MGL - Mahanagar Gas Limited Share Price

Mahanagar Gas Limited's management provided an optimistic outlook during the earnings call for the third quarter of the financial year 2025-26, indicating a continued robust growth trajectory. The company achieved an overall average sales volume of 4.62 MMSCMD, a 7.19% increase year-on-year. CNG sales specifically rose by 5.92%, reaching 3.281 MMSCMD, while domestic PNG and industrial sales volumes also showed healthy growth.

Key forward-looking points included:

• Management expects a potential increase in volume growth, targeting double-digit growth rates for the upcoming fiscal year, given the growth trends observed in recent quarters.
• The company has successfully connected over 3.07 million households and added 491 CNG stations, with plans for further expansion.
• An interim dividend of 120% (INR 12 per equity share) was approved, reflecting confidence in ongoing performance.
• The EBITDA for the quarter reached INR 352 crores, while net profit after tax came in at INR 202 crores, underscoring stable financial health.
• Management noted that gas sales for the nine-month period ending December 2025 stood at 4.556 MMSCMD, signaling an 8.97% increase compared to the previous year.
• Future margin guidance for FY "˜27 is set between INR 8 to INR 9 per SCM, allowing flexibility amidst price fluctuations in gas sourcing.

Overall, MGL's management strategy focuses on strong growth figures supported by infrastructure expansion and effective gas sourcing methodologies, positioning the company favorably for future operational performance.

Major Questions and Answers from the Q&A Section of the Earnings Transcript

1. Probal Sen: "In the 4.62 MMSCMD volume, is it possible to bifurcate how much was the UEPL sales volume and to give the corresponding sales in the quarter 3 of last year?"

   Rajesh Patel: "Quarter Q3 UEPL average was 0.283 MMSCMD, and the corresponding volume last year was roughly around 0.2 MMSCMD."

2. Probal Sen: "Any price changes that have happened in any segment in this quarter or any price changes planned in the fourth quarter? Can you give us any color?"

   Rajesh Patel: "On February 1st, we increased our CNG price by INR0.50 per kg."

3. Probal Sen: "Any change in the guidance for medium- to long-term volume growth? Are we maintaining that 8% to 9% kind of volume growth overall on an annualized basis?"

   Ashu Shinghal: "We expect Q4 to be slightly better, reaching around double-digit growth, and our future guidance is also around double-digit growth."

4. Yash Nandwani: "Could you help us understand the impact of gas supply disruption that was there due to the pipeline damage in Q3?"

   Rajesh Wagle: "The production was down for just 1 day, affecting roughly 1% of CNG volumes during that duration."

5. Vivekanand S: "Is there any update on the schemes that you are running to acquire customers and improve volume growth in your core areas?"

   Rajesh Wagle: "We are focusing on large fleet owners and transporters to offer attractive schemes, like discounts through fuel cards, especially targeting bigger transport vehicles."