Mahanagar Gas Limited (MGL) held its Q2 FY26 earnings call on October 30, 2025. Key highlights included an overall average sales volume increase of 3.11% compared to the previous quarter, the addition of 14 CNG stations, and connection of over 53,566 domestic households. The company’s management discussed strategies for volume growth and margin management, focusing on the impact of EV policies and gas procurement mix.
Financial Performance Highlights
In Q2 FY26, MGL reported an overall average sales volume of 4.593 MMSCMD, a 3.11% increase from the previous quarter’s 4.454 MMSCMD. This volume comprised 3.22 MMSCMD of CNG, 0.582 MMSCMD of DPNG, and 0.757 MMSCMD supplied to industrial and commercial customers. CNG sales volume increased by 2.19% to 3.255 MMSCMD, while domestic PNG sales increased by 1.69% to 0.582 MMSCMD, and industrial/commercial sales rose by 8.45% to 0.757 MMSCMD.
Infrastructure and Customer Growth
During the quarter, MGL connected 53,566 domestic households, bringing total connectivity to nearly 2.94 million households. The company laid 87.4 kilometers of steel and PE pipeline, extending the total length to over 8,061.62 kilometers. Fourteen CNG stations were added, increasing the total to 485 as of September 30, 2025. Additionally, MGL added 116 industrial and commercial customers, for a total of 5,316, and 27,150 CNG vehicles, exceeding 1.22 million CNG vehicles in its areas.
EBITDA and Net Profit
EBITDA from operations for the quarter stood at INR338 crores, down from the previous quarter’s INR501 crores. Net profit after tax was INR193 crores, compared to INR320 crores in the previous quarter. H1 EBITDA totaled INR839 crores, slightly below the previous year’s INR850 crores, while net profit after tax for H1 was INR513 crores, compared to INR576 crores in the previous year.
Key Discussion Points
The earnings call addressed factors affecting margins, including gas costs, APM allocation, and exchange rates. Management mentioned that the Maharashtra EV policy’s impact is not expected to be significant for MGL. The company is targeting approximately 80 new CNG stations this year and highlighted a focus on commercial vehicle segments. Capex guidance for FY26 is estimated at INR1,100 crores to INR1,200 crores.
Guidance and Outlook
MGL anticipates a volume growth of around 10% year-on-year. EBITDA margin guidance is estimated to be between INR8.5 and INR9 per SCM. MGL’s focus remains on volume growth and leveraging infrastructure buildout.
Source: BSE
