Mahanagar Gas Limited Reports Q1 FY27 Results: Net Profit Rises 46.8% Sequentially to ₹193.70 Crore Despite Year-on-Year Pressure; Total Volumes Up 7% YoY

Mahanagar Gas Limited (CIN: L40200MH1995PLC088133), a premier city gas distribution company headquartered in Bandra, Mumbai, has declared its unaudited standalone financial results and operational performance for the first quarter ended June 30, 2026.

The company registered a notable quarter-on-quarter (QoQ) recovery in profitability and operational revenue, supported by higher gas sales volumes in the CNG and domestic PNG segments, though higher raw gas purchase costs weighed on profitability compared to the corresponding period last year.

Strong Sequential Recovery in Revenues and Earnings

For the quarter ended June 30, 2026, Mahanagar Gas Limited reported a gross revenue from operations of ₹2,597.89 crore, representing a 15.05% sequential increase over ₹2,258.07 crore recorded in Q4 FY26, and a 13.92% growth compared to ₹2,280.44 crore reported in Q1 FY25.

After deducting excise duty of ₹226.18 crore (up 9.35% QoQ and 13.63% YoY), net revenue from operations reached ₹2,371.71 crore. This reflects a 15.62% expansion compared to ₹2,051.22 crore in the preceding quarter and a 13.95% increase from ₹2,081.38 crore in Q1 FY25.

Other income for the quarter stood at ₹30.37 crore, bringing total income to ₹2,628.26 crore, compared to ₹2,287.06 crore in Q4 FY26 and ₹2,312.37 crore in Q1 FY25.

Operating EBITDA and Net Profit Dynamics

Operational EBITDA: EBITDA for Q1 FY27 reached ₹342.98 crore, climbing 31.74% sequentially from ₹260.34 crore in Q4 FY26. However, on a year-on-year basis, EBITDA declined by 31.50% from ₹500.71 crore in Q1 FY25. EBITDA margin as a percentage of net revenue stood at 14.46%, improving from 12.69% in Q4 FY26, but down from 24.06% in Q1 FY25.

Profit After Tax (PAT): Net profit for the period surged 46.83% QoQ to ₹193.70 crore, compared to ₹131.92 crore in Q4 FY26. On a YoY basis, net profit contracted 39.39% from ₹319.56 crore reported in Q1 FY25 due to elevated input costs. PAT margin stood at 8.17% of net operational revenue.

Earnings Per Share (EPS): Basic and diluted EPS for the quarter stood at ₹19.61 per share (face value ₹10), compared to ₹13.35 in Q4 FY26 and ₹32.35 in Q1 FY25.

Detailed Financial Cost Breakdown

Total expenses for the quarter rose to ₹2,369.19 crore, compared to ₹2,108.58 crore in Q4 FY26 and ₹1,880.15 crore in Q1 FY25. Key cost drivers included:

Purchase of Natural Gas and Traded Items: Stood at ₹1,733.38 crore, up from ₹1,481.56 crore in Q4 FY26 and ₹1,310.07 crore in Q1 FY25, reflecting higher input gas costs.

Employee Benefits Expense: ₹46.34 crore, compared to ₹42.98 crore in Q4 FY26 and ₹37.07 crore in Q1 FY25.

Depreciation and Amortisation: ₹108.55 crore, against ₹106.08 crore in Q4 FY26 and ₹95.93 crore in Q1 FY25.

Finance Costs: ₹5.73 crore, up from ₹4.77 crore in Q4 FY26 and ₹4.49 crore in Q1 FY25.

Other Expenses: ₹249.92 crore, lower sequentially from ₹266.91 crore in Q4 FY26, but higher than ₹233.89 crore in Q1 FY25.

Tax Expenses: Total income tax expense for Q1 FY27 was ₹65.37 crore (comprising current tax of ₹48.02 crore, deferred tax of ₹17.35 crore, and an excess provision adjustment of -₹0.22 crore).

Profit Before Tax (PBT) for Q1 FY27 came in at ₹259.07 crore, up 45.15% QoQ from ₹178.48 crore, but lower by 40.06% YoY compared to ₹432.22 crore in Q1 FY25. Total Comprehensive Income for the period stood at ₹195.03 crore after adding an Other Comprehensive Income of ₹1.33 crore.

Operational Performance and Volume Highlights

Mahanagar Gas delivered positive volume expansion during the quarter across total sales, led by robust growth in Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG).

Total Gas Volumes: Achieved 433.71 Million SCM (Million Standard Cubic Meters) or 4.766 MMSCMD (Million Metric Standard Cubic Meters Per Day), marking a 3.14% QoQ increase over 420.50 Million SCM (4.672 MMSCMD) and a 7.01% YoY increase over 405.28 Million SCM (4.454 MMSCMD).

CNG Volumes: Totaled 318.09 Million SCM, registering a growth of 5.55% QoQ (from 301.37 Million SCM) and 9.74% YoY (from 289.85 Million SCM).

PNG - Domestic Volumes: Expanded to 56.67 Million SCM, up 4.13% QoQ (from 54.42 Million SCM) and 9.09% YoY (from 51.95 Million SCM).

PNG - Industrial & Commercial Volumes: Stood at 58.94 Million SCM, down 8.90% QoQ (from 64.70 Million SCM) and down 7.15% YoY (from 63.48 Million SCM). Total PNG volume reached 115.61 Million SCM.

Net Sales Breakdown by Product Category

CNG Net Sales (Net of Excise Duty): ₹1,618.51 crore, up 9.42% QoQ from ₹1,479.23 crore and up 6.85% YoY from ₹1,514.74 crore.

PNG Net Sales: ₹738.56 crore, surging 32.34% QoQ from ₹558.07 crore and 34.18% YoY from ₹550.44 crore.

LNG Sales: ₹0.90 crore, compared to ₹1.07 crore in Q4 FY26 and ₹2.51 crore in Q1 FY25.

Traded Items: ₹3.82 crore, compared to ₹4.17 crore in Q4 FY26 and ₹3.11 crore in Q1 FY25.

Other Operating Income: ₹9.92 crore, up 14.27% QoQ from ₹8.68 crore and down 6.24% YoY from ₹10.58 crore.

The company's paid-up equity share capital remained unchanged at ₹98.78 crore (represented by equity shares of face value ₹10 each). There were no exceptional items or discontinued operations reported during the periods under review.

Shares of Mahanagar Gas Limited was last trading in BSE at Rs. 1117.70 as compared to the previous close of Rs. 1104.70. The total number of shares traded during the day was 177135 in over 5661 trades.

The stock hit an intraday high of Rs. 1165.55 and intraday low of 1089.95. The net turnover during the day was Rs. 201255543.00.

Source : Equity Bulls

Keywords

MahanagarGas INE002S01010 MGL Q1FY27 Q1FY2027 ResultUpdate