crores in Q2 '27 as compared to 173 crores in the same period in previous year. EBITDA margin for the quarter stood at 58.4%. On a half year basis for H1 '27 EBITDA stood at 363.5 crores, being in line with previous year 1/2 year EBITDA of 362.9 crores with an EBITDA margin of 64%. Profit after tax on a stand-alone basis stood at 120 crores during the year versus 118 crores in the previous year, Q2, being an increase of around 2%. On a stand-alone half year basis, profit after tax stood at 258 crores versus 255 crores in the in the corresponding period last year, again an increase of roughly 1 and 1/2 1 1.2% or so. The current state of balance sheet provides us with enough financial flexibility to execute our investments. We have already announced investments worth more than 3,500 crores and we stand in a pretty good state to execute the same. As of September 30th, we are debt-free and have a net worth of approximately 7,150 crores. In Q in half first half of the year, we have executed CapEx of approximately 300 crores and this is in general in line with our expansion program which we have announced earlier. I now open the floor for questions and answers and hand over to the moderator. Thank you, everyone.
Moderator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press "*" and "1" on their touch-tone phone. If you wish to remove yourself from the question queue, you may press "*" and "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.
Moderator: The first question is from the line of Mr. Yogesh Patil from Dolat Capital. Please go ahead.
Yogesh Patil (Dolat Capital): Thanks for taking my question, sir, and wish you happy Diwali to all of you. The question the first question has related to the expansion plans of 3,500 crore. What would be the debt-to-equity ratio for this expansion plans, and have you received the board approval for raising the debt for this expansion plan?
Lokesh Agarwal (GSPL Transmission Ltd): Yep. So, see, the the expansion plan is spread over a period of another 2, 2.5 years from now, and whilst we believe that we will be in a good state to complete this expansion to our internal accruals and current cash balances. If at all, we are required to resort to limited financing, we would do that. We have significant financing approvals in place. We we do not need to go for any subsequent approvals to execute these projects. I think there was one more part of your question? Yes, sir.
Yogesh Patil (Dolat Capital): Approval from the board.
91 more turns of this transcript: log in to Stocksigma to read the full call.