IGL
Small CapIndraprastha Gas Limited
Power
Indraprastha Gas Limited (IGL) is a leading City Gas Distribution (CGD) company in India, operating across 12 geographical areas in 4 states. It supplies natural gas to over 3.27 million households, 5,400 industrial, and 7,400 commercial establishments, alongside a robust CNG network for vehicular customers.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -25% YoY · margin compression · Rev +5% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,163 Cr | +5.5% | +2.3% |
| EBITDA | ₹421 Cr | -14.6% | -10.6% |
| Operating margin | 10.0% | -200 bps | -200 bps |
| PAT | ₹339 Cr | -25.2% | -13.5% |
| PAT margin | 8.1% | -333 bps | -150 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q3 FY'26 saw total sales volume grow 3% YoY, with CNG up 3% (10% ex-institutional) and PNG up 5%. Revenue increased 8% YoY to INR4,465 crores. EBITDA surged 31% YoY to INR473 crores (INR500 crores adjusted), and PAT rose 25% YoY to INR358 crores, despite gas cost volatility and forex impact.
The thesis remains intact, supported by strong underlying volume growth, particularly in new GAs and non-institutional CNG. Positive regulatory changes are expected to significantly boost EBITDA margins, offsetting past headwinds from gas costs and forex. Management's confidence in future volume additions and margin expansion is a key positive.
Gas Sourcing by Type
Latest issuer-disclosed distribution across 4 reported categories.
New Geographical Areas (GAs)
New GAs are contributing significantly, with incremental volume almost 57% from outside Delhi and NCR, and growing at around 17%.
CNG Vehicle Conversions
Reduction of GST on CNG vehicles from 28% to 18% has increased vehicle conversions from an average of 21,000 to 26,000 per month.
Domestic & Commercial PNG
Domestic PNG sales grew 8% and commercial PNG sales also grew 8%, indicating steady traction and consistent customer additions.
CVG Excise Duty Exemption
Excise duty exemption for Compressed Biogas (CVG) is expected to have a material impact, with management aiming to ramp up CVG in the network.
CNG Stations
45 CNG stations have been added and commissioned during the year. The company targets adding 80 to 100 CNG stations per year for the next 3 to 5 years.
Pipeline Network
The steel pipeline network now extends over 2,500 kilometers, and the MDP network has reached approximately 29,200 kilometers.
Core Business Capex
Planned core business capex is around INR1,250 crores for FY'26, with INR847 crores already spent in 9 months. Similar levels of INR1,200-1,500 crores are expected for FY'27.
Diversification Capex
An additional INR500-800 crores capex is planned from FY'27 onwards for diversification into renewables, CPG, and LNG infrastructure.
VAT Reduction on Domestic Gas
Replacement of 15% VAT with 2% CST on domestic gas from Gujarat, effective December 2025, is expected to have a positive impact on gas costs.
Rationalized Gas Transmission Tariff
Introduction of a 2-zone tariff regime (replacing 3 zones) effective January 1, 2026, will classify IGL's GAs under Zone 1 for CNG/PNG domestic, providing a net benefit of INR0.75/SCM.
GST Reduction on CNG Vehicles
The reduction of GST on CNG vehicles from 28% to 18% has led to a 'phenomenal increased vehicle conversions'.
Lower LNG Prices
Anticipated lower international LNG prices are expected to increase demand from industrial and commercial segments and positively affect margins.
DTC/DIMTS Fleet Migration
Lower offtake from DTC and DIMTS fleets due to phased migration towards electric mobility. DTC volumes are expected to be almost zero by March '26.
Gas Cost Volatility & Adverse Forex
Experienced volatility in gas costs and adverse forex impacts on procurement expenses, with rupee devaluation increasing gas costs by INR2-2.5/SCM.
New Labour Code Provision
A one-time provision of INR28 crores was made in Q3 FY'26 due to the New Labour Code becoming effective, impacting reported EBITDA.
Pollution-Related Restrictions
GRAP implementation and pollution issues in Delhi/NCR led to schools being shut and buses off roads, causing a slight dip in Q3 volumes.
Institutional Volume Decline
While DTC volumes are phasing out, DIMTS volumes are expected to decline gradually over the next 2-3 years, continuing to be a drag on headline growth.
Gas Sourcing & Price Volatility
Ongoing volatility in gas costs and forex rates could impact margins, despite efforts to diversify sourcing and target specific landed prices.
