Indraprastha Gas' Q1 profit drops 33 pc sequentially
New Delhi, Aug 13
Indraprastha Gas Limited on Thursday reported a 33 per cent decline in profitability for the first quarter of the current financial year.
The city gas distributor posted a net profit of Rs 186 crore in the June quarter, down 32.9 per cent quarter-on-quarter (QoQ) from Rs 277 crore reported in the preceding quarter (Q4 FY26), according to its stock exchange filing.
Revenue from operations, however, rose 10.1 per cent sequentially to Rs 4,583 crore in Q1 FY27, compared with Rs 4,163 crore in the previous quarter.
At the operating level, the company's earnings before interest, tax, depreciation and amortisation (EBITDA) declined 30.3 per cent to Rs 295 crore from Rs 423 crore in the earlier quarter.
The weaker operating performance also weighed on margins. IGL's EBITDA margin contracted to 6.4 per cent in the June quarter from 10.2 per cent in the preceding quarter, as per its regulatory filing.
Following the earnings announcement, investor sentiment remained subdued. Shares of Indraprastha Gas were trading about 1 per cent lower at Rs 152.90 apiece at around 2:40 pm on Thursday.
In comparison, the Sensex was trading largely flat with a negative bias at 77,918.06.
Over the last five days, the company's stock has declined by 1.35 per cent, or Rs 2.07. Over the past month, the stock fell 0.86 per cent, or Rs 1.31.
Over the last six months, the company's shares have declined by 8.88 per cent, or Rs 14.79. On a year-to-date basis, the stock has fallen 20.94 per cent, or Rs 40.20.
Over the past year, the company's shares have dropped 26.45 per cent, or Rs 54.49.
Meanwhile, earlier this year, the gas distributor announced a fresh increase in compressed natural gas (CNG) prices, marking the fourth hike in less than two weeks.
CNG prices in Delhi have been hiked by Rs 2 per kg on May 26. Following the latest revision by IGL, CNG in Delhi will now cost Rs 83.09 per kg, up from Rs 81.09 per kg.
— IANS
Reader Comments
As a consumer, I'm getting tired of these constant hikes in CNG prices. The government talks about promoting clean fuel, but when prices keep rising, it defeats the purpose. The profit drop might be a wake-up call for IGL to streamline operations rather than passing every cost onto consumers.
To be fair, this kind of volatility is normal in the energy sector globally. But the sharp decline in EBITDA margin from 10.2% to 6.4% indicates some serious cost pressures. IGL needs to address its input costs and operational efficiency. The stock has been underperforming for a year now, down 26% – investors are understandably cautious.
We always see this pattern – when oil and gas prices go up globally, companies first complain about margins, then hike prices for consumers. The profit drop is only 33%, but CNG prices have gone up four times in two weeks. Something doesn't add up. Just saying what we're all thinking. 🤔
This is disappointing for small investors like me who bought IGL shares thinking it was a stable dividend play. The stock has fallen 20% YTD and nearly 27% over the past year. Revenue went up but profit fell – seems like they're not managing costs well. Hope the management addresses this in the next earnings call.
The drop in profitability while revenue rises suggests a margin squeeze. But look at the bigger picture – it's still a Rs 186 crore profit in one quarter. The real issue here is the frequent price hikes for CNG
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