Gujarat Gas shares fall most in nearly 4 years as firm issues Force Majeure notices to its customers amid war in Middle East

Shares of Gujarat Gas, the country's largest city gas distribution company, posted their worst single day performance in nearly four years on Thursday, March 5. Gujarat Gas shares fell as much as 6.94%, its biggest single day decline since June 13, 2022, to hit an intraday low of ₹389.45 on the BSE after the company informed exchanges that the availability of R-LNG has become severely constrained owing to war in the Middle East region

Gujarat Gas shares fell as much as 6.6% on the National Stock Exchange (NSE) to hit an intraday low of ₹390.

Gujarat Gas post market hours on Wednesday said that the company is facing severe shortage of gas supply owing to war in the Middle East region and it has issued Force Majeure notices to its industrial customers.

"In light of the above situation, the Company has issued Force Majeure Notices to its Industrial Customers in terms of the provisions of the Gas Supply Agreements restricting the Daily Contracted Quantity effective from 6th March, 2026," Gujarat Gas said.

"Acts of War is not covered under the Insurance taken by Gujarat Gas Limited. The likely impact of Force Majeure which is currently an ongoing event cannot be estimated at this point of time. The Company is closely monitoring the developments and will keep the stock exchanges informed of any material updates in this regard," the company added.

Gujarat Gas Q3 earnings

Gujarat Gas in the third quarter of current financial year reported net profit of ₹266 crore, marking an upside of 20% from ₹222 crore in the same period last year.

The company's revenue from operations, however, fell 11% to ₹3,865 crore from ₹4,332 crore in the year-ago period.

Gujarat Gas reported stable operational performance as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) advanced 18% to ₹447 crore and its EBITDA margin expanded by 280 basis points to 11.57%.

As of 10:24 am, Gujarat Gas shares traded 6% lower at ₹392, underperforming the NIFTY50 index which was up 0.33%.