Mahanagar Gas Shares Surge on Favorable APM Gas Incentive Policy

Mahanagar Gas (MGL) shares rose by 1.76% to Rs 1,147.90 on August 20, 2026, as a result of a recent note from Nomura identifying it as the biggest beneficiary of a new APM gas incentive policy.

The APM gas incentive is a government-set pricing mechanism for domestically produced natural gas supplied to city gas distributors. When APM gas prices are set favorably, companies like MGL see lower input costs, which improves margins on gas sold to households and commercial consumers.

Nomura's note stated that MGL stands to gain the most from the new policy among its peer group due to its current household addition metrics. The company added only 9,700 new households per month during April-June 2026, significantly below its historical run-rate of 28,000-30,000.