Indraprastha Gas Ltd (IGL), the country’s largest city gas distributor, reported a sharp 93.5 per cent decline in standalone net profit for the September quarter as a substantial increase in input gas costs eroded margins, offsetting higher sales volumes and revenue.
Net profit fell to ₹24.38 crore in the second quarter of 2026-27 from ₹372.51 crore a year earlier, despite an 8 per cent increase in sales volumes and a 26 per cent jump in gross turnover.
The company said its average daily gas sales crossed the 10 million standard cubic metres per day (mmscmd) mark for the first time, rising to 10.06 mmscmd in the July-September period from 9.31 mmscmd in the corresponding period last year.
Gross sales turnover increased to ₹5,999.13 crore from ₹4,431.63 crore, reflecting higher sales as well as the impact of increased gas prices.
CNG volumes grew 9 per cent year-on-year during the quarter, while piped natural gas (PNG) sales rose 8 per cent, indicating continued expansion in demand across the transport and household segments.
However, the steep fall in profitability despite higher volumes and turnover highlights the pressure that rising procurement costs can exert on city gas distributors, particularly when increase in input prices cannot be fully passed on to consumers.
IGL operates city gas distribution networks across 34 districts in 11 geographical areas spanning Delhi, Uttar Pradesh, Haryana and Rajasthan.
Its infrastructure includes more than 30,000 km of pipelines and over 1,000 CNG stations, catering to more than 2.5 million CNG vehicles. It has also connected over 3.5 million households to piped natural gas.
