1. At a Glance
Mahanagar Gas just posted Q1 FY26 results that didn’t disappoint—revenue up 24%, profit at ₹324 Cr. But with falling margins vs FY23 and a 13% drop in share price over the last year, investors are wondering—has this cash-rich gas giant lost some spark?
2. Introduction with Hook
Think of MGL like that uncle who’s always loaded with cash, lives modestly, and doesn’t show off—until someone tries to mess with his turf. Mumbai’s favorite gas distributor is back in action with double-digit growth, a monster balance sheet, and an ever-growing pipe network under its belt.
- Q1 FY26 Revenue: ₹2,198 Cr (+24% YoY)
- Q1 FY26 PAT: ₹324 Cr (vs ₹285 Cr YoY)
- Dividend Yield: 2% and zero net debt
So why is the stock still down 25% from its 52-week high? Let’s break this gas giant down.
3. Business Model (WTF Do They Even Do?)
MGL operates the City Gas Distribution (CGD) business—supplying CNG to vehicles and PNG to homes, commercial kitchens, and industries.
Key Segments:
- CNG: ~65% of volume, supplied via ~330+ stations
- PNG – Domestic: For 2M+ households
- PNG – Industrial/Commercial: Major revenue driver, ~20–25%
