Indraprastha Gas sales rise 27% to 5,116 crore rupees despite operating loss
Key Facts
Indraprastha Gas raised net operating revenue, excluding excise duty, by 27% year on year to 5,116 crore rupees in the quarter ended September 2026, while EBITDA turned into a loss of 31.7 crore rupees. The company said higher gas procurement costs were not fully passed on to consumers, weighing on profitability despite growth in sales and volumes. The results reflect a widening gap between rising demand for gas and the company’s ability to absorb input costs. Average daily gas sales were 10.06 million standard cubic metres during July–September, compared with 9.31 million in the year-earlier period. The average exceeded the 10 million standard cubic metres per day mark for the first time, according to the company, as reported by Rediff.
Total sales rose to 5,999.13 crore rupees in the second quarter of fiscal year 2026-27, from 4,431.63 crore rupees a year earlier, according to data reported by Rediff from the company. Revenue growth came alongside an increase in gas volumes sold, but did not prevent a deterioration in operating performance. The company posted an EBITDA loss of 31.7 crore rupees in the quarter ended September, compared with a profit of 293.8 crore rupees in the previous quarter ended June. The quarter-on-quarter comparison shows a sharp reversal in the metric, from profit to loss in three months. The company said higher gas procurement costs, which were not fully passed on to consumers, weighed on profitability.
Sales growth was spread across different customer categories, with compressed natural gas for vehicles and piped natural gas recording year-on-year increases. CNG volumes rose 9% during the quarter, while piped gas sales increased 8%, according to Rediff data. Average daily sales also reached 10.06 million standard cubic metres, up from 9.31 million in the year-earlier period. This means the company crossed the 10 million mark for the first time, as profitability faced pressure from gas costs. The figures reflect growth in commercial activity, but do not mean that higher volumes offset the impact of rising input costs on earnings.
By sales mix, CNG volumes rose to 696.63 million standard cubic metres in the second quarter of fiscal year 2026-27, with annual growth of 9%. Domestic piped natural gas volumes increased 16% to 73.31 million standard cubic metres. Piped gas sales to industrial and commercial customers rose 2% to 109.35 million standard cubic metres. The figures show different growth rates across uses: expansion was strongest in domestic gas, followed by CNG for vehicles, while growth in the industrial and commercial category was slower. These details are consistent with average daily sales rising to a company record above 10 million standard cubic metres.
The earnings decline extended into the first half of fiscal year 2026-27, with net income at 2,663 million rupees, compared with 8,153.3 million rupees in the year-earlier period. Basic and diluted earnings per share were 0.16 rupees in the first half, versus 2.76 rupees a year earlier, according to S&P Capital IQ data cited by Marketscreener. The comparison places the quarter’s performance within a broader trend of weaker earnings over the six months ended September. At the same time, net operating revenue and total sales increased, highlighting a divergence between business growth and earnings returns. The company’s explanation for pressure on profitability continues to center on gas costs that were not fully passed on to consumers.