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 has fixed August 18, 2026, as the record date for determining shareholder entitlement to its final dividend for the financial year 2025-26. The Board of Directors recommended a final dividend of ₹18 per equity share during its meeting held on May 07, 2026. This payout translates to a 180% dividend yield on the face value of ₹10 per share, signaling strong cash generation and confidence in the company’s financial position. Investors holding shares as of the record date will be eligible for the distribution, provided the proposal receives shareholder approval at the upcoming Annual General Meeting (AGM).

The declaration follows the regulatory framework outlined in Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board’s recommendation was initially communicated in an intimation dated May 07, 2026. The final disbursement is contingent upon ratification by shareholders at the AGM, scheduled for Tuesday, August 25, 2026. Upon approval, the company intends to distribute the dividend within 30 days from the date of the meeting.

Dividend Details

Eligibility for the dividend is determined based on the Register of Members maintained by the company or the Register of Beneficial Owners maintained by the depositories. Only those members or beneficial owners whose names appear in these registers at the closure of business hours on the record date will be entitled to receive the payment. The actual payout will be subject to the deduction of tax at source (TDS) at rates applicable under prevailing tax laws.

What This Means for Shareholders

The fixation of the record date marks a critical procedural step in the dividend payment process. For investors looking to benefit from this payout, it is essential to hold the shares before the market closes on August 18, 2026. Given the high dividend percentage relative to the face value, this distribution represents a significant return for long-term holders. The timeline allows shareholders approximately one week between the record date and the AGM, providing a window for final portfolio adjustments if necessary. The company’s commitment to a substantial dividend payout reflects its liquidity position and strategic intent to reward shareholders consistently.