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IGL Shows Resilience, Systematix Predicts Robust Growth
Indraprastha Gas Ltd. (IGL) is proving resilient despite global geopolitical challenges and gas sourcing complexities, according to brokerage firm Systematix. The firm has reaffirmed its 'Buy' recommendation for IGL, anticipating substantial financial growth in the coming fiscal years.
CNG Demand and Price Hikes Drive Growth Forecasts
Systematix projects impressive compound annual growth rates of 24% for EBITDA and 25% for PAT from FY26 to FY28. This positive outlook is supported by a steady increase in new Compressed Natural Gas (CNG) vehicle registrations and expectations of gas price adjustments that could boost margins and profitability.
Expansion Beyond Delhi Fuels Momentum
Indraprastha Gas is experiencing significant traction with its expansion into regions outside of Delhi. These new areas are growing at a rate exceeding 16%, which Systematix views as a highly favorable development contributing to the company's long-term growth strategy.
Q4 FY26 Financial Performance
In the fourth quarter of fiscal year 2026, Indraprastha Gas reported solid volume growth. However, margins were impacted by rising gas costs and increased operational expenses. Net revenue grew 5.5% year-on-year and 2.6% sequentially, with both CNG and Piped Natural Gas (PNG) segments performing well. Total sales volumes reached 9.7 million metric standard cubic meters per day. CNG volumes increased 5.5% year-on-year to 7.1 mmscmd, fueled by consistent demand for mobility. PNG volumes rose 5.9% year-on-year to 2.62 mmscmd, with domestic PNG volumes showing a notable 13.5% year-on-year increase. Industrial and commercial PNG volumes grew 3.6% year-on-year to 1.26 mmscmd. EBITDA was Rs 420 crore, exceeding brokerage estimates and showing a 10.4% year-on-year rise. Sequentially, EBITDA declined 15.5% due to a 3% rise in gas costs and higher operating expenditures. Adjusted EBITDA per standard cubic meter was Rs 4.8, down 16.1% from the previous quarter but up 4.5% year-on-year.