MGL Profit Dips 9% YoY As Margins Shrink Despite Revenue Rise

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AuthorKavya Nair|Published at:
MGL Profit Dips 9% YoY As Margins Shrink Despite Revenue Rise
Overview

Mahanagar Gas Limited (MGL) reported a 11.58% YoY revenue growth to ₹2,265.97 Crore in Q3 FY26, but Profit After Tax (PAT) declined 9.43% YoY to ₹201.97 Crore. Earnings Per Share (EPS) fell to ₹20.45. EBITDA margins compressed to 17.10% from 22.18% YoY. Despite volume growth, cost pressures are evident. The company declared an interim dividend of ₹12 per share but faces significant legal demands from GAIL and GST authorities.

📉 The Financial Deep Dive

The Numbers:
Mahanagar Gas Limited (MGL) announced its un-audited standalone financial results for the quarter and nine months ended December 31, 2025 (Q3 FY26).

For Q3 FY26:

  • Revenue from operations grew by 11.58% YoY to ₹2,265.97 Crore.
  • Profit After Tax (PAT) decreased by 9.43% YoY to ₹201.97 Crore.
  • Earnings Per Share (EPS) fell to ₹20.45 from ₹22.58 in Q3 FY25.
  • EBITDA saw a marginal QoQ increase, with the margin at 17.10% compared to 16.49% in Q2 FY26. However, YoY margins compressed significantly from 22.18% in Q3 FY25 to 17.10% in Q3 FY26.

For the nine months ended December 31, 2025 (9M FY26):

  • Standalone revenue increased by 16.75% YoY to ₹6,801.70 Crore.
  • PAT declined by 10.52% YoY to ₹714.90 Crore.
  • EPS stood at ₹72.37.
  • EBITDA grew by 1.33% YoY to ₹1,190.73 Crore, but the EBITDA margin contracted to 19.24% from 22.18% in the corresponding period last year.

The Quality:
Despite a healthy 11.58% YoY revenue growth in Q3 FY26 and 8.97% volume growth in total volumes for the nine months (led by CNG and Industrial/Commercial PNG), profitability metrics have declined year-on-year. The significant compression in EBITDA margins from 22.18% to 17.10% in Q3 FY26 (YoY) and from 22.18% to 19.24% for the nine months (YoY) suggests that cost of goods sold, operational expenses, or pricing strategies are not keeping pace with revenue expansion. This indicates pressure on the company's ability to translate top-line growth into bottom-line profits effectively. The text notes this as an indication of pressure on costs or pricing relative to revenue growth, without providing specific cash flow details versus net profit.

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