Company Overview
Indraprastha Gas Limited (IGL) reported its financial and operational performance for FY 2025-26, showing mixed results with revenue growth but profit decline. The company filed comprehensive disclosures including annual results, AGM notice, and detailed financial statements.
Financial Performance
IGL reported standalone revenue of ₹17,845.71 crores for FY26, representing an 8.5% increase from ₹16,451.27 crores in FY25. However, net profit declined 7.1% to ₹1,364.10 crores from ₹1,467.59 crores, with basic EPS at ₹9.74 compared to ₹10.48 in the previous year. The profit decline occurred despite revenue growth, primarily due to increased operating costs including employee benefits and higher gas purchase costs.
Consolidated performance showed profit after tax of ₹1,543.51 crores with EPS of ₹11.07. Key financial ratios included return on equity of 14.16% (down from 16.46%) and net profit margin of 7.64% (down from 8.91%).
Dividend Declaration
The Board recommended a final dividend of ₹1.50 per share (75% of face value) for FY26, following an interim dividend of ₹3.25 per share (162.5%) paid during the year. The total dividend payout amounts to ₹665 crores, with record date set for October 1, 2026 for final dividend payment. This maintains the company's consistent dividend distribution policy.
Operational Highlights
IGL achieved average daily sales volume of 9.39 MMSCMD with total sales of 3,427.21 MMSCM, representing 4.46% YoY growth. CNG sales reached 2,532.94 MMSCM (4.13% growth) while PNG sales grew 5.41% to 894.27 MMSCM. The company expanded its network to 1,024 CNG stations (adding 70 new stations) and served approximately 23 lakh CNG vehicles with 34.4+ lakh PNG domestic connections.
Capital expenditure stood at ₹1,331.16 crores with significant investments in property, plant and equipment. The pipeline network expanded to 2,602 kms of steel pipeline and 29,734 kms of MDPE network.
Employee Benefits Impact
The company experienced a significant 40% increase in employee benefit expenses to ₹39.32 crore, driven primarily by the implementation of new Labour Codes effective from November 21, 2025. IGL recognized a financial impact of ₹28.96 crore from past service costs related to gratuity, earned leave, and sick leave benefits. Defined benefit obligations increased substantially with gratuity obligation at ₹49.43 crores, earned leave at ₹34.84 crores, and sick leave at ₹24.71 crores.
Corporate Governance & AGM
The 27th Annual General Meeting is scheduled for September 24, 2026 via video conference to approve financial statements, declare final dividend, re-appoint directors, and ratify auditor appointments. The meeting includes special business to ratify cost auditor remuneration of ₹2.92 lakhs and authorize the board to fix statutory auditor fees for FY27.
Related Party Transactions
Significant transactions included natural gas purchases from GAIL (India) Limited amounting to ₹10,047.91 crores and CNG sales to Bharat Petroleum Corporation Limited of ₹1,765.67 crores. Dividend payments to promoters GAIL and BPCL totaled ₹149.63 crores each. The company maintains investments in associates Maharashtra Natural Gas Limited (50% holding) and Central U.P. Gas Limited (50% holding), with share of profit of ₹269.45 crores and ₹31.56 crores respectively.
Contingent Liabilities & Regulatory Matters
The company faces several contingent liabilities including DDA license fee demand of ₹330.73 crores (pending with High Court), PNGRB penalties of ₹24.86 crores for MWP shortfalls, and various tax demands totaling approximately ₹36.32 crores under dispute. The company has made representations for waiver of certain penalties.
Financial Position & Cash Flow
IGL maintained a strong balance sheet with net worth of ₹9,986.70 crores and minimal borrowings. Cash flow from operations generated ₹1,946.86 crores, while investing activities used ₹1,199.75 crores primarily for capital expenditure. The company held investments in mutual funds of ₹1,383.57 crores and security deposits from customers of ₹1,869.43 crores.
Auditor's Report & Compliance
The statutory auditors provided an unmodified opinion on both standalone and consolidated financial statements, with emphasis on matters including DDA license fee demand, accounting treatment of New Labour Codes, and classification of unbilled revenue. The Comptroller and Auditor General of India conducted a supplementary audit with no significant comments.
The company complies with SEBI LODR Regulations and Companies Act requirements, with all necessary disclosures and e-voting arrangements in place for the upcoming AGM.