M&A Challenges in CGD Sector
Consolidation in the CGD industry is difficult due to huge penalties carried by GAs, deterring potential buyers and making valuations negative for smaller entities.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY provides a clear picture of overall growth against a comparable period, while QoQ highlights sequential momentum and the immediate impact of recent regulatory changes and one-time provisions.
Total Sales Volume
Total sales volume grew 3% YoY to 867 million SCM. Average daily sales volume was 9.43 million SCM/day in Q3 FY'26, up from 9.11 million SCM/day in Q3 FY'25.
CNG Sales Volume
CNG segment grew 3% YoY in SCM terms (5% in kg terms), with average daily sales exceeding 50 lakh kgs/day. Excluding institutional volumes (DTC/DIMTS), CNG sales grew approximately 10%.
PNG Sales Volume
PNG segment volumes increased 5% YoY to 2.5 million SCM/day. Domestic and commercial PNG sales grew 8% each, while industrial demand was subdued.
EBITDA
EBITDA stood at INR473 crores, reflecting 31% YoY growth and 7% sequential growth. Excluding a one-time provision of INR28 crores for the New Labour Code, EBITDA would have been around INR500 crores.
Volume Growth Guidance
Management maintains guidance to exit FY'26 at an average of 10 MMSCMD for the month of March and expects to add 1 MMSCMD per year for the next two years.
EBITDA Margin Improvement
Management expects EBITDA margins to be near INR7/SCM going forward, driven by the full impact of transmission tariff rationalization and Gujarat VAT reduction, and the one-time nature of the Labour Code provision.
Diversified Sourcing Strategy
The company anticipates a 50-50 split between RLNG and domestic sources (APM, NWG, HPHT) for future procurement, with RLNG contracts being 60% Henry Hub and 40% Brent-linked.
Middle East Expansion Opportunity
IGL has qualified for Stage 1 of a tender process in the Middle East, with bid submission by April 23, 2026, seeing it as a 'very good opportunity' with a long-term sales potential of 6 million SCM.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA per SCM | INR5.4 (Q3 FY'26) | Improvement towards the INR7/SCM target, reflecting the full benefits of regulatory changes. |
| Total Sales Volume | 9.43 MMSCMD (Q3 FY'26 average) | Achieving the 10 MMSCMD exit rate by March '26 and sustained annual addition of 1 MMSCMD. |
| New GA Growth Rate | 17% | Continued aggressive growth in new geographical areas, contributing significantly to overall volume expansion. |
| Diversification Capex Deployment | INR847 crores (9M FY'26 core capex) | Commencement and progress of INR500-800 crores diversification capex from FY'27 in renewables, CPG, and LNG Infra. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -8.9% / mo
Technical chart
IGLdaily · 1Y-22.0%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 52.
- SMA20 falling (~3.9% over last month) — short-term momentum negative.
- RSI(14) at 52 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 26% off 52W high · 15% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 13/15 to the score.
- Cash flow contributes 8/10 to the score.
Main drags
- Growth is weaker at 9/25; verify the latest quarterly trend.
- Valuation is weaker at 12/30; verify the latest quarterly trend.
- Quality is weaker at 8/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 67th percentile of the scored universe and 69th percentile within Power. Main check: results consistency is weak at 46/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE trend is -4.4%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Power: 69th pctile, median 67 · Small: 72nd pctile, median 65
39 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3%.
- ▸9 years of positive FCF.
- ▸Debt/equity is 0.01.
Trust risks
- ▸ROCE trend is -4.4%.
- ▸1/4 latest quarters had positive YoY PAT growth.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 14.70
- P/B
- 1.97
- EV/EBITDA
- 9.67
- Market Cap
- 22753.00Cr
Profitability
- ROE
- 14.00%
- ROCE
- 17.90%
- ROA
- 9.07%
- Dividend Y
- 2.62%
Growth (CAGR)
- Revenue 5Y
- 27.00%
- EPS 5Y
- 6.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- -1.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 122.93×
- Altman Z
- 4.94
- Book Value
- 82.20
Cash Flow
- FCF Yield
- 2.99%
- FCF Positive Y
- 9/5
- OCF
- 2199.00 Cr
- EPS TTM
- 11.07
Shareholding
- Promoter Hold
- 45.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 23%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Power — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.