IGL Shares Rise on Rs 3.89 CNG Price Hike Amid Profit Margin Pressures

Indraprastha Gas Limited (IGL) shares rose by approximately 2.5% to Rs 151 after a price hike of Rs 3.89 per kg for Compressed Natural Gas (CNG). The increase aims to stabilize the company's profit margins, which were hit hard in the first quarter of fiscal year 2027 due to high imported gas costs.

The price adjustment comes after IGL reported a 44% decline in its consolidated net profit compared to the same period last year, settling at Rs 237.92 crore. The primary reason for this sharp decline was the rising cost of imported Liquefied Natural Gas (LNG).

Market experts and analysts have been closely watching the company's ability to pass on these increased costs to consumers. Citigroup has maintained a 'buy' rating on the stock with a target price of Rs 180, viewing this latest price increase as a necessary step to stabilize margins.