According to Motilal Oswal's research report dated May 19, 2026, Indraprastha Gas delivered impressive Q4FY26 results that exceeded analyst expectations. The company's EBITDA per standard cubic meter (scm) came in 44% above estimates at ₹4.8, while total volumes reached 9.69 million standard cubic meters per day (mmscmd), rising 6% year-on-year. The company's profit after tax (PAT) beat estimates by 44% at ₹280 crore, though it declined 21% year-on-year. Motilal Oswal has maintained a buy rating with a target price of ₹220 per share, representing significant upside potential from current levels. Multiple brokerages including PL Capital, Systematix, and YES Securities have also maintained their buy ratings following the results.
As reported by Motilal Oswal, total Q4 volumes were slightly below estimates at 9.69 mmscmd versus the estimated 9.3 mmscmd, rising 5.6% year-on-year. CNG volumes specifically grew 5.5% year-on-year, demonstrating strong demand for compressed natural gas. Management has provided robust guidance for FY27, targeting exit volumes of 10.6 mmscmd driven by 10-13% year-on-year growth in CNG volumes. The company expects EBITDA margins to remain strong at ₹7-8 per scm, supporting continued profitability growth. Systematix noted that the company added 65 new CNG stations in FY26 to reach 1,024 stations, while added 3.7 lakh DPNG connections in FY26.
According to the research report, Indraprastha Gas has made significant progress in the National PNG drive 2.0 initiative, connecting a total of 3.44 million domestic PNG customers, of which 2.45 million are currently billed. Under the expanded PNG Drive 2.0 program, the company is targeting 0.35 million new billed domestic connections in FY27, up from the earlier projection of 0.23-0.25 million. This growth is supported by a strong pipeline of approximately 0.5 million already-connected but non-consuming customers that offer low-cost, near-term conversion opportunities with minimal incremental infrastructure requirements.
Despite strong fundamentals, IGL shares were last seen trading 1.72% lower at ₹154.55 in Wednesday's trade, reflecting mixed market sentiment. The valuation approach varies among brokerages, with Motilal Oswal valuing the company at 15x December 2027E SA P/E ratio plus ₹43 per share for joint venture value, while PL Capital uses 11x FY28E Adjusted EPS for standalone business plus ₹28 per share for investments. YES Securities assigns a 14x multiple with additional value from investments in MNGL (₹32/share) and CUGL (₹5/share). The consensus among most brokerages remains positive, with only Nuvama Institutional Equities maintaining a reduce rating due to concerns about ad-hoc government policies and margin pressures.
