Gujarat Energy Q1 2026 EPS beats estimates as revenue falls short
Indian utility posts quarterly profit above forecasts despite missing revenue targets, citing higher fuel costs and regulatory delays.
Gujarat Energy reported first-quarter 2026 earnings per share that exceeded analyst expectations, even as total revenue declined year-over-year, according to a transcript of the company’s earnings call.
The utility’s adjusted EPS for the quarter came in at ₹12.45, surpassing the consensus estimate of ₹11.80 compiled by Refinitiv. Revenue, however, fell 4.2% from the same period last year to ₹8.7 billion, missing the ₹9.1 billion forecast.
Management attributed the revenue shortfall to delays in regulatory approvals for tariff revisions and higher-than-expected fuel costs, which weighed on margins. Operating expenses rose 6.1% year-over-year, driven primarily by increased coal procurement expenses.
Despite the revenue miss, Gujarat Energy reaffirmed its full-year 2026 guidance, projecting EPS growth of 8-10% and maintaining a dividend payout ratio of 40%. The company also highlighted progress in renewable energy projects, with 150 MW of solar capacity commissioned in the quarter.
Analysts noted that while the EPS beat reflects operational efficiency gains, the revenue decline underscores ongoing challenges in India’s power sector, including regulatory bottlenecks and volatile fuel prices.
Shares of Gujarat Energy were little changed in after-hours trading following the release of the earnings call transcript.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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