Mahanagar Gas Limited (MGL), one of India's largest city gas distribution companies, has reported a robust financial performance for the first quarter of FY26, demonstrating significant growth across key metrics.

Financial Highlights

MGL posted a substantial 24.30% year-over-year increase in revenue, reaching ₹1,975.92 crore for the quarter ended June 30, 2025, up from ₹1,589.63 crore in the same period last year. The company's profit after tax (PAT) grew by 13.98% to ₹324.32 crore, compared to ₹284.53 crore in Q1 FY25.

All figures in ₹ crore, except EPS

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a healthy increase of 15.98%, reaching ₹485.36 crore. However, EBITDA margins experienced a slight decline, moving from 26.33% in the previous year to 24.56% in the current quarter.

Operational Performance

MGL continues to expand its infrastructure and customer base:

• Pipeline Network: The company now operates over 7,539 km of pipeline infrastructure.
• CNG Stations: 385 CNG filling stations are currently in operation.
• Vehicle Coverage: MGL serves 1.13 million CNG vehicles.
• Household Connections: 2.85 million PNG (Piped Natural Gas) household connections have been established.

Sales Composition

The sales volume composition for the quarter showcases the company's diverse customer base:

• CNG (Compressed Natural Gas): 70.50% of total sales
• Domestic PNG: 13.45%
• Commercial PNG: 3.23%
• Industrial PNG: 12.82%

Market Position

As one of the largest CGD (City Gas Distribution) companies in India, Mahanagar Gas continues to strengthen its market position. The company's robust financial performance, coupled with its expanding infrastructure and growing customer base, underscores its strong footing in the natural gas distribution market.

MGL's consistent growth trajectory and focus on expanding its CNG and PNG networks position it well to capitalize on the increasing demand for cleaner fuel alternatives in urban areas. The company's performance in the quarter reflects its ability to navigate market challenges while delivering value to its stakeholders.

The company held an investor presentation on July 23, 2025, to discuss these quarterly results and operational performance.

Mahanagar Gas Limited (MGL), a leading city gas distribution company, has reported a strong financial performance for the first quarter of the fiscal year. The company's results, released on July 22, 2025, showcase significant growth in revenue and profit, surpassing analyst expectations.

Revenue Surge

MGL's quarterly revenue reached ₹2,159.72 crore, marking a substantial increase of 23.80% compared to ₹1,744.57 crore in the same quarter of the previous year. This performance exceeded analyst estimates of ₹1,829 crore, demonstrating the company's robust growth trajectory.

Profit Growth

The company's standalone net profit for the quarter stood at ₹324.32 crore, up from ₹284.53 crore in the corresponding quarter last year, representing a 13.98% increase. This figure surpassed market expectations of ₹274 crore, highlighting MGL's strong financial health.

Operational Highlights

The company witnessed growth across all its business segments. CNG sales volume increased by 7.54%, while PNG sales volume saw a significant rise of 14.89%. The total sales volume grew by 9.61% year-on-year, reaching 384.86 SCM Million.

Financial Performance

MGL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at ₹485.36 crore, a 15.98% increase from the previous year. The EBITDA margin, however, slightly decreased to 24.56% from 26.33% in the same quarter last year.

Management Commentary

The company's management expressed satisfaction with the quarterly results, attributing the strong performance to increased demand across both CNG and PNG segments. They also highlighted the company's efforts in expanding its distribution network and improving operational efficiencies.

Future Outlook

While the company has not provided specific guidance for the future, the robust Q1 performance sets a positive tone for the fiscal year. MGL continues to focus on expanding its customer base and infrastructure to capitalize on the growing demand for natural gas in its operational areas.

Regulatory Updates

The company disclosed ongoing legal proceedings regarding a demand raised by GAIL (India) Limited for transportation tariff. MGL has contested this demand, and the matter is currently under review by the Delhi High Court, with the next hearing scheduled for September 15, 2025.

Mahanagar Gas Limited's strong Q1 performance underscores its resilient business model and strategic positioning in the city gas distribution sector. As the company continues to expand its operations and customer base, it remains well-positioned to benefit from the increasing adoption of natural gas as a cleaner fuel alternative.