Mahanagar Gas Q2 results: Net profit more than doubles to Rs 339 crore

Mahanagar announced Q2 FY24 results on October 27

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26 Aug, 2025 12:21

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Mahanagar Gas Limited (MGL) on October 27 reported a 106 percent year-on-year surge in consolidated net profit in the September quarter of the financial year 2023-24.

Consolidated net profit of the city gas distribution company stood at Rs 339 against Rs Rs 164 crore in the year-ago period.

The profit jump us mainly due to fall in the cost of natural gas -- Rs 899 crore from Rs 1148 crore a year ago.

The company's total income increased to Rs 1,773 crore, up 1.66 percent from Rs 1,744 crore in the same quarter last fiscal.

Ahead of the results announcement, shares of Mahanagar Gas closed marginally higher at Rs 991.05 a piece on NSE.

Sales volume rise

The company said its total gas sales volume for the quarter was 329 mmscmd (million metric standard cubic meter per day), rising 6% from the previous quarter. Of the total volume, industrial volume was 46 million SCM, while CNG was 238 million SCM.

Outlook
Taking a bullish stance on Mahanagar Gas, Jefferies recently upgraded the stock to ‘buy’ and raised the target price from Rs 1,100 per share to Rs 1,320 per share as it sees a strong 27 percent growth in earnings in FY25.

Lower gas cost, high volume growth prospects and the highest priority in allocation are the key factors that would drive margins of Mahanagar Gas Ltd in the near term, said Jefferies in a recent report.

Recent partnerships with original equipment makers (OEM) entered into by MGL would support volume growth, the international brokerage said.

Mahanagar Gas is an enterprise of GAIL (India) Limited, a Maharatna company of central govenment and Maharashtra government. The company supplies CNG to vehicles and piped natural gas to domestic households. It also has some petrol stations in Maharashtra.

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