Mahanagar Gas Limited has submitted its fourth Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, forming part of the company's Integrated Annual Report. Filed pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the report provides investors and stakeholders with enhanced disclosures on the company's Environmental, Social, and Governance (ESG) practices. The BRSR framework is aligned with the National Guidelines for Responsible Business Conduct (NGRBC) and covers three sections: a business overview, management and process disclosures, and principle-wise indicator disclosures. An independent Reasonable Assurance has been obtained from M/s SGS India Pvt. Ltd. for BRSR Core parameters.

Business Overview and Operations

Mahanagar Gas Limited operates as a City Gas Distribution (CGD) company, with its primary business activity being the selling and distribution of natural gas. Distribution of gaseous fuels through mains (NIC Code 3520) accounted for 99.43% of total turnover in FY 2025-26. The company serves domestic, commercial, industrial, and transport sector customers through Piped Natural Gas (PNG), Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and Compressed Biogas (CBG).

The company's operational footprint spans 2 states — Maharashtra and Karnataka — across 6 Geographical Areas (GAs). Key operational details are summarised below:

Workforce and Employee Well-Being

As at the end of FY 2025-26, Mahanagar Gas Limited had 622 permanent employees (548 male, 74 female) and 2 other-than-permanent employees. The company reported 107 permanent workers (104 male, 3 female). The Board of Directors comprised 8 members, with 1 female director (12.50%), while Key Managerial Personnel comprised 2 members with no female representation.

Employee turnover rates and well-being coverage are detailed below:

All permanent employees and workers are covered under health insurance, accident insurance, and paternity benefits (where applicable). Female permanent employees are additionally covered under maternity benefits. Cost incurred on well-being measures as a percentage of total revenue stood at 0.06% in FY 2025-26, compared to 0.07% in FY 2024-25. Return-to-work and retention rates for employees and workers who took parental leave were 100% across all gender categories.

Median remuneration data for FY 2025-26 is as follows:

Gross wages paid to females as a percentage of total wages stood at 10.01% in FY 2025-26, up from 9.85% in FY 2024-25.

Environmental Performance

Mahanagar Gas Limited's environmental disclosures cover energy consumption, greenhouse gas emissions, water usage, air emissions, and waste management. All key environmental indicators have been independently assured by M/s SGS India Pvt. Ltd.

Energy Consumption

Greenhouse Gas Emissions

Water and Waste

Key air emissions for FY 2025-26 included NOx at 88.13 tons/annum, SOx at 0.06 tons/annum, Particulate Matter (PM10) at 1.09 tons/annum, and Volatile Organic Compounds (VOC) at 13.14 tons/annum.

Sustainability Initiatives and ESG Highlights

During FY 2025-26, Mahanagar Gas Limited undertook several notable sustainability and clean-energy initiatives:

• CBG Development: A Concession Agreement was signed with Brihanmumbai Municipal Corporation (BMC) on 01.06.2026 for the setting up of a 350 TPD Compressed Biogas (CBG) Plant at Mankhurd. A tripartite agreement was also entered into with GAIL and Reliance Industries Limited on 8th August 2025 under India's CBG–CGD synchronization scheme.
• Renewable Energy: A Shareholders' Agreement was signed on 8th March 2026 to acquire a 26% stake in FPEL Reliant Energy Private Limited, strengthening the company's presence in the renewable energy sector. An agreement for procurement of 6.5 MW renewable solar power through the Green Open Access mechanism was also signed.
• LNG Expansion: Through its Joint Venture, Mahanagar LNG Private Limited (MLPL), the company commissioned two LNG Stations at Chhatrapati Sambhajinagar (Maharashtra) and Seoni (Madhya Pradesh).
• Energy Efficiency: Replacement of IE2 motors with high-efficiency Flameproof IE3 motors across 5 CNG stations resulted in annual energy cost savings of approximately ₹16.1 lakh.
• Green Certification: CGS Vile Bhagad was awarded the IGBC Platinum Rating.
• Digital Transformation: Project Prism on the Salesforce platform went live; paperless billing was implemented from 1st April 2025, achieving close to 95% success.
• ESG Training: ESG awareness sessions were conducted covering 566 total participants, with 387 employees covered in FY 2025-26.
• R&D and Capex: R&D investment in environmental/social technologies stood at 3.17% of total R&D in FY 2025-26 (vs. 19% in FY 2024-25); Capex investment stood at 3.26% (vs. 0.12% in FY 2024-25).

Governance, Compliance, and Customer Grievances

Mahanagar Gas Limited's governance framework is anchored by an independent Board, specialized committees, a Whistle Blower Policy, and a robust Related Party Transactions Policy. The Deputy Managing Director (Mr. Ajay Sinha, DIN: 08585727) is the highest authority responsible for implementation and oversight of the Business Responsibility policy and chairs the ESG Committee.

On compliance, the company reported nil instances of bribery or corruption against Directors, KMPs, employees, or workers in both FY 2025-26 and FY 2024-25. No monetary or non-monetary penalties were levied during FY 2025-26. Number of days of accounts payable stood at 21.74 in FY 2025-26, compared to 22.19 in FY 2024-25.

Regarding customer grievances, the company received 39,488 complaints in FY 2025-26, of which 3,436 were pending resolution at year-end, with the company having resolved 91% of complaints for the year. In FY 2024-25, 27,433 complaints were received with 329 pending (as updated on 23rd April 2026), representing a 99% resolution rate. Complaints related to delivery of essential services numbered 281 (pending: 0) in FY 2025-26 and 375 (pending: 0) in FY 2024-25. There were no instances of data breaches or cyber security events during FY 2025-26.

