IGL's Q2 profit tumbles 93% as costlier gas squeezes margins
Indraprastha Gas reported a 93.5% drop in standalone profit for July-September as higher gas procurement costs outweighed record sales volumes.
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what happened
Moody's reports that Indraprastha Gas Ltd (IGL), India's biggest city gas distributor, posted a 93.5% fall in standalone net profit for the second quarter of fiscal 2026-27. Profit dropped to 24.38 crore rupees from 372.51 crore a year earlier. The main driver was a sharp rise in input gas costs, which wiped out margins even though sales volumes and revenue climbed.
Average daily gas sales topped 10 million standard cubic metres per day for the first time, reaching 10.06 mmscmd against 9.31 a year earlier. Gross sales turnover rose to 5,999.13 crore rupees from 4,431.63 crore, partly reflecting higher gas prices. CNG volumes grew 9% and PNG sales rose 8%.
The company's network serves 34 districts in Delhi and neighbouring states, with more than 30,000 km of pipelines, over 1,000 CNG stations and more than 3.5 million households connected to piped gas.
why it matters
The profit slump despite higher volumes shows how quickly rising procurement costs can hurt city gas distributors when price increases cannot be fully passed on to consumers. For IGL, it underlines how closely its earnings depend on gas costs.
market impact
IGL shares and city gas distributors: higher gas input costs pressure margins
- IGL shares pressure down — higher gas costs erode margins despite rising sales
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sources
- IGL Q2 profit plunges 93% as higher gas costs erode margins despite record sales — Moody's, 31 October 2026 at 07:01 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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