Transcript of Earnings Conference Call for the financial year ended March 31, 2026
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Mahanagar Gas reported Q4 FY26 net profit of ₹132 crores (down from ₹202 crores in Q3) and full year FY26 net profit of ₹847 crores (down from ₹1,041 crores in FY25). The decline was primarily due to supply disruptions from geopolitical tensions in West Asia affecting LNG supply through the Strait of Hormuz. While 100% supply was maintained for domestic PNG and CNG customers, industrial and commercial customers faced approximately 20% supply curtailment. Management took a ₹1 CNG price increase on April 22 and indicated near-term margins are under pressure as cost increases have not been fully passed through. However, management expressed optimism about FY27 volume growth exceeding 10% driven by faster infrastructure expansion due to new government CGD regulations and mandatory PNG adoption replacing LPG. The board approved a final dividend of ₹18 per share, making total FY26 dividend ₹30 per share.
The stock may face near-term pressure as Q4 net profit dropped 35% sequentially and management acknowledged margins are not fully covered in the current high-cost environment. However, the company remains committed to infrastructure-led volume growth, and any normalization in LNG supply and gas prices would be positive for earnings recovery.