Q1 2027 Indraprastha Gas Ltd Earnings Call

August 14, 2026

Speaker #4: Ladies and gentlemen, you have been connected for the Indraprastha Gas Limited conference call. Please stay connected; the call will begin shortly. Ladies and gentlemen, you have been connected for the Indraprastha Gas Limited conference call.

Operator 1: Ladies and gentlemen, you have been connected for Indraprastha Gas Limited conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you have been connected for Indraprastha Gas Limited conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, good day and welcome to the Indraprastha Gas Limited Q1 FY27 Earnings Conference Call hosted by PhillipCapital Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Nitin Tiwari from PhillipCapital Private Limited. Thank you, and over to you, sir.

Speaker #4: Please stay connected; the call will begin shortly. Ladies and gentlemen, good day and welcome to the Indraprastha Gas Limited Q1 FY27 earnings conference call.

Operator: Ladies and gentlemen, good day and welcome to the Indraprastha Gas Limited Q1 FY27 Earnings Conference Call hosted by PhillipCapital Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Nitin Tiwari from PhillipCapital Private Limited. Thank you, and over to you, sir.

Speaker #4: Hosted by Philip Capital Private Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation.

Speaker #4: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #4: I would now like to hand the conference over to Mr. Nathan Tiwari from PhilipCapital Private Limited. Thank you, and over to you, sir.

Speaker #1: Thanks, Manav. Good day, ladies and gentlemen. On behalf of Philip Capital India Limited, I welcome everyone to Indraprastha Gas Limited's first quarter FY27 earnings call.

Nitin Tiwari: Thanks, Manav. Good day, ladies and gentlemen. On behalf of PhillipCapital India Limited, I welcome everyone to Indraprastha Gas Limited's first quarter FY27 earnings call. Today from the management team, we have with us Mr. Kumar Shanker, who has recently taken the charge as MD of IGL. Congratulations to you, sir, and our best wishes for your tenure at IGL. We also have with us Mr. Mohit Bhatia, Director Commercial. Pleasure to have you with us, sir, and Mr. Manjeet Gulati, who has recently been appointed as CFO at IGL. Congratulations to you as well, sir. I shall now hand over the floor to the management for their opening remarks, which shall be followed by a question and answer session. Over to you, sir.

Speaker #1: Today, from the management team, we have with us Mr. Kumar Shankar, who has recently taken charge as MD of IGL. Congratulations to you, sir, and all best wishes for your tenure at IGL.

Speaker #1: We also have with us Mr. Mohit Bhatia, Director Commercial. Pleasure to have you with us, sir. And Mr. Manjit Golati, who has recently been appointed as CFO at IGL.

Speaker #1: Congratulations to you as well, sir. I shall now hand over the floor to the management for their opening remarks. This will be followed by a question-and-answer session.

Speaker #1: Over to you, sir.

Speaker #5: Yeah. Thanks, Nathan. Very good evening to all of you. I am Kumar Shankar, as Nathan was mentioning. I have recently taken charge as Managing Director of Indraprastha Gas Limited.

Kumar Shanker: Yeah. Thanks, Nitin. A very good evening to all of you. I am Kumar Shankar. As Nitin was mentioning, I have recently taken charge of Managing Director of Indraprastha Gas Limited. On behalf of the management team of IGL, it is my pleasure to welcome you all for our earnings call on this financial results of Q1 FY26, '27. Thank you for your continued trust and support, and for joining us today. As you all know, the quarter was challenging due to the ongoing geopolitical situation in West Asia, which impacted the global energy markets and created pressure on gas availability as well as prices. But despite these challenges, IGL continued to operate smoothly and ensure uninterrupted gas supplies to all our customer segments. You will be happy to know that about half of our gas requirement during this quarter also was met through domestic sources, which helped us maintain gas supply reliability.

Speaker #5: On behalf of the management team of IGL, it's my pleasure to welcome you all to our earnings call on the financial results of Q1 FY26-27.

Speaker #5: Thank you for your continued trust and support, and for joining us today. As you all know, the quarter was challenging due to the ongoing geopolitical situation in West Asia.

Speaker #5: This impacted global energy markets and created pressure on gas availability as well as prices. But despite these challenges, IGL continued to operate smoothly and ensured uninterrupted gas supplies to all our customer segments.

Speaker #5: We'll be happy to know that about half of our gas requirement during this quarter was also met through domestic sources, which helped us maintain gas supply reliability.

Speaker #5: Our company has continued to demonstrate resilience through disciplined execution and a clear focus on our long-term goals. Before we begin the Q&A session, let me briefly share some of the key highlights of our performance during this quarter.

Kumar Shanker: Our company has continued to demonstrate resilience through disciplined execution and clear focus on our long-term goals. Before we begin the Q&A session, let me briefly share some of the key highlights of our performance during this quarter. With our continued efforts, we have achieved average daily gas sales volume during this quarter at 9.66 million standard cubic meters per day as against 9.13 million SCMD in the Q1 of the previous year. Our overall sales volume of CNG, net of DTC and DIMTS, had actually increased by around 11%, with overall 9% increase in CNG sales in Delhi, and double-digit growth in all the other remaining three states.

Speaker #5: With our continued efforts, we have achieved an average daily gas sales volume during this quarter of 9.66 million standard cubic meters per day, as against 9.13 million SCMD in Q1 of the previous year.

Speaker #5: Our overall sales volume of CNG, net of BTC and DIMITS, had actually increased by around 11%, with an overall 9% increase in CNG sales in Delhi and double-digit growth in all the other remaining three states.

Speaker #5: So in fact, you'll be glad to know that in recent days, we have touched the peak sale of up to even 5.8 lakh kg in a single day, which is not only among the highest for IGL in its history, but also definitely the highest in the country for any CGD company.

Kumar Shanker: In fact, you will be glad to know that in recent days, we have touched a peak sale of up to even 58 lakh kg in a single day, which is not only among the highest for IGL in its history, but also definitely the highest in the country for any CGD company in the country. Also, you will be glad to know that during this quarter, we have achieved the milestone of the highest-ever quarterly turnover of more than INR 5,000 crore. As far as our CapEx, we continue to invest in expanding and strengthening our PNG infrastructure, and our domestic PNG customer base has already reached around 35 lakh plus connections, while industrial and commercial connections stand today at approximately around 17,600 connections.

Speaker #5: And also, you'll be glad to know that during this quarter, we have achieved a milestone of the highest-ever quarterly turnover of more than ₹5,000 crore.

Speaker #5: And as far as our capex, we continue to invest in expanding and strengthening our TNG infrastructure, and our domestic TNG customer base has already reached around 3.5 lakh plus connections, while industrial and commercial connections stand today at approximately 13,600 connections.

Speaker #5: The planned expansion of our pipeline network and CNG stations through our ongoing capital expenditure, we believe, will support our company's long-term and sustainable growth.

Kumar Shanker: The planned expansion of our pipeline network and CNG stations through our ongoing capital expenditure, we believe it will support our company's long-term and sustainable growth. During this quarter, the company reported an EBITDA of INR 296 crore and a profit after tax of INR 186 crore. Despite higher gas costs and supply challenges arising from the global situation, we remained profitable and continued to maintain stable operations during this quarter. We believe the long-term fundamentals of CNG sector remains strong. With our growing infrastructure, expanding customer base, and disciplined approach to our business, we remain committed to creating sustainable value for all our stakeholders. Now, I would like to invite our Director Commercial, Mr. Mohit Bhatia, to share his remarks. Thank you.

Speaker #5: During this quarter, the company reported an EBITDA of ₹296 crore, and a profit after tax of ₹186 crore. Despite higher gas costs and supply challenges arising from the global situation, we remained profitable and continued to maintain stable operations during this quarter.

Speaker #5: We believe the long-term fundamentals of the CGD structure sector remain strong, with our growing infrastructure, expanding customer base, and disciplined approach to our business. We remain committed to creating sustainable value for all our stakeholders. Now, I would like to invite our Director Commercial, Mr. Mohit Bhatia, to share his remarks.

Speaker #5: Thank you.

Mohit Bhatia: Thank you, Kumar, sir, the MD. Good evening, everyone. I am Mohit Bhatia, Director Commercial at Indraprastha Gas. I would like to, first of all, welcome all our investors, analysts, and the members of the financial community joining us today. Thank you for participating in our earning conference call for the quarter ended 30 June 2026. Let me get the opportunity and privilege to share the key business developments during the quarter. First and the foremost, to secure the proper, robust infrastructure in NCR, and in particularly Delhi. I am pleased to inform that we have recently commissioned a new, one more city gate station at Rohini, Delhi, which will improve the overall supply network and strengthen the infrastructure.

Speaker #3: Thank you, Kumar sir. Good evening, everyone. I am Mohit Bhatia, Director, Commercial at Indraprastha Gas. I would like to first of all welcome all our investors, analysts, and members of the financial community joining us today.

Speaker #3: Thank you for participating in our earnings conference call for the quarter ended 30th June 2026. Let me take this opportunity and privilege to share the key business developments during the quarter.

