Mahanagar Gas (MGL) Q1 26/27 earnings summary

Executive summary

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

• Achieved over 30 years of consistent growth as one of India's largest city gas distribution companies, operating across multiple regions with a strong infrastructure network, including 519 CNG stations and over 3.24 million PNG household connections.

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

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were reviewed and approved by the Board on July 30, 2026.

• The company operates primarily in the selling and distribution of natural gas, with no separate reportable segments.

Financial highlights

• Standalone revenue from operations rose to ₹2,597.89 crore, up 13.92% year-over-year and 15.05% sequentially; consolidated revenue was ₹2,598.90 crore.

• Standalone EBITDA for Q1 FY27 was ₹342.98 crore, down 31.50% year-over-year but up 31.74% sequentially; EBITDA margin at 14.46%.

• Net profit after tax was ₹193.70 crore standalone and ₹192.64 crore consolidated, down 39.39% year-over-year but up 46.83% sequentially.

• EPS for Q1 FY27 stood at ₹19.61 standalone and ₹19.54 consolidated.

• 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 guidance for FY27 and FY28 is 8%-9%, contingent on price stability and gas supply normalization.

• Domestic PNG volume growth potential depends on household penetration, with a target to connect up to 4 million households.

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

• 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.