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Informist, Friday, Aug. 14, 2026

 

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--Indraprastha Gas: Seen some rise in avg natural gas cost from July
--Indraprastha Gas: Natural gas avg cost INR 40-45/scm in Apr-Jun
--Indraprastha Gas: Incurred capex of around INR 3.27 billion in Apr-Jun
--Indraprastha Gas: See 1?cline in CNG volume from Delhi EV policy 2027
--Indraprastha Gas: New Well Gas supply in Q1 was 1 mscmd lower than earlier
--Indraprastha Gas: Saw reshuffling of domestic gas supply from Apr-Jun
--Indraprastha Gas: Sourced 52% natural gas from imported sources in Apr-Jun
--Indraprastha Gas: Sourced 48% natural gas from domestic sources in Apr-Jun
--CONTEXT: Comments by Indraprastha Gas mgmt in post-earnings analyst concall
--Indraprastha Gas: Sourced LNG at $17-22 per MBTU in Apr-Jun
 

 

By Sunil Raghu and Shakshi Jain

 

AHMEDABAD/NEW DELHI - Indraprastha Gas Ltd. has started seeing its average natural gas sourcing cost rise from July, after the company paid around INR 40-INR 45 per standard cubic metre to source natural gas in the Apr-Jun quarter, company officials told analysts in a post-earnings call on Friday. The rise comes amid falling share of domestically sourced gas, and more reliance on costlier imported gas. The change in the domestic and imported gas mix could put some pressure on the company's average input costs going forward.

 

The city gas distributor sourced 52% of its gas requirement from imported sources and the remaining 48% from domestic sources during the first quarter of 2026-27 (Apr-Mar). The company sourced liquefied natural gas at around $17-$22 per million British thermal unit equivalent, or mBtu, during the quarter under review. Instead of accepting that there has been a rise in cost of sourcing natural gas, company officials said there was some "reshuffling" in domestic gas supplies during Apr-Jun. The supply of New Well Gas too was around 1 million standard cubic metres per day, or mscmd, lower than the earlier level.

 

Indraprastha Gas Ltd. Thursday reported a sharp fall in its net profit for the June quarter due to a significant rise in natural gas buy cost and excise duty. The company reported a net profit of INR 1.86 billion for Apr-Jun, down nearly 48% from INR 3.56 billion a year ago. It reported strong growth in revenue from operations, which rose over 16% on year to INR 50.40 billion.

 

Indraprastha Gas, which supplies compressed natural gas and piped natural gas in the Delhi-National Capital Region and adjoining areas, incurred capital expenditure of around INR 3.27 billion in Apr-Jun. The company continues to invest in expanding its gas distribution network and related infrastructure as it seeks to cater to rising demand from existing and new customers. The company officials expect Indraprastha Gas' annual capital expenditure to remain around INR 18 billion-INR 20 billion, including up to INR 15 billion towards core operations. Additional spending could be undertaken for business development and diversification opportunities.

 

The company said average daily gas sales rose to 9.66 mscmd in the June quarter from 9.13 mscmd a year ago. Its CNG volumes, excluding to Delhi Transport Corp., grew around 11%, while volumes in newer geographical areas rose around 27%. The company added over 100,000 piped natural gas customers and around 530 industrial and commercial customers during the quarter under review, while its steel pipeline network expanded by around 25 kilometres.

 

The company officials said they expect limited impact of the Delhi government's electric vehicle policy, which mandates only EV registrations for certain vehicle categories from Jan 1, 2027. The officials estimate that the policy could reduce overall volumes by less than 1% in 2027 and less than 3% by 2030.

 

On Friday, shares of the company closed at INR 151.70 per share on the National Stock Exchange, steady from the closing price on Thursday.  End

 

US$1 = INR 95.43

 

Edited by Avishek Dutta

 

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