Indraprastha Gas stock hit a 52-week low today following a sharp 93.5% decline in quarterly net profit. While the company achieved record sales volumes, rising input gas costs and the inability to pass them on to consumers resulted in a surprise quarterly loss at the operating level.
Indraprastha Gas (IGL) shares witnessed a sharp sell-off on Monday, falling 10% to hit a new 52-week low of ₹125.65. This negative market reaction followed the company's fiscal second-quarter performance, which highlighted a severe mismatch between sales growth and operational profitability.
For the quarter, the company reported a standalone net profit of ₹24.38 crore, marking a 93.5% decline compared to the same period last year. Despite a 26% increase in gross sales turnover and a record milestone in daily gas sales exceeding 10 million standard cubic metres per day (mmscmd), the company struggled to protect its bottom line. The operational performance showed an EBITDA loss of ₹31.7 crore, underscoring the severity of the margin pressure.
The core issue stems from surging procurement costs for natural gas, which the company was unable to fully pass on to end-consumers. While volume growth in compressed natural gas (CNG) and piped natural gas (PNG) remained healthy—growing by 9% and 8% respectively—these gains were entirely offset by higher input prices, which were further complicated by geopolitical instability in supply regions. Effectively, the company sold more gas but earned significantly less profit from it.
Beyond current quarterly numbers, investors are also considering the company's long-term regulatory environment. While CARE Ratings has reaffirmed the company's credit facilities, citing its strong market position in the National Capital Territory of Delhi, the company faces structural challenges. This includes the expiration of exclusivity periods in its operational areas, which could invite more competition. Furthermore, capital spending required for expansion into new geographical areas continues to put pressure on financial resources.
Adding to the uncertainty, the company rescheduled its earnings conference call from November 2 to November 3, 2026. This delay has left many market participants waiting for further clarity from the management regarding pricing strategies and the outlook for cost stabilization in the coming quarters. Investors may monitor whether the company can successfully adjust its pricing to recover margins or if the competitive pressure—including the impact of electric vehicle adoption—will continue to limit its ability to increase prices.