Speaker #3: First and foremost, to secure proper robust infrastructure in NCR and particularly in Delhi, I am pleased to inform you that we have recently commissioned one more City Gate station at Rohini, Delhi.

Speaker #3: This will improve the overall supply network and strengthen the infrastructure. We have already submitted our concern for the authorization for the remaining areas of Gurgaon and Faridabad, and have also started the technical feasibility studies for the development of both these geographical areas.

Mohit Bhatia: We have already submitted our concern for the authorization for the remaining areas of Gurgaon and Faridabad, and have technically started the technical feasibility studies for the development of both the Geographical Areas. We have also commenced the LNG operations, that is the first and the foremost in NCR region, in association with CONCOR. We have commissioned the newly operational CNG station at the prestigious Noida International Airport, along with the PNG in the Fokot area. Going forward, we are also pleased to inform that we have engaged with Indian Army in a nation-building exercise to explore the opportunities to meet their integrated energy requirements in our Geographical Areas in their cantonments. As our Managing Director has highlighted some of the points related to geopolitical situation and also financial performance of the company, let me add some perspective from my side on the company's performance.

Speaker #3: We have also commenced LNG operations, which is the first and foremost in the NCR region, in association with CONCOR. And we have commissioned the newly operational CNG station at the prestigious Noida International Airport, along with the PNG in the FOGot area.

Speaker #3: Going forward, we are also pleased to inform you that we have engaged with the Indian Army in a national mission-building exercise to explore opportunities to meet their integrated energy requirements within our geographical areas in their cantonments.

Speaker #3: As our Managing Director has highlighted some of the points related to the geopolitical situation and also the financial performance of the company, let me add some perspective from my side on the company's performance.

Speaker #3: Overall, the sales volume increased by about 6% compared to the last quarter of last year. And if we look from the perspective of Delhi NCR, PNG sales have grown by 9%, as the Managing Director emphasized.

Mohit Bhatia: Overall, the sales volume increased to about 6% as compared to the last quarter of the last year. If you look from the perspective of Delhi NCR CNG sales, yes, it has grown by 9%, as the Managing Director emphasized. Barring DTC and DIMTS volume, that is 9%. A healthy growth of around 27% observed in our newer GAs outside Delhi NCR. On the overall basis, almost there is a 50% incremental sales, which is coming from the new GAs. In terms of infrastructure development, our steel network expanded by approximately 25 kilometers, now further adding to around 2,600 kilometers, while the MDPE pipeline almost increased by 500 kilometers during this quarter. We have also added almost 1 lakh plus PNG customers during the current quarter, and almost 530 plus additional industrial and commercial customers adding to our robust growth.

Speaker #3: And barring DTC and DIMS volume, that is 9%, whereas a healthy growth of around 27% was observed in our newer GS outside Delhi NCR. On an overall basis, almost 50% of incremental sales are coming from the new GS.

Speaker #3: In terms of infrastructure development, our steel network expanded by approximately 25 kilometers, now further adding up to around 2,600 kilometers. Meanwhile, the MDPE pipeline increased by almost 500 kilometers during this quarter.

Speaker #3: So we have also also added almost 1 lakh plus PNG customers during the current quarter. And almost 530 plus additional industrial and commercial customers adding to our robust growth.

Speaker #3: On the financial front, once again, I am pleased to inform you that we have achieved the highest ever turnover of ₹5,028 crores, which is almost 16% higher as compared to the same quarter last year.

Mohit Bhatia: On the financial front, once again, pleased to inform that we have ever achieved the ever highest INR 502 crores of the turnover, which is almost 16% as compared to the same quarter last year. While the profitability is impacted by higher gas costs during the quarter, our focus remains on volume growth, customer expansion, and operational efficiency. During the quarter, we also had incurred a CapEx of INR 327 crores. We are witnessing a very healthy growth in the CNG vehicle segment. Over the last six months in particularly, CNG vehicle additions and conversions have arranged almost to the tune of 27,300 vehicles per month, vis-à-vis 18,000 vehicles per month during the same quarter for the last year, which gives us an immense confidence that CNG demand will continue to grow in the coming quarters.

Speaker #3: While profitability has been impacted by higher gas costs during the quarter, our focus remains on volume growth, customer expansion, and operational efficiency.

Speaker #3: During the quarter, we also also had incurred a capex of 327 crores. We we are witnessing a very healthy growth in the CNG vehicle segment over the last six months in particularly CNG vehicle additions and conversions have arranged almost to the tune of 27,300 vehicles per month, with a with 18,000 vehicles per month during the same quarter for the last year, which gives us a immense confidence that CNG demand will continue to grow in the coming quarters.

Speaker #3: On behalf of the management, I assure you that we remain focused on sustainable growth, expansion of our market presence, and delivering value to our customers and stakeholders, while adapting to the changing business environment.

Mohit Bhatia: On behalf of the management, I assure you that we remain focused on sustainable growth, expansion of our market presence, and delivering value to our customers and stakeholders while adapting to the changing business environment. With this, I welcome you once again and open the session for the question and answers.

Speaker #3: With this, I welcome you once again and open the session for questions and answers.

Speaker #1: Thank you very much, sir.

Operator 1: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from Probal Sen from ICICI Securities. Please go ahead.

Operator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from Probal Sen from ICICI Securities. Please go ahead.

Speaker #2: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Speaker #2: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the lineup. Probal Singh from ICICI Securities, please go ahead.

Speaker #4: Thank you for the opportunity. Good afternoon, sir. Congratulations on the elevation to the new roles for both of you. My first question is with respect to the sourcing mix.

Probal Sen: Thank you for the opportunity. Good afternoon, sir, and congratulations for the elevation for CTCE roles for BPCL. I guess my first question was with respect to the sourcing mix. If you can kindly give us a mix in terms of percentage or absolute volumes, between whatever was the APM allocation, HPHT gas, New Well Gas, and the mix between long-term and short-term energies, whatever it was for the quarter.

Speaker #4: If you can kindly give us a mix in terms of percentage or absolute volume between whatever was the APM allocation, HPHP gas, fuel gas, and the mix between long-term and short-term energy.

Speaker #4: Whatever it was for the project, that is my first question.

Mohit Bhatia: Okay. Thanks for the question. In the current scenario, if we see the breakup for Q1 for this financial year, still we have around 48% coming from the domestic allocations, whether it is APM, New Well, or HPHT. And around 52% is coming from the imported, that is through our long-term contracts and from there through the spot also because of the force majeure issues happened in West Asia. If you see, we are selling around 9.5 million SCM of gas. So 48% is coming from the domestic and around 52% from the imported.

Speaker #3: Okay, okay. Thanks for the question. So, in the current scenario, if we see the breakup for Q1 for this financial year, we still have around 48% coming from the domestic allocations, whether it is APM, Newwell, or HPHT.

Speaker #3: And around 52% is coming from the imported—that is, through our long-term contracts and some through the spot also, because of the force majeure issues that happened in West Asia.

Speaker #3: So if you see, we are selling around 9.5 million standard cubic meters of gas—so 48% is coming from the domestic sources and around 52% from imported.

Speaker #4: Thank you, sir. Is it possible to share, of that 52%, what was the mix between long-term and spot? Also, broadly speaking, what was the effective price at which we could get spot gas for the quarter?

Probal Sen: Thank you, sir. Is it possible to share, of that 52%, what was the mix between long-term and spot, and also, broadly speaking, what was the effective price at which you could get spot energy for the quarter?

Mohit Bhatia: If you see, because of the long-term contracts, already we are in place 100% of our sourcing. However, due to the force majeure issues and all, there have been some cuts. Yes, it is there. Almost around 4 million out of the 5 million sourcing which is being done from the imported. Around 3.9 to 4 million is from the long-term contracts, and the government has supported during this quarter in terms of giving pool gas to the CGD sector, particularly as per the government notification. Around 0.6 to 0.7 came through the pool gas, and spot, we had to rely around 3%, you can say. Roughly around 0.25 to 0.3 million per day was through spot. Markets when you must have noticed that it varied from around $17, $18 to $21, $22. As and when it required, we have to source it.

Speaker #3: See, if we if you see because of the long-term contracts we already we are in place 100% of our sourcing however due to the however due to the force major issues and all so there has been some some cuts yes it is there so almost around 4 million out of the 5 million sourcing which is being done from the imported so around 3.9 to 4 million is the from the long-term contracts and there was a government has supported during this quarter in terms of giving a pool gas to the CGD sector particularly as per the government notification so around 0.6 to 0.7 came through the pool gas and spot we had to rely around 3% you can say roughly around 0.25 to 0.3 million per day was through spot and market trend you have must have noticed that it varied from around 17 18 dollars to 21 22 dollars as and when it required we have to source it.

Probal Sen: Got it, sir. Just in terms of how we are looking at facing going forward, and what is the environment. Have you seen since the conflict has once again sort of picked up, have you seen a change in terms of energy availability? Are we able to get slightly more contracted LNG in the market today, or does it remain still a fairly tight market? What is your thoughts on this?

