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Indraprastha Gas Ltd (IGL), India's largest city gas distributor, reported a 93.5% year-on-year decline in standalone net profit for the September quarter of FY27. Higher input gas costs significantly eroded margins, offsetting the gains from increased sales volumes and revenue.
The decline came despite the company recording its highest-ever average daily gas sales, crossing the 10 million standard cubic metres per day (mmscmd) mark for the first time.
IGL's standalone net profit fell to Rs 24.38 crore in the second quarter of 2026-27, compared with Rs 372.51 crore in the corresponding quarter a year earlier. Sales volumes increased 8% year-on-year, while gross sales turnover rose 26%.
The company reported gross sales turnover of Rs 5,999.13 crore for the quarter, up from Rs 4,431.63 crore in the year-ago period. The increase reflected higher sales as well as the impact of rising gas prices. However, the higher input costs weighed on profitability, limiting the benefit of stronger volumes and revenue.
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IGL's average daily gas sales reached 10.06 mmscmd during the July-September quarter, compared with 9.31 mmscmd in the same period last year. The company said this was the first time its average daily sales had crossed the 10 mmscmd milestone.
Demand increased across both its transport and household segments. Compressed natural gas (CNG) volumes grew 9% year-on-year during the quarter, while piped natural gas (PNG) sales rose 8%.
The sharp fall in profit, despite growth in sales, highlights the pressure rising procurement costs can place on city gas distributors. Such companies may find it difficult to fully pass on increases in input prices to consumers, leaving margins exposed when gas costs climb.
IGL operates city gas distribution networks across 34 districts in 11 geographical areas covering Delhi, Uttar Pradesh, Haryana and Rajasthan.
Its infrastructure includes more than 30,000 km of pipelines and over 1,000 CNG stations, serving more than 2.5 million CNG vehicles. The company has also connected over 3.5 million households to piped natural gas.