Prabhudas Lilladher Recommends 'HOLD' on Gujarat State Petronet; Sets Target at Rs 296

• Gujarat State Petronet (GUJS) reported a 1.0mmscmd QoQ decline in transmission volume to 27.5mmscmd in Q3FY26, primarily due to a 51.8% drop in power segment volume.
• EBITDA decreased by 4.4% QoQ to Rs1.7bn, while Profit After Tax (PAT) saw a significant 70.1% QoQ fall to Rs1.1bn, impacted by lower other income.
• On a Year-on-Year basis, PAT declined 15.7% in Q3FY26, and for 9MFY26, EBITDA/PAT dropped 21.2%/13.3% YoY.
• Prabhudas Lilladher maintains a 'HOLD' rating on GUJS, citing slower-than-anticipated volume recovery.
• The combined Target Price (TP) is set at Rs296, valuing the core business at 10x December’27E adjusted EPS and including investments in Gujarat Gas and Sabarmati Gas.

Why It Matters: Prabhudas Lilladher advises 'HOLD' on Gujarat State Petronet with a Rs 296 target due to slow volume recovery.