Prabhudas Lilladher Recommends 'Accumulate' on Gujarat Gas; Sets Rs 422 Target

• Prabhudas Lilladher upgrades Gujarat Gas rating to 'Accumulate' from 'HOLD' after recent stock price correction.
• Q3FY26 volumes were 8.4mmscmd, slightly below estimates due to lower Morbi volumes.
• EBITDA/scm improved to Rs5.8/scm in Q3FY26, driven by lower gas costs and other expenses.
• Management cut PNG prices for Morbi ceramic industry by Rs4.5/scm to counter propane competition, effective Jan'26.
• Morbi volumes are projected to recover significantly, reaching 3.0–3.5mmscmd by Feb-Mar’26.

Why It Matters: Prabhudas Lilladher recommends accumulating Gujarat Gas, citing improved EBITDA/scm and expected volume recovery.