MGL - Mahanagar Gas Limited Share Price

In the recent earnings conference call for Mahanagar Gas Limited (MGL) held on May 8, 2026, management provided an outlook reflecting both challenges and opportunities. Despite the disruptions caused by the geopolitical crisis affecting LNG supplies, particularly through the Gulf region, MGL reported that it secured 100% of its domestic PNG requirements from locally produced gas. They noted that although gas supply to industrial and commercial customers was partially curtailed, prices are anticipated to stabilize over time.

Management emphasized their ongoing infrastructure expansion, having connected approximately 3.21 million households and planning to lay down an additional 499 kilometers of pipeline in FY26. Since the start of the financial year, MGL has added 1,18,590 vehicles to its CNG segment, totaling over 1.28 million CNG vehicles registered as of March 31, 2026. They also noted a significant increase in connections and CNG vehicle registrations, indicating robust growth potential.

For FY27, management indicated a positive outlook, expecting exceeding 10% volume growth due to eased CGD infrastructure requirements and the push for PNG adoption resulting from LPG supply constraints. EBITDA was targeted to maintain above INR 8 per SCM, contingent on pricing strategies and the cost environment for LNG.

Key numbers included:

• Q4 FY26 net profit: INR 132 crores (down from INR 202 crores in Q3)
• FY26 net profit after tax: INR 847 crores (down from INR 1,041 crores in FY25)
• Total domestic households connected in FY26: 3,42,157
• CNG vehicle count growth: 1,18,590 vehicles added in FY26.

They also announced a final dividend of INR 18 per share, totaling INR 30 for FY26 after accounting for interim dividends. Management remains optimistic about leveraging market demands to enhance growth and profitability in the coming years.

Question 1: "Did we see volatility in terms of our gas sale, especially in March?"

Answer 1: As I mentioned earlier, our domestic PNG and CNG sales were stable, with 100% of domestic PNG supported by locally produced gas. Industrial supply saw 80% maintenance. In March, we did experience a slight drop"”1.25 lakh to 1.3 lakh scmd, about 20-22% volume lost, primarily affecting large industries.

Question 2: "Is it fair to assume that April and May have seen similar volume and supply levels?"

Answer 2: April has been relatively stable, with expectations for small improvements in May as conditions evolve.

Question 3: "Can you provide a detailed breakdown of the sourcing mix for the quarter?"

Answer 3: In March, APM accounted for about 1.6 mmscmd, pooled gas was 0.75, and spot gas around 0.9 mmscmd, mostly due to disturbances.

Question 4: "What price changes are forecasted for CNG?"

Answer 4: We recently raised CNG prices by INR1 on April 22. Although we can sustain higher costs temporarily, we'll revisit pricing if costs remain high for an extended period.

Question 5: "Can you clarify recent price hikes and their coverage of gas cost increases?"

Answer 5: We've taken a hike of INR1 due to a $0.25 increase in PNG costs from April 1. However, this increase has not fully passed through to consumers, especially in CNG.

Question 6: "How are you managing incremental growth in CNG and DPNG with the supply curtailment?"

Answer 6: While we can connect more customers, supply curtailment limits volume growth. Our aim is to secure spot gas for additional needs.

Question 7: "Could you provide a breakdown of added CNG vehicles this year?"

Answer 7: In FY26, we added 26,000 taxis, 48,238 private cars, 33,200 three-wheelers, and several other categories, totaling approximately 1,18,590 vehicles.

Question 8: "What is your volume target for FY27?"

Answer 8: Given easing regulations and high demand, we're optimistic about achieving over 10% growth, particularly in domestic PNG and commercial sectors.

Question 9: "Is there a capex guidance for FY27?"

Answer 9: We are aiming for approximately INR1,200 crores in capex, focusing on efficient infrastructure expansion while adjusting for resource availability.

Question 10: "Are your Henry Hub contracts still effective amid supply changes?"

Answer 10: Yes, Henry Hub contracts remain active and are priced based on agreements, but disruptions might delay some supplies.

These questions and answers highlight critical insights from the earnings call regarding Mahanagar Gas Limited's performance and strategies.