Indraprastha Gas shares rally 7% after PNGRB sets date for unified gas tariff; here’s what Nomura analysts said about margin for Q3 FY26

“PNGRB has notified transportation tariffs of ₹54.00/MMBTU (up to 300 km) and ₹102.86/MMBTU (beyond 300 km) effective 1 January 2026,” the statement said. However, CNG and domestic PNG consumers nationwide will be charged the Zone-1 tariff of ₹54.00/MMBTU, resulting in nearly 50% lower transportation charges for consumers located beyond 300 km.

Under the revised framework, PNGRB has reduced the number of tariff zones from three to two, i.e., up to 300 km and beyond 300 km. Further, to promote CNG and domestic PNG usage, it has been notified that the tariff applicable for up to 300 km will be charged for the CNG and PNG-D sector across the country, irrespective of distance.

“This reform advances the objective of ‘One Nation, One Grid, One Tariff’, reduces regional disparities in transportation costs, and aligns natural gas pricing with the transportation cost policy of competitive fuels such as LPG and motor spirit,” PNGRB further said.

The revised tariff regime is expected to reduce CGD sector transportation costs by approximately ₹1,000 crores annually, leading to a reduction in delivered prices of CNG by ₹1.25–₹2.50 per kg and domestic PNG by ₹0.90–₹1.80 per SCM, directly benefiting consumers.

The government had notified the new Petroleum and Natural Gas Rules, 2025, bringing into force a modern regulatory framework aimed at attracting investment and improving ease of doing business in the oil and gas sector.

Here is what analysts at Nomura said

Analysts at Nomura believe Indraprastha Gas (IGL) margins will be supported by lower taxes and reduced transmission tariffs. It also expects volume growth to improve as the transition to the Direct Taxation/Transfer Charge (DTC) regime nears completion.

Following a sharp correction in the stock, the analysts see the risk-reward outlook turning favourable.

For Q3 FY26, Nomura estimates EBITDA margins to improve sequentially by 3%. It expects the negative impact of the rupee’s depreciation and higher household prices to be more than offset by softer domestic and Brent-linked gas prices, along with lower Gujarat taxes.

IGL share price

At 2:30 PM, IGL shares were trading 5.66% higher at ₹193.83 per equity share on the National Stock Exchange.

The scrip has gained above 5% over the last five days but has lost 8.3% over the month. It has fallen more than 7% in the past six months. On a year-to-date basis, IGL shares have lost approximately 5.4%.

The company has a market capitalisation of ₹27,144.63 crore.

While the stock reached a 52-week low of ₹172 on April 16, 2025, it touched a year’s high of ₹229 per equity share on July 8, 2025.

IGL Q2 earnings

The company posted a 4.65% quarter-on-quarter (QoQ) increase in its standalone net profit to ₹372.51 crore during the quarter under review, compared to ₹355.94 crore in the first quarter of FY26.

However, the profit declined 13.59% annually from ₹431.09 crore in the September quarter of the 2024-25 fiscal year (Q2FY25), it said in a regulatory filing dated Wednesday.

The city gas distributor witnessed a 2.76% sequential rise in its revenue from operations to ₹4,445.89 crore for the September quarter of FY26, as against ₹4,326.60 crore in the previous quarter. It has surged 8.9% year-on-year (YoY) from ₹4,083.92 crore in the corresponding period of the last fiscal year.

During the quarter, the company generated ₹3,420.60 crore in net sales of CNG, reflecting a 9% annual growth from ₹3,146.64 crore in Q2FY25. Its net sales from PNG advanced 10% YoY to ₹1,009.96 crore, as compared to ₹918.91 crore. However, its net sales from PNG slumped 75% annually to ₹1.07 crore, from ₹4.28 crore.