This article first appeared on GuruFocus .
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Total Sales Volume:85 million standard cubic meters, a 3% year-on-year growth.
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Average Daily Volume:9.31 million standard cubic meters, compared to 9.03 million in the previous year.
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CNG Sales Growth:3% overall; 10% growth excluding DTC sales.
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P&G Sales Growth:6% increase, reaching 1.84 million standard cubic meters per day.
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Total Revenue:INR 4,432 crore, a 9% year-on-year growth.
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EBITDA:INR 443 crore, down from INR 512 crore in the previous quarter and INR 532 crore in Q2 last year.
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Profit After Tax (PAT):INR 37 crore, compared to INR 431 crore in Q2 last year.
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Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Indraprastha Gas Ltd ( BOM:532514 ) reported a 3% year-on-year growth in overall sales, with CNG volumes growing by 10% excluding DTC sales.
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The company witnessed a 21% increase in CNG vehicle adoption over the previous year, supported by government GST rationalization.
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The reduction of VAT on domestic gas sourced from Gujarat is expected to positively contribute to EBITDA margins.
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The company is expanding its geographical footprint, operating across 12 areas in 4 states, with a robust infrastructure network.
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Indraprastha Gas Ltd ( BOM:532514 ) is exploring international opportunities, such as a joint venture in Saudi Arabia, which could provide significant growth potential.
Negative Points
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The company's EBITDA declined to INR443 crore from INR532 crore in the same quarter last year, primarily due to increased gas procurement costs.
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PAT for the quarter stood at INR37 crore, a significant drop from INR431 crore during the same period last year.
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The transition of DTC and DIMTS from CNG to electric mobility has negatively impacted sales volumes.
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The company faces challenges with fluctuating gas procurement costs, influenced by factors such as the depreciation of the rupee and increased Henry Hub prices.
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Growth in the NCR region was lower than expected, with only a 7% increase, compared to the usual 10-12% growth rate.
Q & A Highlights
Q: Could you provide a comparison of Delhi's daily volume growth for Q1 and Q2 of this year? A: Mohit Bhatia, Director - Commercial, stated that Delhi's volumes in Q1 were around 1% to 1.5% positive, including DTC numbers. Excluding DTC, the growth was around 7% to 8%. The decline in DTC sales is expected to continue, leading to a healthier growth in CNG sales in the future.
Q: Is the company maintaining its 6% to 7% overall volume growth guidance for FY26? A: Mohit Bhatia confirmed that the company expects to achieve an 8% to 10% growth, excluding DTC volumes. The newer geographical areas are performing well, contributing to this growth expectation.
Q: What is the strategic rationale behind the Saudi JV, and what kind of investment is planned? A: Kamal Chatiwal, Managing Director, explained that Saudi Arabia presents a significant opportunity as they transition industrial cities from liquid fuels to gas. IGL will provide technical and operational assistance, with a 40% equity stake in the JV. The investment is expected to be realistic, with lower costs due to proximity to gas sources.
Q: How has the gas cost increase affected margins, and was there any spot LNG procurement? A: Kamal Chatiwal noted that there was no spot LNG procurement; the increase in gas costs was due to higher Henry Hub prices and currency depreciation. Sanjay Kumar, CFO, added that the LNG component increased from 25% to 37% due to a reduction in APM and new gas allocations.
Q: What are the expected benefits from the Gujarat VAT reduction and the single-zone tariff framework? A: The VAT reduction on domestic gas sourced from Gujarat is expected to lower input gas costs by approximately INR1 per SCM, positively impacting EBITDA margins. The single-zone tariff framework, once implemented, will further benefit margins by rationalizing tariffs for CNG and domestic PNG.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
