Indraprastha Gas Limited (NSE:IGL), a leading city gas distribution (CGD) player, operates across Delhi-NCR supplying CNG and PNG. Backed by promoters GAIL, BPCL, and the Government of NCT of Delhi, the company remains a key beneficiary of India’s clean energy transition.
Q3FY26 Financial Performance
IGL reported steady revenue growth with improving profitability for the quarter ended December 31, 2025. Revenue from operations rose to ₹4,488.71 crore, supported by healthy volume growth and pricing strength.
Profit before tax (PBT) stood at ₹469.47 crore, while net profit came in at ₹358.57 crore, reflecting strong operational efficiency and margin expansion.
EBITDA surged to ₹472.52 crore, marking a sharp 31% YoY increase, with margins improving to ~12% from ~10% in the previous year, indicating better cost control and favorable gas sourcing dynamics.
Volume and Segment Performance
As per the performance table on page 11, total gas volumes grew 3% YoY to 867.18 million SCM, driven by steady demand across segments.
- CNG volumes increased 3% YoY, supported by sustained demand in the mobility segment
- PNG domestic volumes rose 8%, reflecting continued household adoption
- Industrial & commercial PNG grew 3%, indicating gradual recovery in industrial demand
- LNG volumes declined sharply by 56%, highlighting segment-specific weakness
Overall, the growth mix reflects stable core demand but some pressure in niche segments.
Nine-Month Performance Snapshot
For the nine months ended December 2025, revenue growth remained robust at ~9%, while net profit declined slightly by 3% to ₹1,087.02 crore, indicating margin normalization after a strong base.
EBITDA for the period also declined marginally by 3%, suggesting some cost pressures and normalization of earlier gains.
Key Strategic and Regulatory Developments
IGL continues to strengthen its ecosystem with the expansion of its subsidiary IGL Genesis Technologies Limited, focused on gas metering solutions.
Additionally, the company recognized a financial impact of ~₹28–29 crore due to implementation of new labour codes effective November 2025, highlighting regulatory cost adjustments.
A key overhang remains the ₹330.73 crore DDA license fee dispute, currently under litigation, categorized as a contingent liability.
Dividend Announcement
The board declared an interim dividend of 162.5% (₹3.25 per share), with record date set as February 19, 2026, reinforcing strong cash flow generation and shareholder return focus.
Technical Analysis
IGL stock shows early recovery after a prolonged downtrend, trading near its 50-day SMA (~₹160). RSI around 56 indicates improving momentum. Immediate resistance is seen near ₹170–175, while support lies at ₹150. Trend remains cautiously bullish with consolidation likely before a decisive breakout.
Chart by TradingView
Conclusion
IGL’s Q3FY26 performance reflects resilient demand, improving margins, and steady volume growth. While regulatory costs and LNG weakness pose challenges, strong fundamentals and dividend payouts support the investment case. Long-term prospects remain intact, driven by India’s gas-based economy push and urban infrastructure expansion.
FAQs
- What drove IGL’s profit growth in Q3FY26?
Margin expansion, improved EBITDA, and steady CNG and PNG demand contributed to profit growth despite moderate volume expansion. - Why did LNG volumes decline significantly?
LNG demand weakened due to pricing dynamics and lower industrial consumption, impacting overall segment performance negatively. - What are key risks for IGL going forward?
Regulatory changes, gas pricing volatility, LNG demand weakness, and pending legal disputes like DDA license fees remain key risks.