Indraprastha Gas Limited Q2 FY26 Concall Decoded: Volumes inch up, margins sulk, Saudi dreams quietly steal the show

1. Opening Hook

When EVs steal your best customer, you don’t panic—you find new ones. Indraprastha Gas Limited (IGL) spent Q2 FY26 calmly watching DTC buses plug into charging points while private CNG vehicles lined up outside stations. Volumes grew, but just enough to avoid bragging rights. Margins slipped, but management swears it’s temporary, pinky promise included.

And just when analysts were busy counting SCMs in Delhi, IGL casually dropped a surprise: Saudi Arabia. Industrial cities, gas transition, equity stake—not a consulting gig. Suddenly, this wasn’t just a Delhi CNG story anymore.

This concall wasn’t flashy. It was steady, explanatory, and sprinkled with long-term ambition. If you expected fireworks, sorry. If you like slow-burning optionality, read on—this one quietly gets interesting.

2. At a Glance

• Volume up 3% YoY – Growth crawled, not sprinted.
• CNG volumes +3% (ex-DTC +10%) – EVs hurt buses, not private cars.
• PNG volumes +6% – Households still cooking with gas.
• Revenue up 9% – Prices did more work than molecules.
• EBITDA ₹443 crore – Down YoY, gas costs played villain.
• PAT ₹373 crore – Lower margins, not lower relevance.

3. Management’s Key Commentary

“Overall sales grew by around 3% year-on-year.”
(Translation: Nobody’s popping champagne, but nobody’s crying either.) 😐

“Excluding DTC, CNG volumes grew around 10%.”
(Translation: EVs hit buses, not taxis and private cars.)

“Average monthly CNG vehicle addition is ~19,000.”
(Translation: Adoption story still alive and kicking.) 😏

“VAT reduction in Gujarat lowers input cost by Re. 1 per SCM.”
(Translation: Margins might finally breathe.)

“Single-zone tariff will benefit CGD companies like IGL.”
(Translation: PNGRB, please don’t delay this.)

“Saudi Arabia offers a big opportunity in industrial cities.”
(Translation: Delhi saturation? Let’s export the playbook.) 🌍

4. Numbers Decoded