IGL swings to operating loss as costs outpace revenue growth
Consolidated profit was supported by a negative tax rate and other income, while operating margin ranked last among 17 reporting Energy peers.
Filed 30 Oct 2026, 19:46 IST · after market close · Indraprastha Gas Ltd (IGL)
Key takeaways
- Consolidated operating margin fell to -0.62% as expenses grew 43.75% year on year, faster than revenue growth of 27.21%.
- Net profit of Rs 23.75 cr was supported by a -163.01% tax rate and other income equal to 2084.61% of pre-tax profit.
- Operating margin declined for the third straight quarter sequentially, falling 7.03 percentage points to rank last among 17 reported Energy peers.
Price around the results
Revenue growth failed to absorb the cost increase
Indraprastha Gas reported consolidated revenue growth of 27.21% year on year and 11.58% sequentially, but expenses rose faster at 43.75% and 19.96%, respectively. That pushed operating margin down 11.58 percentage points year on year and 7.03 percentage points sequentially, resulting in an operating loss of Rs 31.69 cr. Interest rose 40.00% year on year, while depreciation increased 12.04%.
Reported profit was largely non-operating
Pre-tax profit was only Rs 9.03 cr, while other income of Rs 188.24 cr represented 2084.61% of pre-tax profit. The -163.01% tax rate, compared with 21.06% a year earlier and 23.68% in the preceding quarter, also lifted net profit to Rs 23.75 cr despite the operating loss. This makes the quarter's earnings quality materially weaker than the reported net profit suggests.
Margin decline has extended across three sequential quarters
Operating margin has fallen from 11.58% in Q3FY26 to 10.12% in Q4FY26, 6.41% in Q1FY27 and -0.62% in Q2FY27. Among 17 Energy peers that have reported, IGL's margin was 15.45 percentage points below the sector median of 14.83% and ranked first from the bottom. The results were filed after market close, so there is no current-session stock reaction to assess.
Past result reactions have usually been positive
After its previous eight results, the stock rose six times and fell twice, with a median absolute move of 2.28%. The latest six recorded moves ranged from -1.83% to +4.00%, providing context for the eventual reaction to this quarter without indicating its direction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,118 cr | ₹4,587 cr | +11.58% | +27.21% |
| Other income | ₹188 cr | ₹159 cr | +18.58% | +6.02% |
| Expenses | ₹5,150 cr | ₹4,293 cr | +19.96% | +43.75% |
| Operating profit | ₹-32 cr | ₹294 cr | — | — |
| Operating margin (%) | -0.62% | 6.41% | — | — |
| Interest | ₹4 cr | ₹3 cr | +2.29% | +40.00% |
| Depreciation | ₹144 cr | ₹137 cr | +4.74% | +12.04% |
| Profit before tax | ₹9 cr | ₹312 cr | -97.10% | -98.15% |
| Tax | ₹-15 cr | ₹74 cr | — | — |
| Net profit | ₹24 cr | ₹238 cr | -90.02% | -93.83% |
| EPS (₹) | ₹0.16 | ₹1.72 | -90.70% | -94.20% |
Operating margin of -0.62% compares with a Energy sector median of 14.83% across 17 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves back above -0.62% after three straight sequential declines.
- Whether expense growth moderates from 43.75% year on year against revenue growth of 27.21%.
- Whether other income remains a 2084.61% share of pre-tax profit and the tax rate stays below zero.