Indraprastha Gas Ltd. (IGL) reported a dramatic 93% year-on-year decline in net profit for the second quarter of 2026, highlighting the strain of rising input gas costs and consumer price protection measures. Despite an 8% increase in sales volumes to 10.06 million metric standard cubic metres per day (MMSCMD), the company's profitability was severely impacted by higher expenses.
The company's decision to shield consumers from global price volatility contributed to the financial squeeze. While compressed natural gas (CNG) sales grew by 9% and piped natural gas (PNG) sales by 8%, the elevated input costs eroded margins. Gross sales turnover, however, surged 35.4% year-on-year to ₹5,999.13 crore, reflecting higher sales volumes.
IGL's net profit plummeted to ₹24.38 crore during the quarter, underscoring the challenges faced by city gas distributors in balancing cost pressures with consumer affordability. The results highlight the delicate balance between maintaining profitability and ensuring stable prices for end-users.