IGL profit crashes 93% as gas costs bite despite volume growth

Indraprastha Gas Ltd (IGL) reported a steep 93.5 per cent year-on-year decline in standalone net profit for the second quarter of fiscal 2026-27, posting ₹24.38 crore compared to ₹372.51 crore in the corresponding period last year. The sharp contraction underscores the impact of elevated gas procurement costs on the company's margins, even as sales activity expanded across its distribution network.

The company's average daily gas sales reached a record 10.06 million standard cubic metres per day (mmscmd) during the July-September quarter, up from 9.31 mmscmd a year earlier, marking the first time IGL crossed the 10 mmscmd threshold. Gross sales turnover surged 26 per cent to ₹5,999.13 crore from ₹4,431.63 crore, driven by both higher volumes and increased gas prices. Despite these gains, the margin compression from elevated input costs proved decisive in determining overall profitability.

Segment-wise performance showed continued momentum, with compressed natural gas (CNG) volumes growing 9 per cent and piped natural gas (PNG) sales climbing 8 per cent during the quarter. The dual expansion reflects steady demand across IGL's customer base spanning automobiles and domestic consumers across its service areas. The company's ability to sustain volume growth even amid elevated pricing suggests resilient demand fundamentals in the city gas sector.