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%, despite a reduction in DTC and DIFS bus sales due to EV transition.

• Revenue rose 11% year-over-year to INR 4,317 crore, while EBITDA declined 11% to INR 512 crore, mainly due to higher gas purchase costs from reduced APM gas allocation.

• PAT for the quarter was INR 356 crore, down from INR 400 crore in Q1 last year.

• 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.

• Strong double-digit volume growth outside Delhi, with robust CNG vehicle adoption and 17% increase in new/retrofitted CNG vehicles.

Financial highlights

• Standalone revenue from operations rose to ₹4,326.60 crore, up 11% year-over-year; consolidated revenue was ₹4,326.75 crore.

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

• Total sales volume for Q1 was 831 million SCM, averaging 9.13 million SCM per day, up from 8.64 million SCM per day last year.

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

• Earnings per share (EPS) for the quarter was ₹2.54 (standalone) and ₹3.06 (consolidated), not annualized.

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 and potential acquisitions.

• Management expects further upside in EBITDA margins once tariff rationalization is fully implemented.

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