Speaker #4: Got it, sir. And just in terms of how we are looking at the pace going forward and, you know, what is the environment—have you seen, since the conflict has once again sort of picked up, have you seen a change in terms of energy availability? Are we able to get slightly more contracted energy in the market today, or does it remain still a fairly tight market? What’s your thought on this?

Speaker #3: It is a very, very highly unpredictable and uncertain situation. You are aware of the geopolitical issues, so we are in constant touch with our suppliers and the promoter companies as well. Whatever best we can source from the market, we are making those efforts. We are in constant touch, and there are some indications. Whatever has been the cuts due to force majeure—because, globally, India is also going to other geographies to source gas—and it has been like this. Long-term, yes, spot purchases will always be there a little bit, but I think if we are able to get the gas from our long-term contracts, that remains our aspiration and vision. So, we are taking it up with our upstream suppliers, and we hope things should improve.

Mohit Bhatia: Very, very highly unpredictable and uncertain situation. You are aware of the geopolitical issues. We are in constant touch with our suppliers, the promoter companies also, and whereas whatever best we could source it from the market. We are in constant touch and some indications are there, whatever has been the cuts due to force majeure, because as globally, India has also gone to other geographies to source the gas. It has been there. Long term, yes, spot will be there little bit, but I think if we are able to get the gas from our long-term contracts, our aspiration, our vision is that. I think we are taking up with our upstream suppliers and something should be better. As we go forward, we are looking at HPHT as well.

Speaker #4: And as we go forward, we are looking at HPST as well, so we are hopeful that we will be in a position to improve, you know, the overall share of HPST as well going forward. About RLNG, already the commercial has already been mentioned.

Mohit Bhatia: We are hopeful that we will be in a position to improve the overall share of HPHT as well going forward. About RLNG, that commercial has already mentioned.

Speaker #4: Thank you, sir. One last question, if I may. Given the unpredictability, how should we look at the margin scenario going forward? Is there sort of a floor? Are we looking at further price increases to shore up the margins if prices remain at the higher end—yes, I mean $15 to $16? How are we looking at the margin environment for the next six to twelve months?

Probal Sen: Right, sir. One last question if I may. Given the unpredictability, how should we look at the margins dynamic going forward? Is there sort of a floor? Are you looking at further pricing features to sort of shore up the margins if prices remain at the higher end of $15 to $16? How are we looking at the margin environment for the next 6 to 9 months?

Mohit Bhatia: Sir, actually, I would like to answer your query in two parts. The point number one is we have been always giving a guidance of a long-term EBITDA around INR 7 for SCM. Yes, there is a geopolitical issue across the globe and margins are under the stress. Our long-term guidance is still similar, but in the subsequent quarters it will be difficult because we do not know what is the overall geopolitical impact on the country and in particular to the CGD sector. That is point number one. Secondly, we have been always like a long-term guidance was there, that we want to calibrate in terms of both the sales growth as well as margins. We are trying to maintain a good delta with alternate fuels, particularly petrol and diesel. Still there is a handsome delta with petrol, in particular around INR 17.

Speaker #3: So sir I actually I would like to answer your query in two parts see point number one is we have been always giving guidance of a long-term EBITDA around 7 rupees per SGM so yes there is a geopolitical issue across the globe and margins are under the stress so our still long-term guidance is similar but in the subsequent quarters it will be difficult viewing because we do not know what is the overall geopolitical impact on the country and in particular to the CGD sector so that is point number one secondly we have been always like a long-term guidance was there that we want to calibrate in terms of both the sales growth whether with margin so we are trying to maintain a good delta with alternate fuels particularly petrol and diesel and still there is a handsome delta with petrol in particularly around 17 rupees and and with the GST 2.0 it has become really conducive and favorable for the CNG automobile sector and the tremendous growth has been witnessed and to further leverage I think this is a it is a time to seed the market to further strengthen and capture the volumes also.

Mohit Bhatia: With the GST 2.0, it has become really conducive and favorable for the CNG automobile sector and the tremendous growth has been witnessed. To further leverage, I think it is a time to seed the market to further strengthen and capture the volumes also.

Speaker #4: See our next slide one more thing also margins of course you know is a function of the input gas prices more so the current kind of volatile LNG market but next six months I believe you know four factors we need to figure out how they will play out first is in general there is a consensus that the US supplies are going to improve so the India the expectation is that it would be you know kind of stable the second part is of course geopolitics nobody is able to predict what is going to happen to the supplies from the Middle East then about the kind of consumption pull factor from China Japan you know how it's going to play out one needs to wait and watch but the other aspect is how the European you know gas storage is going to be there and the kind of winter in all these things there are also you know talks about whether this El Nino is going to become a super El Nino and in case of that then there could be a moderate winter you know so if you really see today in these wired worlds the how different factors are going to play out it's right now quite difficult to predict but but as our data commercialist just mentioned that so what we are focusing on is the the segments that we are actually going to cater to we have a reasonable belief that with the kind of leverage that we have particularly with respect to petrol diesel and all that so we should be able to you know keep it in the balance.

Kumar Shanker: See, I would like to add one more thing also. Margins, of course, is a function of the input gas prices, more so the current kind of volatile LNG market. Next six months, I believe four factors we need to figure out how they would play out. First is in general, there is a consensus that the US supplies are going to improve. So with India, the expectation is that it would be kind of stable. The second part is, of course, geopolitics. Nobody is able to predict what is going to happen to the supplies from the Middle East. Then about the kind of consumption pull factor from China, Japan, how it is going to play out, one needs to wait and watch. But the other aspect is how the European gas storage is going to be there, and the kind of winter.

Kumar Shanker: In all these things, there are also talks about whether this El Niño is going to become a super El Niño. And in case of that, then there could be a moderate winter. So if you really see today in these wired worlds, how different factors are going to play out, it is right now quite difficult to predict. But as our Director Commercial has just now mentioned that what we are focusing on is the segments that we are actually going to cater to. We have a reasonable belief that with the kind of leverage that we have, particularly with respect to petrol, diesel and all that. So we should be able to keep it under balance.

Speaker #4: Thank you, sir. I appreciate how challenging the environment is, and I appreciate your efforts to explain, you know, the answer as best as you could. Thank you, and all the best.

Probal Sen: Thank you, sir. I appreciate how challenging the environment is, and I appreciate your efforts to explain the answer as best as you could. Thank you and all the best.

Speaker #3: Thank you.

Mohit Bhatia: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to only two per participant.

Operator 1: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants on the conference, please limit your questions to only two per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Yogesh Patil from Dolat Capital. Please go ahead.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants on the conference, please limit your questions to only two per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Yogesh Patil from Dolat Capital. Please go ahead.

Speaker #1: Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Yogesh Patil from Dollar Capital. Please go ahead.

Speaker #2: As you mentioned earlier, 48 percent of the gas sourcing is from domestic fields or the domestic side, like APM, NWG, and HPHT. To our knowledge, in earlier quarters it was around APM at about 3.3 SCMD, HPHT was 0.8 SCMD, and NWG was around 0.9 SCMD. So I just wanted to have a little bit more granular understanding on this—how much it is, how much you have received in Q1 FY27 for all these three types of gases, and what is the current status of the domestic sourcing part.

Yogesh Patil: As you mentioned earlier, that 48% of the gas sourcing is from the domestic fields or domestic side, like APM, NWG, HPHT. To our knowledge, earlier quarters it was around APM, around 3.3 mmscmd, HPHT was 0.8 mmscmd, and NWG was around 0.9 mmscmd. Just wanted to have a little bit granular understanding on this. How much you have received in Q1 FY27, all these three types of the gases? And what is the current status of this domestic sourcing part?

Speaker #4: So so so there has been a little bit I would say the reshuffling of APM and NWG in the in the last quarter and going forward also so as I mentioned around 2.6 million last quarter average was APM and 1.26 was the new well gas as compared to the previous quarter you are rightly it was NWG was less than 1 million so there has been some some changes in the proportion because of the geological issues of the wells across the country and there has been some shift in the new well gas and going forward also likely to happen in this way only.

Mohit Bhatia: Well, there has been a little bit, I would say, reshuffling of APM and NWG in the last quarter and going forward also. As I mentioned, around 2.6 million last quarter average was APM, and 1.26 was the New Well Gas. As compared to the previous quarter, you are right, NWG was less than 1 million. There has been some changes in the proportion because of the geological issues of the wells across the country. And there has been some shift in the New Well Gas. And going forward also likely to happen in this way only.

Speaker #2: HPST ports remain the same, sir—0.8 SCMD during Q1 FY27.

Yogesh Patil: HPHT portion remains same, sir, 0.8 mmscmd during the Q1 FY27?

Speaker #4: So HPST was around 0.66 to 0.7, and it is likely to increase because we understand that certain contracts across the country are going to close—likely to be closed in September—and there will be some bid offerings coming in. So we'll also be trying to capture it aggressively going forward.

Mohit Bhatia: HPHT was around 0.66 to 0.7 and it is likely to increase because we understand that certain contracts across the country are going to close, likely to be closed in September, and there will be some bid offerings coming in. We will be also trying to capture it aggressively going forward.

