Mahanagar Gas Q2 Net Profit Declines 41% to 1.9 Billion Rupees

Mahanagar Gas Limited (MGL), a leading natural gas distribution company, reported a significant decline in its second-quarter net profit. The company's financial performance fell short of analyst expectations, reflecting challenges in the current market environment.

Key Financial Highlights

Metric	Q2	Q1	QoQ Change
Net Profit	1.90	3.20	-40.63%
Revenue	22.60	22.80	-0.88%
EBITDA	3.40	4.85	-29.90%
EBITDA Margin	14.99%	22.47%	-7.48 percentage points

All financial figures in billion rupees, except percentages

Profit and Revenue Analysis

MGL's net profit for the quarter stood at 1.90 billion rupees, marking a substantial 41% decrease from the previous quarter's 3.20 billion rupees. This figure fell significantly below the analyst estimates of 2.63 billion rupees, indicating a challenging quarter for the company.

The company's revenue saw a marginal decline, decreasing to 22.60 billion rupees from 22.80 billion rupees in the previous quarter. This slight dip in revenue suggests relatively stable sales volumes but potentially lower realizations or pricing pressures in the market.

EBITDA and Margin Compression

MGL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) experienced a sharp decline, falling to 3.40 billion rupees from 4.85 billion rupees in the previous quarter. This 29.90% decrease in EBITDA was more pronounced than the revenue decline, pointing to increased operational costs or reduced operational efficiency during the quarter.

The EBITDA margin compressed significantly to 14.99% from 22.47% in the previous quarter. This substantial margin contraction of 7.48 percentage points was well below the estimated 19.2%, indicating pressures on the company's profitability.

Volume Performance

For the six months ended September 30, MGL reported:

Total gas sales volume of 827.87 million SCM, a 9.91% increase year-over-year
CNG sales volume of 589.30 million SCM, up 7.93%
PNG sales volume of 238.58 million SCM, a robust growth of 15.12%

Operational Insights

The company's performance reflects the challenging market conditions in the natural gas distribution sector. While MGL managed to increase its sales volumes, the significant drop in profitability and margins suggests the company may be facing cost pressures or regulatory challenges affecting its pricing power.

The board of directors reviewed and approved these results at their meeting held on October 29. MGL continues to focus on expanding its network and customer base, as evidenced by the growth in sales volumes across both CNG and PNG segments.

As Mahanagar Gas navigates through these challenges, investors and analysts will be closely watching the company's strategies to improve profitability and maintain its market position in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.36%	-0.48%	+2.86%	-2.36%	-9.14%	+59.32%

Mahanagar Gas Limited (MGL), a prominent player in the city gas distribution sector, has initiated a postal ballot process to seek shareholder approval for two significant director appointments. The company aims to strengthen its leadership team with the proposed appointments of Mr. Ajay Sinha as Deputy Managing Director and Mr. Pankaj Kuchhal as an Independent Director.

Key Appointments and Terms

Deputy Managing Director

Mr. Ajay Sinha, nominated by GAIL (India) Limited, is proposed to be appointed as a Whole-Time Director designated as Deputy Managing Director. His appointment, if approved, would be for a five-year term from August 23, 2025, to August 22, 2030, or until further orders from GAIL, whichever is earlier.

Independent Director

Mr. Pankaj Kuchhal is proposed to be appointed as an Independent Director for a three-year term from August 23, 2025, to August 22, 2028.

Voting Process and Timeline

Mahanagar Gas has outlined the following key dates for the postal ballot process:

E-voting Period: October 19, 2025, to November 17, 2025
Cut-off Date for Eligible Voters: October 10, 2025
Results Declaration: On or before November 19, 2025

Profiles of Proposed Directors

Mr. Ajay Sinha

Over three decades of experience in the Oil and Gas industry
Electrical Engineer from University of Roorkee with an MBA from IIT, Delhi
Extensive experience in City Gas Distribution (CGD) sector
Previously served as Head of Marketing at GAIL Gas Limited and Joint Adviser in Petroleum and Natural Gas Regulatory Board

Mr. Pankaj Kuchhal

Over 38 years of cross-functional experience in the downstream Oil & Gas industry
Electronics & Communication Engineering graduate from Regional Engineering College, Kurukshetra
Expertise in automation engineering, contracts & procurement, and pipeline operations
Former CEO of IHB Limited, leading India's longest cross-country LPG pipeline implementation

Remuneration Structure for Mr. Ajay Sinha

The current salary structure for Mr. Ajay Sinha includes:

Component	Amount (per month)
Basic Salary	Rs. 2,44,520.00
Allowances and Benefits	Rs. 2,80,417.20

Additional perquisites and benefits will be provided as per GAIL's and MGL's policies.

Importance of Shareholder Approval

The appointments require shareholder approval in compliance with the Companies Act, 2013, and SEBI regulations. The postal ballot notice emphasizes the importance of these appointments in strengthening Mahanagar Gas Limited's leadership and governance structure.

Shareholders are encouraged to participate in the e-voting process to exercise their right in these crucial appointments that may shape the future direction of the company.