Indraprastha Gas Share Price

Indraprastha Gas Ltd. (IGL)

Indraprastha Gas Ltd. (IGL) has been a key player in India's City Gas Distribution (CGD) sector since its incorporation in 1998 as a joint venture between GAIL and BPCL. Headquartered in New Delhi and led by Managing Director Shri Kamal Kishore Chatiwal, IGL is a leading provider of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG), catering to households, industries, and the transportation sector. With a strong presence across Delhi NCR, Uttar Pradesh, and Rajasthan, the company is continuously expanding into new geographies to promote cleaner and more sustainable energy solutions. Through its innovative offerings and growing network, IGL is playing a pivotal role in India's transition to a greener future.

Founding and Early Years (1998-2000)

• Formed to implement Delhi City Gas Distribution Project
• Took over project from GAIL in 1999
• Signed asset transfer deal with GAIL in 2000
• Acquired distribution network, infrastructure, licenses

Infrastructure Build-out (2001-2006)

• Commissioned several kms of steel pipelines
• Expanded CNG station network in Delhi NCR
• Entered gas supply agreements with players like BPCL
• Diversified gas procurement through spot purchase deal

CNG and PNG Network Growth (2012-2015)

• Augmented CNG infrastructure and compression capacity
• Increased CNG outlets from 324 to 326
• Expanded steel pipeline network from 575 km to 631 km
• Added over 100,000 new PNG connections in 2014-15

Strategic Moves and Acquisitions (2014-2016)

• Became majority shareholder in MNGL, entering Pune market
• Increased stake in MNGL to 50% by 2016
• Strategy to expand footprint across India

Technology Adoption and Innovation

• Pilot for CNG kit retrofitting in two-wheelers
• Rooftop solar plants at facilities
• Mobile CNG delivery during pandemic

Recent Expansions and Growth Plans

1. CNG and PNG Network Expansion

• IGL achieved a milestone of operating 882 CNG stations as of March 2024, with plans to expand this number to 1,100 stations by FY27.
  
• The company has provided PNG connections to over 27 lakh households, with a target to add another 3 lakh connections annually.
  

2. Compressed Biogas (CBG) Plants

• IGL plans to set up 19 compressed biogas plants, which will feed into its city gas distribution network as part of its sustainability initiatives.
  

3. Digitalization and Technology Upgrades

• The company is focusing on automating operations across its value chain and has introduced digital solutions for customer convenience and operational efficiency.

4. Capex Plans

• IGL has announced a capital expenditure of ₹8,000 crore over five years (FY24–FY28) to expand its city gas distribution network in existing and new geographical areas.
  
• In FY24 alone, the company allocated ₹1,600 crore for infrastructure development.
  

5. Geographical Expansion

• IGL is expanding operations into new regions such as Ajmer, Kanpur outskirts, Fatehpur, and Muzaffarnagar while consolidating its presence in Delhi-NCR.
  

6. Sustainability Initiatives

• The company is actively replacing diesel gensets with PNG supply for industrial clients and promoting the use of CNG vehicles through partnerships with automobile manufacturers.
  

• These developments highlight IGL's focus on infrastructure expansion, sustainability efforts through renewable energy initiatives like biogas plants, and leveraging technology for operational efficiency while navigating profitability challenges due to fluctuating gas costs. As a result, these also have a positive impact on the Indraprastha Gas share price.
  

Financial Performance

1. Q3 FY25 (October–December 2024)

• Revenue from Operations ₹3,759 crore, up 1.7% quarter-on-quarter (QoQ) from ₹3,697 crore in Q2 FY25 and 5.7% year-over-year (YoY).
  
• Net Profit ₹285.8 crore, a decline of 33.7% QoQ from ₹431 crore in Q2 FY25 and 31% YoY from ₹475 crore in Q3 FY24.
  
• EBITDA ₹363.7 crore, down 32.1% QoQ from ₹536 crore in Q2 FY25 and 36% YoY from ₹564 crore in Q3 FY24.
  
• EBITDA Margin Declined to 9.7%, compared to 14.5% in the previous quarter.
  

2. FY24 Annual Performance

• Revenue ₹14,000 crore, slightly lower than ₹14,146 crore in FY23.
  
• Operating Profit (EBITDA) ₹2,364 crore, up 15.9% YoY from ₹2,040 crore in FY23.
  
• Net Profit ₹1,983 crore, a 21% increase compared to ₹1,640 crore in FY23.
  
• Operating Profit Margin (OPM) Improved to 17% from 14.5% in FY23.
  

3. H1 FY25 (April–September 2024)

• Total sales volume increased by 7% YoY to 1,616 MMSCM.
  
• PAT margin stood at 11.53%, reflecting a decline due to higher gas purchase costs.
  

Business Model and Revenue Streams

PNG

• Domestic, commercial and industrial supply
  
• Accounts for majority of gas sales volume
  
• Stable long-term customer base
  

CNG

• For automobiles like cars, autos, buses
  
• Majority of stations owned by IGL
  
• Lower margin but high volume
  

Other Value Added Services

• Gas pipeline infrastructure projects
  
• Technical consultancy services
  
• Skid packaging units
  

Competitive Analysis

Cost Efficiency

Extensive distribution infrastructure
Higher economies of scale
Strong supplier relationships

High Bargaining Power

• Accounts for ~60% of CNG market in core areas v
• Caters to largest PNG customer base
  

Operational Excellence

• Advanced IT systems and automation
  
• Stringent safety and maintenance protocols
  
• High asset utilization rates
  

Innovation

• Consistent technology adoption
  
• New product and service offerings
  
• Focus on operational efficiency
  

Growth Drivers

• Surging CNG demand from automobiles
  
• PNG adoption for domestic and industrial use
  
• Government push for gas-based economy
  
• Rising per capita energy consumption
  
• Environmental benefits driving adoption
  

Risks and Challenges

• Fluctuations in domestic gas availability
  
• Execution delays in infrastructure projects
  
• Intense competition in new license areas
  
• Volatility in global LNG prices
  
• Gas subsidy reforms affecting pricing
  

Future Strategies

• Expanding distribution network in existing and new GAs
  
• Increasing PNG connections across customer segments
  
• Enhancing LNG storage, regasification and dispensing infrastructure
  
• Leveraging technology to improve efficiencies
  
• Developing new revenue streams
  

Industry Outlook

India's City Gas Distribution (CGD) sector is on a strong growth trajectory, driven by rapid urbanization, which is fueling demand for cleaner energy alternatives. Supportive government policies and rising infrastructure investments are further accelerating the expansion of CGD networks across the country. With natural gas becoming more cost-competitive compared to liquid fuels, industries and households are increasingly adopting Piped Natural Gas (PNG) and Compressed Natural Gas (CNG). Additionally, regulatory initiatives by PNGRB (Petroleum and Natural Gas Regulatory Board) are fostering greater competition through bidding, paving the way for a more efficient and consumer-friendly gas distribution ecosystem.

Brief Overview

With its strong track record, extensive infrastructure, and focus on growth, IGL is well-positioned to maintain leadership in India's rapidly growing CGD sector. Its strategic expansions into new regions, adoption of technology, and diverse revenue streams provide healthy prospects despite risks related to gas availability and pricing reforms. IGL remains a key facilitator of India's vision for a gas-based economy.