IGL profit drops 20.66% as costs outpace revenue
Standalone margin fell 2.43 percentage points YoY, while the stock gained 3.77% in the first session after the results.
Filed 18 May 2026, 19:28 IST · after market close · Indraprastha Gas Ltd (IGL)
Key takeaways
- Standalone operating margin narrowed 2.43 percentage points YoY to 10.16% as expenses grew 8.29% against 5.37% revenue growth.
- Standalone net profit fell 20.66% YoY to Rs 277.08 cr, with interest up 184.56% and the tax rate up 3.02 percentage points.
- The stock rose 3.77% in the first session and 9.48% in five sessions, versus a 2.51% median absolute move after the last eight results.
Price around the results
Revenue grew, but profit weakened in Q4FY26
Indraprastha Gas reported standalone revenue growth of 5.37% YoY and 2.35% QoQ, but operating profit fell 14.94% YoY and 10.49% QoQ. Net profit declined 20.66% YoY and 22.73% QoQ as the higher operating cost base and financing costs outweighed the revenue increase.
Cost growth and interest pressure squeezed margins
Expenses grew 8.29% YoY and 4.03% QoQ, faster than revenue in both comparisons, narrowing operating margin by 2.43 percentage points YoY and 1.46 percentage points QoQ. Interest expense rose 184.56% YoY and 252.63% QoQ, adding pressure below operating profit. Other income accounted for 26.3% of profit before tax, while the QoQ tax-rate increase of 4.4 percentage points also weighed on net profit.
Margin ended below its FY26 starting point and sector peers
Operating margin rose to 13.08% in Q1FY26, then fell to 11.01% in Q2FY26, recovered to 11.62% in Q3FY26 and slipped to 10.16% in Q4FY26. IGL's Q4 margin was 4.43 percentage points below the 14.59% median for 15 reported Energy-sector peers, placing it sixth from the bottom.
The market reaction was firmer than IGL's usual initial move
The stock gained 3.77% in the first session after the results and was up 9.48% after five sessions. The initial move was above the 2.51% median absolute reaction across the last eight result events, during which the stock rose six times and fell twice.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,163 cr | ₹4,067 cr | +2.35% | +5.37% |
| Other income | ₹101 cr | ₹130 cr | -22.18% | +11.49% |
| Expenses | ₹3,740 cr | ₹3,595 cr | +4.03% | +8.29% |
| Operating profit | ₹423 cr | ₹473 cr | -10.49% | -14.94% |
| Operating margin (%) | 10.16% | 11.62% | — | — |
| Interest | ₹7 cr | ₹2 cr | +252.63% | +184.56% |
| Depreciation | ₹132 cr | ₹131 cr | +0.64% | +10.07% |
| Profit before tax | ₹385 cr | ₹469 cr | -18.01% | -17.33% |
| Tax | ₹108 cr | ₹111 cr | -2.76% | -7.35% |
| Net profit | ₹277 cr | ₹359 cr | -22.73% | -20.66% |
| EPS (₹) | ₹1.98 | ₹2.56 | -22.66% | -20.48% |
Operating margin of 10.16% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.77% | +3.90% |
| Next session | +2.08% | — |
| 5 sessions | +9.48% | +8.36% |
| 15 sessions | +6.94% | — |
| 30 sessions | +2.74% | — |
Volume on the results session was 3.66× its 20-day average.
What to watch
- Whether operating margin moves back above 10.16% after expenses grew 8.29% YoY.
- Whether interest expense moderates after its 252.63% QoQ increase.
- Whether other income remains close to 26.3% of profit before tax.