Speaker #2: Sir, my next question is related to the CNG consumption figures for the DTC buses and DIMS buses in million kg. If you could provide that, and additionally, please provide the total CNG volume for this quarter in million kg.

Yogesh Patil: Sir, my next question related to the CNG consumption figures for the DTC buses, DIMTS buses in million kg, if you could provide. Additionally, please provide the total CNG volume for this quarter in million kg.

Speaker #4: Okay so as we mentioned in our opening remarks also see DIMS DTC volumes are now almost zero so last three months if you see it's almost now zero and the last year same quarter it was on an average of 1.5 lakh kg per day so nowadays almost zero however secondly if you see the DIMS volumes so now as compared to the Q4 of the of the last year as and and in comparison to the Q1 for this year the volumes are more or less same it is maintaining at around 1.5 lakh kg per day.

Mohit Bhatia: Okay. As we mentioned in our opening remarks also, DTC volumes are now almost zero. Last three months, if you see, it is almost now zero. Last year, same quarter, it was on an average of 1.5 lakh kgs per day. Now it is almost zero. However, secondly, if you see the DIMTS volumes. Now as compared to the Q4 of the last year and in comparison to the Q1 for this year, the volumes are more or less same. It is maintaining at around 1.5 lakh kgs per day.

Speaker #2: And CNG volume in million kg, sir—if possible, total CNG volume in...

Yogesh Patil: CNG volume in million kg, sir, if possible. Total CNG volume in million kg.

Speaker #4: So, in terms of million kg, it is around 5.31 per day for the quarter ended 30th June.

Mohit Bhatia: In terms of million kg, it is around 5.31 per day for the quarter ended 30 June.

Speaker #2: Thanks, thanks a lot, sir. All the best.

Yogesh Patil: Thanks a lot, sir. All the best.

Speaker #1: Thank you. A reminder to all the participants: if you wish to ask any questions, you may press star and one on your touch-tone phone.

Operator 1: Thank you. A reminder to all the participants, if you wish to ask any questions, you may press star and one on your touchtone phone. We have our next question from the line of Amit Murarka from Axis Capital. Please go ahead.

Operator: Thank you. A reminder to all the participants, if you wish to ask any questions, you may press star and one on your touchtone phone. We have our next question from the line of Amit Murarka from Axis Capital. Please go ahead.

Speaker #1: We have our next question from the line of Amit Murarka from Axis Capital. Please go ahead.

Amit Murarka: Yeah. Hi, good evening, and thanks for the opportunity. I missed if you have already shared the split of growth between Delhi and outside Delhi that you usually share in earlier quarters.

Speaker #3: Yeah, hi. Good evening, and thanks for the opportunity. I missed if you've already shared the split of growth between Delhi and outside Delhi that you usually share in earlier quarters.

Mohit Bhatia: For your consumption, I will just repeat. Overall growth in CNG is 6% across IGL. If you see Delhi, barring DTC, it is around 9%, and barring DTC, entire IGL is 11%. If you see in particularly the outside of the new GAs, it is 27%.

Speaker #4: Oh, I'll just—for your consumption, I'll just repeat. So, overall growth in CNG is 6 percent across IGL. If you see Delhi, barring DTC, it is around 9 percent, and barring DTC, entire IGL is 11 percent. And if you see particularly outside, or the new GAs, it is 27 percent.

Speaker #3: Okay, got it. And DTC—you said that now the volume for the buses is stabilized, and there's no further decline that you're expecting on that count, right?

Amit Murarka: Okay, got it. For DTC, you said that now the volume for the buses is stabilized and there is no further decline that you are expecting on that count, right?

Speaker #4: Yes, you are right. It has now almost come down to zero—maybe hardly 100 to 200 kg per day. So, for practical purposes, we can take it as zero now.

Mohit Bhatia: Yes, you are right. It has almost now come down to zero almost, maybe hardly 100 to 200 kgs per day. For practical purposes, we can take it as zero now, DTC.

Speaker #4: DTC.

Speaker #3: Okay. Now given that the vehicle registration is still going very strong so then the CNG growth now can we expect to kind of get close to maybe double digits or or go to maybe 12 13 percent rate also in the coming quarters then.

Amit Murarka: Okay. Given that the vehicle registration is still going very strong, can we expect to kind of get close to maybe double digits or go to maybe 12% to 13% rate also in the coming quarters then?

Speaker #4: See absolutely see if I tell you recently you must have seen the ET Prime news also in particularly if I share with you one of the July data so almost almost around 4.6 lakhs passenger vehicles were added in the in the month itself of July.

Mohit Bhatia: See, absolutely. If I tell you recently, you must have seen the ET Prime news also. In particular, if I share with you one of the July data. So almost around 4.6 lakh passenger vehicles were added in the month itself of July. Maruti, in particularly, has claimed that out of the new vehicles which has been added, almost 42% of their vehicles are CNG-based. Yes, you are right, CNG is expected to grow in a very, very aggressive way subsequent to the GST 2.0 cuts. We are also witnessing the same in our outside GAs. It is growing at, say, 27%, very, very healthy. In Delhi also around 9% to 10%, barring the DTC. Although the base is very heavy, so maybe a percentage of growth you cannot correlate actually, but seems to be otherwise very, very healthy.

Speaker #4: And Maruti in particular has claimed that out of the new vehicles which have been added, almost 42 percent of their vehicles are CNG based.

Speaker #4: So yes, you are right. CNG is expected to grow in a very, very aggressive way subsequent to the GST cuts 2.0, and we are also witnessing the same in our outside GS—it is growing at, say, 27 percent, which is very, very healthy. And in Delhi also, around 9 to 10 percent barring the DTC. Although the base is very heavy, so maybe a percentage rate of growth you cannot correlate, actually, but it seems to be otherwise very, very healthy.

Speaker #3: Okay okay understood. Just lastly also on the various changes which had happened on the gas cost side like the changes around the transmission zonal tariffs and as well as the change in the Gujarat GST related changes so all those the benefits are now in the sourcing mix right I mean the current cost that you see on natural gas is reflecting all of that benefit in the numbers.

Amit Murarka: Okay. Understood. Just lastly, also on the various changes which had happened on the gas cost side, like the changes around the transmission zonal tariffs and as well as the change in the Gujarat GST related changes. All those, the benefits are now in the sourcing mix, right? I mean, the current cost that you see on natural gas is reflecting all of that benefit in the numbers.

Speaker #4: Yeah, that's right. But because of this unusual, you know, volatility in light of the West Asia crisis, that is a bit kind of, what do you say, masked by the current situation we see. We expect that once it eases out, the positive effects of that would be more pronounced.

Mohit Bhatia: Yeah. That's right. But because of this unusual volatility in the light of West Asia crisis, that is bit kind of, what do you say, masked by the current situation, which we expect that once it eases out, the positive effects of that would be more pronounced.

Speaker #3: Understood. Sure, that's it from me. Thank you very much, and best wishes.

Amit Murarka: Understood. Sure. That's it from me. Thank you very much, and best wishes.

Speaker #4: Thank you.

Mohit Bhatia: Thank you.

Speaker #1: Thank you. We have our next question from the line of Vivek Anand from Ambit Capital. Please go ahead.

Operator 1: Thank you. We have our next question from the line of Vivek Anand from Ambit Capital. Please go ahead.

Operator: Thank you. We have our next question from the line of Vivekanand from Ambit Capital. Please go ahead.

Speaker #2: Yeah, thanks for the opportunity. Two questions. Number one is on the Delhi EV policy that was recently announced. Now, since this impacts aggregators, commercial vehicles—both auto-rickshaws as well as goods carriers—and also school buses, how are you looking at the impact of this on your volumes in Delhi? And secondly, if you could give us some color on the split between these vehicle segments that are impacted or covered by the Delhi EV policy, that would be great.

Vivek Anand: Yeah, thanks for the opportunity. Two questions. Number one is on the Delhi EV policy that was recently announced. Since this impacts aggregators, commercial vehicles, both auto rickshaws as well as goods carriers, and also school buses, how are you looking at the impact of this on your volumes in Delhi? Secondly, if you could give us some color on the split between these vehicle segments that are impacted or covered by the Delhi EV policy, that will be great. The second question is

Vivekanand Subbaraman: Yeah, thanks for the opportunity. Two questions. Number one is on the Delhi EV policy that was recently announced. Since this impacts aggregators, commercial vehicles, both auto rickshaws as well as goods carriers, and also school buses, how are you looking at the impact of this on your volumes in Delhi? Secondly, if you could give us some color on the split between these vehicle segments that are impacted or covered by the Delhi EV policy, that will be great. The second question is

Speaker #2: The second question is if you can just help us with the volume trends, year-on-year numbers for MNGL and CUGL, and also absolute MNSC only.

Mohit Bhatia: Yeah

Vivek Anand: if you can just help us with the volume trends, year-on-year numbers for MNGL and CUGL, and also absolute mmscmd volume. Thank you.

