Indus Gas (INDI) AI Stock Analysis

• Market Cap: £2.85M
• Dividend Yield: N/A
• Average Volume (3M): 318.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 61.18%
• EPS Growth: -4476.64%
• Country: UK
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 182,973,920
• 10 Day Avg. Volume: 538,951
• 30 Day Avg. Volume: 318,200
• PEG Ratio: <0.01
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -3.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: 1.50p ▼(-85.60% Downside)

The score is held down primarily by weak financial fundamentals (net loss, high leverage, and weak free cash flow). Technicals are also poor with a strong downtrend and bearish momentum, only partially offset by oversold signals. Valuation provides limited support because the company is loss-making and no dividend yield is available.

Positive Factors

Revenue growth and margins

Sustained high revenue growth (55% y/y) combined with healthy EBIT/EBITDA margins indicates the core production and sales model is scaling efficiently. Over a 2-6 month horizon, strong top-line momentum and operating margins support reinvestment and operational resilience if cash/financing is stabilized.

Operating cash generation

Positive operating cash flow relative to net income shows the underlying asset base produces cash even while accounting profits are negative. This sustainable cash generation from operations provides a foundation for short-term funding of working capital and supports the business while management addresses financing and investment needs.

Strategic market position and contracts

Long-term offtake contracts, strategic partnerships and exposure to rising Indian gas demand create durable revenue visibility and lower marketing risk. Structural demand growth and regulatory support in India underpin medium-term volume stability and provide a platform to expand production and monetization.

Negative Factors

Substantial net losses

A material net loss erodes equity, limits retained earnings and curtails the company's ability to self-fund growth. Over months this undermines balance sheet strength, increases likelihood of equity dilution or restructuring, and constrains strategic options until profitability is restored.

High leverage / weak balance sheet

Significant leverage raises refinancing and interest-service risk, reducing financial flexibility. In a capital-intensive E&P business, high debt limits ability to invest through cycles, increases bankruptcy vulnerability on downside, and may force asset sales or higher-cost funding over the medium term.

Negative free cash flow trends

Sustained negative free cash flow means operations plus capex do not generate surplus cash, forcing reliance on external financing or asset disposals. Combined with losses and high leverage, persistent negative FCF constrains capex, debt servicing and growth, posing a lasting liquidity risk.

Indus Gas Business Overview & Revenue Model

Company Description

Indus Gas (INDI) is an exploration and production company focused on natural gas in India. The company is primarily engaged in the extraction and sale of natural gas and associated products, operating in key geographical regions where it has secured exploration rights. Indus Gas aims to meet the growing energy demands of the Indian market by leveraging its resources and expertise to provide clean and efficient energy solutions.

How the Company Makes Money

Indus Gas generates its revenue primarily through the sale of natural gas extracted from its fields. The company enters into long-term contracts with various customers, including utilities, industrial users, and other energy firms, which ensures a steady stream of income. Additionally, the company benefits from pricing mechanisms tied to market rates and government regulations. Strategic partnerships with local and international energy firms also enhance its operational capacity and market reach, contributing to its financial performance. Factors such as rising energy demand in India and favorable regulatory policies further support the company's revenue growth.

Indus Gas Financial Statement Overview

Summary

Indus Gas faces significant financial challenges, with strong revenue growth overshadowed by a substantial net loss and high leverage. While operational efficiency is evident through healthy EBIT and EBITDA margins, the negative net income and weak cash flow management raise concerns about the company's financial stability and sustainability. The high debt levels further exacerbate the risk profile.

Income Statement

Indus Gas has shown a significant revenue growth rate of 55.35% in the most recent year, which is a positive indicator. However, the company reported a substantial net loss, leading to a negative net profit margin. The gross profit margin remains strong, but the negative net income overshadows these positives. The EBIT and EBITDA margins are healthy, indicating operational efficiency, but the overall profitability is concerning.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a financial risk. The return on equity is negative due to the net loss, and the equity ratio is low, reflecting a heavy reliance on debt financing. These factors suggest financial instability and potential risk in the company's capital structure.

Cash Flow

The cash flow statement shows a negative free cash flow growth rate, indicating cash flow challenges. The operating cash flow to net income ratio is positive, suggesting that the company can generate cash from operations, but the negative free cash flow to net income ratio highlights issues in covering net income with free cash flow. Overall, cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.29M	29.65M	42.93M	63.03M	53.71M	48.53M
Gross Profit	27.48M	27.25M	37.47M	55.67M	46.87M	45.63M
EBITDA	27.80M	27.59M	41.38M	61.20M	51.77M	46.14M
Net Income	-357.36M	-357.58M	20.18M	30.88M	35.21M	27.93M
Balance Sheet
Total Assets	906.29M	893.50M	1.41B	1.36B	1.30B	1.25B
Cash, Cash Equivalents and Short-Term Investments	646.32K	240.22K	2.07M	11.77M	4.45M	995.76K
Total Debt	884.54M	164.09M	858.67M	837.85M	837.43M	824.96M
Total Liabilities	899.09M	887.45M	1.05B	1.02B	992.30M	971.40M
Stockholders Equity	5.35M	6.05M	363.63M	343.44M	312.56M	277.35M
Cash Flow
Free Cash Flow	-8.58M	-3.34M	26.41M	62.19M	44.93M	-78.48M
Operating Cash Flow	2.04M	7.25M	48.44M	74.43M	67.49M	43.12M
Investing Cash Flow	-10.62M	-10.59M	-22.03M	-12.24M	-22.56M	-121.60M
Financing Cash Flow	8.91M	1.51M	-35.67M	-54.99M	-41.46M	79.16M

