Credit Rating

GEL/SEC/2026/1612 20th August, 2026 BSE Limited, National Stock Exchange of India Ltd, Phiroze Jeejeebhoy Tower, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, Mumbai G Block, Bandra Kurla Complex, Bandra (East), Mumbai Company Code: BSE - 539336 Company Code: NSE - GUJENERGY Sub: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Rating published by CARE Ratings Limited- Press Release Dear Sir/ Madam, In continuation to our Letter dated 11th August, 2026 bearing no. GEL/SEC/2026/1602, please find attached Press Release issued by CARE Ratings Limited. You are requested to take the same on records. Thanking you, For, Gujarat Energy Limited Sandeep Dave Company Secretary GUJARAT ENERGY LIMITED (Erstwhile Gujarat Gas Limited) Corporate Office: Office No. 4 & 5, Ground Floor, IT Tower -2, Infocity, Gandhinagar – 382009 Gujarat Registered Office: Gujarat Energy Bhavan, Behind Udyog Bhavan, Sector- 11, Gandhinagar, Gujarat – 382010 Tel.: +91-79-66701001 Website: www.gujarat-energy.com, CIN: L40200GJ2012SGC069118 Press Release Gujarat Energy Limited (erstwhile Gujarat Gas Limited) August 19, 2026 Name of the Rating Facilities/Instruments Amount (₹ crore) Rating2 Regulator1 Action Long-term / Short-term bank 12,836.00 CARE AAA; Stable / RBI Reaffirmed facilities (Enhanced from 2,900.00) CARE A1+ Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation in ratings assigned to bank facilities of Gujarat Energy Limited (GEL; erstwhile Gujarat Gas Limited [GGL]) continues to reflect GEL’s strong business risk profile and its transformation from a standalone city gas distribution (CGD) company into an integrated energy company with a presence across the natural gas value chain, including CGD, gas trading, power generation, exploration and production (E&P), and regasification. The company proposed a composite scheme of merger and demerger, which has been consummated (effective May 01, 2026) resulting in amalgamation of Gujarat State Petroleum Corporation (GSPC), Gujarat State Petronet Limited (GSPL) and GSPC Energy Limited (GSENLI) with GGL, and demerger of the gas transmission business into GSPL Transmission Limited (GTL). Post completion of the scheme, the company has been renamed as Gujarat Energy Limited. Ratings continue to derive strength from GEL's dominant position in the gas trading and CGD business, large scale of operations, favourable outlook for natural gas/CGD business being an environmentally cleaner fuel, diversified sourcing arrangements for gas trading and moderately diversified customer segment mix. Post the scheme, CGD and Gas Trading business segments shall continue to be the largest business segment in terms of revenue with a substantial share of gas trading being consumed by the CGD sector. Ratings also factor in satisfactory financial performance in FY26 (FY refers to April 01 to March 31), despite moderation in sales volume. In FY26, the company’s sales volume moderated owing to lower industrial gas demand, particularly from the Morbi ceramic cluster, where customers temporarily shifted towards relatively cheaper propane. Consequently, In FY26, CGD sales volumes declined by ~10% to 8.69 milion metric standard cubic metres per day (MMSCMD; FY25: 9.62 MMSCMD), while gas trading volumes moderated by ~19% to 10.19 MMSCMD (FY25: 12.64 MMSCMD). With moderation in sales volumes, lower power generation and demerger of gas transmission business, the total operating revenue (consolidated) de-grew by ~15% in FY26 to ₹23,614 crore (FY25: ₹27,615 crore including revenue from transmission business, which was not consolidated in FY26 financials as it was demerged). Adjusted for transmission business, GEL would have reported a 11% de-growth in revenue. However, the company’s performance remained satisfactory, and it maintained healthy operating profitability with profit before interest, lease rentals, depreciation and taxation (PBILDT) margin of 13.07% in FY26. The net worth base strengthened as a result of the merger of erstwhile GSPC. Financial position and liquidity profile continues to remain robust. On a consolidated basis, total debt (including lease liabilities) stood at ₹3,243 crore as of March 31, 2026. Of this, ₹2,984 crore pertained to GSPC LNG Limited (rated CARE A; Stable) for its LNG terminal business. As against the debt, GEL had cash and bank balances of ₹6,393 crore as of March 31, 2026, resulting in a negative net debt position. While CARE Ratings Limited (CareEdge Ratings) had not envisaged addition of aforesaid debt, the debt coverage metrics remain comfortable supported by strong liquidity. GSPC LNG Limited has been classified as a subsidiary considering GEL’s management control with the shareholding of latter increasing to 36.80% as on March 31, 2026. GEL has a planned annual capital expenditure of ~₹1,000-1,100 crore, which is expected to be largely funded through internal accruals and available liquidity, and net debt position is expected to remain negative in near term. Total debt to earnings before interest, taxation, depreciation, and amortisation (TD/EBITDA) is expected to remain ~1.0x in the medium term. Rating also factors in the impact of geopolitical disruptions in West Asia, which created concerns regarding the supply of re- gasified liquified natural gas (RLNG). Amid supply disruptions, the government prioritised gas allocation to compressed natural gas (CNG) and domestic piped natural gas (PNG) consumers, which continued to receive uninterrupted gas supply. GEL major suppliers in the Middle East have issued force majeure notices to its customers and cargoes from Qatar are suspended until 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority 2Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release October-November 2026. However, GEL increased procurement through spot LNG purchases to continue supplying industrial customers, despite higher gas procurement costs. The crisis also affected propane availability, resulting in a significant increase in industrial PNG demand from the Morbi region. The company reported higher additions of commercial and domestic PNG connections in Q1FY27, supported by concerns regarding liquefied petroleum gas (LPG) availability. The increase in gas procurement costs has been largely passed on to industrial and commercial segments. However, availability and pricing of RLNG and the company’s ability to pass on increased cost will be monitorable. Ratings remain constrained by exposure to volatility in natural gas prices, company's ability to timely pass on higher gas procurement costs to end consumers without materially affecting demand, regulatory risks associated with the CGD business, and execution risk relating to achievement of minimum work programme (MWP). Rating sensitivities: Factors likely to lead to rating actions Positive factors: Not applicable Negative factors • Large debt-funded capex or acquisitions leading to Net debt/PBILDT of 1x on a sustained basis. • Regulatory development, which may have material adverse impact on the company’s business and financial profiles. • Significant delay in achieving MWP targets resulting in material penalties on GEL. Analytical approach: Consolidated CareEdge Ratings had earlier adopted a standalone approach for erstwhile GGL as it did not have material subsidiaries. Following the Scheme of Amalgamation, few subsidiaries with material revenue and debt have been consolidated with GEL. Accordingly, CareEdge Ratings has revised its analytical approach from standalone to consolidated. Entities consolidated are listed under Annexure-5. Outlook: Stable The stable [Showing first 8,000 characters — download PDF for full document]