Indraprastha Gas Limited (IGL) had a mixed performance in the first quarter of financial year 2027 (Q1FY27), with revenue growth, profitability and operating margins suffering.
The company’s standalone net profit dropped 32.9 percent quarter-on-quarter (QoQ) to Rs 186 crore in the June quarter, down from Rs 277 crore in the previous quarter. The very low profit is due to pressure at the operating level despite higher revenue.
But revenue from operations increased 10.1% sequentially to Rs 4,583 crore in Q1FY27 from Rs 4,163 crore in the previous quarter.
The difference in revenue and profit is an indication of the pressure on the company’s earnings in the quarter. Higher revenue signals more business activity; however, operating earnings have dropped.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 30.3% QoQ to Rs 295 crore in Q1FY27 compared to Rs 423 crore in the previous quarter.
The decline in EBITDA also led to a much bigger cut to the company’s operating margin. EBITDA margin fell to 6.4% in the June quarter from 10.2% in the previous quarter.
The results, therefore, are mixed for investors. On the one hand, IGL managed to achieve double-digit sequential revenue growth. On the other hand, the huge drop in EBITDA and net profit shows that higher revenue did not translate into stronger operating profitability.
IGL Share Price
Indraprastha Gas shares moved lower after the results. At 2:10 pm, shares were down about 1% at Rs 152.90.
The benchmark BSE Sensex was essentially flat with a negative bias at 77,918.06.
And the market response indicates that investors are carefully watching the company’s weaker profitability and margin performance despite the revenue growth.
Key Q1FY27 Numbers
Net profit: Rs 186 crore. QoQ profit change: Down 32.9%. Revenue from operations: Rs 4,583 crore. QoQ revenue growth: Up 10.1%. EBITDA: Rs 295 crore. QoQ EBITDA change: Down 30.3%. EBITDA margin: 6.4%. Previous-quarter EBITDA margin: 10.2%. Share price: Rs 152.90, around 2:10 p.m.
Indraprastha Gas’ Q1FY27 performance was strong topline growth but much weaker operating profitability. The sharp contraction in EBITDA and margins is still a concern, but the 10% sequential improvement in revenue is a positive factor in Q1FY27.
In the long run, the company will have to be able to make sure margins are recovered and revenue growth is converted to better earnings to keep its stock up.
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