Mahanagar Gas Ltd is engaged in the business of City gas distribution (CGD), presently supplying natural gas in the city of Mumbai including adjoining areas and the Raigad District in the state of Maharashtra. Mahanagar Gas Limited is an India-based natural gas distribution company. The Company is engaged in the distribution of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, Thane and Raigad districts of Maharashtra.
The company operates as one of India's largest city gas distribution companies, serving as the sole authorized distributor of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Mumbai, Thane urban and adjoining municipalities, and the Raigad district in State of Maharashtra, India. Mahanagar Gas Limited is an Indian natural gas distribution company, incorporated on May 8, 1995. MGL is an enterprise of GAIL Limited and Government of Maharashtra.
Mahanagar Gas operates in the city gas distribution segment, providing comprehensive natural gas solutions to diverse customer segments. It offers PNG for domestic, commercial and industrial purpose. Its domestic PNG is used for various purposes like cooking and water heating. It is also used by hospitals, nursing homes, hotels, flight kitchens, restaurants, places of worship and others. The company also offers PNG for various industries, including metal, pharmaceuticals, food and beverages, printing and dyeing, oil mills, power generation and air conditioning.
On the mobility side, It supplies CNG to Brihanmumbai Electricity Supply and Transport/Thane Municipal Transport/Maharashtra State Road Transport Corporation/Navi Mumbai Municipal Transport (BEST/TMT/MSRTC/NMMT) buses, light commercial vehicles (LCVs)/tempos/trucks/private buses. The company has been expanding its infrastructure footprint, with MGL was incorporated in 1995, as a joint venture between the Gas Authority of India Limited (GAIL), the BG Group UK (formerly British Gas) and the Government of Maharashtra and has since connected over 4,838 kms of pipelines for CNG and PNG distribution.
As of June 2025, Mahanagar Gas has a Market Cap of ₹15,143 Crore. The company demonstrates strong financial stability with Company is almost debt-free. Mahanagar Gas · Mkt Cap: 15,235 Crore (down -9.24% in 1 year) · Revenue: 6,924 Crore · Profit: 1,045 Crore · Promoter Holding: 32.5%.
Q4 FY25 Performance:
* During the fourth quarter of FY25, Mahanagar Gas Limited posted a consolidated net profit amounting to ₹252.19 Crore, marking a 4.83% year-over-year decrease from ₹264.99 Crore recorded in the equivalent period of the last fiscal year.
* Despite a dip in net profit, Mahanagar Gas Limited witnessed an 18.25% year-on-year growth in total income for Q4 FY25, reaching ₹20,390 million.
* Revenue: ₹1,964.38 Crore as on March 2025 (Q4 FY25). Net Profit: ₹247.01 Crore as on March 2025 (Q4 FY25).
Q3 FY25 Performance:
* Net profit of Mahanagar Gas declined 30.25% to ₹221.24 Crore in the quarter ended December 2024, as against ₹317.18 Crore during the previous quarter ended December 2023. Sales rose 17.76% to ₹1,847.41 Crore in the quarter ended December 2024, as against ₹1,568.76 Crore during the previous quarter ended December 2023.
* EBIDTA declined by 29.9% YoY to ₹314.42 Crore during the period under review. EBIDTA margin for Q3 FY25 was 17.89% as against 28.60% in Q3 FY24.
Mahanagar Gas announced that the Board of Directors of the Company at its meeting held on January 28, 2025, inter alia, have recommended the interim dividend of ₹12 per equity Share (i.e., 120%), subject to the approval of the shareholders. For FY25, For the fiscal year ending March 31, 2025, MGL's board proposed a final dividend of ₹18 per share. Including the earlier interim dividend of ₹12, the cumulative dividend for FY25 amounts to ₹30 per share. This robust dividend distribution has further strengthened investor sentiment and contributed positively to the stability of the Mahanagar Gas share price in the current market.
The company has demonstrated strong operational performance. The company successfully connected over 150,000 new domestic households and expanded its CNG infrastructure, reflecting a commitment to growth despite challenges in cost management and market dynamics. In Q4 FY25, MGL reported an EBITDA of ₹378 Crore, a 20% increase from previous quarter.
Total sales volume for the December'24 quarter was 378.69 SCM million, 12.1% YoY. For the period under review, CNG sales volume added up to 268.56 SCM million (up 10.9% YoY) and PNG sales aggregated to 110.13 SCM million (up 15.3% YoY).
The company has ambitious expansion plans with A significant capital expenditure plan of ₹1,300 Crore aims to enhance operations, although ongoing regulatory uncertainties and procurement complexities could impact profitability and pricing strategies. MGL is actively seeking renewable energy acquisitions to strengthen and expand its green energy portfolio. The company plans to invest approximately ₹1,000 Crore in the upcoming fiscal year, focusing on expanding CNG infrastructure and clean energy projects.
The company anticipates a 10% volume CAGR from FY25-27, driven by CNG demand and expansion plans, including 250 new CNG stations by FY30. The company has also been collaborating with municipal authorities, with Mumbai: Mahanagar Gas Limited has collaborated with BEST to launch MGL Tez, a refuelling facility, at 15 bus depots across the city. Mahanagar Gas Limited (MGL) will introduce 'MGL Tez' at 13 BEST bus depots in Mumbai.
The company faces operational challenges, particularly related to gas procurement costs. The development has raised concerns over the company's near-term profitability. In a regulatory filing, MGL informed the exchanges that its allocation of APM natural gas — used primarily for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) for transport — has been reduced by approximately 18% from April 16, 2025, compared to the previous fortnight's allocation.
Due to supply constraints, MGL's shortfall in APM gas is being substituted with costlier New Well/Well Intervention Gas (NWG). This will have an adverse impact on the profitability, MGL said in the filing, while adding that it is in the process of exploring all measures to mitigate the impact.
Management remains optimistic about future opportunities in LNG trucking and industrial segments, while also exploring diversification into the solid fuel market. The company is also focusing on sustainable energy solutions with Additionally, MGL is collaborating with the Brihanmumbai Municipal Corporation (BMC) to set up a Compressed Biogas (CBG) plant, furthering its commitment to sustainable energy solutions.
In October 2024, MGL's board gave the green light to a merger with UEPL, targeting operational efficiency and greater synergy. The merger is expected to be completed in the near future, though no specific timeline has been announced.
Mahanagar Gas Limited continues to maintain its position as a leading city gas distribution company in India, with strong operational metrics and strategic expansion plans, despite facing regulatory challenges and margin pressures from rising input costs.
