Indraprastha Gas Ltd. recorded its highest quarterly revenue on record in Q1, but a sharp 48% decline in net profit highlights the impact of increased liquefied natural gas costs squeezing margins amid volatile global gas prices.
Indraprastha Gas Ltd. said its first-quarter net profit fell sharply as higher gas input costs squeezed margins, even as the city gas distributor posted its highest quarterly revenue on record. The company’s standalone profit dropped 48% year on year to ₹186.18 crore in the quarter ended June 2026 from ₹355.94 crore a year earlier, according to its unaudited results.
Revenue from operations rose about 16% to ₹5,040.15 crore from ₹4,326.60 crore, but the gain was not enough to offset the hit from pricier fuel. IGL said volatility in liquefied natural gas prices, driven by the West Asia crisis, pushed up its input costs and compressed margins during the period.
The strain was visible in operating performance. EBITDA, or earnings before interest, taxes, depreciation and amortisation, fell 42% to ₹295.50 crore from ₹511.75 crore a year earlier, while the margin narrowed to 6% from 13%. The company’s natural gas purchase cost climbed to ₹3,810.86 crore from ₹2,927.93 crore.
Volumes still increased. IGL said total sales rose 6% to 878.98 million standard cubic metres, with average daily sales hitting a record 9.66 million cubic metres a day. Compressed natural gas volumes grew 6% and total piped natural gas sales rose about 4%.
The latest results extend a mixed run for the company. Business Standard reported in May that IGL’s consolidated net profit fell 25.18% in the March quarter and declined 9.79% for the full 2025-26 financial year, even as sales rose. Shares of IGL finished 1.79% lower at ₹151.77 on Thursday after the earnings announcement.
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