Indraprastha Gas Profit Falls 21% Amid Rising Costs, Volume Growth Remains Strong

Indraprastha Gas Limited (IGL), India’s largest city gas distribution company, reported a sharp 21% year-on-year decline in net profit for the fourth quarter ended March 2026, highlighting margin pressures from elevated input costs and global supply disruptions.

The company posted a net profit of ₹277.08 crore in Q4 FY26, compared to the corresponding period last year. The decline was primarily attributed to increased gas procurement costs amid ongoing supply constraints linked to the West Asia region.

Despite profitability pressures, IGL demonstrated resilience in operational performance, with sales volume rising 6% year-on-year to 9.69 million standard cubic metres per day (mmscmd).

Demand Momentum Remains Intact

Growth was broad-based across key segments:

• Compressed Natural Gas (CNG) volumes increased by 5% YoY
• Piped Natural Gas (PNG) volumes rose by 6% YoY

This steady demand reflects continued adoption of cleaner fuel alternatives in both the transport and domestic segments, particularly in the National Capital Region.

Revenue and Margin Pressures

IGL reported revenue from operations at ₹4,571.49 crore, up 6% year-on-year, supported by higher volumes and partial price pass-through.

However, profitability remained under pressure:

• EBITDA margins stood at ₹4.8 per scm, below the company’s mid-cycle average
• Rising input gas costs continued to compress spreads despite pricing actions

To mitigate the impact, the company implemented a price hike of ₹3 per scm, aimed at partially offsetting higher procurement costs.

Outlook

While near-term margins may remain under pressure due to volatile global energy markets, IGL’s consistent volume growth underscores strong structural demand for city gas distribution. The company’s ability to balance pricing, costs, and expansion will be key to its earnings trajectory in the coming quarters.