Indraprastha Gas (IGL IN) – Q1FY27 Result Update – EBITDA/scm inline; CNG volume growth remains intact – BUY
Published on 14 Aug 2026
Q1FY27 EBITDA was broadly inline with our est. at INR3.0bn (PLe: INR3.1bn, BBGe: INR3.6bn), down 30.1% QoQ due to higher gas input costs. EBITDA/scm was also inline at INR3.4/scm (PLe: INR3.5/scm). PAT came in below est. at INR1.9bn (PLe: INR2.3bn, BBGe: INR2.5bn), down 32.8% QoQ. Total volumes remained largely flat QoQ at 9.7mmscmd. Management reiterated its long-term EBITDA/scm guidance of INR7.0/scm. DTC volumes were zero in Q1FY27 vs ~1.5lakh kg/day in Q1FY26. Consequently, ex-DTC CNG volumes in Delhi grew 9% YoY and 27% YoY outside Delhi, with total ex-DTC CNG volumes growing 11%. CNG growth remains healthy, with vehicle conversions/new additions rising to ~27,300/month over last 6 months vs ~18,000 earlier. We raise our CNG volume estimates to 7.4/7.8mmscmd in FY27/FY28E (previous: 7.2/7.7), taking total volume estimates to 10.0/10.6mmscmd in FY27E/FY28E (previous: 9.8/10.5). Maintain “Buy” and value the standalone business at 11x FY28E Adj. EPS and assign INR28/share for investments at a 25% holding company discount, resulting in a revised TP of INR178/share (previous: INR181/share).
