Indraprastha Gas Ltd. (IGL), India’s leading city gas distribution company, has reported a strong financial performance for the quarter ended June 2025. The company posted a consolidated net profit of ₹4.29 billion and revenue from operations of ₹43.27 billion, reflecting robust demand for compressed natural gas (CNG) and piped natural gas (PNG) across its operational regions.
This performance comes amid rising urban mobility, increased industrial consumption, and expanding Indraprastha Gas Ltd. (IGL), India’s leading city gas distribution company, has reported a strong financial performance for the quarter ended June 2025. The company posted a consolidated net profit of ₹4.29 billion and revenue from operations of ₹43.27 billion, reflecting robust demand for compressed natural gas (CNG) and piped natural gas (PNG) across its operational regions.
This performance comes amid rising urban mobility, increased industrial consumption, and expanding infrastructure in the National Capital Region (NCR) and adjoining states.
Key Highlights from Q1 FY26:
- Consolidated net profit: ₹4.29 billion
- Revenue from operations: ₹43.27 billion
- Year-on-year profit growth: 8.6 percent
- CNG volume growth: 6.2 percent
- PNG connections crossed 2.1 million households
- Capex guidance for FY26 raised by 20 percent
Revenue and Profitability Overview:
- Revenue from operations rose 7.4 percent compared to the same quarter last year, driven by higher gas volumes and improved realizations.
- Net profit of ₹4.29 billion marks a steady increase, supported by lower finance costs and operational efficiencies.
- Gross margins remained stable despite input cost fluctuations, aided by favorable pricing and supply contracts.
Operational Performance and Segment Insights:
IGL’s business is segmented into CNG for vehicles, PNG for households and industries, and commercial gas distribution.
- CNG sales grew significantly, with over 8.6 lakh vehicles serviced across Delhi, Noida, Ghaziabad, and Greater Noida.
- PNG connections expanded to over 2.1 million households, with strong uptake in Gurugram and Rewari.
- Industrial and commercial PNG demand rose due to cleaner fuel mandates and cost competitiveness.
The company added 32 new CNG stations during the quarter, taking the total to 642, and commissioned 1.2 lakh new PNG connections.
Strategic Initiatives and Expansion Plans:
- IGL plans to invest ₹12 billion in FY26 to expand its gas distribution network and upgrade digital infrastructure.
- The company is exploring inorganic growth through acquisition of smaller CGD firms in Tier-2 cities.
- Pilot projects for hydrogen blending and EV charging stations are underway, with 18 EV stations already operational.
- IGL is also working on long-haul CNG corridors to connect Delhi with Dehradun, Jaipur, and Chandigarh.
These initiatives align with India’s push toward a gas-based economy and support IGL’s long-term sustainability goals.
Financial Health and Market Sentiment:
- Debt-free status continues, with strong cash reserves of ₹6.8 billion
- Promoter holding remains at 45 percent, with rising institutional interest
- Share price rose 4.3 percent post-results, hitting a 52-week high of ₹734
- Analysts maintain a bullish outlook, citing volume growth and regulatory tailwinds
Sectoral Context and Competitive Landscape:
India’s city gas distribution sector is witnessing rapid expansion, driven by government policy, environmental concerns, and rising urbanization. IGL’s dominance in NCR and its proactive infrastructure investments give it a competitive edge over peers like Mahanagar Gas and Gujarat Gas.
However, competition is intensifying in newer geographies, prompting IGL to diversify its offerings and explore alternative fuels.
Conclusion:
Indraprastha Gas has delivered a resilient and forward-looking performance in Q1 FY26, balancing profitability with strategic expansion. With rising demand, policy support, and a clear roadmap for growth, IGL is well-positioned to lead India’s clean energy transition in urban mobility and household consumption.
Sources: Business Standard, Moneycontrol, Economic Times Markets, Indraprastha Gas Investor Updates, CNBC-TV18