Vivekanand Subbaraman: if you can just help us with the volume trends, year-on-year numbers for MNGL and CUGL, and also absolute mmscmd volume. Thank you.

Speaker #2: Thank you.

Speaker #4: Okay. So coming to the Delhi EV policy yes you are right that mandate has already come so effective 1/1/27 there will be no more three wheelers in particularly registration and only EV registrations will happen but we have evaluated and analyzed although we are doing our advocacy meeting Delhi government and other stakeholders also in in revoking or continuing the CNG part but we do not see the much larger impact because only 1 lakh autos are there three wheelers in Delhi and viewing the life of 15 years I think phasing out every year 5 to 6 thousand will only happen and as per our analysis around there will be a less than 1 percent impact in the overall CNG volumes in 2027 and going forward the impact may be less than 3 percent by 2030.

Mohit Bhatia: Okay. So coming to the Delhi EV policy. Yes, you are right, that mandate has already come. So effective 01 January 2027, there will be no more three-wheelers in particular registration, and only EV registrations will happen. But we have evaluated and analyzed, although we are doing our advocacy meeting Delhi government and other stakeholders also in revoking or continuing the CNG part. But we do not see the much larger impact because only 1 lakh autos are there, three-wheelers in Delhi, and during the life of 15 years, I think phasing out every year, 5,000 to 6,000 will only happen. And as per our analysis, there will be a less than 1% impact in the overall CNG volumes in 2027. Going forward, the impact may be less than 3% by 2030. Similarly, on the commercial vehicles, the new registration again will start from 01 January 2027.

Speaker #4: Similarly on the commercial vehicles yes the new registration again will start from 1/1/27 and for school buses also I think the mandate is by 30 percent by 2030 they have to they have to switch over 30 percent.

Mohit Bhatia: For school buses also, I think the mandate is by 2030, they have to switch over 30%. So overall, we have evaluated the scenario of the sales volume being lost vis-a-vis being added through the natural growth in particular with a very strong segment from the passenger car vehicles, the expected growth is coming. So by 2030, I think there will be impact of around 2% to 3% on the volumes overall, and we are not seeing any much of the impact. To your second question on how CUGL as well as MNGL have been clocking the growth. First on CUGL. CUGL's corresponding quarter to quarter growth in terms of CNG, they have clocked an 8% growth from around 0.23 mmscmd to 0.25 they have clocked. PNG almost they have maintained similar volumes of 0.11 to just 0.12.

Speaker #4: So overall, we have evaluated the scenario of the sales volumes being added through natural growth, particularly with a very, very strong segment from the passenger car vehicles. The expected growth is coming.

Speaker #4: So by 2030, I think there will be an impact of around 2 to 3 percent on the volumes overall, and we are not viewing much of an impact beyond that.

Speaker #4: And to your second question on Anand how CUGL as well as MNGL I've been talking the growth first on CUGL CUGL has corresponding quarter to quarter growth in terms of CNG they have clocked the 8 percent growth from around 0.23 MMSC MB to 0.25 they have clocked and CNG almost they maintain similar volumes of 0.112 just 0.12 but overall from 0.34 to 0.36 MMSC MB they have clocked which means 6 percent growth they have witnessed but when it comes to MNGL slightly more encouraging numbers have been clocked in CNG MNGL are clocked 13 percent growth from 1.27 MMSC MB to 1.44 but when it comes to PNG MNGL has clocked a very heavy around 20 9 percent growth point from 0.58 MMSC MB to 0.75 and overall put together from 1.85 MMSC MB they have clocked 18 percent growth to reach 2.19.

Mohit Bhatia: But overall, from 0.34 to 0.36 mmscmd they have clocked, which means 6% growth they have witnessed. But when it comes to MNGL, slightly more encouraging numbers have been clocked. In CNG, MNGL has clocked 13% growth from 1.27 mmscmd to 1.44. But when it comes to PNG, MNGL has clocked a very healthy around 29% growth from 0.58 mmscmd to 0.75. Overall put together from 1.85 mmscmd, they have clocked 18% growth to reach 2.19. This is primarily driven by corresponding quarters the previous year and this year. Their Nashik GA has started getting direct gas supplies from the newly commissioned Samruddhi pipeline. Earlier, their Nashik GA was completely fed through LNG mode. So that had given them the good base. Now with the pipeline there in place, the PNG growth is witnessing a very healthy trend. So yeah, they have clocked around 18% volume growth overall.

Speaker #4: This is primarily driven by, you know, the corresponding quarters—previous year and this year—in Nashik. Their Nashik GA has started getting direct gas supplies from the newly commissioned Samriddhi pipeline. Earlier, their Nashik GA was completely fed through LNG mode, so that had given them the good days, and now, with the pipeline there in place, the PNG growth is witnessing a very healthy trend. So, yeah, they have clocked around 18 percent volume growth overall.

Speaker #2: Right. Thanks for the color. Just one follow-up: as far as the Delhi EV policy goes, there is no impact on the NCR territory outside of the National Capital, Delhi, right?

Vivek Anand: Right. Thanks for that, Kanav. Just one follow-up. As far as the Delhi EV policy goes, there is no impact on the NCR territory outside of the national capital, Delhi, right? Is that very clear?

Vivekanand Subbaraman: Right. Thanks for that, Kanav. Just one follow-up. As far as the Delhi EV policy goes, there is no impact on the NCR territory outside of the national capital, Delhi, right? Is that very clear?

Speaker #2: Is is that very clear?

Mohit Bhatia: Absolutely. It is particularly for Delhi only, so I do not think so there is any impact on Noida or maybe Gurgaon part.

Speaker #4: Absolutely, it is, in particular, for Delhi only. So, I don't think there is any impact on Noida or Gurgaon part.

Vivek Anand: Right. And just one last follow-up. CUGL-

Vivekanand Subbaraman: Right. And just one last follow-up. CUGL-

Speaker #2: Right, right. And just one last follow-up: CUGL.

Mohit Bhatia: As of now. Yeah, as of now. Exactly. Sorry?

Speaker #4: As of now. Yeah, as of now, exactly. Sorry.

Speaker #2: Okay, my last question is: CUGL's volumes have been stuck in a rut, even in FY24. I mean, in FY23, FY24, and FY25, the volumes were in the range of 0.312 to 0.33 MMSCMD. Why is it that these markets, like Kanpur and Bareilly, etcetera, where you would assume that CNG is underpenetrated—why are these markets not growing faster?

Vivek Anand: Okay. My last question is, CUGL's volumes have been stuck in a rut even in FY 2023, 2024, 2025. The volumes were in the range 0.31 to 0.33 mmscmd. Why is it that these markets like Kanpur, Bareilly, et cetera, where you would assume that CNG is under-penetrated, why are these markets not growing faster?

Vivekanand Subbaraman: Okay. My last question is, CUGL's volumes have been stuck in a rut even in FY 2023, 2024, 2025. The volumes were in the range 0.31 to 0.33 mmscmd. Why is it that these markets like Kanpur, Bareilly, et cetera, where you would assume that CNG is under-penetrated, why are these markets not growing faster?

Speaker #4: So, CUGL, in fact, they have clocked a reasonable 8 percent growth. Yeah, I agree that, you know, they do have potential, but yeah, with the improvement in the overall CNG equation—vehicles improving, right? I guess, and also they're coming up with more stations, I think in the coming quarters we should be able to see more growth there. Plus, you know, the overall input gas cost and the gas price scenario—also, you know, those kinds of places may be a bit more price sensitive when it comes to their, you know, industrial, and the tax structure also is adding to their woes. So, I think that could be one of the reasons where, you know, when it comes to their PNG growth, particularly CNI, the tax structure is not very favorable, but I think CNG going forward should be able to show some more improvement.

Mohit Bhatia: As a Central U.P. Gas Limited, in fact, they have clocked a reasonable 8% growth. I agree that they do have potential for. But with the improvement in the overall CNG ecosystem and the vehicles are improving, I guess, and also they are coming up with more stations. I think in the coming quarters, we should be able to see more growth there. Plus, the overall input gas cost and the gas price scenario also those kind of places, maybe a bit more price sensitive when it comes to their industrial, and the tax structure also is adding to their woes. I think that could be one of the reasons where, when it comes to their PNG growth, particularly C&I, the tax structure is not very favorable. But I think CNG, going forward, should be able to show some more improvement.

Kumar Shanker: Maybe a bit more price sensitive when it comes to their industrial, and the tax structure also is adding to their woes. I think that could be one of the reasons where, when it comes to their PNG growth, particularly C&I, the tax structure is not very favorable. But I think CNG, going forward, should be able to show some more improvement.

Speaker #2: Okay. Thank you so much, all the way, for this.

Vivek Anand: Okay. Thank you so much. All the very best.

Vivekanand Subbaraman: Okay. Thank you so much. All the very best.

Speaker #4: Thank you.

Kumar Shanker: Thank you.

Mohit Bhatia: Thank you.

Speaker #2: Thank you. We have our next question from the line of Gagan Dixit from Elara Capital. Please go ahead.

