The case relates to March 1, 2002 when, soon after the Godhra train carnage, rioters set fire to a building, killing 23 Muslims trapped inside in Pirwali Bhagol area of Ode.
This is the third riots case - after the Godhra train carnage and Sardarpura massacre - in which the special trial court has pronounced judgement.
A total of 47 accused are undergoing trial in the case.
The state's ruling Bharatiya Janata Party hailed the verdict, with party leader Yatin Oza calling it justice.
"This verdict proves justice will be done to those affected, cases of this magnitude take time before the final cases are out. The Gujarat cases are no different. Delhi cases after 27 years still unresolved, here one after another verdicts are coming," Oza told TV channel Times Now.
"Those who are interested in justice for riot victims will be satisfied with the verdict, those who are misusing riot victims to reach the hidden agenda... they will not be satisfied because they have only one aim - anyhow Gujarat Chief Minister Narendra Modi should be maligned," he said.