Indraprastha Gas reported a sharp decline in quarterly profit despite strong growth in CNG and PNG sales. Average daily gas sales crossed 10 mmscmd for the first time.
Highlights
- IGL’s Q2FY27 net profit plunged 93.5% to Rs 24.38 crore.
- Profit stood at Rs 372.51 crore in the year-ago quarter.
- Gross sales turnover increased to Rs 5,999.13 crore.
- Average daily gas sales reached a record 10.06 mmscmd.
- CNG sales volumes grew 9%, while PNG volumes rose 8%.
- Higher gas procurement costs significantly impacted profitability.
New Delhi, October 31, 2026: Indraprastha Gas Limited (IGL), India’s largest city gas distribution company, reported a massive 93.5% year-on-year decline in standalone net profit for the second quarter of FY27, as rising natural gas procurement costs severely impacted its profitability despite higher sales volumes and turnover.
The company’s standalone net profit dropped to Rs 24.38 crore in the July-September quarter, compared with Rs 372.51 crore in the corresponding quarter of the previous financial year.
The sharp decline came despite an 8% increase in overall gas sales volumes and a 26% rise in gross turnover, highlighting the significant pressure of higher input costs on the company’s operating margins.
Revenue Rises Despite Profit Decline
IGL reported gross sales turnover of Rs 5,999.13 crore during Q2FY27, compared with Rs 4,431.63 crore in the year-ago period.
The increase reflected higher gas sales volumes and elevated selling prices. However, rising gas procurement expenses offset the benefits of stronger demand, resulting in a substantial reduction in net earnings.
Gas Sales Cross Historic Milestone
Despite the decline in profitability, IGL achieved a major operational milestone during the quarter.
The company’s average daily gas sales crossed the 10 million standard cubic metres per day (mmscmd) mark for the first time, reaching 10.06 mmscmd compared with 9.31 mmscmd in the same quarter last year.
CNG sales volumes increased 9% year-on-year, supported by demand from the transportation sector. Meanwhile, piped natural gas (PNG) sales volumes grew 8%, reflecting continued consumption across households and other customer segments.
Rising Input Costs Pressure Margins
The quarterly results underline the challenges facing city gas distributors when natural gas procurement costs increase faster than the prices charged to consumers.
Although IGL recorded growth in both revenue and sales volumes, higher input costs significantly reduced its profitability.
IGL’s Expanding Distribution Network
IGL operates across 34 districts in 11 geographical areas covering Delhi, Uttar Pradesh, Haryana and Rajasthan.
The company’s infrastructure includes more than 30,000 kilometres of pipelines and over 1,000 CNG stations, serving more than 2.5 million CNG vehicles.
It has also provided piped natural gas connections to over 3.5 million households, strengthening its presence in India’s expanding city gas distribution market.