Indus Gas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INDI, the sentiment is Negative. The current price of 10.42 is above the 20-day moving average (MA) of 4.80, above the 50-day MA of 7.72, and above the 200-day MA of 8.84, indicating a bearish trend. The MACD of -1.90 indicates Positive momentum. The RSI at 20.77 is Positive, neither overbought nor oversold. The STOCH value of 23.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:INDI.

Indus Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BLOE	51 Neutral	£6.83M	-11.67	―	―	-12.37%	76.00%
RBD	47 Neutral	£13.25M	-4.33	-7.32%	―	―	―
NOG	46 Neutral	£6.00M	-0.13	―	―	-10.73%	24.24%
UOG	44 Neutral	£6.02M	-2.42	-16.07%	―	―	―
INDI	39 Underperform	£2.85M	>-0.01	-203.02%	―	61.18%	-4476.64%

Indus Gas Corporate Events

Indus Gas Wins Shareholder Backing to Delist from AIM and Sets Up Post-Delisting Trading Facility

Indus Gas Limited has secured shareholder approval at an extraordinary general meeting to cancel the admission of its ordinary shares to trading on London’s AIM market, with the delisting scheduled to take effect on 23 January 2026 and the final trading day set for 22 January 2026. To mitigate the impact on investor liquidity after leaving the public market, the company is putting in place a matched bargain facility operated by J P Jenkins, allowing shareholders and potential buyers to indicate bids and offers via stockbrokers, although Indus cautions there is no guarantee of liquidity and notes the facility, intended to run for at least 12 months, could be withdrawn at short notice, potentially constraining future trading in the shares.

The most recent analyst rating on (GB:INDI) stock is a Sell with a £3.50 price target. To see the full list of analyst forecasts on Indus Gas stock, see the GB:INDI Stock Forecast page.

Indus Gas Lifts Interim Profits but Awaits PSC Extension for New Gas Sales Deal

Indus Gas reported a strong rise in interim results for the six months to 30 September 2025, with adjusted revenue increasing to US$3.99m from US$2.34m a year earlier and operating profit and profit before tax both advancing to US$1.93m from US$1.24m. Net profit for the period climbed to US$1.14m versus US$0.64m, despite the company continuing to book a notional deferred tax charge in line with IFRS. The balance sheet remains highly leveraged, with long-term debt and substantial related-party payables dominating total liabilities, while shareholder equity is modest at about US$7.2m relative to a US$906m asset base. Operationally, production from the SGL, SSF and SSG fields is currently limited, and gas continues to be supplied to Gail under an interim term sheet; management signalled that a new long-term gas sales agreement is contingent on the long-awaited extension of the production sharing contract (PSC), meaning regulatory timing will be critical for future sales visibility and cash flow stability.

The most recent analyst rating on (GB:INDI) stock is a Sell with a £8.00 price target. To see the full list of analyst forecasts on Indus Gas stock, see the GB:INDI Stock Forecast page.

Indus Gas Seeks Shareholder Approval to Delist from AIM Amid Operational and Funding Strains

Indus Gas Limited has called an extraordinary general meeting on 8 January 2026 to seek shareholder approval to cancel the admission of its ordinary shares to trading on AIM, with the delisting expected to take effect on 23 January 2026 if at least 75% of votes cast support the move. The board cites operational and financial challenges, limited access to additional capital via the market, disproportionate listing and compliance costs, and very low share liquidity as key reasons for leaving AIM, and notes that the strong backing and irrevocable undertakings of majority shareholder Gynia Holdings effectively ensure the proposal’s approval. Following the cancellation, Indus will no longer be bound by AIM’s regulatory and disclosure regime or UK MAR, trading in its shares is expected to become significantly more difficult, and shareholders will lose many of the protections associated with a public market listing, although the company plans to put in place a matched bargain facility to provide a limited mechanism for off-market share trades and will remain subject to the UK Takeover Code for two years after delisting.

The most recent analyst rating on (GB:INDI) stock is a Sell with a £8.00 price target. To see the full list of analyst forecasts on Indus Gas stock, see the GB:INDI Stock Forecast page.