Indraprastha Gas Limited Earnings Summary — Q1 FY2027
IGL Faces Profit Compression Amid Rising Input Costs Despite Robust 17% Revenue Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹4,587 Cr is 17.2% higher year-on-year.
- Revenue has compounded at 11.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹240 Cr is 44.0% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -23.1% annualised across the period.
- Operating margin stands at 6.4% in Q1 FY2027.
- Operating margin compressed by 664 bps year-on-year.
- Over the last two years operating margin has contracted by 998 bps.
- PBT margin is 6.8%.
- Expenses grew 26.1% against revenue growth of 17.2%.
- Operating profit of ₹294 Cr is 42.4% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 47/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 4,587 | 4,163 | 4,068 | 4,023 | 3,914 | 3,948 | 3,759 | 3,698 | 3,517 | 3,597 |
| Expenses | Improving | 4,293 | 3,742 | 3,597 | 3,582 | 3,403 | 3,455 | 3,397 | 3,163 | 2,940 | 3,076 |
| Operating Profit | Softening | 294 | 421 | 471 | 441 | 511 | 493 | 362 | 535 | 576 | 521 |
| Operating Margin | Softening | 6.4% | 10.1% | 11.6% | 11.0% | 13.1% | 12.5% | 9.6% | 14.5% | 16.4% | 14.5% |
| Other Income | Stable | 159 | 166 | 167 | 178 | 164 | 202 | 170 | 174 | 157 | 161 |
| Interest | Volatile | 3 | 8 | 2 | 3 | 3 | 4 | 2 | 2 | 2 | 3 |
| Depreciation | Stable | 137 | 133 | 132 | 128 | 124 | 121 | 122 | 119 | 114 | 111 |
| Profit Before Tax | Softening | 312 | 447 | 503 | 488 | 548 | 570 | 408 | 588 | 617 | 569 |
| Tax | Softening | 74 | 108 | 111 | 103 | 120 | 116 | 83 | 133 | 137 | 136 |
| Net Profit | Softening | 240 | 341 | 394 | 386 | 429 | 455 | 327 | 455 | 481 | 434 |
| Net Margin | Softening | 5.2% | 8.2% | 9.7% | 9.6% | 11.0% | 11.5% | 8.7% | 12.3% | 13.7% | 12.1% |
Key Takeaways
- Revenue grew 17% YoY to ₹5,040.15 crores, driven by a 6% increase in total sales volumes to 878.98 Million Scm.
- Profitability was significantly impacted by a sharp 30% YoY rise in the purchase cost of natural gas, totaling ₹3,810.86 crores.
- EBITDA margins contracted sharply to 6% of net revenue, down from 13% in the same quarter last year.
- CNG sales volumes grew 6% YoY, while PNG Industrial/Commercial volumes saw a more modest 4% growth.
- Total comprehensive income for the quarter stood at ₹185.23 crores, reflecting the severe bottom-line pressure.
- IGL's share in net loss from its subsidiary, IGL Genesis Technologies, doubled to ₹2.60 crores compared to the previous year.
- Consolidated profit, which includes associates MNGL and CUGL, fell to ₹237.92 crores from ₹427.81 crores YoY.
Management Guidance
Management aims to reach an exit rate of 10 MMSCMD by the end of the fiscal year, targeting an EBITDA margin range of ₹7 to ₹8 per SCM as regulatory benefits from unified tariffs and GST rationalization materialize.
Sentiment Shift
Deteriorating
While volume growth remains steady, the massive compression in EBITDA and Net Profit margins due to soaring gas procurement costs and currency headwinds outweighs the revenue gains.
Outlook
The company expects to benefit from the replacement of 15% Gujarat VAT with 2% CST and unified transmission tariffs, which should provide margin relief in subsequent quarters to offset current gas cost volatility.
From the Annual Report (Key Quotes)
“The market dynamics following the rationalization of the GST rates... resulted in a phenomenal increased vehicle conversions.”
“Our gas cost per SCM... has resulted in around INR2, INR2.5 increase in gas cost [due to rupee devaluation].”
“The long-term guidance remains that 7% to 8% [EBITDA per SCM] is our target range.”
Official Quarterly Documents
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This summary is AI-generated from Indraprastha Gas Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.