Indraprastha Gas ↗

IGL was established in December 1998 as a JV between GAIL, BPCL , and Government of National Capital Territory of Delhi (GNCTD) to implement the CGD project in the NCT of Delhi. As on June 30, 2026, GAIL and BPCL held equity of 22.50% each in IGL, while GNCTD owned 5% equity. IGL has been promoted by sector leaders , such as GAIL, (the largest natural gas transmission company in India) and BPCL (one of the leading oil refining and marketing companies in India). IGL derives technical and

IGL is one of the leading players in the CGD business in India and has a dominant market position, particularly in the NCT of Delhi. IGL has infrastructure exclusivity of 25 years in its authorised GAs as prescribed under the Petroleum and Natural Gas Regulatory board (PNGRB) Act, 2006. However, this has been expired for NCT of Delhi and the company has applied for extension for another 10 years. The marketing exclusivity period is also expired for NCR; however, the company continues to benefit

The company achieved consistent growth in scale of operation with sales volume witnessing a y -o-y growth of ~ 4.5% in FY26 (to 3,427 MMSCM in FY26 from 3,281 MMSCM in FY25), attributed to increase in its CGD infrastructure. In line with volume growth, the TOI also witnessed a y-o-y growth of ~8.4% to ₹16,167 crore in FY26 (FY25: ₹14,912 crore). However, the PBILDT margin moderated to 11.65% in FY26 (FY25:13.35%), due to reduced allocation of APM gas and higher reliance of costlier RLNG/HPHT

The company continues to be debt free as on March 31, 202 6. Debt comprises only lease liabilities of ₹ 55 crore as on March 31, 2026. The company had proposed raising bonds of ₹400 crore, however, this is not expected to be placed in the medium term, considering the strong liquidity position of the company. Debt coverage metrics have remained robust due to the strong profitability and absence of debt. IGL has entered a JV with RVUNL, to develop a 500 MW solar power project in Rajasthan, where

The GoI is actively promoting cleaner energy sources, including natural gas, to address environmental concerns. CGD projects have emerged as a key segment in this transition, driven by regulatory support and court directives against polluting fuels. With domestic natural gas consumption still at a nascent stage, there is significant growth potential. The GoI aims to increase share of natural gas in the primary energy mix from 6.5% to ~15% by 2030. Ongoing expansion in RLNG import infrastructure

Under the existing Ministry of Petroleum and Natural Gas (MoPNG) regulations, CGD companies are accorded the highest priority and are allotted domestic natural gas under APM to meet their requirement for supply to PNG -domestic and CNG segments, whereas they have to rely on imported RLNG for meeting the requirement of PNG -industrial and PNG -commercial segments , and shortfall in CNG and PNG -Domestic supplies. Currently, this domestic allocation is relatively cheaper compared to alternative

Geopolitical tensions in West Asia and concerns over LNG supplies has created near-term pressure on IGL’s gas sourcing and margins. The impact on volumes was largely mitigated by the GoI’s prioritisation of domestic gas allocation to CNG and domestic PNG segments (accounting ~83% of sales volumes), which ensured uninterrupted supplies to these priority consumers. Gas supplies to industrial and commercial segments have also witnessed growth, considering concerns over LPG. However, in Q1FY27,

IGL has envisaged capex of ~₹1,500 crore per year in the medium term. This capex will be for development of CGD network in newly awarded GAs and expansion of CGD network in its already authorised / operational areas. This capex plans of IGL are envisaged to be funded through internal accruals, available liquidity with the company and security deposits without availingdebt as articulated by the management. CareEdge Ratings expects IGL’s credit profile to continue to remain comfortable with adequa

CGD entities are regulated by PNGRB with risk associated with entry of new players post expiry of the marketing/network exclusivity period, which may impact profitability of players. The segment is vulnerable to demand-supply of natural gas and changes in the pricing mechanism. IGL’s operating margins, like other CGD companies, are vulnerable to the mix of APM gas and costlier imported RLNG used in its product mix. Unexpected change in regulations regarding priority in allocation of APM gas for