Indraprastha Gas Limited (IGL), India's largest city gas retailer, reported mixed Q4 FY26 results with a 21% year-on-year decline in net profit to ₹277.08 crore for the quarter ended March 2026. According to ET Now, the profit decline was impacted by higher input gas costs and supply-side pressures linked to West Asia disruptions. Despite the profit dip, the company demonstrated resilience with revenue from operations growing 6% to ₹4,571.49 crore compared to ₹4,322.71 crore in the corresponding period last year. The company also hiked gas prices by ₹3 per standard cubic meter during the quarter. Systematix reports that net revenue was up 5.5% YoY/2.6% QoQ, broadly supported by growth across both compressed natural gas and piped natural gas segments.
Despite profit challenges, IGL achieved 6% year-on-year growth in quarterly sales volume to 9.69 million standard cubic metres per day, driven by growth across both segments. As reported by ET Now, CNG volumes increased 5% while piped natural gas (PNG) volumes rose 6% over the corresponding period last year. The company's CNG volumes increased 5% and industrial PNG volumes grew approximately 4% year-on-year, while domestic PNG volumes rose approximately 14% year-on-year. Systematix confirms that total sales volumes increased to 9.7 million metric standard cubic metre per day, up 5.6% YoY/2.8% QoQ, with CNG volumes growing 5.5% YoY to 7.1mmscmd supported by continued traction in mobility demand. Domestic PNG volumes increased 13.5% YoY/10.9% QoQ to 0.86mmscmd, while industrial and commercial PNG volumes grew 3.6% YoY to 1.26mmscmd.
Brokerages including Morgan Stanley, Nuvama, Motilal Oswal and Emkay have reviewed IGL's performance following the Q4 results. According to ET Now, Morgan Stanley maintained an equal-weight rating with a target price of ₹205, while Nuvama retained a reduce rating with a target price of ₹148 (revised down from ₹173). Motilal Oswal maintained a buy rating with a target price of ₹220 (revised upward from ₹177), and Emkay cut the target price by 5% to ₹180 from ₹190 while retaining an add rating. Systematix has maintained its Buy stance on IGL, valuing at 12x on FY28E PER with a revised target price of ₹212. The brokerage believes strong new CNG vehicle addition run-rate along with series of price hike may lead to a strong 24%/25% Ebitda/PAT compound annual growth rate over FY26-FY28E. Non Delhi geographical areas are growing at a rapid pace of over 16% which bodes well for future performance.
EBITDA came at ₹420 crore against brokerage estimate of ₹350 crore, up 10.4% YoY, however, declined 15.5% sequentially due to 3% rise in gas cost and elevated operating cost. As reported by ET Now, EBITDA margin stood at ₹4.8 per standard cubic meter, slightly below the mid-cycle average. Prabhudas Lilladher reports that elevated input gas costs and higher other expenses weighed on profitability, with Adj. EBITDA/scm declining to ₹4.8/scm in Q4FY26 from ₹5.9/scm in Q3FY26. Reported EBITDA stood at ₹4.2 billion, declining 10.5% QoQ and 14.4% YoY, while PAT declined 22.7% QoQ and 20.7% YoY to ₹2.8 billion. Systematix reports that adjusted Ebitda/scm stood at ₹4.8/scm vs ₹5.8/scm in Q3 FY26, up 4.5% YoY/down 16.1% QoQ. Despite margin pressures, the company demonstrated operational resilience with strong volume growth across segments.
For FY27, IGL has provided exit volume guidance of 10.7 million metric standard cubic metres per day with EBITDA per standard cubic meter at ₹7-8. As reported by ET Now, the company expects volume growth of 8% CAGR over FY26-28 with EBITDA margins estimated at ₹4.3-₹6.5 per standard cubic meter for FY27/28. Prabhudas Lilladher maintains "Buy" rating, supported by an improving volume growth trajectory, building in a volume CAGR of 5.1% over FY25-FY28E with estimated volumes of 9.9mmscmd and 10.4mmscmd for FY27E and FY28E, respectively. The recent INR3/kg CNG price hike in May'26 provides some relief against elevated input costs, though if West Asia disruptions continue, additional price hikes may be required to offset margin pressures. Systematix expects strong 24%/25% Ebitda/PAT compound annual growth rate over FY26-FY28E, supported by continued vehicle additions and pricing actions.
