Mahanagar Gas (MGL) Q1 26/27 earnings summary

Executive summary

• Geopolitical conflict in West Asia has caused volatility in global LNG markets, impacting gas supply and pricing in India, but domestic sourcing has ensured uninterrupted supply for key segments.

• Achieved over 30 years of consistent growth as one of India's largest city gas distribution companies.

• Operates across multiple regions with a strong infrastructure network and customer base, including 519 CNG stations and over 3.24 million PNG household connections.

• PNG Drive 2.0 has accelerated domestic PNG conversions and infrastructure expansion, supporting sustained growth and high safety standards.

• Maintains a robust focus on health, safety, and environment.

Financial highlights

• Standalone revenue from operations rose to ₹2,597.89 crore, up 13.92% year-over-year and 15.05% sequentially.

• EBITDA for the quarter was ₹342.98 crore, down 31.50% year-over-year but up 31.74% sequentially; EBITDA margin at 14.46%.

• Net profit after tax reached ₹193.70 crore, down 39.39% year-over-year but up 46.83% sequentially.

• CNG sales volume increased 9.74% year-over-year and 5.55% sequentially; domestic PNG sales rose 9.09% year-over-year and 4.13% sequentially.

• Overall average sales volume rose to 4.766 MMSCMD, up 7.01% year-over-year and 2.01% sequentially.

Outlook and guidance

• CNG volume growth is expected in the 8%-9% range for FY27 and FY28, contingent on price stability and gas availability.

• Domestic PNG volume growth is limited by household penetration but could rise if conversion rates accelerate.

• CNG and PNG remain price competitive, supporting continued demand and favorable fuel economics.

• Majority of sales volume is from priority segments (CNG and domestic PNG), ensuring stable demand.

• Management aims to maintain EBITDA margin in the INR 8–9 per SCM range over the long term, despite near-term volatility.