Mahanagar Gas Limited (MGL), a prominent player in the natural gas distribution sector, has announced the successful completion of its merger with its wholly-owned subsidiary, Unison Enviro Private Limited (UEPL). The amalgamation, which became effective on August 16, 2025, marks a significant corporate restructuring for the company.

Merger Details

The merger scheme, sanctioned by the National Company Law Tribunal (NCLT), Mumbai Bench, was finalized with the filing of the certified copy of the order with the Registrar of Companies, Mumbai, Maharashtra. This strategic move results in the dissolution of UEPL, which has now been fully integrated into MGL's operations.

Capital Restructuring

As part of the merger process, MGL has substantially increased its authorized share capital. The company's latest filing reveals:

This represents a significant expansion of MGL's capital structure, potentially providing the company with greater financial flexibility for future growth and operations.

Regulatory Compliance

MGL has meticulously followed the regulatory procedures throughout the merger process. The company made a series of disclosures to the stock exchanges, dating back to October 24, 2024, and culminating in the final announcement on August 16, 2025. This transparency aligns with the requirements set forth by the Securities and Exchange Board of India (SEBI) Listing Regulations.

Management Statement

Atul Prabhu, Company Secretary & Compliance Officer of Mahanagar Gas Limited, officially communicated the merger's completion to the BSE Limited and the National Stock Exchange of India Limited. The statement emphasized the company's adherence to regulatory requirements and the successful conclusion of the amalgamation process.

The merger of UEPL into MGL is expected to streamline operations and potentially create synergies within the organization. Stakeholders will be keen to observe how this corporate restructuring impacts MGL's market position and operational efficiency in the coming months.

Mahanagar Gas Limited (MGL), a leading city gas distribution company, reported robust financial results for the first quarter of fiscal year 2026, driven by strong volume growth across segments and improved operational efficiency.

Key Highlights

• Overall average gas sales volume increased by 9.61% year-on-year to 4.23 mmscmd
• EBITDA from operations jumped 28% quarter-on-quarter to ₹485.00 crores
• Net profit after tax rose 29% quarter-on-quarter to ₹324.00 crores
• CNG sales volume grew 7.54% year-on-year to 2.98 mmscmd
• Industrial and commercial sales surged 26.09% year-on-year to 0.68 mmscmd

Financial Performance

MGL's financial performance for Q1 FY26 showcased significant improvement across key metrics:

The company's revenue increased by 5.42% quarter-on-quarter to ₹2,115.20 crores, while EBITDA saw a substantial rise of 28.31% to ₹485.00 crores. Net profit after tax grew by 28.57% to ₹324.00 crores, translating to an earnings per share (EPS) of ₹32.18, up 28.67% from the previous quarter.

Operational Performance

MGL's operational performance was marked by strong volume growth across various segments:

• CNG sales volume increased by 7.54% year-on-year to 2.98 mmscmd
• Domestic PNG sales volume grew by 3.88% year-on-year to 0.57 mmscmd
• Industrial and commercial sales volume surged by 26.09% year-on-year to 0.68 mmscmd

The company added 16,348 domestic household connections during the quarter, bringing the total connectivity to 2.85 million households. MGL also laid 79.08 kilometers of pipeline, expanding its network to over 7,538.63 kilometers.

Infrastructure Expansion

MGL continued to expand its infrastructure and customer base:

• Added 84 industrial and commercial customers, reaching a total of 5,161
• CNG vehicle registrations increased by 20,332, surpassing 1.1 million vehicles
• Maintained a network of 385 CNG stations as of June 30, 2025

Strategic Developments

The National Company Law Tribunal (NCLT) approved the amalgamation scheme of MGL's subsidiary, Unison Enviro Private Limited (UEPL), with the parent company. The merger is expected to be effective by August 15, 2025, which should lead to operational synergies and improved efficiency.

Future Outlook

Looking ahead, MGL has outlined its growth strategy:

• Planned CAPEX of ₹1,100-1,300 crores for the next two years
• Targeting the addition of 80 new CNG stations in the current fiscal year
• Focusing on expanding its presence in GA-2 and GA-3 areas

Management Commentary

Ashu Shinghal, Managing Director of MGL, commented on the results, "We are pleased with our strong performance in Q1 FY26, which reflects the growing demand for natural gas across all our segments. Our strategic investments in infrastructure and customer base expansion are yielding positive results. The upcoming merger with UEPL will further strengthen our market position and operational capabilities."

MGL's robust Q1 FY26 results demonstrate the company's resilience and growth potential in the city gas distribution sector. With its ongoing expansion plans and strategic initiatives, MGL is well-positioned to capitalize on the increasing adoption of natural gas as a cleaner fuel alternative.