Gujarat Energy shares rise after profit jumps nearly 22 percent

Shares of Gujarat Energy Limited went up nearly 2% during Monday trading after the company released its financial results for the second quarter of the 2026-27 financial year.

Earnings Growth

The company posted a net profit of ₹639.27 crore for the second quarter, marking a 21.9% increase compared to ₹524.72 crore during the same period last year. Revenue from operations also grew to ₹9,826.08 crore for the quarter, up from ₹6,164.86 crore a year ago. Following the update, the stock closed 1.47% higher at ₹227.35 per share on BSE, reaching a market capitalisation of ₹21,330.68 crore. The share price has gained 5.65% over the past week, though it has fallen 14.79% in three months, 36% in six months, and 36.52% over the past year.

Brokerage Outlook

Brokerage firm Motilal Oswal Financial Services Limited kept its Buy rating on the stock with a target price of ₹325 per share. The firm noted that the company's net profit and revenue met expectations, while city gas distribution and CNG volumes beat estimates. Analysts pointed to strong city gas distribution growth, LNG contracts, profitable fertiliser contracts, and a strong balance sheet as reasons to stay positive on the stock.

Context

Quarterly financial results help investors track how well a company is performing in terms of sales, profit, and overall business growth. Brokerage firms study these results to give buy or sell recommendations and target prices for retail and institutional investors.