Mahanagar Gas Limited reported a standalone net profit of ₹193.70 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 46.83% increase from ₹131.92 crore in the preceding quarter. The Mumbai-based natural gas distributor saw revenue from operations grow 15.05% to ₹2,597.89 crore, primarily driven by robust growth in compressed natural gas (CNG) volumes which surpassed analyst estimates. Earnings per share stood at ₹19.61, compared to ₹13.35 in the prior period. This quarterly performance highlights a strong operational recovery, with consolidated net profit attributable to owners of the company recorded at ₹193.00 crore.

The Board of Directors approved the unaudited financial results at a meeting held on July 30, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by Deloitte Haskins & Sells LLP, the company's independent auditors, in accordance with Standard on Review Engagements (SRE) 2410. The filing complies with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, an investor presentation was released on July 31, 2026, pursuant to Regulation 30 and Schedule III of the same regulations, detailing operational performance and forward-looking statements.

Operational Performance

Total gas sales volumes increased 3.14% quarter-on-quarter to 433.71 million standard cubic meters (SCM). CNG volumes rose 5.55% to 318.09 million SCM, exceeding analyst estimates of 309 million SCM. Total piped natural gas (PNG) volumes declined 2.95% to 115.61 million SCM due to an 8.90% drop in industrial and commercial demand, which was partially offset by a 4.13% rise in domestic PNG sales. The company’s infrastructure includes over 8,477 km of pipeline and 519 CNG filling stations, serving a strong customer base of 1.31 million CNG vehicles and over 3.24 million PNG households.

Net revenue from operations grew 15.62% to ₹2,371.71 crore. CNG net sales increased 9.42% to ₹1,618.51 crore, while PNG net sales surged 32.34% to ₹738.56 crore. Other operating income rose 14.27% to ₹9.92 crore. The gross profit per SCM improved to ₹14.50 from ₹13.35 in the previous quarter, reflecting better pricing dynamics despite higher gas costs.

Financial Highlights

EBITDA expanded 31.74% quarter-on-quarter to ₹342.98 crore, with the EBITDA margin improving to 14.46% from 12.69%. Purchase of natural gas and traded items rose to ₹1,733.38 crore from ₹1,481.56 crore. Employee benefits expense increased to ₹46.34 crore, and depreciation and amortization expenses were ₹108.55 crore. Finance costs remained low at ₹5.73 crore. Year-on-year, however, results showed a decline due to a one-time revenue reversal in the prior year. Net profit fell 39.39% to ₹193.70 crore from ₹319.56 crore in Q1FY25. EBITDA dropped 31.50% to ₹342.98 crore from ₹500.71 crore, as the comparable period included a ₹112.87 crore reversal of trade margin revenue related to an agreement with oil marketing companies.

Strategic Investments and Legal Matters

The company continued its expansion into electric mobility and renewable energy. It invested an additional ₹0.99 crore in Optionally Convertible Debentures (OCDs) in 3EV Industries Private Limited during the quarter, bringing its total investment to ₹83.99 crore for a 26.13% fully diluted equity stake. Additionally, Mahanagar Gas invested ₹3.89 crore in FPEL Reliant Energy Private Limited to acquire a 26% equity stake as a captive user.

Two significant legal matters remain sub judice. The company is contesting a ₹331.80 crore transportation tariff demand from GAIL (India) Limited regarding the ONGC Uran Trombay Natural Gas Pipeline, with the next hearing in the Delhi High Court scheduled for August 13, 2026. Separately, it is challenging a GST liability demand of ₹54.33 crore under the Reverse Charge Mechanism for road reinstatement charges, with a hearing scheduled for August 17, 2026. Management maintains that it has a strong case in both instances and has not recognized any provisions.

What the Numbers Show

The quarter-on-quarter improvement in profitability was largely driven by operational efficiencies rather than volume growth alone. While total volumes increased modestly by 3.14%, EBITDA grew by 31.74%, indicating a significant improvement in margin quality. The gross profit per SCM rose to ₹14.50 from ₹13.35, suggesting that the company successfully passed on higher input costs to consumers or benefited from favorable tariff adjustments. However, the year-on-year comparison remains distorted by the one-time revenue reversal in Q1FY25, making quarter-on-quarter trends more indicative of current business health. The decline in industrial and commercial PNG volumes highlights ongoing challenges in that segment, but the resilience of domestic PNG and CNG segments provided a stable base for overall performance.

Mahanagar Gas will host an earnings conference call on July 31, 2026, at 4:30 PM IST to discuss its financial and operational performance for the quarter ended June 30, 2026. The event provides investors and research analysts an opportunity to review the company's Q1FY27 results directly with senior management. This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The announcement was filed with the Bombay Stock Exchange and the National Stock Exchange of India Limited on July 27, 2026. The information is also available on the company's website at www.mahanagargas.com . Atul Prabhu, Company Secretary & Compliance Officer, signed the intimation letter addressed to the Head of Listing Compliance at both exchanges.

Key Participants

Senior leadership from Mahanagar Gas will lead the discussion during the conference call. The following executives are confirmed to participate:

Call Logistics

The earnings call is organized with the support of PL Capital (Prabhudas Lilladher). Participants can join via dial-in numbers provided by the broker. The call is accessible globally with time zone conversions provided for Singapore/Hong Kong, GMT, EDT, and PST.

Dial-In Details:

• Universal Access Number: +91-22-6280 1360 / +91-22-7115 8261
• Express Join with DiamondPass™ No Wait Time

For further assistance, investors may contact Swarnendu Bhushan or Indrakumar Gupta at PL Capital using the contact details provided in the annexure.

What This Means for Investors

The upcoming call serves as the primary channel for management to contextualize the Q1FY27 financial results. While specific revenue or profit figures are not disclosed in this intimation, the presence of the Managing Director and CFO indicates a comprehensive review of operational metrics and financial health. Investors should prepare questions regarding gas distribution volumes, regulatory developments, and capital expenditure plans for the fiscal year.