Saudi Deal Sparks Surge! Indraprastha Gas Shares Jump Amid Global Expansion Plans - See Why!

Energy

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Updated on 13 Nov 2025, 05:57 am

Indraprastha Gas Limited (IGL) experienced a significant intraday surge, with its share price rising by up to 3.05% to an intra-day high of ₹216.65 on Thursday, November 13. This positive movement was driven by strong investor demand following the company's announcement of an alliance with Saudi Arabia's MASAH Construction Company. The agreement focuses on jointly bidding for licenses to develop natural gas distribution networks in various industrial cities across the Kingdom of Saudi Arabia.

The positive market reaction for IGL shares comes despite mixed Q2FY26 financial results. The company reported an 8.9% year-on-year increase in revenue from operations, reaching ₹4,445.89 crore. However, total expenses also rose by 12.5% year-on-year, leading to a 13.59% decline in net profit to ₹372.51 crore compared to the previous fiscal year's ₹431.09 crore.

Impact: This news is highly significant for Indian stock market investors as it signals international expansion and strategic growth for a key energy company. The partnership in Saudi Arabia could open up substantial new revenue streams, potentially boosting future earnings. However, the declining net profit in Q2FY26 warrants investor attention regarding cost management and profitability. The stock's upward movement reflects optimism about the international venture outweighing short-term profit concerns. Rating: 7/10

Difficult Terms: * Bourses: Stock exchanges where securities are traded. * Intraday High: The highest price a stock reaches during a single trading day. * Counter: Refers to a stock or security being traded. * Market Capitalisation: The total market value of a company's outstanding shares of stock. * Alliance-cum-Partnership Agreement: A formal contract between two or more parties to collaborate on a specific project or business venture. * Pre-qualification for tender: The process of assessing potential bidders to ensure they meet the minimum requirements before inviting them to submit final bids for a contract. * Natural Gas Distribution Networks: The infrastructure (pipelines, etc.) used to deliver natural gas from the source to consumers. * Kingdom of Saudi Arabia (KSA): The country of Saudi Arabia. * Exchange Filing: Official documents submitted by a publicly traded company to a stock exchange, providing important information to shareholders and the public. * Revenue from operations: The income a company generates from its primary business activities. * Year-on-year (Y-o-Y): A comparison of financial data from one period to the same period in the previous year. * Net profit: The profit remaining after all expenses, taxes, and other costs have been deducted from revenue. * Fiscal year: A 12-month period used for accounting and reporting purposes, which may not align with the calendar year.