New Delhi [India], August 13 (ANI): Indraprastha Gas Limited (IGL) reported a sharp decline in profits in the first quarter of the current financial year, with standalone net profit falling 48 per cent year-on-year as higher input gas costs squeezed margins, even as the city gas distributor recorded its highest-ever quarterly revenue.

IGL's standalone net profit fell to Rs 186.18 crore in the quarter ended June 2026 from Rs 355.94 crore in the corresponding quarter last year, according to the company's unaudited financial results.

Revenue from operations, however, rose about 16 per cent to a record Rs 5,040.15 crore from Rs 4,326.60 crore in the year-ago period.

The company attributed the pressure on profitability to elevated gas costs following volatility in global LNG prices.

'Volatility in LNG prices due to West Asia crisis led to increased input gas cost for IGL resulting in margins being supressed for the quarter,' IGL said in its earnings release.

The impact of higher input costs was also reflected in the company's operating performance. EBITDA fell 42 per cent to Rs 295.50 crore from Rs 511.75 crore a year ago, while EBITDA margin declined to 6 per cent from 13 per cent.

IGL's purchase cost of natural gas rose to Rs 3,810.86 crore during the quarter from Rs 2,927.93 crore in the corresponding period last year.

Despite the pressure on margins, the company's gas sales volumes continued to grow. Total sales volumes increased 6 per cent year-on-year to 878.98 million standard cubic metres, while average daily sales rose to a record 9.66 million standard cubic metres per day (mmscmd) from 9.13 mmscmd.

CNG volumes, which account for the bulk of IGL's gas sales, grew 6 per cent during the quarter, while total PNG volumes increased about 4 per cent.

Shares of Indraprastha Gas Limited ended 1.79 per cent lower at Rs 151.77 apiece on Thursday following the announcement of its June-quarter results. (ANI)