Gujarat Gas shares drop 6% on plans to restrict supply amid West Asia war

Shares of Gujarat Gas Ltd. tumbled over 6 per cent on Thursday after it issued force majeure notices to industrial customers, restricting contracted gas supplies due to severe R-LNG shortages amid the West Asia war. 

 

The gas supplier's stock fell as much as 6.74 per cent during the day to ₹389.45 per share, the biggest intraday fall since November 2024. The stock pared losses to trade 5.9 per cent lower at ₹392.7 apiece, compared to a 0.25 per cent advance in Nifty 50 as of 09:39 AM. 

 

Shares of the company have fallen 4 per cent so far this month and currently trade at 18 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 5 per cent this year, compared to a 6.1 per cent decline in the benchmark Nifty 50. Gujarat Gas has a total market capitalisation of ₹26,984.89 crore. 

 

Gujarat Gas issues force majeure notices 

Gujarat Gas said the ongoing war in West Asia has severely constrained the availability of regasified liquefied natural gas (R-LNG), impacting the gas supply scenario, it said in an exchange filing. 

 

In response, the company has issued force majeure notices to its industrial customers under the terms of gas supply agreements, restricting the daily contracted quantity from March 6, 2026. 

 

Gujarat Gas added that acts of war are not covered under its insurance policies, and the financial impact of the force majeure event cannot be estimated at this stage as the situation remains ongoing. The company said it is closely monitoring developments and will update stock exchanges on any material changes.

 

President Donald Trump expressed confidence in the US military campaign against Iran even as the timeline for operations remained unclear, and a US submarine sank an Iranian warship in international waters, Bloomberg reported. 

 

The US and Israel fired missiles across Iran on Saturday, with the Supreme Leader Ayatollah Ali Khamenei being killed. Iran responded with strikes against Israel, as well as US bases and other targets in states including Saudi Arabia, Qatar, the United Arab Emirates (UAE), Kuwait and Bahrain.

Gujarat Gas Q3 results 

The company reported a 5.49 per cent sequential decline in net profit to ₹265.58 crore in the third quarter of FY26, compared with ₹281.01 crore in the second quarter, on a standalone basis. 

 

Revenue from operations fell 2.86 per cent quarter-on-quarter (Q-o-Q) to ₹3,865.11 crore, while profit before tax declined 5.27 per cent to ₹357.98 crore. Ebitda stood at ₹502 crore in the third quarter of FY26, up 14 per cent from ₹439 crore in the corresponding period last year.