Record gas volumes face margin squeeze

Indraprastha Gas Limited reported record Q2 FY27 volumes and turnover, but higher spot LNG costs pushed EBITDA to negative ₹31 crore. Management kept its infrastructure investment and growth plans intact while pursuing supply and pricing measures to address the margin pressure. The company is targeting double-digit volume growth despite the cost headwind ⚡

EBITDA at negative ₹31 cr shows how sharply input costs affected profitability even as underlying demand remained strong. For a city-gas distributor, the margin impact depends on the mix of contracted and spot gas, the pace at which higher costs can be passed through, and the response of CNG and PNG customers to pricing changes. The continued capex programme indicates that network expansion remains a priority rather than a plan being deferred.

OI Charts data for 03 Nov 2026 showed the stock closing at ₹133.28, up 0.3% on the day, with volume of 1,329,913 shares. The modest daily gain came after declines of 4.5% over five sessions and 8.5% over 20 sessions. The stock traded close to its 52-week low of ₹125.63, recorded on 02 Nov 2026, versus a 52-week high of ₹219.10 on 04 Nov 2025. That price context keeps the market’s focus on whether volume growth can translate into a recovery in earnings rather than only revenue expansion 📉

The next key markers are the company’s subsequent quarterly update, the trajectory of spot LNG prices, and evidence that supply contracting or customer pricing actions improve unit economics. Investors will also track whether infrastructure spending supports the targeted volume growth without extending the period of negative EBITDA. The developments matter across the city-gas distribution segment because fuel-cost volatility can affect margins, cash generation and the pace of network investment. 🚗

Source: TradingView, 03 Nov 2026

Not investment advice. For informational purposes only.