The BRSR also highlights that 71.93% of input material (excluding gas purchase value) was directly sourced from MSMEs/small producers in FY 2025-26, compared to 63% in FY 2024-25. Safety performance remained strong, with Lost Time Injury Frequency Rate (LTIFR) for employees at 0 in both FY 2025-26 and FY 2024-25, and zero fatalities recorded across employees and workers in both years.

Mahanagar Gas Limited has announced the schedule for its 31st Annual General Meeting (AGM), to be held on Tuesday, August 25, 2026 at 3:00 p.m. IST through Video Conferencing (VC) / Other Audio Visual Means (OAVM). The company has simultaneously released its Integrated Annual Report for FY 2025-26, covering comprehensive financial and operational performance across all business segments.

AGM and Dividend Details

The AGM notice was filed on August 03, 2026 (Ref: MGL/CS/SE/2026/716), signed by Company Secretary and Compliance Officer Atul Prabhu. Key dates associated with the meeting are summarised below:

The Board of Directors declared an interim dividend of ₹12 per equity share (face value ₹10) for FY 2025-26, paid in February 2026. The Board has further recommended a final dividend of ₹18 per equity share for FY 2025-26, subject to shareholder approval at the AGM. This brings the total dividend for FY 2025-26 to ₹30 per equity share, maintaining a consistent dividend track record.

FY 2025-26 Financial Performance

Mahanagar Gas delivered the following standalone financial results for FY 2025-26:

Revenue from operations increased by 13.58% year-on-year. Operating EBITDA decreased by 7.58%, primarily due to a significant reduction in APM gas allocation and elevated gas procurement costs arising from geopolitical disruptions in the Middle East, which impacted LNG availability and pricing. PAT declined by ₹194.45 crore to ₹846.82 crore. The company remained debt-free with a strong treasury position, self-funding its capital expenditure programme.

Of the ₹1,068.72 crore capital expenditure deployed, ₹988.44 crore pertained to laying of pipeline network and setting up of CNG stations.

Operational Performance Across Segments

FY 2025-26 witnessed robust volume growth across all customer segments, with average total gas sales volumes increasing by 8.25% to 4.59 MMSCMD from 4.24 MMSCMD in the previous year.

Key operational milestones during FY 2025-26 included:

• CNG Network: 52 new CNG stations commissioned, expanding the network to 518 stations as of March 31, 2026; the 500th CNG station was commissioned at Chiplun in the Ratnagiri geographical area
• CNG Vehicles: 1,18,590 new CNG vehicles added, taking the cumulative registered CNG vehicle base to 12,84,828 as of March 31, 2026
• D-PNG Connections: 3.42 lakh new domestic household connections added; cumulative household connections reached **3.21 million**
• Pipeline Network: 499 km of steel and PE pipeline laid, extending the network to over **8,320 kms**
• I&C Customers: 872 new Industrial and Commercial customers added, bringing the total to 5,924
• CGS Network: Two new City Gate Stations commissioned at Vilebhagad and Usarghar in Raigad; overall CGS network grew from 5 to 11 following UEPL amalgamation

UEPL Merger and Geographic Expansion

A key strategic milestone during FY 2025-26 was the successful merger of Unison Enviro Private Limited (UEPL), a wholly owned subsidiary, with the company, effective from August 16, 2025, pursuant to the National Company Law Tribunal approval. The merger expanded the company's operational footprint to ~45,691 sq. km., adding three new geographical areas — Ratnagiri, Latur & Dharashiv in Maharashtra and Chitradurga & Davanagere in Karnataka.

Following the merger, the UEPL CNG station network exceeded 109 stations. Gas sales volumes from the erstwhile UEPL regions grew from ~1.29 lakh SCMD to ~2.63 lakh SCMD within two years of acquisition. The UEPL unit turned EBITDA positive during the year and recorded overall sales volumes of 0.26 MMSCMD, representing growth of 43.72%.

New Business Initiatives

Mahanagar Gas continued to advance its diversification strategy targeting ~25% of future revenues from emerging business segments. Key developments included:

• LNG Mobility: Mahanagar LNG Private Limited (MLPL) recorded LNG sales of 761.70 MT, with volumes increasing approximately five-fold during the year; a second LNG station was commissioned at Seoni, Madhya Pradesh
• Compressed Biogas (CBG): A 350 TPD municipal solid waste processing facility in Mankhurd, Mumbai (with BMC support) and a 150 TPD plant in Davanagere, Karnataka are progressing; six CBG-integrated stations are currently operational
• Renewable Energy: Partnered with FPEL Reliant Energy Private Limited for a 6.5 MW solar module project under a group captive arrangement for COCO CNG stations in Maharashtra
• Electric Mobility: Strategic investments in 3ev Industries Private Limited (L5 category electric three-wheelers) and International Battery Company India Private Limited (lithium-ion cell manufacturing in Bengaluru) are progressing through their build-out phases
• Green Hydrogen: A pilot project at MIDC Rasayani, Patalganga is under development; land acquisition completed during FY 2025-26

CSR and Awards

Mahanagar Gas spent ₹27.99 crore on CSR initiatives during FY 2025-26, delivering 57 projects in partnership with 43 implementing organizations, reaching approximately 8,70,121 beneficiaries. The company received several recognitions during the year, including the CGD Member of the Year Award at the IGX Awards Ceremony 2026, the National Process Safety Excellence Award in the CGD category, and the Platinum Recognition from the Indian Green Building Council for its Integrated CGS and CNG Complex at Vilebhagad.