Operator 1: Thank you. We have our next question from the line of Gagan Dixit from Elara Capital. Please go ahead.

Operator: Thank you. We have our next question from the line of Gagan Dixit from Elara Capital. Please go ahead.

Speaker #3: Yeah, yeah. Thanks. Thanks for taking my question, sir. I have a question—this is about, given the sharp gas cost spike, is IGL considering any hedging or long-term contracting strategy, I mean, to reduce this spot LNG exposure going forward?

Gagan Dixit: Yeah. Thanks for taking my question, sir. I have a question about, given the sharp gas cost spike, is IGL considering any hedging or long-term contracting strategy to reduce this spot LNG exposure going forward?

Speaker #4: Yeah, of course. You know, like any other entity, we are looking at it, and then, yeah, we are in fact looking at hedging options as well, particularly because Henry, you know, now provides us with the opportunity—it's a bit stable right now.

Kumar Shanker: Yeah, of course. Like any other entity, we are looking at it, and then, yeah, we are in fact looking at hedging options as well. Particularly because Henry Hub now provides us with the opportunity. It's a bit stable right now. So yeah, we are looking at hedging as an important tool as a part of our overall strategy. In fact, in the month of May, we have already started, because in the month of May we did have some opportunity with reasonable price band available, so we have started doing that. And yeah, we will be continuing to do that.

Speaker #4: So yeah we are looking at you know hedging as an important tool as a part of our overall strategy. In fact in the month of May we have already started because in the month of May we did have some opportunity with reasonable price band available so we have started doing that.

Speaker #4: And yeah, we will be continuing to do that.

Speaker #3: Thanks, sir. Thanks, sir. My second question is, as new geographies outside the Delhi NCR, they are still ramping up. So typically, are they slightly diluted versus the mature geographies within Delhi NCR? And broadly, what is the typical difference between the new geographies and the mature geographies in that, broadly, in the...?

Gagan Dixit: Thanks, sir. And sir, my second question is, as the new geographies outside Delhi NCR are still ramping up, so typically, are they EBITDA per SCM slightly diluted versus the mature geographies like Delhi NCR, and broadly, what is the typical difference between the new geographies and the mature geographies, broadly in the EBITDA per SCMs?

Speaker #4: No idea. If we see the mature geographies, we are getting slightly better because of concentrated sales and better volumes. In terms of new geographical areas, actually, more depends upon the taxation structure also, to some extent.

Kumar Shanker: EBITDA per SCM, if you see the mature geographies, we are getting a slightly better EBITDA per SCM because of concentrated sales and better volumes. In terms of new geographical areas, actually it more depends upon the taxation structure also to some extent. As and when they get mature and the sales start increasing, we find that economies of scale or benefit is coming to those areas. So those new GAs which have started maturing like Rewari, we are getting a better EBITDA there. It is a continuous process. The more the sales is, the better the EBITDA will be.

Speaker #4: And as and when they get mature and the sales start increasing, we find that the benefit of economies of scale is coming to those areas.

Speaker #4: So those new deals which have started maturing, like Vivadi, we are getting a better EBITDA there. And there's a contest process. The more the sales is, the better the EBITDA will be.

Speaker #3: Yes, yes sir. That's my answer, sir. All the best, sir. Yeah, thanks.

Gagan Dixit: Yeah. So that is my answer, sir. All the best, sir. Yeah. Thanks.

Speaker #4: Thank you.

Kumar Shanker: Thank you.

Speaker #2: Thank you. We have our next question from the line of Saurav Hana from Citi Group. Please go ahead.

Operator 1: Thank you. We have our next question from the line of Saurabh Handa from Citigroup. Please go ahead.

Operator: Thank you. We have our next question from the line of Saurabh Handa from Citigroup. Please go ahead.

Speaker #5: Yeah. Yeah. Thank you for the opportunity. It's a this is a follow up from a question by one of the other participants. If you can just give a breakup of your vehicle wise sales of CNG roughly like how much comes from buses private cars autos etcetera.

Saurabh Handa: Yeah. Thank you for the opportunity. This is a follow-up from a question by one of the other participants. If you can just give a breakup of your vehicle-wise sales of CNG, roughly like how much comes from buses, private cars, autos, et cetera.

Speaker #4: Yeah, yeah. So I'll give you just a second. Yeah. So, from the buses, okay, so buses, our volume is coming around overall around 12 percent. Then, for commercial vehicles, it is around 19 percent.

Kumar Shanker: Yeah. I will give you, just a second. Yeah. From the buses, okay. Buses, our volume is coming overall around 12%. Then commercial vehicles, it is around 19%. Taxis, it is around 14%. Three-wheelers, auto is around 7% to 8%, and primarily it is from the passenger car vehicles to the tune of around 48% to 50%, out of our 7 million, you can say, the CNG sales that way.

Speaker #4: Taxis, it is around 14 percent. Three-wheelers/auto is around 7 to 8 percent. And primarily, it is from the passenger car vehicles to the tune of around 48 to 50 percent.

Speaker #4: Out of our 7 million, you can say that's the CNG sales. That's it.

Speaker #5: Okay, got it. So, on autos, when you said 7 to 8 percent, the Delhi portion of this would be like 3 percent. Is that what you were trying to imply?

Saurabh Handa: Okay, got it. On autos, when you said 7% to 8%, the Delhi portion of this will be like 3%. Is that what you were trying to imply?

Speaker #4: So, no, I was trying to say that because the phasing out will happen over a span of 15 years, no more new registrations will happen, but the phasing out will occur because there will be a change of the permit also.

Kumar Shanker: No. I was trying to say that because the phasing out will happen in a span of 15 years. No more new registrations will happen, but the phasing out will happen because there will be a change of the permits also. Every year, like 5,000 something vehicles will go back. They will be out of the system. By 2030, we are expecting around maybe less than 1% in particularly the auto sales. This 6,000 to 7,000 will keep on reducing after every five years, maybe 2% to 3%. It will be like that.

Speaker #4: So every year like 5 to 5000 something vehicles will go back. They'll be out of the system. So by 2030 we are expecting around maybe a less than 1 percent in particularly the auto sales.

Speaker #4: So this 6 to 7 percent will keep on reducing after every 5 years, maybe to 2 to 3 percent. It will be like that.

Speaker #5: Okay. And so, this 7 to 8 percent—would you have an idea how much of that is actually just the Delhi portion of it, versus...?

Saurabh Handa: Okay. And this 7% to 8%, would you have an idea how much actually is just the Delhi portion of it versus the NCR?

Kumar Shanker: Primarily it is Delhi only. Primarily you can say around 70% to 80%, it will be Delhi only.

Speaker #4: Primarily, it is Delhi only. Primarily, you can say around 70 to 80 percent will be Delhi only.

Speaker #5: Okay, got it. Thank you. And my second question was on this Gurgaon-Faridabad. You made some comments initially on the areas that are not authorized to you, but I sort of missed that.

Saurabh Handa: Okay, got it. Thank you. My second question was on this Gurgaon, Faridabad. You made some comments initially on the areas that are not authorized to you. I missed that. Could you just elaborate on that?

Speaker #5: Could you just elaborate on that?

Speaker #4: So we have been contesting. There is a litigation going on, but the conditional part of the area which has been given to us by the regulator, we have already accepted.

Kumar Shanker: We have been contesting. There is a litigation going on, but conditional part of the area which has been given to us by the regulator, we have already accepted, and going forward for developing. Because in the interest of the consumers, why to deprive them from the natural gas, whether it is pipe natural gas or CNG.

Speaker #4: And going forward for development, because in the interest of the consumers, why deprive them of natural gas—whether it is piped natural gas or CNG.

Speaker #4: So, internally, the company has decided to conditionally accept and develop this going forward.

Mohit Bhatia: So that internally the company has taken a call to conditionally accept and develop going forward.

Speaker #5: Okay, so just to clarify, even in the areas that are not, say, in Gurgaon—the areas that are not authorized to IGL—but you have got some conditional approval to even expand your network in these areas?

Saurabh Handa: Okay. Just to clarify, even the areas that are not, say, in Gurgaon, the areas that are not authorized to IGL, but you have got some conditional approval to even expand your network in these areas. Is that correct?

Speaker #5: Is that correct?

Mohit Bhatia: They were authorized to IGL, but we have not accepted in the past because of our litigation going on, and we have been contesting at various forums. But now being the push in the natural gas, particularly in the piped natural gas, as well as growth anticipated in the CNG, because NCR is also a very growth potential area. So a conscious call has been taken, and we have accepted conditionally to move forward.

Speaker #4: They were authorized to IGL, but we have not accepted in the past because of our ongoing litigation, and we have been contesting at various forums.

Speaker #4: But now being viewing the the push in the natural gas particularly in the pipe natural gas as well as growth anticipated in the CNG because NCR is also it's a very very growth potential area so conscious call has been taken and we have accepted conditionally to move forward.

Speaker #5: Okay. So that means, in the entire Gurgaon region, now you would be?

Saurabh Handa: Okay. So that means in the entire Gurgaon region now you would be-

Mohit Bhatia: Not entire Gurgaon. I will make it clear. Actually, within the entire Gurgaon, part of the area was already earmarked only for IGL.

