IGL Q2 profit crashes 94% to ₹23.75 crore despite revenue surge
Synopsis
IGL's Q2 FY2027 results deliver a paradox: record daily gas sales topping 10 mmscmd for the first time, yet a near-total wipeout of profit — down 93.83% to just ₹23.75 crore. Rising gas procurement costs are gutting margins even as volumes surge, raising urgent questions about pricing policy and the viability of the city gas distribution model under current input cost regimes.
Key Takeaways
IGL net profit collapsed 93.83% to ₹23.75 crore in Q2 FY2027 (quarter ended 30 September 2026 ), down from ₹384.95 crore a year ago.
Revenue from operations rose to ₹5,615.38 crore from ₹4,445.96 crore year-on-year.
Average daily gas sales crossed 10 mmscmd for the first time, reaching 10.06 mmscmd .
CNG volumes grew 9% and PNG volumes rose 8% year-on-year.
IGL shares closed at ₹139.15 , down 1.8% on Friday, near a 52-week low of ₹137.30 ; the stock is down 34.38% year-on-year.
Rising gas procurement costs were cited as the primary reason for the margin collapse despite higher volumes and turnover.
Indraprastha Gas Ltd (IGL) posted a dramatic 93.83% year-on-year fall in consolidated net profit to ₹23.75 crore for the quarter ended 30 September 2026, down sharply from ₹384.95 crore in the same period a year earlier. The collapse in earnings came even as the city gas distributor recorded robust revenue growth, highlighting the severe squeeze on margins from rising procurement costs.
Revenue Growth Masks Margin Collapse
Revenue from operations climbed to ₹5,615.38 crore from ₹4,445.96 crore a year ago, while total income rose to ₹5,751.39 crore from ₹4,540.86 crore. Gross sales turnover also surged to ₹5,999.13 crore from ₹4,431.63 crore, aided by higher volumes and elevated gas prices. Yet the steep rise in gas procurement costs eroded profitability almost entirely, underlining a structural mismatch between input costs and retail pricing.
Historic Gas Sales Volume Milestone
On the operational front, IGL crossed a significant threshold — average daily gas sales exceeded 10 million standard cubic metres per day (mmscmd) for the first time, rising to 10.06 mmscmd in the July–September 2026 quarter from 9.31 mmscmd a year earlier. Compressed natural gas (CNG) volumes grew 9% year-on-year, while piped natural gas (PNG) volumes rose 8%, reflecting sustained demand from the transport and household segments across IGL's network.
Operating Footprint and Stock Performance
IGL operates city gas distribution networks across 34 districts in 11 geographical areas spanning Delhi, Uttar Pradesh, Haryana, and Rajasthan. Despite the volume milestone, the market reacted negatively — shares of IGL settled 1.8% lower at ₹139.15 apiece on the BSE on Friday. The stock touched a 52-week high of ₹219 and is trading close to its 52-week low of ₹137.30.
Steep Multi-Horizon Decline in the Stock
The share price trajectory tells a sobering story: the stock shed 4.46% over one month, fell 16.28% over the past six months, and declined 34.38% on a yearly basis. Over five years, IGL shares are down 41.20%, a stark reversal for a stock once regarded as a defensive compounder in the city gas distribution space. The consistent underperformance reflects investor anxiety over the company's inability to pass through rising input costs to end consumers.
What to Watch Next
The key question for IGL is whether domestic gas price revisions or regulatory relief on city gas distribution margins can restore profitability, even as volume growth remains on track. Analysts will watch whether the government signals any easing on administered gas prices in the coming months, which could provide the margin recovery the company urgently needs.
Point of View
Effectively nationalising losses through a listed company? The stock's 34% yearly decline suggests the market has already delivered its verdict on the current policy equilibrium.
NationPress
31 Oct 2026
Frequently Asked Questions
What happened to IGL's profit in Q2 FY2027?
IGL's consolidated net profit fell 93.83% to ₹23.75 crore in the quarter ended 30 September 2026 , down from ₹384.95 crore in the same quarter a year earlier. Rising gas procurement costs were the primary cause of the margin collapse.
Why did IGL's profits fall so sharply despite higher revenue?
Revenue grew significantly because of higher gas sales volumes and elevated gas prices, but the cost of procuring gas rose even faster, severely squeezing margins. This mismatch between input costs and the prices IGL can charge consumers wiped out most of the company's profit.
Did IGL achieve any positive milestones in Q2?
Yes — IGL crossed the 10 mmscmd average daily gas sales threshold for the first time in its history, reaching 10.06 mmscmd in Q2 FY2027. CNG volumes grew 9% and PNG volumes rose 8% year-on-year, reflecting healthy underlying demand.
How has the IGL share price performed?
IGL shares closed at ₹139.15 on Friday, down 1.8% on the day and near the stock's 52-week low of ₹137.30 . On a yearly basis, the stock has fallen 34.38% and is down 41.20% over five years.
What areas does IGL supply gas to?
IGL operates city gas distribution networks across 34 districts in 11 geographical areas , covering Delhi , Uttar Pradesh , Haryana , and Rajasthan .
