Mahanagar Gas (MGL) Q1 25/26 earnings summary

Executive summary

• Achieved connectivity for 16,348 new domestic households, totaling nearly 2.85 million connected, and expanded infrastructure to over 7,539 km of pipeline and 385 CNG stations, serving more than 1.13 million CNG vehicles.

• Added 79.08 km of pipeline, reaching over 7,538.63 km in total; 385 CNG stations operational as of June 30.

• 84 new industrial/commercial customers added, totaling 5,161; 20,332 CNG vehicles added, surpassing 1.1 million registered.

• UEPL subsidiary added 4 CNG stations, 3,338 households, and 1 industrial customer; 73.78 km pipeline laid.

• Achieved over 30 years of consistent growth with robust financials and strong customer base in CNG and PNG segments.

Financial highlights

• Q1 average gas sales rose 9.61% YoY to 4.229 MMSCMD; CNG sales up 7.54%, domestic PNG up 3.88%, and commercial sales volume up 26.09% YoY.

• Q1 FY26 revenues rose 24.3% YoY to ₹1,975.92 crore; standalone revenue from operations grew 23.8% YoY to ₹2,159.72 crore; consolidated revenue reached ₹2,282.07 crore.

• EBITDA from operations at ₹485.36 crore, up 15.98% YoY and 28% sequentially; net profit after tax at ₹324.32 crore, up 13.98% YoY and 29% sequentially.

• EPS rose to ₹32.83 from ₹28.80 YoY; consolidated EPS at ₹32.18.

• Gross profit improved 17.4% YoY to ₹739.55 crore; total assets as of March 31, 2025, stood at ₹8,204 crore.

Outlook and guidance

• High single-digit to near double-digit volume growth expected for FY26; Q1 YoY growth at 9.6%.

• EBITDA per SCM expected to normalize to ₹9–9.5 by year-end.

• CapEx for core business and UEPL projected at ₹1,100–1,300 crore over next two years; 80 new CNG stations targeted in FY26.

• Focus remains on expanding infrastructure and customer base, leveraging cost-effective and environmentally friendly CNG/PNG solutions.

• Diversified sourcing strategy ensures secured gas availability and price competitiveness.