GSPL Transmission544801New rating assigned

CARE assigns CARE AA+; Stable / CARE A1+ to ₹250.00 crore bank facilities

CARE Ratings has assigned fresh credit ratings to GSPL Transmission's bank facilities.

By ScoutQuest · Wed 28 Oct 2026, 7:28 PM IST · 3 min read

Fresh Credit Rating Assigned: ₹250.00 crore long-term/short-term bank facilities: CARE AA+; Stable / CARE A1+
Cash and Bank Balances: ~₹2351 crore as on March 31, 2026
Planned Capex: ~₹3,500 crore capex over 2-3 years

Ratings on the bank facilities have been freshly assigned by CARE Ratings; the rating action column for both facility lines reads "Assigned", so this is not an upgrade, downgrade or reaffirmation of an existing rating.

What was rated

Long-term / short-term bank facilities of ₹250.00 crore: CARE AA+; Stable / CARE A1+
Long-term bank facilities of ₹50.00 crore: CARE AA+; Stable

What a rating means

The update describes ratings as opinions on the likelihood of timely payment of the obligations under the rated instrument, and not a recommendation to sanction, renew, disburse or recall a facility, or to buy, sell or hold any security.

Why the agency is comfortable

Scale and position: the company is the leader in gas transmission in Gujarat and the second-largest player in India after GAIL (India) Limited, with an extensive pipeline network in the state.
Open-access model: it only transmits natural gas and does not buy or sell it, which limits exposure to gas price swings.
Revenue visibility: total contracted volumes on hand are 44.30 MMSCMD through gas transmission agreements with large industries and city gas distribution entities; most agreements that expired in FY26 were largely renewed.
Low leverage: nil outstanding fund-based debt, which the agency links to a healthy financial risk profile.
Strong liquidity: cash and bank balances of ~₹2351 crore as on March 31, 2026.
Regulated returns: tariffs are set by the regulator on a cost-plus basis, allowing a fixed post-tax return on capital employed, with reviews at five-year intervals.
FY26 performance: total operating income of ₹1104 crore and PBILDT of ₹609 crore.

What the agency is watching

Capex: about ₹3,500 crore planned over the next 2 to 3 years for network expansion, new spur lines and capacity augmentation. The management expects to fund this mainly from internal accruals and surplus liquidity, with term debt possible if there is a shortfall.
Volumes: gas transported was 28.8 MMSCMD in FY26 against 30.8 MMSCMD in FY25, which the agency attributes primarily to a gas shortage in March.
Joint ventures: the two joint ventures, GSPL India Gasnet Limited and GSPL India Transco Limited, are ramping up volumes more slowly than envisaged, and support may be needed if the ramp-up is delayed. The agency expects the company's liquidity to cover such a requirement.
Regulatory risk: a significant change in government policy or in tariff can affect revenue from the pipelines.

What could move the rating

Upward: a substantial increase in volume throughput that lifts the scale of operations.
Downward: major debt-funded capex or higher-than-anticipated investment in the joint ventures, taking leverage beyond the agency's stated threshold on a sustained basis.

Background

The company was incorporated in July 2024. Under a composite scheme of amalgamation and arrangement that became effective on May 1, 2026, with an appointed date of April 1, 2025 for the demerger, the natural gas transmission business earlier run by Gujarat State Petronet Limited and GSPC Energy Limited was demerged into it. It has emerged as a focused gas transmission entity and also holds stakes in the two joint ventures.

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