Incorporated in the year 1998, Indraprastha Gas Limited (IGL) is in the business of city gas distribution in the National Capital Territory of Delhi. IGL also supplies the gas to the near by regions of Noida, Greater Noida, Ghaziabad, Hapur, Gurugram, Meerut, Shamli, Kanpur, Muzaffarnagar, Karnal and Rewari, Hamirpur, Fatehpur, Ajmer, Pali, Rajasmand. IGL is formed as a JV promoted by GAIL (India) Limited and Bharat Petroleum Corporation (BPCL). Government of NCT of Delhi is holding 5% equity.
IGL is an Indian natural gas distribution company incorporated in 1998. IGL is the largest city gas distribution company in India and is headquartered in New Delhi. The company has established itself as a dominant player in the energy sector by focusing on clean and sustainable fuel alternatives for both transportation and domestic use.
IGL has operations in the NCT of Delhi, Noida, Greater Noida, Ghaziabad, Rewari, Karnal, Kaithal, Kanpur, Muzaffarnagar, Ajmer, and Banda with 819 CNG stations, 25.60 lacs residential connections, and ~10,000 industrial/commercial customers. IGL operates in the natural gas distribution business with a network of over 1,400 kms of pipelines in Delhi, Noida, Greater Noida, and Ghaziabad.
The company's primary business revolves around two key segments. IGL's top products include Compressed Natural Gas (CNG) for vehicular use, Piped Natural Gas (PNG) for domestic, commercial, and industrial use, and Bio-Gas for industrial use. CNG is used by over 1.5 million vehicles in Delhi, Noida, Greater Noida, and Ghaziabad. PNG is used by over 1.2 million households, commercial establishments, and industries in these areas.
Indraprastha Gas Limited (IGL) concluded FY25-26 on a robust note, reporting a consolidated net profit of ₹455.14 crore in Q4 FY25, marking a 5% year-on-year (YoY) increase from ₹433.79 crore in Q4 FY24. The company's total income rose to ₹4,431.11 crore, up from ₹4,044.31 crore in the same quarter last year.
**Key Financial Highlights for Q4 FY25:**
- Total income increased by 5% YoY to ₹4,431.11 crore in Q4 FY25
- Consolidated net profit rose by 5% YoY to ₹455.14 crore
- EBITDA stood at ₹497 crore, up from ₹364 crore in Q3 FY25, indicating a 37% quarter-on-quarter (QoQ) growth
- EBITDA Margin: Improved to 13% in Q4 FY25 from 10% in Q3 FY25
For the full year,net profit declined 13.47% to Rs 1717.76 crore in the year ended March 2025 as against Rs 1985.07 crore during the previous year ended March 2024. Sales rose 6.63% to Rs 14927.80 crore in the year ended March 2025 as against Rs 14000.02 crore during the previous year ended March 2024.
**Volume Performance:**
Total sales volumes for the quarter ended 31 March 2025 were 826.40 million scm, up 4% YoY. Of the total, CNG volumes were 603.64 million scm (up 4% YoY), LNG volumes were 0.30 million scm (up 10x YoY) and total PNG volumes were 222.46 million scm (up 4% YoY).
Mkt Cap: 31,654 Crore (down -13.4% in 1 year) · Revenue: 14,928 Cr · Profit: 1,713 Cr · Earnings include an other income of Rs.695 Cr. · Promoter Holding: 45.0%
Company is almost debt free. Company has been maintaining a healthy dividend payout of 59.0% This debt-free status provides IGL with financial flexibility and positions it well for future growth initiatives and market expansion opportunities.
Indraprastha Gas Ltd (IGL) has recently informed exchanges that its board approved a 1:1 bonus share issue, rewarding shareholders with one bonus share for every existing share held. The company has maintained a consistent dividend policy, with the Board of Directors of the Company at its meeting held on 27 April 2025, inter alia, have recommended the final dividend of Rs 1.5 per equity Share (i.e. 75%) , subject to the approval of the shareholders.
In the Q4 FY25 earnings call, IGL's management emphasized the company's strategic initiatives, including the approval of a 500 MW solar plant in Rajasthan in collaboration with RVUNL, marking a significant step towards diversification and sustainability. The management also highlighted the record sales volume achieved during the quarter and expressed optimism about future growth prospects, aiming for a 10% increase in sales volume in FY26.
The company faces certain operational challenges, particularly related to gas allocation and cost pressures. The reduction in this cheaper domestic gas allocation is likely to increase input costs for the company. To partially offset the shortfall, IGL has been allocated additional volumes of New Well Gas (NWG), equivalent to roughly 125% of the reduction in domestic gas. However, this gas comes at a steeper price'12% of the Indian Crude Basket (ICB).
Despite these challenges, Indraprastha Gas Limited (IGL) has received a significant boost as the domestic gas allocation from GAIL (India) Limited has been revised upwards by 31%, effective from 16th January 2025.
The stock has received positive attention from various research firms. 63.33% of analysts recommend a 'BUY' rating for Indraprastha Gas Ltd. Average target price of ₹224.6 Jefferies has maintained its Buy rating on Indraprastha Gas Limited (IGL) share price, with a target price of ₹252 per share, indicating a 30% upside from the current market price (CMP) of ₹193.95.
IGL's strategic position in India's energy transition, combined with its extensive distribution network and commitment to cleaner fuel alternatives, makes it a significant player in the country's path toward sustainable energy solutions. The company's focus on expanding its CNG and PNG network, along with diversification into renewable energy, positions it well for long-term growth despite near-term operational challenges.
