1. Opening Hook
Just when Mumbaikars thought fuel inflation was the only villain, MGL’s Q2 numbers politely reminded everyone:“Bhai, margins ka jugaad mushkil hai.”Gas costs spiked, APM allocation dipped, rupee weakened, and LNG prices behaved like Bollywood star rates before New Year shows.
Yet, volumes rose 9% YoY—because Mumbai still refuses to give up its love affair with CNG queues. As theQuransays, “Verily, with hardship comes ease”—MGL seems to be clinging to that hope this quarter.
Read on—trust me, the later sections get juicier than a diesel vs CNG Twitter fight.
2. At a Glance
- Volumes up 9% YoY– Mumbai loves CNG enough to ignore queue trauma.
- EBITDA at ₹338 cr– Down from ₹501 cr last quarter; gas costs punched hard.
- PAT at ₹193 cr– Squeezed like LPG cylinders in summer.
- APM allocation slipped– From ~1.7 to 1.68 MMSCMD; NWG down too.
- Spot gas dependence rose– Because term gas said “I’m booked, bro.”
- CNG vehicles added: 27,150– Still the city’s favourite budget hack.
- Stations: 485– Target: 80 new stations this year; monsoon delayed the party.
3. Management’s Key Commentary
Quote:“Q2 margins reduced mainly due to gas cost increases.”(Translation: Exchange rate + HPHT + RLNG = hamari vaat lag gayi.)
Quote:“NWG has come down from 0.5 to 0.35 MMSCMD.”(Translation: Even domestic gas ghosted us like a flaky landlord 😏.)
Quote:“APM + NWG price blended up due to CBG commingling.”(Translation: We didn’t order CBG, but it came in the parcel.)
Quote:“Long-term HPHT contracts in Jan 2026 should give respite.”(Translation: Bandaid arriving… 3 months late.)
Quote:“EV will have limited impact in Mumbai.”(Translation: Try charging an e-rickshaw in Bandra without parking, good luck.)
Quote:“IBC investment will take 1.5–2 years to reflect any top line.”(Translation: Matlab abhi ke liye paisa gaya, return baad mein.)
Quote:“UEPL margins will converge with MGL as volumes rise.”(Translation: The adopted child is learning fast.)
Quote:“EBITDA/scm guidance ~₹8.5–₹9
for H2.”(Translation: Forget ₹10, that was last season’s fashion.)
4. Numbers Decoded
| Metric | Value (Q2 FY26) | YoY Change | One-Line Analysis |
|---|---|---|---|
| Total Volume | 4.593 MMSCMD | +9.2% | Volume engine firing even as costs choke margins. |
| CNG Volume | 3.255 MMSCMD | Up | Car + taxi recovery helps. |
| PNG-Domestic | 0.582 MMSCMD | Slight up | Incremental households help slowly. |
| Industrial + Commercial | 0.757 MMSCMD | +8.5% QoQ | Good growth despite margin erosion. |
| EBITDA | ₹338 cr | Sharp fall | Gas cost cocktail killed profitability. |
| PAT | ₹193 cr | Down | Q1 one-time reversal made last quarter look sexy. |
| H1 EBITDA | ₹839 cr | Flat YoY | Survived only due to Q1 boost. |
| CNG Vehicles Added | 27,150 | — | Fleet & private car momentum intact. |
One-liner summary:Volumes grew, margins shrank, and spot LNG bills screamed “pick me, pick me!”
5. Analyst Questions
On margin fall:Mgmt: Higher gas mix cost, exchange rate hit, NWG cut, and lower alt-fuel prices.(Translation: Sab mila ke loss of margin ka biryani ban gaya.)
On H2 outlook:Mgmt: Q3 at ₹8.5/scm; Q4 better after HPHT term contracts.(Translation: Q2 bad, Q3 manageable, Q4 hope-heavy.)
On EV threat:Mgmt: Mumbai lacks parking + charging = EV impact mild.(Translation: EV may kill CNG elsewhere, but not in aamchi Mumbai.)
On station rollout:Mgmt: 80 targeted; monsoon slowed work.(Translation: Mumbai rains > infra plans.)
On new businesses:
