Mahanagar Gas Limited Earnings Summary — Q4 FY2026
Mahanagar Gas Faces Margin Compression Amidst Rising Costs in Q4 FY2026
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 15.6% sequentially in Q1 FY2027.
- Revenue of ₹2,373 Cr is 13.9% higher year-on-year.
- Revenue has compounded at 18.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹193 Cr is 39.4% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -12.5% annualised across the period.
- Operating margin stands at 14.4% in Q1 FY2027.
- Operating margin compressed by 957 bps year-on-year.
- Over the last two years operating margin has contracted by 1179 bps.
- PBT margin is 10.9%.
- Expenses grew 28.2% against revenue growth of 13.9%.
- Operating profit of ₹342 Cr is 31.5% 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 53/100 (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 | Improving | 2,373 | 2,052 | 2,060 | 2,050 | 2,083 | 1,964 | 1,847 | 1,786 | 1,666 | 1,613 |
| Expenses | Improving | 2,030 | 1,794 | 1,709 | 1,714 | 1,583 | 1,570 | 1,523 | 1,373 | 1,229 | 1,218 |
| Operating Profit | Stable | 342 | 258 | 351 | 336 | 500 | 394 | 325 | 413 | 437 | 395 |
| Operating Margin | Softening | 14.4% | 12.6% | 17.1% | 16.4% | 24.0% | 20.1% | 17.6% | 23.1% | 26.2% | 24.5% |
| Other Income | Stable | 30 | 29 | 30 | 29 | 32 | 42 | 42 | 47 | 36 | 44 |
| Interest | Improving | 6 | 5 | 6 | 5 | 5 | 4 | 3 | 3 | 3 | 6 |
| Depreciation | Improving | 109 | 106 | 104 | 104 | 96 | 93 | 91 | 84 | 83 | 81 |
| Profit Before Tax | Stable | 258 | 176 | 271 | 256 | 431 | 339 | 272 | 373 | 386 | 352 |
| Tax | Improving | 65 | 47 | 70 | 65 | 113 | 92 | 51 | 86 | 97 | 92 |
| Net Profit | Stable | 193 | 130 | 201 | 191 | 319 | 247 | 221 | 287 | 289 | 261 |
| Net Margin | Softening | 8.1% | 6.3% | 9.8% | 9.3% | 15.3% | 12.6% | 12.0% | 16.1% | 17.3% | 16.2% |
Key Takeaways
- Net profit witnessed a sharp decline of 47% year-on-year, primarily driven by escalating operating expenses.
- Operating Profit Margin (OPM) compressed significantly to 13% in Q4 FY2026 from 20% in the same quarter last year.
- Revenue growth has largely stagnated sequentially, dropping slightly by 0.39% compared to Q3 FY2026.
- Operating expenses surged to INR 1,794 Crores, the highest in the last 13 quarters, indicating cost pressures.
- Despite margin pressure, the company maintain a near-zero net debt position with a strong equity base.
- Cash flow from operating activities remains positive at INR 1,162 Cr for the full year, though lower than previous years.
- The core Mumbai market remains a monopoly, but the financial profile is shifting toward 'volume over value'.
Management Guidance
Management focus has pivoted toward aggressive expansion in Raigad and other new Geographical Areas to drive volume growth as margins normalize.
Sentiment Shift
Deteriorating
A clear downward trend in OPM from 24% to 13% over the last four quarters indicates severe pressure on unit economics.
Outlook
The company faces structural headwinds from government gas pricing policies (APM) and increasing EV adoption; however, its expansion into new geographies and the infrastructure moat in MMR provide long-term stability.
From the Annual Report (Key Quotes)
“MGL exhibits robust financial health characterized by strong Operating Profit Margins, though they are fluctuating between 13% and 34%.”
“The company transitioned from a high of INR 1,285 Cr PAT in FY24 to a projected moderation in FY25-26.”
“Strategy has shifted from purely defending the Mumbai market to aggressive expansion in Raigad.”
Official Quarterly Documents
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This summary is AI-generated from Mahanagar Gas Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.