Mahanagar Gas Ltd (MGL) Q1 FY27 Results Analysis: PAT Plunges 39%, EBITDA/SCM Misses Guidance

Mahanagar Gas Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 2,597.89 Cr (+13.92% YoY) and PAT growth of -39.39% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

MGL's Q1 FY27 results show revenue growth of 13.92% YoY driven by volume and price increases, but PAT declined 39.39% YoY due to a 32.31% surge in gas purchase costs. EBITDA/SCM of Rs.7.91 missed the company's guided range of Rs.8-9, and I&C volumes remain weak. The sequential recovery from Q4's trough is encouraging, but elevated gas costs and margin compression are key concerns.

Key Investment Insights

Key Positives

• Revenue grew 13.92% YoY to Rs.2,597.89 Cr, driven by 7.01% volume growth and higher net realisation of Rs.54.68/SCM.
• CNG volume grew 9.74% YoY, showing strong demand despite the April 22 price hike.
• PNG Domestic volume grew 9.09% YoY, benefiting from regulatory tailwinds.
• EBITDA improved 31.74% QoQ from Rs.260.34 Cr to Rs.342.98 Cr, recovering from the Q4 trough.
• Company is debt-free with net cash of Rs.1,092.84 Cr as of March 31, 2026.
• EPS of Rs.19.61 for Q1 FY27.

Risk Factors

• PAT declined 39.39% YoY (or 17.96% normalized) due to margin compression.
• Gas purchase cost increased 32.31% YoY, significantly outpacing revenue growth.
• EBITDA/SCM of Rs.7.91 missed the company's guided range of Rs.8-9.
• I&C volumes declined 7.15% YoY and 8.90% QoQ, still recovering from gas curtailment.
• Employee costs rose 25.01% YoY, adding to cost pressure.