IGL Reports 93% Drop in Q2 Profit Amid Rising Gas Costs
Indraprastha Gas Ltd experiences a significant decline in net profit despite record sales due to soaring input gas prices.
IGL's net profit fell to Rs 24.38 crore in Q2 2026-27, down from Rs 372.51 crore a year prior.
Sales volumes increased by 8%, with gross turnover rising 26% to Rs 5,999.13 crore.
The company operates extensive gas distribution networks across 34 districts, serving millions of vehicles and households.
Indraprastha Gas Ltd (IGL), India's leading city gas distributor, has reported a staggering 93.5% decline in its standalone net profit for the second quarter of the fiscal year 2026-27. The profit plummeted to Rs 24.38 crore, a significant drop from Rs 372.51 crore recorded in the same quarter last year. This sharp decline comes despite an increase in sales volumes and revenue, primarily attributed to a substantial rise in input gas costs that eroded profit margins.
During the July to September quarter, IGL achieved an average daily gas sale of 10.06 million standard cubic meters per day (mmscmd), surpassing the 10 mmscmd mark for the first time. This figure represents an increase from 9.31 mmscmd in the corresponding period of the previous year. The company's gross sales turnover also saw a significant rise, climbing to Rs 5,999.13 crore from Rs 4,431.63 crore, reflecting both higher sales and the impact of increased gas prices on revenue.
The quarter also saw a 9% year-on-year growth in compressed natural gas (CNG) volumes, while piped natural gas (PNG) sales rose by 8%. This growth indicates a sustained increase in demand across both transport and household sectors. However, the dramatic fall in profitability, despite these higher sales figures, underscores the challenges faced by city gas distributors like IGL when rising procurement costs cannot be fully transferred to consumers.
IGL operates a vast network of city gas distribution across 34 districts in Delhi, Uttar Pradesh, Haryana, and Rajasthan. Its infrastructure includes over 30,000 kilometers of pipelines and more than 1,000 CNG stations, serving over 2.5 million CNG vehicles and connecting over 3.5 million households to piped natural gas. This extensive network highlights the company's significant role in the energy sector, catering to a large customer base.
Looking ahead, IGL will need to navigate the ongoing challenges posed by fluctuating gas prices and the impact on profitability. The company is expected to explore strategies to manage costs and maintain its market position while continuing to expand its services to meet growing demand in the gas distribution sector.
