Mahanagar Gas (MGL) Q2 25/26 earnings summary

Executive summary

• Amalgamation of Unison Enviro Private Limited (UEPL) effective February 1, 2024, expanded operational reach and customer base, with financials restated to reflect consolidated performance.

• Infrastructure expanded to 8,062 km of pipeline, 485 CNG stations, and 53,566 new domestic connections as of September 30, 2025.

• 116 new industrial/commercial customers and 27,150 CNG vehicles were added in the quarter, with total CNG vehicles exceeding 1.22 million.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were reviewed and approved by the Board on October 29, 2025.

• Results prepared in accordance with Indian Accounting Standards and reviewed by independent auditors, with no material misstatements identified.

Financial highlights

• Q2 FY26 revenues rose 14.73% year-over-year to ₹2,049.33 crore, but declined 1.54% sequentially; H1 FY26 revenues increased 19.66% year-over-year to ₹4,130.71 crore.

• Q2 FY26 EBITDA from operations was INR 338 crore, down from INR 501 crore in Q1, due to a one-time reversal of OMC trade margins in Q1.

• Net profit after tax for Q2 was INR 193 crore, compared to INR 320 crore in Q1; H1 FY26 net profit was INR 513 crore (vs. INR 576 crore in H1 FY25).

• EBITDA margin dropped to 16.49% in Q2 FY26 from 23.15% a year ago; H1 FY26 EBITDA margin at 20.3%, down from 24.63% year-over-year.

• Average gas sales volume for Q2 increased 9.22% year-over-year to 4.593 MMSCMD; H1 average volume rose 9.91% year-over-year to 4.524 MMSCMD.

Outlook and guidance

• EBITDA per SCM guidance for Q3 is INR 8.5, with expectations for improvement in Q4 as new long-term HPHT contracts commence.

• Full-year EBITDA per SCM is expected in the INR 8.5–9 range, with focus on volume growth over margin expansion.

• Volume growth for FY26 is expected to be at least 10% year-over-year, continuing the strong H1 trend.

• No explicit forward-looking guidance provided, but management notes ongoing legal and regulatory matters with no expected outflow of resources.