Indraprastha Gas Ltd (Gas Distribution) — fundamental analysis, earnings data, and key metrics. PE: 12.5. ROE: 16.4%. This stock is not currently in the Nifty 500 momentum outperformers list.
Deep value thesis based on recent earnings • Updated Mar 21, 2026
IGL is experiencing margin recovery with EBITDA margins rebounding to 12% in Q3 FY26 while volumes grow steadily, signaling the beginning of a cyclical upturn in city gas distribution.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Mar 21, 2026
Expected 25% PAT growth with margins expanding to 12.5% as summer driving season boosts CNG demand.
Impact: +₹1016.88 Cr revenue
“Management guidance on Q3 earnings call”
Potential 5-7% reduction in input costs from new domestic gas pricing formula.
“Petroleum Ministry draft policy leaked to ET”
IGL Genesis subsidiary IPO filing expected, unlocking ₹800-1,000 Cr in value from EV charging business.
“SEBI filing expected per industry sources”
Interim dividend of ₹3.25/share (current yield 1.8%) likely to be supplemented by special dividend from asset sales.
“Historical dividend pattern and management commentary”
Risks that could prevent re-rating or deepen the value trap
LNG prices > $12/MMBtu
Impact: -400 bps margin impact
Management view: Management monitoring closely with hedging discussions underway
Monitor: Henry Hub futures price
DSO > 50 days
Impact: -150 bps margin impact
Management view: Focus on receivables collection per CFO commentary
Monitor: Accounts receivable turnover
Market share loss > 2%
Impact: -200 bps margin impact
Management view: Focus on customer retention programs per management
Monitor: CNG volume growth vs industry average
Forward-looking targets from management for FY27
Revenue Growth Target
7%
Implied PAT Growth
22%
OPM Guidance
13.5%
Capex Plan
₹1200 Cr
Credit Growth Target
0%
NIM Guidance
0%
Key Milestones
• Gas price revision by May 2026
• IGL Genesis IPO by June 2026
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Mar 21, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Indraprastha Gas Ltd's latest quarterly results (Dec 2025) show
Indraprastha Gas Ltd's current PE ratio is 12.5x.
Indraprastha Gas Ltd's price-to-book ratio is 1.9x.
Indraprastha Gas Ltd's fundamental strength based on key financial ratios
Indraprastha Gas Ltd has a debt-to-equity ratio of N/A.
Indraprastha Gas Ltd's return ratios over recent years
Indraprastha Gas Ltd's operating cash flow is positive (FY2025).
Indraprastha Gas Ltd's current dividend yield is 2.87%.
Indraprastha Gas Ltd's shareholding pattern (Dec 2025)
Indraprastha Gas Ltd's promoter holding has remained stable recently.
Indraprastha Gas Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Indraprastha Gas Ltd has 4 key growth catalysts identified from recent earnings analysis
Indraprastha Gas Ltd has 3 key risks worth monitoring
Indraprastha Gas Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why Indraprastha Gas Ltd may be worth studying
Indraprastha Gas Ltd investment thesis summary:
Indraprastha Gas Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
