IGL profit falls 44.39% as Q1 margin drops to 6.41%
Costs grew faster than revenue both YoY and QoQ, while other income accounted for 50.93% of pre-tax profit.
Filed 13 Aug 2026, 13:53 IST · Indraprastha Gas Ltd (IGL)
Key takeaways
- Consolidated net profit fell 44.39% YoY because expenses rose 26.13%, ahead of revenue growth of 17.19%.
- Operating margin dropped 6.64 percentage points YoY to 6.41%, leaving IGL 8.97 points below the Energy peer median.
- Other income supplied 50.93% of pre-tax profit, while the stock's -1.90% reaction was smaller than its 2.51% typical post-results move.
Price around the results
Q1FY27 growth did not convert into operating profit
Consolidated revenue rose 17.19% YoY to Rs 4,586.73 cr, but expenses increased 26.13%, driving operating profit down 42.44% and net profit down 44.39%. Sequentially, revenue grew 10.19%, yet expenses rose 14.73%, cutting operating profit 30.20% and narrowing operating margin by 3.71 percentage points.
Margin has fallen for two straight quarters
Operating margin declined from 11.58% in Q3FY26 to 10.12% in Q4FY26 and 6.41% in Q1FY27, extending the recent deterioration; the YoY decline was 6.64 percentage points. IGL's margin was 8.97 percentage points below the 15.38% median for 20 Energy peers that had reported, placing it seventh from the bottom. Other income contributed 50.93% of pre-tax profit, while the YoY tax-rate increase of 1.78 percentage points added to the pressure on net profit.
The stock's fall was within its recent results range
The stock fell 1.90% on the results date, with volume at 2.49 times the reference level. That reaction was milder than the 2.51% median absolute move after the last eight results, during which the stock rose six times and fell twice.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,587 cr | ₹4,163 cr | +10.19% | +17.19% |
| Other income | ₹159 cr | ₹166 cr | -4.50% | -3.30% |
| Expenses | ₹4,293 cr | ₹3,742 cr | +14.73% | +26.13% |
| Operating profit | ₹294 cr | ₹421 cr | -30.20% | -42.44% |
| Operating margin (%) | 6.41% | 10.12% | — | — |
| Interest | ₹3 cr | ₹8 cr | -55.03% | +31.70% |
| Depreciation | ₹137 cr | ₹133 cr | +3.39% | +10.51% |
| Profit before tax | ₹312 cr | ₹447 cr | -30.20% | -43.09% |
| Tax | ₹74 cr | ₹108 cr | -31.57% | -38.47% |
| Net profit | ₹238 cr | ₹339 cr | -29.77% | -44.39% |
| EPS (₹) | ₹1.72 | ₹2.43 | -29.22% | -43.79% |
Operating margin of 6.41% compares with a Energy sector median of 15.38% across 20 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.90% | -1.74% |
Volume on the results session was 2.49× its 20-day average.
What to watch
- Whether operating margin recovers from 6.41% after the two-quarter sequential decline.
- Whether expense growth narrows from 26.13% YoY.
- Whether other income's 50.93% contribution to pre-tax profit decreases.