Mahanagar Gas Q2 FY27 Results (NSE: MGL)
Signal: Growth reaccelerated
The read
Q2FY27 delivered revenue growth of 23.12% YoY to ₹2,776.74 crore on higher gas volumes, but the thesis remains margin-led: standalone EBITDA margin fell to 12.01% from 14.46% QoQ as gas and traded-item purchases rose to 68.89% of revenue versus 63.18% YoY, while PAT fell 29.25% to ₹137.03 crore after a ₹17.33 crore investment impairment.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,778.05 Cr | +23.12% | +6.88% |
| EBIT margin | 12.01% |
P&L walk
Consolidated revenue rose to ₹2,778.05 crore, +23.12% YoY and +6.88% QoQ, but the available consolidated extract does not disclose PAT, EPS or a reported EBITDA line; purchase of natural gas and traded items increased to ₹1,914.85 crore from ₹1,425.86 crore YoY.
Segments
The company reports a single operating segment, but CNG remained the largest volume stream at 326.82 SCM million and PNG volumes grew faster QoQ at 6.56% versus CNG at 2.74%; consolidated earnings were only marginally affected by subsidiaries and associates, which reported a ₹0.45 crore subsidiary loss and ₹1.18 crore associate loss in the quarter.
Key positives
- Total volumes rose 3.76% QoQ to 450.02 SCM million, with PNG volumes up 6.56% QoQ and CNG volumes up 2.74%.
- Standalone revenue from operations increased 23.12% YoY to ₹2,776.74 crore, while employee and other expenses grew 11.89% YoY to ₹322.03 crore.
- H1 operating cash flow improved to ₹695.48 crore from ₹529.35 crore YoY, despite H1 PAT declining 35.52% to ₹330.73 crore.
- PPE plus CWIP rose to ₹6,391.20 crore from ₹5,933.68 crore, and depreciation increased 12.56% YoY, a clean capex-to-depreciation signal.
Key concerns
- Standalone EBITDA margin fell to 12.01% from 14.46% QoQ, while EBITDA before exceptional items declined 11.14% QoQ to ₹304.76 crore.
- Gross margin compressed 513bps YoY to 22.57% as gas and traded-item purchases rose to 68.89% of revenue from 63.18%; the filing does not disclose the precise cost driver.
- Standalone PAT declined 29.25% YoY and QoQ to ₹137.03 crore, with the operating decline compounded by a ₹17.33 crore exceptional impairment.
- H1 EBITDA before exceptional items declined 22.77% YoY to ₹647.73 crore despite net revenue growth of 18.84%, showing sustained earnings conversion pressure.
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