Indraprastha Gas (IGL) Q1 25/26 earnings summary

Executive summary

• Achieved 6% year-over-year growth in overall volumes for Q1 FY26, with CNG up 6% and PNG up 10%.

• Robust double-digit growth outside Delhi, driven by increased CNG vehicle adoption and network expansion.

• Added 181,000 new domestic PNG connections and 909 new commercial connections during the quarter.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board and auditors, with no material misstatements identified.

• Regulatory reform: PNGRB notified a single-zone tariff for CNG and domestic PNG, expected to benefit margins.

Financial highlights

• Q1 standalone revenue reached INR 4,326.60 crore, up 11% year-over-year; consolidated revenue was INR 4,326.75 crore.

• Standalone net profit after tax was INR 355.94 crore, down 11% year-over-year; consolidated net profit was INR 427.81 crore, also down 11%.

• EBITDA was INR 512 crore, down 11% year-over-year due to higher gas purchase costs from reduced APM allocation.

• EBITDA margin declined to 13% from 17% year-over-year.

• Associate companies Central UP Gas and MNGL posted sales volume growth of 13% and 18% respectively.

Outlook and guidance

• Long-term EBITDA margin guidance remains at 7%-8%, with expectations to reach the upper end due to tariff and tax rationalization.

• Volume growth guidance for the next 2-3 years is 10%-11% annually, including contributions from new geographical areas.

• Targeting an exit rate of 10 MMSCMD by year-end, up from current 9 MMSCMD.

• Trade margins are now recognized at updated rates following contract renewals with Oil Marketing Companies, effective from December 2021.