1. At a Glance – Delhi’s Gas King Under Pressure
₹23,450 crore market cap.
₹168 share price.
14.1x P/E.
2.57% dividend yield.
ROCE at 20.8%.
ROE at 16.4%.
Virtually debt-free (Debt to Equity: 0.01).
And yet… the stock is down 16.2% in 3 months.
Welcome to the curious case of Indraprastha Gas Ltd — Delhi NCR’s monopoly-style gas distributor that prints steady profits but is currently fighting government allocation cuts like a middle-class family fighting LPG price hikes.
Q3 FY26 numbers? Solid.
Revenue: ₹4,068 crore
PAT: ₹392 crore
Quarterly profit growth: +20.6% YoY
EBITDA margin expanded to 12%
Interim dividend: ₹3.25 per share
Volumes grew. Margins improved. Dividend declared.
So why is the market acting like someone turned off the CNG pump?
Because in the gas business, allocation is oxygen. And oxygen just got reduced by 20%.
Ready to see what’s really cooking in IGL’s pipeline?
2. Introduction – The Gas Mafia of NCR
If Delhi had a silent infrastructure hero, it would be IGL.
You drive a CNG auto? IGL.
You cook on PNG? IGL.
Your office boiler runs on gas? IGL.
IGL is a joint venture between GAIL (India) Limited and Bharat Petroleum Corporation Limited, with the Government of NCT Delhi holding 5%.
Translation: This isn’t some random private player. This is semi-government muscle with distribution rights in Delhi NCR and several nearby regions.
819 CNG stations.
25.6 lakh residential PNG connections.
~10,000 industrial/commercial customers.
And yet, despite being the city gas heavyweight, IGL’s stock performance over 3 and 5 years has been disappointing.
The business is stable.
The cash flows are strong.
The dividend payout is generous (57% last year).
But the growth? Slowing.
And then comes the policy drama — domestic gas allocation cuts, reversals, and regulatory gymnastics.
So here’s the big question:
Is IGL a boring dividend machine?
Or a future green hydrogen transformer?
Or just a policy hostage?
Let’s open the valve slowly.
3. Business Model – WTF Do They Even Do?
Let’s simplify this.
IGL buys natural gas.
It compresses it.
It pipes it.
It sells it.
Main revenue buckets:
1. CNG (75% of volume)
Cars, autos, buses.
This is the bread and butter.
Q3 volumes: 637.15 million scm (+3%).
Revenue from CNG: ₹3,399.52 crore.
2. PNG (Residential + Industrial/Commercial)
Residential PNG connections: 25.6 lakh.
Industrial/commercial customers: ~10,000.
Q3 PNG volumes: 229.87 million scm (+4%).
PNG revenue: ₹1,064.52 crore.
3. Small but Interesting Stuff
- LNG transportation
- H-CNG pilot at Rajghat
- EV charging stations
- Green hydrogen feasibility
- Smart gas meter manufacturing (subsidiary IGL Genesis
