Indraprastha Gas Q1 FY27 Results (NSE: IGL)
Signal: Growth reaccelerated
The read
The quarter shows a volume-positive but margin-negative inflection: total volumes grew 6% YoY and net revenue grew 17%, yet EBITDA margin fell to 6% from 13% as raw-material cost reached 83.1% of net revenue, while PAT declined 44.4% and associates' contribution also fell 24.0%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,043.44 Cr | +16.6% | +10.0% |
| Net profit | ₹237.92 Cr | -44.4% | |
| EPS | ₹1.12 | -53.9% |
P&L walk
Consolidated revenue from operations rose to ₹5043.44 crore, +16.6% YoY and +10.0% QoQ, but gross margin compressed by about 830bps as raw-material costs rose to 83.1% of net revenue from 74.8%, driving PAT down to ₹237.92 crore, -44.4% YoY.
Segments
The company reports a single operating segment; the material standalone-to-consolidated uplift came from ₹56.83 crore of associate profit, partly offset by the subsidiary's ₹2.60 crore share of loss.
Key positives
- Total volumes increased 6% YoY to 878.98 Million Scm, led by CNG volumes of 656.82 Million Scm, also up 6%.
- Revenue from operations grew 16.6% YoY to ₹5043.44 crore, materially faster than volume growth, indicating higher realisation and/or mix contribution.
- Employee benefits plus other expenses grew approximately 2.0% YoY while revenue grew 16.6%, providing operating-cost discipline despite the gross-margin shock.
Key concerns
- Gross margin compressed approximately 830bps YoY to 16.9% as raw-material cost rose to approximately 83.1% of net revenue from 74.8%; the filing does not disclose the cause or the timing of recovery.
- Standalone EBITDA fell 42% YoY to ₹295.50 crore and EBITDA margin declined 700bps to 6%, showing that higher gas costs were absorbed rather than fully passed through.
- Consolidated PAT fell 44.4% YoY to ₹237.92 crore, with associates' contribution down to ₹56.83 crore from ₹74.77 crore, weakening the earnings support outside the parent.
- Printed consolidated EPS fell 53.9% YoY to ₹1.12 versus a 44.4% PAT decline despite unchanged paid-up equity share capital of ₹280.00 crore.
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