CNG daily sales (ex-DTC/DIMS)
48.63 lakh kg/day
+10.17% YoY
Underlying CNG demand grew 10% after adjusting for DTC and DIMS fleet transitions.
INDRAPRASTHAGAS
Energy
10 Feb 2026
Indraprastha Gas Limited — Q3 FY26
IGL reported a steady quarter with total sales volume growing 3% YoY to 867 million SCM, driven by resilient CNG demand (up 10% ex-DTC) and PNG growth of 5%.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
IGL reported a steady quarter with total sales volume growing 3% YoY to 867 million SCM, driven by resilient CNG demand (up 10% ex-DTC) and PNG growth of 5%. Revenue rose 8% YoY to ₹465 crore, while EBITDA surged 31% to ₹473 crore and PAT grew 25% to ₹358 crore, aided by regulatory tailwinds (Gujarat VAT cut, transmission tariff rationalization) partially offset by forex headwinds. Management reiterated volume guidance of exiting FY26 at 10 MMSCMD and adding 1 MMSCMD annually, with EBITDA margin improving to ₹7-8/SCM as tariff benefits flow through. Key risks include DTC bus phase-out (now minimal) and potential delays in realizing transmission tariff benefits.
Key Numbers
CNG station count
925
-50 stations YoY
DTC closed ~55 stations; operational stations now 925, but new additions continue.
Vehicle conversion rate (CNG)
26,000/month
+24% QoQ
Post GST reduction on CNG vehicles from 28% to 18%, monthly conversions rose from 21,000 to 26,000.
New GA volume contribution
57%
+17% YoY
Incremental volume from new geographical areas (outside Delhi-NCR) now accounts for 57% of growth.
Management Guidance
Volume exit rate of 10 MMSCMD in Q4 FY26
Management expects to exit Q4 FY26 at an average daily volume of 10 million SCM, with March 2026 averaging above 10 MMSCMD.
Management guidance growthAnnual volume addition of 1 MMSCMD
IGL targets adding 1 million SCM per day each year for the next 2-3 years, driven by CNG (65-70%) and PNG (30-35%).
Management guidance growthEBITDA margin improvement to ₹7-8/SCM
Management expects EBITDA margin to reach ₹7-8 per SCM in the near term, aided by transmission tariff benefits (~75 paise/SCM), Gujarat VAT benefit (~25 paise/SCM), and reversal of one-time labor code provisions (~30 paise/SCM).
Management guidance marginsCore capex of ₹1,200-1,500 crore for FY27
Core business capex (CNG/PNG) is expected to be ₹1,200-1,500 crore in FY27, with additional ₹500-800 crore for diversification (CBG, LNG, renewables).
Management guidance capexKey Risks
DTC bus phase-out drag on volumes
DTC CNG consumption declined from 1.55 lakh kg/day in Q3 FY25 to ~5,000 kg/day in Q3 FY26, and is expected to reach zero by March 2026, impacting headline volume growth.
medium · management_commentaryForex volatility impacting gas costs
Rupee depreciation of 7-8% (from ~86 to ~90/USD) increased gas costs by ₹2-2.5/SCM, partially offsetting regulatory benefits. Further depreciation could pressure margins.
medium · analyst_questionDelays in transmission tariff benefit realization
Management deferred price increases to avoid volatility, delaying the full benefit of transmission tariff rationalization. If not passed through quickly, margin improvement may be slower than guided.
low · data_observationM&A consolidation hindered by regulatory penalties
Management noted that high penalties on existing GAs make M&A unattractive, limiting inorganic growth opportunities despite interest from potential acquirers.
low · management_commentaryNotable Quotes
Our long-term guidance remains that 7 to 8 is our target range.
We will be exiting the quarter at 10 million that we are confident.
The DTC volume will be almost zero by March.
Frequently Asked Questions
What was Indraprastha Gas's revenue in Q3 FY26?
Indraprastha Gas reported revenue of ₹4,068 Cr in Q3 FY26, representing a +8% change compared to the same quarter last year.
What guidance did Indraprastha Gas management give for FY27?
Volume exit rate of 10 MMSCMD in Q4 FY26: Management expects to exit Q4 FY26 at an average daily volume of 10 million SCM, with March 2026 averaging above 10 MMSCMD. Annual volume addition of 1 MMSCMD: IGL targets adding 1 million SCM per day each year for the next 2-3 years, driven by CNG (65-70%) and PNG (30-35%). EBITDA margin improvement to ₹7-8/SCM: Management expects EBITDA margin to reach ₹7-8 per SCM in the near term, aided by transmission tariff benefits (~75 paise/SCM), Gujarat VAT benefit (~25 paise/SCM), and reversal of one-time labor code provisions (~30 paise/SCM). Core capex of ₹1,200-1,500 crore for FY27: Core business capex (CNG/PNG) is expected to be ₹1,200-1,500 crore in FY27, with additional ₹500-800 crore for diversification (CBG, LNG, renewables).
What are the key risks for Indraprastha Gas in FY27?
Key risks include DTC bus phase-out drag on volumes — DTC CNG consumption declined from 1.55 lakh kg/day in Q3 FY25 to ~5,000 kg/day in Q3 FY26, and is expected to reach zero by March 2026, impacting headline volume growth.; Forex volatility impacting gas costs — Rupee depreciation of 7-8% (from ~86 to ~90/USD) increased gas costs by ₹2-2.5/SCM, partially offsetting regulatory benefits. Further depreciation could pressure margins.; Delays in transmission tariff benefit realization — Management deferred price increases to avoid volatility, delaying the full benefit of transmission tariff rationalization. If not passed through quickly, margin improvement may be slower than guided.; M&A consolidation hindered by regulatory penalties — Management noted that high penalties on existing GAs make M&A unattractive, limiting inorganic growth opportunities despite interest from potential acquirers..
Did Indraprastha Gas meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Indraprastha Gas Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.