Indraprastha Gas Limited

Utilities — Utilities - Regulated Gas · NSE

₹143.03−₹2.11 (−1.45%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Indraprastha Gas Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indraprastha Gas Limited distributes and sells natural gas in India. It supplies compressed natural gas (CNG) to the transport sector; and piped natural gas to domestic, industrial, and commercial sectors.

IndustryUtilities - Regulated Gas

SectorUtilities

Employees709

Annual revenue₹16,107 Cr

How does it make money?

Turns over ₹16,107 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 709 employees supports ₹22.72 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin15.1%

Net margin9.6%

Revenue / employee₹22.72 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NTPC LTDP/E 11.0x · ROE 13.7%

POWER GRID CORP. LTD.P/E 14.6x · ROE 15.8%

TATA POWER CO LTDP/E 29.3x · ROE 9.8%

ADANI POWER LTDP/E 26.5x · ROE 21.9%

What is its competitive advantage?Some evidence

ROCE of 16.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.3%

ROE13.5%

Peer median ROE15.8%

What is the outlook?

26 analysts covering the stock expect revenue to grow about 8.0% and earnings to grow about 21.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.0%

Est. earnings growth+21.5%

Analysts26

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +14% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+14%

Margin effect-17%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.6% — barely ahead of inflation
✗ Profit has declined at 1.9% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 43.8% in the latest year

Quality vs. Valuation

Company Quality

53/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.7x

3Y Median

15.4x

40 monthly readings · mean 15.9x · range 11.5x–23.4x

Sector Median

20.6x

median of 4 sector peers

🟡Currently trading close to its 3y median of 15.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 24% below the peer median of 20.6x.

vs. its own history

Fair

15.4x median over 40 months · +2%

vs. sector peers

Cheap

20.6x median of 4 peers · -24%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.7x

P/B

1.74x

EV/EBITDA

8.2x

PEG

—

Dividend Yield

2.10%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 17.3% to 15.1% over 3 years.
Return on equity is falling
ROE has dropped from 20.7% to 13.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.4% to 16.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 24% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17.3% to 15.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 4.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 20.7% to 13.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.6% CAGR
Latest reported year was 17.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹588 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹20,024 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.12

Profitable

Profitable on a per-share basis

ROE

13.5%

Moderate

Moderate capital efficiency

ROCE

16.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.85x

Moderate

Moderate leverage

Revenue Growth (YoY)

17.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-43.8%

Falling

Profits are shrinking

Dividend Yield

2.10%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹588 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹143.03

P/E (Forward)

10.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

8.1%

Average

Average bottom-line conversion

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

144.7 / 148.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,087 Cr	₹13,947 Cr	₹14,861 Cr	₹16,107 Cr	+4.6%
EBITDA	₹2,435 Cr	₹2,901 Cr	₹2,579 Cr	₹2,437 Cr	+0.0%
EBITDA Margin	17.3%	20.8%	17.4%	15.1%	—
PAT (Net Profit)	₹1,640 Cr	₹1,985 Cr	₹1,718 Cr	₹1,550 Cr	-1.9%
EPS	₹11.71	₹14.18	₹12.27	₹11.07	-1.9%
ROE	20.7%	20.6%	16.2%	13.5%	—
ROCE	25.4%	25.1%	19.4%	16.3%	—
Total Debt	₹83 Cr	₹81 Cr	₹93 Cr	₹98 Cr	+5.7%
Free Cash Flow	₹1,109 Cr	₹303 Cr	₹1,019 Cr	₹588 Cr	-19.0%

🟢 Revenue has grown at 4.6% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (0.0% a year).

🔴 EBITDA Margin has fallen from 17.3% to 15.1% over 3 years (-2.2 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.9% a year).

🟡 EPS has been broadly flat over 3 years (-1.9% a year).

🔴 ROE has fallen from 20.7% to 13.5% over 3 years (-7.2 pts).

🔴 ROCE has fallen from 25.4% to 16.3% over 3 years (-9.1 pts).

🔴 Total Debt has grown at 5.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 19.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17,028 Cr

Total Liabilities

₹5,503 Cr

Total Debt

₹98 Cr

Cash & Equivalents

₹169 Cr

Operating Cash Flow

₹1,936 Cr

Capex

-₹1,347 Cr

Shareholding (proxy)

Institutional Holding

32.6%

Insider Holding

50.0%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹3

Ex-Dividend Date

01 Oct 2026

Analyst Consensus

Recommendations

23 Buy · 4 Hold · 3 Sell

Target Price (Mean)

₹183.43

+28.2% vs CMP

Target Range

₹120 – ₹240

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

2 mixed4 general

Indraprastha Gas Share Price: Price Action and Fundamentals

Univest, 15 Oct

Indraprastha Gas (NSEI:IGL) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

IGL Outlook for the Week

Equitypandit, 09 Oct

Mahanagar Gas Share Price - Live NSE: MGL Stock Price & Chart

Upstox, 16 Oct

Mahanagar Gas, Indraprastha Gas Share Price Jump Over 3% In Trade. Here's Why

NDTV Profit, 19 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

IGL stock jumps over 2% after CNG price hike; Citi sees 22% upside, but margin pressure may persist

Moneycontrol.com, 31 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong15.3/20

🔴GrowthWeak5.7/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive9.9/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 13%15.1%
✓Revenue growth stays above 4% a year4.6% CAGR
✓Free cash flow remains positive₹588 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 13%16.3%