Speaker #4: Not the entire Gurgaon. No, I'll make it clear. Actually, see, within the entire Gurgaon, part of the area was already earmarked only for IGL.

Saurabh Handa: Correct.

Speaker #4: Earlier, that part portion was also, since our entire claim was that the entire Gurgaon is for IGL, so the part portions—the services were not commenced.

Mohit Bhatia: Earlier, that part portion was also since our claim was that the entire Gurgaon is for IGL. The part portions, the services were not commenced. Given the situation right now and then why to deprive the people who are there in those part portions for their share of gas. That part portion we have started commencing the services, but not the entire one.

Speaker #4: But now we have given the situation right now and then why to deprive of the people who are there in those part portions for their share of gas.

Speaker #4: So, for that part, we have started commencing the services, but not for the entire one.

Speaker #5: Okay, that's clear. And in Faridabad then.

Saurabh Handa: Okay, that is clear. In Faridabad then-

Speaker #2: Sorry to interrupt you, Saurav. Maybe the question rejoined with you.

Operator 1: Sorry to interrupt you, Saurabh. May we request you to rejoin the queue?

Operator: Sorry to interrupt you, Saurabh. May we request you to rejoin the queue?

Speaker #5: Sorry, it's just the same question. I'm just clarifying. So, in Faridabad, there was no part authorization, right? In Faridabad, it was completely out of IGL.

Saurabh Handa: Sorry, it is just the same question. I am just clarifying.

Operator 1: Sure.

Operator: Sure.

Saurabh Handa: In Faridabad, there was no part authorization, right? In Faridabad, it was completely out of IGL.

Speaker #4: Yes, yes. So we'll be developing that. Partly it is with us, and partly—and majorly—it is with somebody else.

Mohit Bhatia: Yes. We will be developing that. Partly it is with us, and majorly it is with somebody else.

Speaker #5: Right. So, nothing very different from what the situation was earlier. Just wanted to confirm that. I got it. Thank you, sir.

Saurabh Handa: Right. Nothing very different from what the situation was earlier. Just wanted to confirm that. I got it. Thank you, sir.

Speaker #2: Thank you. A reminder to all participants: please restrict yourselves to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue.

Operator 1: Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. Next question is from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead.

Operator: Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. Next question is from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead.

Speaker #2: Next question is from the line now. Mayank Maheshwari from Audit Stanley, please go ahead.

Mayank Maheshwari: Hi, sir. Thanks for doing the calls. The question I had was more related to your growth strategy around inorganic growth. Considering the Delhi Electric Vehicle Policy and increasingly more focus on the EVs, how are you kind of thinking about inorganic growth opportunities to consolidate the entire market?

Speaker #3: Hi sir. Thanks for doing the call. It's for the question I had was more related to your growth strategy around inorganic growth. Considering the Delhi EV policy and increasingly more focus on the EVs how will you kind of thinking about inorganic growth opportunities to consolidate the entire market?

Speaker #4: So, inorganic growth right now—no. See, the CBD sector in terms of newer authorizations is also relatively new. So, as and when opportunity presents, we would be able to look at those other areas as well.

Mohit Bhatia: See, inorganic growth, right now, CGD sector in terms of newer authorizations also, it is relatively new. As and when opportunity presents, we would be able to look at those other areas as well. But the general policy framework is still evolving, related to how they will open up the other areas. One remains to see. But at this stage, we believe that even in our own newer GAs, there is a good scope as you can see in the kind of growth that we have been achieving in our newer GAs. Progressively, their share is already improving. We are right now focusing on to expand our operations in newer GAs.

Speaker #4: But the general policy framework is still evolving, you know, related to how they'll open up the other areas. One remains to see, but at this stage, we believe that even in our own newer GAs, you know, there is a good scope, as you can see in our, you know, the kind of growth that we have been achieving in our newer GAs.

Speaker #4: So, progressively, their share is already improving. So, we are right now focusing on expanding our operations in newer GAs.

Mayank Maheshwari: Sir, in terms of CapEx now going forward, if you can give us a guidance, is there a step change increase in CapEx because of this focus on natural gas and PNG or you think the current run rate will kind of sustain?

Speaker #5: So sir, in terms of capex going forward, if you can give us some guidance, is there a step-change increase in capex because of this focus on natural gas and PNG, or do you think the current run rate will kind of sustain?

Speaker #4: So you are right. I think in the first quarter we have spent around ₹327 crore, and our plan or aspiration there has certainly changed, definitely because of the thrust on PNG infrastructure development going forward.

Mohit Bhatia: So you are right. I think Q1 we have spent around INR 327 crore and our plan or the aspiration, there has been certain changes definitely because of the thrust on the PNG infrastructure development and going forward. So roughly around INR 1,800 to 2,000 crore still our aim is like that only, and spending around INR 1,200 to 1,300 crore or maybe maximum INR 1,500 crore on the core, and if we get some other opportunities for the business development diversification. So we will have another INR 500 or 600 crore there also.

Speaker #4: So, roughly around 1,800 to 2,000, still our aim is like that only, and spending around 1,200 to 1,300 or maybe maximum 1,500 on the core.

Speaker #4: And if we get some other opportunities for business development or diversification, we’ll have another 500 to 600 there also.

Speaker #5: Got it. Thank you.

Mayank Maheshwari: Got it. Thank you.

Speaker #2: Thank you. We have a next question from the line of EA Sundaram from Virgil Rock Capital. Please go ahead.

Operator 1: Thank you. We have our next question from the line of E.A. Sundaram from Buglerock Capital. Please go ahead.

Operator: Thank you. We have our next question from the line of E.A. Sundaram from Buglerock Capital. Please go ahead.

Speaker #3: Yeah. Good afternoon, sir, and thanks for the opportunity. My first question is, you know, there have been a couple of, maybe, developments initiated by the Delhi government, and that has caused some sort of apprehension in the minds of businesses.

E.A. Sundaram: Yeah. Good afternoon, sir, and thanks for the opportunity. My first question is, there have been a couple of major developments initiated by the Delhi government and that has caused some full thought of apprehension in the mind of the business community. One is the lack of registration for autorickshaws going forward. The second one was the moving of the DTC buses from CNG to electric. So my question, sir, is there any indication or any move that you are aware of that the Delhi government may employ a similar policy on four-wheelers also? Do you see any indication of that? The follow-up question on the first question is, sir, what is the proportion of CNG vehicles in the new four-wheeler registrations in the Delhi area in the recent months? Can you throw some light on that?

Speaker #3: One is the lack of registration for auto rickshaws going forward. And the second one was the moving of the BTC buses from CNG to electrics.

Speaker #3: So my question, sir, is: Is there any indication or any move that you are aware of that the Delhi government may employ a similar policy on four-wheelers also?

Speaker #3: And do you see any any indication of that? And the the follow up question on the first question itself what does the proportion of CNG vehicles in the new four wheeler registrations in the Delhi area in the recent months?

Speaker #3: Can you throw some light on that?

Speaker #4: Yeah. Yeah. So so so I will answer your question first the second part. See what data what we have or what we have analyzed so the new registrations which are happening particularly in Delhi almost passenger vehicle 42% of the passenger vehicles are being registered on CNG.

Mohit Bhatia: Yeah. I will answer your question first, the second part. See what data, what we have or what we have analyzed. The new registrations which are happening, particularly in Delhi, almost passenger vehicles, 42% of the passenger vehicles are being registered on CNG. This is in the current scenario. You can take it in the last 6 months or so. That is point number one. Overall, what data we have, if we see the entire vehicle population of Delhi and around, it is around 24% to 25% on CNG. Secondly, we have been advocating at various forums and what we understand, whether it is at the ARAI level, whether it is at ICAT level, whether it is at CAQM level, or whether it is with Delhi government. Going forward, all the fuels are going to coexist.

Speaker #4: This is in the current scenario. You can see, you can take it in the last six months or so. That is point number one.

Speaker #4: So overall, if we look at the entire vehicle population of Delhi and the surrounding areas, it is around 24 to 25% on CNG.

Speaker #4: Secondly, see, we have been advocating at various forums and what we understand, whether it is at the ARI level, whether it is at the ICAT level, whether it is at the CAQM level, or whether it is with the Delhi government.

Speaker #4: See, going forward, all the fuels are going to coexist. In the current scenario, viewing the geopolitical situations and all, energy security remains the topmost priority.

Mohit Bhatia: In the current scenario, viewing the geopolitical situations and all, energy security remains topmost priority, and there will not be a shift on a single energy fuel, whether it is conventional fuels, whether it is a CNG as a transition fuel, or it will be EV. It will be a mix of all the fuels, and going forward, we are anticipating a very robust growth from CNG, particularly on the basis of the information or data which we shared with you.

Speaker #4: And there will not be a shift to a single energy fuel, whether it is conventional fuels, whether it is CNG as a transition fuel, or whether it will be EV.

