IGL Q1 FY 2026-27 Results: Profit Falls 29.5%; EBITDA Margin Shrinks To 6.4%

Indraprastha Gas Ltd (IGL) reported a sharp sequential decline in profitability for the June quarter, even as revenue and gas volumes continued to grow.

Net profit fell 29.5% to ₹240 crore from ₹341 crore in the March quarter. EBITDA declined 30.4% to ₹293.4 crore, compared with ₹421.4 crore in Q4 FY26.

The fall in operating profit also compressed the EBITDA margin to 6.4% from 10% in the previous quarter.

Revenue, however, moved higher. It increased 10% to ₹4,586 crore from ₹4,162 crore in Q4 FY26.

Volumes Continue To Grow

IGL's core gas distribution volumes remained resilient during the quarter.

• CNG volumes increased 6% year on year.

• Domestic PNG volumes grew 7% year on year.

• Revenue rose despite the sequential decline in profitability.

The numbers point to continued demand across IGL's CNG and domestic PNG businesses, although the sharp contraction in EBITDA remained the key feature of the quarter.

CNG Price Hikes Add To The Backdrop

The June-quarter results came after multiple CNG price increases earlier in the year.

IGL raised CNG prices by ₹1 per kg across all geographical areas from 23 May. The increase took Delhi's CNG price to ₹81.09 per kg.

The company said the hike was intended to partially offset higher input gas costs and the sharp appreciation in the US dollar. It was the third CNG price increase in May, taking the month's total increase to ₹4 per kg.

IGL Shares Fall After Results

IGL shares declined after the earnings announcement on 13 August. The stock closed at ₹151.77 on the NSE, down 1.80%.

For the quarter, the key takeaway was the divergence between top-line growth and operating profitability. Revenue and volumes moved higher, but EBITDA and net profit declined sharply, while the EBITDA margin narrowed substantially.

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