Indraprastha Gas Q4 Profit Surges 22%, Beats Estimates with Rs 349 Crore Earnings

Indraprastha Gas Ltd (IGL) Managing Director Kamal Kishore Chatiwal stated that the company’s earnings for the January-March 2025 quarter were impacted by a one-time reversal.

Approximately ₹114 crore of contingent liabilities related to trade margins payable to oil marketing companies (OMCs) were reversed after the issue was resolved.

EBITDA Per SCM and Guidance

Chatiwal explained that excluding the reversal, EBITDA per standard cubic metre (SCM) would be around ₹4.42. Including the reversal, it stands at ₹6.03 per SCM.

“If we exclude that, then [EBITDA per SCM] would be around ₹4.42 per SCM, and inclusive it is around ₹6.03 per SCM,” he said in a post-results interaction.

Despite the short-term fluctuations, IGL has retained its long-term EBITDA per SCM guidance in the ₹7-8 range.

In the short term, the company expects EBITDA per SCM to remain within ₹6-7. Price revisions are implemented carefully, keeping in mind consumer sentiment and competitiveness, especially against alternative fuels like electric vehicles (EVs).

IGL recently increased its prices by ₹1 in Delhi and by ₹3-4 in other geographical areas (GAs). Chatiwal stated, “We want to remain competitive not only with respect to neighbouring GAs but also with respect to alternative fuels.”

Volume Trends and FY26 Targets

For the fourth quarter, IGL recorded an exit rate of 9.2 million metric standard cubic metres per day (MMSCMD).

The company has set an ambitious target of reaching an exit rate of 10 MMSCMD by the end of the 2025-26 financial year (FY26).

Response to EV Policy and Transition Fuel Status

Chatiwal also addressed the draft policy by the Delhi government, which promotes a shift from compressed natural gas (CNG) to EVs for two-wheelers and three-wheelers.

He pointed out that EV adoption in the two-wheeler category remains relatively low in comparison to the overall registered vehicle base.

He added, “Our submission has been that [natural gas] should remain a transition fuel, separate from the other two fuels,” citing the current fossil fuel-based component in electricity generation as a concern.

Decline in Net Profit and Market Performance

IGL reported a 9% year-on-year (YoY) decline in net profit for the January-March 2025 quarter. Net profit stood at ₹349.23 crore, compared to ₹382.80 crore in the same quarter of the previous fiscal year.

The company’s market capitalisation is currently ₹25,956.03 crore. Despite the profit decline, IGL’s shares rose by 3% during the Monday morning session following the earnings announcement.

The stock was trading at ₹183.80 per share, reflecting a gain of 3.14% from the previous close of ₹178.20.

Dividend Announcement

The IGL board recommended a final dividend of 75%, or ₹1.5 per share, for the financial year 2024-25. This recommendation is subject to shareholder approval during the upcoming Annual General Meeting.

Revenue and EBITDA Performance

Revenue from operations for Q4 FY25 was ₹3,950.57 crore, marking a 10% increase from ₹3,596.79 crore in Q4 FY24. However, EBITDA saw a 5% decline, reaching ₹497.23 crore in Q4 FY25, down from ₹522.55 crore in the same period last year.

Sales Volume Growth and Share Trends

Overall sales volume for the quarter grew by about 4%, indicating a stable operational trajectory for the company.

On the previous trading day, IGL shares closed at ₹178.20 on the BSE, falling by 3.91%. Over the past 52 weeks, the stock has reached a high of ₹285.30 and a low of ₹153.25.