Indraprastha Gas Ltd
NSE:IGL
Indraprastha Gas Ltd
Indraprastha Gas Ltd. (IGL) has emerged as a pivotal player in India's energy sector, catering to the bustling city of Delhi and its adjoining regions with an indispensable service: the distribution of natural gas. The company was founded in 1998 and is intricately woven into the urban fabric by offering cleaner energy solutions through its vast pipeline network. IGL ensures the delivery of compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households, industries, and commercial establishments. This operational strategy taps into the growing demand for eco-friendly alternatives, as cities worldwide push for reductions in carbon emissions. By partnering with major fuel retailers and having an extensive network of CNG stations, IGL has firmly established itself as a go-to provider for clean automotive fuel in Northern India.
Financially, Indraprastha Gas Ltd. generates revenue primarily through the sale of these two core products: CNG and PNG. The company's strategy hinges on expanding its infrastructure to reach new customers, facilitating higher consumption of natural gas. As urbanization accelerates and policies increasingly favor environmentally sustainable practices, IGL has leveraged this shift, fostering consistent sales growth. Furthermore, its profitability is underscored by efficient operations and strategic pricing, which balances competitiveness with margin preservation. Amidst India's mounting energy needs, IGL not only profits from meeting current demands but is also poised to capture future market opportunities as it invests in scaled, resilient, and greener distribution networks.
Indraprastha Gas Ltd. (IGL) has emerged as a pivotal player in India's energy sector, catering to the bustling city of Delhi and its adjoining regions with an indispensable service: the distribution of natural gas. The company was founded in 1998 and is intricately woven into the urban fabric by offering cleaner energy solutions through its vast pipeline network. IGL ensures the delivery of compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households, industries, and commercial establishments. This operational strategy taps into the growing demand for eco-friendly alternatives, as cities worldwide push for reductions in carbon emissions. By partnering with major fuel retailers and having an extensive network of CNG stations, IGL has firmly established itself as a go-to provider for clean automotive fuel in Northern India.
Financially, Indraprastha Gas Ltd. generates revenue primarily through the sale of these two core products: CNG and PNG. The company's strategy hinges on expanding its infrastructure to reach new customers, facilitating higher consumption of natural gas. As urbanization accelerates and policies increasingly favor environmentally sustainable practices, IGL has leveraged this shift, fostering consistent sales growth. Furthermore, its profitability is underscored by efficient operations and strategic pricing, which balances competitiveness with margin preservation. Amidst India's mounting energy needs, IGL not only profits from meeting current demands but is also poised to capture future market opportunities as it invests in scaled, resilient, and greener distribution networks.
Volume Growth: IGL reported 3% year-on-year total sales volume growth in Q3, despite headwinds from the transition of bus fleets to electric.
Revenue & Profit: Total revenue rose 8% YoY to INR 4,465 crores, EBITDA increased 31% YoY to INR 473 crores, with PAT up 25% YoY at INR 358 crores.
Regulatory Boost: Two major regulatory changes—lower central sales tax on domestic gas and a new 2-zone pipeline tariff—are expected to benefit margins and costs going forward.
Margin Outlook: Management reaffirmed EBITDA margin guidance in the INR 7 per scm range, up from INR 5.4 per scm this quarter, with benefits from regulatory changes and one-time costs winding down.
CNG Station Expansion: 45 CNG stations were added during the year, bringing the total to about 975, with further capacity expansion planned.
Geographic Shift: 57% of incremental volume now comes from areas outside Delhi and NCR, with new geographies growing strongly at 17%.
Guidance Maintained: Management maintained guidance to exit the year at 10 MMSCMD sales volume, and expects to add 1 MMSCMD annually in coming years.
CapEx Plans: Core business CapEx for the year is targeted at INR 1,250 crores, with similar levels expected in subsequent years and additional diversification investments planned.
