Synopsis: Shares of the city gas company rose 7.55 percent on March 25 after the new PNG policy boosted growth prospects, faster approvals, and strong demand for cost-efficient CNG and piped gas.
The shares of this company, which distributes CNG for transport (automobiles) and PNG for residential, commercial (hotels, hospitals), and industrial use, offering a cleaner alternative to petrol and diesel came in focus after policy boost.
With a market capitalization of Rs 9,295 crore, Mahanagar Gas Ltd’s shares on Wednesday made a day high of Rs 988.25, up by 7.55 percent from its previous day’s close price of Rs 918.80 per share. The share of this company has given a negative return of 17 percent over the last 5 years
What happened
Shares of Mahanagar Gas Ltd. jumped as investors welcomed clearer government policies and the potential for higher revenues. The new policy makes city gas distribution faster and more efficient, helping the company expand its piped gas network.
Rising Demand from Domestic Gas Switch: Tensions in West Asia are affecting LPG and LNG imports, increasing India’s dependence on domestic piped gas. This benefits city gas distribution (CGD) companies like Mahanagar Gas, as more households may switch to PNG (piped natural gas) instead of LPG cylinders.
Faster Approvals Boost Growth Potential: The government has also sped up approvals, with land and domestic connection timelines reduced to a few days. Around 60 lakh households are ready for PNG connections, giving CGD companies a chance to grow subscribers and recurring revenue, which is boosting investor confidence.
Attractive Fuel Economics Drive Adoption: Natural gas provides a clear price advantage over most liquid fuels, while CNG vehicles offer higher fuel efficiency. Lower running costs shorten the payback period, making PNG connections more appealing for households and supporting long-term growth for Mahanagar Gas.
Mahanagar Gas Limited (MGL) is a premier Indian City Gas Distribution (CGD) company established in 1995, operating primarily in Mumbai, its adjoining areas, and Raigad. MGL is the sole authorized distributor of CNG and piped natural gas (PNG) in its operational areas, serving domestic, commercial, and industrial consumers, including over 4,500 industrial units and 2.17 million households.
Financial Highlights: The revenue from operations grew by 17 percent to Rs 2,058 crore in Q3 FY26 from Rs 1,758 crore in Q3 FY25. EBIDT grew by 12 percent to Rs 352 crore in Q3 FY26 from Rs 314 crore in Q3 FY25. This was accompanied by a net profit decline of 10 percent to Rs 202 crore in Q3 FY26 from Rs 225 crore in Q3 FY25, resulting in an EPS decline of 10 percent to Rs 20.45 per share in Q3 FY26.
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