1. At a Glance
If there was an Oscar for “Most Confusing Combination of Exploration and Valuation,” Gujarat Natural Resources Ltd (GNRL) would already be giving its acceptance speech. The ₹1,227 crore market-cap oil explorer is currently trading at ₹95.5 — with a P/E ratio that makes even AI startups look humble at771x. That’s right — it’s producing oil, but the real gas here is in the valuation.
In Q2 FY26, the company reportedrevenue of ₹8.65 croreandPAT of ₹3.84 crore, showing aninsane 935% YoY profit growth. Yet, the return ratios —ROE (-2.87%)andROCE (-0.56%)— look like they’ve been drilled straight into the loss-making Cambay basin.
And did we mention? The promoters are holding a glorious1.93%, down from over 10% a few quarters back. Investors, if you blink, even the promoter might have exited.
But wait — in true Gujarati entrepreneur fashion, GNRL just completed aK#17 wellin theKanawara Field, discovering a 24-meter hydrocarbon zone. Oil, drama, and a P/E of 771? Grab your popcorn — this basin’s getting spicy.
2. Introduction
GNRL is like that student who was always under the radar, suddenly starts topping one subject (Q2 PAT up 935%), but still fails half the exam (ROE negative, working capital days 1,386).
Incorporated in1991, Gujarat Natural Resources Ltd ventured into the glamorous world of oil & gas exploration — long before “energy transition” became the new boardroom yoga mantra. Through its step-down subsidiaryGNRL Oil & Gas Limited (formerly Heramec Ltd), it operatessix producing blocks in the Cambay basin, being the operator in five.
The company’s revenue pie looks simple:93% from oil & gas,5% from interest income, and2% from “other mysterious income.”
And yet, investors aren’t here for the fundamentals. They’re here for the thrill — theBollywood meets OPECstory of a smallcap explorer drilling deeper into hope than hydrocarbons.
So how does an oil explorer with negative ROE, low promoter holding, and a 771x P/E manage a 377% one-year return? Simple — Indian retail FOMO is the most renewable energy source on earth.
3. Business Model – WTF Do They Even Do?
Imagine a Gujarati family deciding to explore for oil instead of opening another textile shop. That’s Gujarat Natural Resources Ltd.
The company plays in theupstream oil & gas explorationspace — the “digging holes and praying for crude” part of the industry. GNRL doesn’t refine, distribute, or retail fuel — it just digs, produces, and sells. The heavy lifting happens throughGNRL Oil & Gas Ltd, which has operational stakes inKanwara, North Kathana, Allora, Dholasan, North Balol, and Unawafields — all part of theCambay basin, Gujarat’s own mini-OPEC.
GNRL also providestechnical advisory servicesto its subsidiaries through a consultancy tie-up withAjapa Integrated Project Management Consultancy Pvt Ltd, which handles drilling project management.
Basically:
- Subsidiaries dig the wells
- Ajapa advises on how not to mess it up
- GNRL consolidates the numbers and tells shareholders “We struck oil!”
They also haverelated-party arrangements worth ₹100 crorewith entities likeAshoka Metcast,Ashnisha Industries,Lesha Industries, andRhetan TMT— all of which seem to exist in the same Ahmedabad ecosystem of industrial siblings.
So while the company claims to find oil, one can’t help but wonder — are they exploring hydrocarbons or synergies between family companies?
4. Financials Overview
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 8.65 | 4.93 | 3.35 | 75.5% | 158.2% |
| EBITDA (₹ Cr) | 4.84 | 1.70 | 0.27 | 184.7% | 1,692.6% |
| PAT (₹ Cr) | 3.84 | -0.46 | 1.93 | 934.8% | 99.0% |
| EPS (₹) | 0.30 | -0.04 | 0.15 | — | 100% |
Annualised EPS = ₹0.30 × 4 = ₹1.20.At CMP ₹95.5, that’s aP/E of 79.6, not 771 (which probably reflects trailing net losses). Either way, that’s like paying for diesel and getting perfume.
Commentary:Revenue doubled, profit exploded, and EPS revived — but the balance sheet still looks like it came out of a stress test. For a
company this small, even one successful well can change everything — or nothing, depending on how fast they burn through the oil money.
5. Valuation Discussion – Fair Value Range Only
Let’s attempt the unthinkable: value this chaos.
(a) P/E Method:Assume EPS ₹1.2 (annualised Q2)Industry P/E (Oil Exploration) ≈ 17.4→Fair Value = 1.2 × 17.4 = ₹20.88 per share.
(b) EV/EBITDA Method:EV/EBITDA = 126 currently (lol)Industry average ≈ 6×EBITDA (annualised) = ₹4.84 × 4 = ₹19.36 Cr→ EV (fair) = 19.36 × 6 = ₹116 Cr→ Per share ≈ ₹9
(c) DCF Method (Simplified):Assume annual free cash flow of ₹5 Cr growing 10% for 5 years, discount rate 12%.→ PV ≈ ₹20–25 Cr.→ Per share ≈ ₹15–20.
So even the most optimistic models yield afair value range of ₹9–₹21, compared to a current price of ₹95.5.
Disclaimer:This fair value range is foreducational purposes onlyand not investment advice.
6. What’s Cooking – News, Triggers, Drama
November 2025 was a blockbuster for GNRL — literally drilling drama worthy of a Netflix special.
- 12 Nov 2025:K#17 well completed inKanawara Field, hitting a24-meter hydrocarbon zone— confirmed producible hydrocarbons. Investors immediately smelled both crude and potential multibagger headlines.
- 14 Nov 2025:Q2 results showedH1 PAT of ₹5.76 crore, with₹22.24 crore received from SAM (subsidiary asset monetisation)— oil flowed, cash followed.
- 1 Nov 2025:Board allotted2.5 crore shares at ₹21.70, raising ₹40.68 crore — share capital now ₹128.4 crore. Dilution? Sure. But what’s a little equity flood between friends?
- 23 Sep 2025:SEBI appointed aforensic auditorto review FY2020-21 to FY2025-26 — because in India, where there’s oil, there’s always oversight.
- May–Sep 2025:Multiple operational updates:K#12 and K#13 wells discovered oil zones of 20m each. Production from North Balol expected to ramp from11,000 SCMD to 60,000 SCMD.
So yes, oil’s flowing, shares are flying,
