IGL Q2 profit plunges 93% as higher gas costs erode margins despite record sales

What happened

Indraprastha Gas reported standalone net profit of ₹24.38 crore for the July–September quarter of 2026–27, down 93% from ₹372.51 crore a year earlier. Sales volumes and gross turnover increased, and average daily gas sales crossed the 10 million standard cubic metres per day mark, but higher input gas costs eroded profit.

Confirmed

Global impact / market context

The result shows that selling more gas does not guarantee higher profits: if the cost of purchased gas rises faster than prices charged to customers, the difference narrows. That can limit cash available for network investment or other company needs even as sales expand.

Analyst inference

IGL’s quarter combined stronger demand across transport and household gas with sharply weaker earnings, pointing to procurement costs as the key pressure in the supplied account. For investors, turnover growth is less informative than whether the company can recover rising gas costs through customer prices.

Analyst inference

What to watch

1. In subsequent results, compare gas procurement costs with customer prices and profit, to see whether IGL can pass more of its higher input costs on to consumers. Analyst inference
2. Track whether CNG and piped natural gas volumes continue growing, since sustained demand could support sales even if higher gas costs remain a drag on earnings. Analyst inference
3. Watch for any reported changes in customer prices or capital spending, which means money invested in networks, as these could affect cost recovery and future capacity. Analyst inference

Evidence

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