Mahanagar Gas Ltd.Prioritizing Volume Growth Amid Disruption

Mahanagar Gas Ltd. reported a challenging Q4 FY26 with net profit declining 34.7% quarter-on-quarter to ₹132 crores due to West Asia crisis-induced supply disruptions that curtailed industrial volumes by 20-22% in March.

For the full fiscal year, net profit fell 18.6% to ₹847 crores despite solid 8.25% volume growth to 4.585 mmscmd, driven by industrial and commercial segment expansion at 15.04%. Management emphasized a strategic pivot toward volume growth over near-term margins, capitalizing on regulatory reforms announced in March that reduced road reinstatement charges by over 50% and introduced deemed permissions for faster infrastructure rollout.

The company targets double-digit volume growth exceeding 10% in FY27, supported by government mandates for PNG adoption amid LPG supply constraints and plans to add 4-5 lakh new domestic connections. Management maintained EBITDA per SCM guidance above ₹8 while prioritizing infrastructure deployment with capex exceeding ₹1,200 crores. The board recommended a final dividend of ₹18 per share, bringing total FY26 payout to ₹30 per share.