Indraprastha Gas (IGL) Q2 25/26 earnings summary

Executive summary

• Operates across 12 geographical areas in four states with a robust pipeline network and 955 CNG stations, serving over 3.175 million households and thousands of industrial and commercial units.

• Q2 FY2026 sales volumes grew 3% year-on-year, with CNG up 3% and PNG up 6%; excluding DTC, CNG volumes rose 10% year-on-year.

• Revenue from operations for Q2 FY25-26 increased 9% year-over-year to ₹4,445.89 crores, with total income at ₹4,608.46 crores.

• Net profit after tax for the quarter was ₹372.51 crores, down 14% year-over-year.

• CNG vehicle adoption surged, with a 21% increase in average monthly additions over last year, aided by GST reduction and festive demand.

Financial highlights

• Q2 FY2026 total sales volume: 857 million SCM, up from 830 million SCM last year.

• Revenue for the quarter: INR 4,432 crore, up 9% year-on-year.

• EBITDA for the quarter was ₹442.83 crores, down 17% year-over-year, with EBITDA margin at 11%.

• PAT: INR 373 crore (down from INR 431 crore YoY); EPS for the quarter was ₹2.66, compared to ₹3.08 last year.

• EBITDA margin decline attributed to higher gas procurement costs and changes in gas sourcing mix.

Outlook and guidance

• Volume growth guidance for FY2026 maintained at 8%-10% (excluding DTC), with newer GAs expected to deliver double-digit growth.

• EBITDA margin guidance remains at INR 7–8 per SCM, with improvements expected from VAT reduction and single zone tariff implementation.

• Exit volume for FY2026 projected at 10 MMSCMD, with potential for further growth in FY2027.

• Trade margins are being recognized at updated rates following contract renewals with Oil Marketing Companies, supporting revenue stability.