Speaker #4: So, it will be a mix of all the fuels, and going forward, we are anticipating very, very robust growth from CNG, particularly on the basis of the information or data which we shared with you.

Speaker #3: Okay. See, the second question is, you know, yes, of course, this war in West Asia has caused some disturbance in your margin profile.

E.A. Sundaram: Okay. The second question is, yes, of course, this war in West Asia has caused some disturbance in your margin profile. But we are also seeing that after June, there has been a sharp fall in global natural gas prices. Can you share with us what was the average cost of gas per cubic meter that you had in the first 3 months of this financial year? What does it mean in July? What is the cost of gas that you are having in July?

Speaker #3: But we are also seeing that after June there has been a sharp fall in in global natural gas prices. So can you share with us what was the average cost of gas per cubic meter that you had in the in the first three months of this financial year and what is it what has it been in July?

Speaker #3: What is the cost of gas that you are having in July?

Mohit Bhatia: See, I think it will be very difficult because these are some of the commercial terms and all. But just as a guidance and all, it is hovering around Q1, around INR 40 to INR 45 per SCM, you can say. July onwards, still the turbulence is there, and there has been some increase. Yes, it is. But it will be difficult to get into the nitty-gritties view of viewing the commercial proposition, so it will be a little bit.

Speaker #4: Oh, see, I think it will be very, very difficult because these are some of the commercial terms and all. But just as a guidance and all, it is hovering around for the first quarter, around 40 to 45 rupees per HCM, you can say.

Speaker #4: July onwards, still the turbulence is there. And there has been some increase, yes, it is. But it will be difficult to get into the nitty gritty, viewing the commercial proposition.

Speaker #4: So, it will be a little bit.

E.A. Sundaram: I am asking this because you were confident of returning to the EBITDA per SCM of between INR 7 to INR 8. That is the reason I am asking you.

Speaker #3: But I'm asking this because you were confident of returning to the EBITDA per SCM of about ₹7 to between ₹7 to ₹8.

Speaker #3: That is the reason I'm asking you.

Speaker #4: So so so sir I had already see we had already mentioned and I think it was a guidance for a long term. For the going forward.

Mohit Bhatia: Sir, we had already mentioned, and I think it was a guidance for the long term, for the going forward. It is not in the immediate quarter or maybe like that. Yes, our expiration guidance is always there. It will be there. But in such an unpredictable and volatile situation of the geopolitics, it will be very difficult to comment for the quarter.

Speaker #4: It is not in the immediate quarter or maybe like that. Yes, our aspiration guidance is always there to be there. But in such an unpredictable and volatile situation of the geopolitics, it will be very, very difficult to comment for the quarter.

Speaker #3: Okay. Okay. My my other question sir is is there there is you know we we saw one report by PNGRB where one of the recommendations of that of that of that report was that natural gas should be brought under the ambit of the GST.

E.A. Sundaram: Okay. My other question, sir, is, we saw one report by PNGRB, where one of the recommendations of that report was that natural gas should be brought under the ambit of the GST. Is there any such move that you are aware of, which you can share with us?

Speaker #3: Is there any such move that you are aware of, which you can share with us?

Speaker #4: So actually the Ministry of Petroleum and Natural Gas has consistently been supporting, so within the government setup, you know, when the administrative ministry is strongly supporting a particular cause, that's a good sign.

Mohit Bhatia: Actually, the Ministry of Petroleum and Natural Gas has consciously been supporting. So within the government setup, when the administrative ministry is strongly supporting for a particular cause, that is a good sign. But GST, as you would say, it also is both central as well as a state kind of subject. So it will be very difficult to make any second guessing on whether anything would come up. It is very difficult to say because it is within the GST Council's prerogative.

Speaker #4: But GST as you would say you know it also it's a both central as well as a state kind of subject. So it will be very difficult to make any second guessing on you know whether anything would come up.

Speaker #4: It's very difficult to say because it's within the GST Council's prerogative.

Speaker #3: Yeah, yeah, I understand that. But I just want to know.

E.A. Sundaram: Yeah, I understand that, but I just want to know.

Mohit Bhatia: There is no such kind of available evidence to suggest that there is any big change is happening there.

Speaker #4: There is no such kind of available evidence to suggest that there's any big change happening there.

Speaker #3: Okay. See, one of my final questions, sir, is about a point made in a previous question. This was made by the management some time ago.

E.A. Sundaram: Okay. My final question, sir, is about one of the points made in a previous question, which was made by the management some time ago.

Speaker #4: Oh sorry to interrupt

Operator 2: Sorry to interrupt you, sir, due to shortness of time.

Nitin Tiwari: Sorry to interrupt you, sir, due to shortness of time.

Speaker #2: You, sir. Due to the shortness of time.

Speaker #4: Oh, is it? We can just have this last question—your question, please.

Mohit Bhatia: Nitin, we can just have this last question.

Operator 2: Okay, sir.

Nitin Tiwari: Okay, sir.

Speaker #2: Oh okay. Okay.

Speaker #3: Okay, thank you. See, my question is—you know, it was mentioned that originally the entire program was awarded to IGL, but then it went into some litigation.

E.A. Sundaram: Okay. Thank you. My question is, it was mentioned that originally the entire Gurgaon was awarded to IGL, but then it went into some litigation. If I remember correctly, it was because of some valuation issues that it went into litigation. But now IGL has been awarded one-third of Gurgaon. The other two parts of Gurgaon, are they still under litigation, or is there any chance that that part will come into IGL's ambit in the future? Is there any possibility of that?

Speaker #3: I assume, if I remember correctly, it was because of some valuation issues that it went into litigation. But now, IDL has been awarded one-third of Gurugram.

Speaker #3: Is there is there the other two parts of Gurugram are they still under litigation or is there any chance that that part will come into IDL's ambit in the future?

Speaker #3: Is there any possibility of that?

Mohit Bhatia: Yes. See, it is like that, but still it is under litigation, and we are contesting. Because initially, as per the central government authorization, it was to IGL, and we are contesting forwards. We have not at all surrendered as such.

Speaker #4: Yes, you see, it is like that. Still, it is under litigation and we are contesting because, initially, as per the Central Government authorization, it was to IDL and we are contesting forward.

Speaker #4: We have not at all surrendered as such.

Speaker #3: See, but one point we need to remember is that even in the portions where, right now, it is disputed and the other party is operating, the gas is still, you know, on a bulk basis proceeding from IGL only.

Kumar Shanker: See, but one point what we need to remember is, even the portions where right now is disputed and the other party is operating, but the gas is still in a bulk basis, we are procuring it from IGL only. To that extent, the molecules actually still are going through us only. We need to understand that in future, from a strategic point of view, you start owning that retail consumer base. That's the thing that's going on. But you need to keep that also in your mind.

Speaker #3: So to that extent, the molecules are actually still going through us only. So we need to understand that in the future, from a specific point of view, you know, you start owning that retail consumer base. That's the thing that's going on.

Speaker #3: But you need to keep that in your mind as well.

Speaker #2: Yeah, but there's nothing like having the final, you know.

E.A. Sundaram: Yeah, but it's nothing like having the final-

Speaker #3: Yeah, you are right. But just adding that point, you know, so that's how it is.

Kumar Shanker: Yeah, you are right. But just adding that point. That's how it is.

Speaker #2: Okay, okay. Thank you. For the sake of time, I will stop here and allow the others to ask you.

E.A. Sundaram: Okay. Thank you. For policy of time, I will stop here and allow the others to ask you.

Speaker #1: Thank you. Ladies and gentlemen, due to time constraints, that was the last question of the day. Participants whose questions have remained unanswered may approach Mr. Manjit with the management.

Nitin Tiwari: Thank you. Ladies and gentlemen, due to time constraint, that was the last question of the day, and participants whose question have remained unanswered may approach Mr. Manjeet with the management. I now hand the conference over to the management for closing comments. Over to you, sir.

Speaker #1: I now hand the conference over to the management for closing comments. Over to you, sir.

Speaker #4: Good evening to all of you. I, on behalf of the IGL management, would like to thank all of you for participating in our main call for Q1 2027, and a special thanks to Philips Capital and Nathan for organizing this for IGL.

Mohit Bhatia: Good evening to all of you. I, on behalf of the IGL management, would like to thank all of you for participating in the earning call for Q1 FY27. A special thanks to PhillipCapital and Nitin for organizing this for IGL. We will see you soon, shortly, somewhere in the next conference or maybe in person. Thanks all of you for joining.

Speaker #4: We'll see you soon, shortly, somewhere—maybe at the next conference or perhaps in person. So, thanks to all of you for joining.

Speaker #1: Thank you, sir. On behalf of the conference, thank you for joining us, and you may now disconnect your lines.

Operator 2: Thank you, sir. On behalf of PhillipCapital Private Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you, sir. On behalf of PhillipCapital Private Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.

Speaker #3: Thank you.

Mohit Bhatia: Thank you.

Nitin Tiwari: Thank you.

E.A. Sundaram: Thank you.

Mohit Bhatia: Thanks very much. Bye-bye, you all.

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Q1 2027 Indraprastha Gas Ltd Earnings Call

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