Mahanagar Gas Limited (MGL)
Large CapEnergy stocks · Large cap · NSE
Mahanagar Gas Limited (MGL) is one of India's largest City Gas Distribution (CGD) companies, operating over 8,320 Kms of pipeline and 518 CNG stations. It serves 1.28mn CNG vehicles and 3.21mn+ PNG households across Mumbai, Thane, Raigarh, Ratnagiri, Latur, Osmanabad, Chitradurga & Davanagere.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -40% YoY · margin compression · Rev +14% YoY · +16% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,373 Cr | +13.9% | +15.6% |
| EBITDA | ₹342 Cr | -31.6% | +32.6% |
| Operating margin | 14.0% | -1000 bps | +100 bps |
| PAT | ₹193 Cr | -39.5% | +48.5% |
| PAT margin | 8.1% | -718 bps | +179 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
MGL reported a significant decline in Q4 FY26 profitability with PAT down 45.56% YoY and 34.68% QoQ, and EBITDA down 34.09% YoY and 26.05% QoQ. Full-year FY26 PAT fell 18.67% YoY despite a 13.48% increase in net revenue, impacted by higher gas costs.
While MGL achieved revenue growth for FY26, the substantial decline in Q4 and full-year PAT and EBITDA, driven by rising gas costs and potentially stagnant realizations, puts the profitability thesis under stress. The company's ability to pass on costs and maintain margins will be key.
Sales Volume Composition – Q4 FY 26
Latest issuer-disclosed distribution across 4 reported categories.
Infrastructure Exclusivity/Reach
Over 8,320 Kms Pipeline with 518 CNG filing stations provides a strong network advantage.
Strong Customer Base
Serving 1.28mn CNG vehicles and 3.21mn+ PNG households provides a large, captive market.
Consistent Track Record
The company has demonstrated >30 years of consistent growth.
Pipeline Length
Cumulative pipeline length includes 737 Km of Steel and 7,584 Km of PE pipeline.
CNG Stations
The company operates a cumulative total of 518 CNG stations.
PNG Household Connections
MGL has 3,213,904 cumulative PNG household connections.
Industrial & Commercial Customers
The company serves 5,924 cumulative industrial and commercial customers.
Attractive Fuel Economics
CNG and Commercial PNG are price competitive compared to alternative liquid fuels like petrol, diesel, and commercial LPG.
Secured Gas Availability
MGL has a diversified sourcing strategy including APM, HPHT, and Term RLNG.
Priority Segment Focus
Majority of sales are from CNG and D-PNG, with 100% APM allocation available for D-PNG.
General Economic Conditions
Management identifies general economic conditions as a potential risk that could cause actual results to differ materially.
Competitive Product and Pricing Pressures
Management identifies competitive product and pricing pressures as a potential risk.
Regulatory Developments
Management identifies regulatory developments as a potential risk.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation provides both full-year (FY25 vs FY26) and quarterly (Q4 FY25, Q3 FY26, Q4 FY26) data. Full-year provides an annual overview of growth, while quarterly data highlights recent momentum and the sharp decline in Q4 profitability.
Total Sales Volume
Total sales volume for FY26 was 4.585 MMSCMD, up from 4.235 MMSCMD in FY25.
CNG Sales Volume
CNG sales volume for FY26 was 3.267 MMSCMD, up from 3.047 MMSCMD in FY25.
DPNG Sales Volume
DPNG sales volume for FY26 was 0.590 MMSCMD, up from 0.556 MMSCMD in FY25.
Industrial & Commercial Sales Volume
Industrial & Commercial sales volume for FY26 was 0.727 MMSCMD, up from 0.632 MMSCMD in FY25.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margins | 17.61% (FY26), 12.69% (Q4 FY26) | Stabilization or improvement in margins, indicating effective cost pass-through or lower gas costs. |
| Total Sales Volume Growth | 4.585 MMSCMD (FY26) | Sustained growth across CNG, DPNG, and Industrial & Commercial segments. |
| Customer Additions | 3.21mn+ PNG households, 1.28mn CNG vehicles | Continued expansion in new PNG connections and CNG vehicle conversions. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
EBITDA per SCM for Q3 FY26 can be considered around INR8.5.
"My guess is at least for Q3, you can hold on or you can consider INR8.5"
Outcome check: OPM moved from 16.0% to average 15.0% (-1.0 pp).
A long-term HPHT contract of almost 12 million is likely to be available in January 2026.
"likely availability of HPHT, almost 12 million, I think, long-term contract is likely to come up in the month of January 2026."
MGL will certainly have margin improvement in Q4 FY26 once long-term HPHT contracts come.
"long-term contracts, once it comes, Q4, certainly, we will have improvement."
Outcome check: OPM moved from 16.0% to average 15.0% (-1.0 pp).
MGL will soon convert spot HPHT/RLNG purchases into term contracts.
"we will be soon converting into term contract."
Trend score and candlestick chart
47NeutralMACD −
Technical chart
MGLdaily · 1Y · AUTO+0.0%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 48. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 48 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 20% off 52W high · 22% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 0.2% of the 30-week proxy.
- The 30-week proxy changed +0.4% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 30 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 30 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 11/15 to the score.
- Cash flow contributes 6/10 to the score.
Main drags
- Fair-value margin of safety is negative at -139.9%.
- Growth is weaker at 2/25; verify the latest quarterly trend.
- Quality is weaker at 2/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 0% delivered/partly-delivered outcomes on 2 checked claims, with 2 adverse claim outcomes. It ranks around the 63rd percentile of the scored universe and 37th percentile within Energy. Main check: results consistency is weak at 39/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Energy: 37th pctile, median 74 · Large: 41st pctile, median 73
113 documents have extracted text, but claim history is not strong enough yet.
2/4 claims checked · 2 contradicted/failed claims
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.5%.
- ▸4 years of positive FCF.
- ▸Debt/equity is 0.03.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -7.7%.
- ▸0/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 15.10
- P/B
- 1.69
- EV/EBITDA
- 6.46
- Market Cap
- 10832.00Cr
Profitability
- ROE
- 12.20%
- ROCE
- 17.00%
- ROA
- 7.96%
- Dividend Y
- 2.74%
Growth (CAGR)
- Revenue 5Y
- -2.00%
- EPS 5Y
- -2.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- -2.00%
Balance Sheet
- Debt/Equity
- 0.03
- Interest Coverage
- 58.55×
- Altman Z
- 5.21
- Book Value
- 651.00
Cash Flow
- FCF Yield
- 2.53%
- FCF Positive Y
- 4/5
- OCF
- 1162.00 Cr
- EPS TTM
- 72.42
Shareholding
- Promoter Hold
- 32.50%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 41%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Energy, ranked by similarity
Peers
Business-comparable names in Energy, ranked by similarity
Peers
Business-comparable peers in Energy — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.