Mahanagar Gas Q1FY26 Profit Rises 14% YoY to ₹324 Cr, Margins Expand Sequentially

Mumbai, July 22, 2025 — Mahanagar Gas Ltd (NSE: MGL | BSE: 539957) reported a strong performance for Q1FY26, posting a 14% year-on-year (YoY) increase in standalone net profit to ₹324.32 crore, driven by robust CNG volume growth and improved operating margins. Sequentially, Profit surged 28.6% from ₹252.18 crore in Q4FY25.

Share Price Performance Of Mahanagar Gas Ltd.

As of Tuesday, July 22, 2025, Mahanagar Gas Ltd. (MGL) traded slightly lower, with the share price at ₹1486.30, down 1.72% from its previous closing price of ₹1,512.30. The stock opened at ₹1,518.00 and has traded between a high of ₹1,519.40 and a low of ₹1,492.60 today.

Financial Highlights (Standalone)

Mahanagar Gas reported total Revenue of ₹2,159.72 crore in Q1FY26, which represents an increase of 23.8% from Q1FY25, and also a QoQ increase of 5.92%. The net profit of ₹324.32 crore represents a 14% year-over-year increase and a 28.6% quarter-over-quarter increase. EPS increased to ₹32.83, indicating strong earnings. The company demonstrated a well-rounded improvement, both in top-line and bottom-line performance.

Volumes grew by 9.61% YoY to 384.86 SCM million in Q1FY26. CNG sales grew by 7.54% and PNG (Industrial/Commercial) volumes increased by over 26%.

Net Revenue from operations has grown 24.3% YoY to ₹1,975.92 crore, with CNG revenues of ₹1,422.68 crore – 28.6% increase YoY and PNG revenues of ₹542.34 crore – 14.3% increase.

Consolidated Performance

On a consolidated basis, MGL reported a net profit of ₹317.79 crore for Q1FY26, down slightly from ₹288.77 crore in Q1FY25. The group includes recent associates 3EV Industries Pvt Ltd and International Battery Company India Pvt Ltd, with investments of 24.54% and 44% respectively.

Segment & Regulatory Updates

• Segment: MGL continues to operate in a single segment, namely the distribution of natural gas.
• Legal Proceedings: No provision has been made for the ongoing ₹331.80 crore dispute with GAIL regarding the ONGC Uran Trombay pipeline tariff, as the Delhi High Court has stayed recovery and scheduled the next hearing for September 15, 2025.
• Tax Dispute: The company is contesting a ₹54.33 crore GST demand relating to reinstatement charges, awaiting the outcome of the appellate hearing.

Corporate Action

The National Company Law Tribunal (NCLT) accepted the amalgamation of Unison Enviro Pvt Ltd, a wholly owned subsidiary of MGL. The effective date remains pending for the receipt and filing of the certified order.

Management Commentary

Ashu Shinghal, Managing Director, stated:

“We’ve seen strong growth in CNG and Industrial PNG segments, supported by steady volumes and better realisations. Our EBITDA margin improved sequentially, reflecting operational efficiencies and favorable cost dynamics.”

Strategic Outlook

MGL plans to enhance its footprint in the Mumbai Metropolitan Area and widen the scale of its new energy investments through its associates. Volume growth, cost discipline and sustained regulatory support should keep the company on track for FY26.

Company Overview

Mahanagar Gas Limited, listed on NSE and BSE, is among India’s prominent companies engaged in natural gas distribution to domestic, commercial and industrial customers in Mumbai and areas around Mumbai. MGL is jointly promoted by GAIL (India) Ltd and the Government of Maharashtra.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/886fb15f-5e6c-426e-a672-56f1bf17bb90.pdf

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