Indraprastha Gas Limited (IGL) AI Stock Analysis

• Market Cap: ₹253.89B
• Dividend Yield: 0.77%
• Average Volume (3M): 95.80K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.32
• Revenue Growth: 8.88%
• EPS Growth: -13.51%
• Country: IN
• Employees: 719
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 2.70
• Shares Outstanding: 1,400,001,600
• 10 Day Avg. Volume: 156,867
• 30 Day Avg. Volume: 95,802
• PEG Ratio: -1.22
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 27.25
• 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: 75 Outperform
• Price Target: ₹204.00 ▲(4.94% Upside)

Indraprastha Gas Limited's strong financial performance is the primary driver of its overall score, supported by a robust balance sheet and consistent revenue growth. The technical analysis indicates a neutral market position, while the valuation suggests moderate attractiveness. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong balance sheet / low leverage

A strong capital structure with low leverage reduces financial risk and supports investment flexibility. Over the next 2–6 months this durability enables continued funding for network maintenance and modest expansion without stressing liquidity or relying on volatile external financing markets.

Consistent revenue growth and improving margins

Sustained revenue growth coupled with rising gross and operating margins points to structural operational efficiency and pricing or mix advantage. This underpins longer-term cash generation and resilience to cost inflation, supporting durable profitability over the medium term.

Robust operating cash flow generation

Strong operating cash flow provides the company capacity to fund capex, maintain pipelines, and support shareholder distributions without heavy reliance on debt. Reliable cash generation is a durable fundamental that supports capital projects and operational continuity.

Negative Factors

Decline in free cash flow growth

A slowdown in free cash flow growth may reflect rising capital expenditure or working capital strain, reducing discretionary cash for dividends or reinvestment. If persistent, this can constrain expansion plans and weaken the balance sheet's ability to absorb shocks over months.

Slight decrease in net income recently

A recent dip in net income signals emerging pressure on profitability that could stem from higher costs, slower demand, or margin compression. Continued income declines would erode retained earnings and limit capacity to invest or sustain dividends across the medium term.

Negative EPS growth

A material negative EPS growth rate indicates earnings per share deterioration, which can reflect lower profitability or dilution. Persisting EPS decline undermines shareholder returns and may signal structural operational challenges that affect the company's medium-term financial health.

Indraprastha Gas Limited Business Overview & Revenue Model

Company Description

Indraprastha Gas Limited engages in the distribution of natural gas in India. The company supplies compressed natural gas (CNG) to the transport sector; and piped natural gas to domestic, industrial, and commercial sectors in Delhi, Greater Noida, Ghaziabad, Hapur, Meerut, Shamli, Kanpur, Fatehpur, Hamirpur, Muzaffarnagar, Gurugram, Rewari, Karnal, Kaithal, Ajmer, Pali, and Rajsamand. As of March 31, 2021, it operated 612 CNG stations; and serves 16.85 Lakh households, and 6,687 commercial and industrial consumers. The company also operates 1,265 kilometers of steel pipeline network; and 15,262 kilometers MDPE network. Indraprastha Gas Limited was incorporated in 1998 and is headquartered in New Delhi, India.

How the Company Makes Money

IGL generates revenue through the sale of compressed natural gas (CNG) and piped natural gas (PNG) to various customer segments, including residential, commercial, and industrial users. The primary revenue stream comes from the sale of CNG, which is used mainly as an automotive fuel, and PNG, which is supplied for cooking and heating purposes in households and businesses. Additionally, IGL earns income from the installation and maintenance of gas pipelines and infrastructure. The company benefits from its strategic partnerships with government agencies and local municipalities, as well as regulatory support that promotes the use of cleaner fuels. Factors such as increasing demand for natural gas, expansion of its distribution network, and rising awareness of environmental issues further contribute to IGL's earnings.

Indraprastha Gas Limited Financial Statement Overview

Summary

Indraprastha Gas Limited presents a strong financial profile with robust revenue and profit growth, a solid balance sheet with low leverage, and strong cash flow generation. However, the decrease in free cash flow growth from 2024 to 2025 suggests a need for attention.

Income Statement

Indraprastha Gas Limited demonstrates strong and consistent revenue growth with a substantial improvement in gross profit margin from 2021 to 2025. The net profit margin remains healthy, indicating effective cost management. EBIT and EBITDA margins also show a positive trajectory, reflecting operational efficiency. However, the slight decrease in net income from 2024 to 2025 suggests a potential area for improvement.

Balance Sheet

The company's balance sheet is robust, with a commendable equity ratio signifying a strong capital structure. The low debt-to-equity ratio indicates prudent financial leverage, reducing financial risk. A steady increase in stockholders’ equity over the years highlights the company’s ability to generate shareholder value. The high return on equity further demonstrates efficient use of equity capital.

Cash Flow

Indraprastha Gas Limited showcases a solid cash flow position, with a significant increase in operating cash flow over the years, supporting its operations and investments. The free cash flow to net income ratio is healthy, although the free cash flow growth rate has decreased from 2024 to 2025, which could indicate higher capital expenditures or changes in working capital.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	153.21B	149.28B	140.00B	141.33B	77.10B	49.41B
Gross Profit	33.78B	34.31B	38.02B	33.71B	30.23B	24.11B
EBITDA	18.56B	19.31B	23.24B	19.76B	18.41B	14.42B
Net Income	16.66B	17.18B	19.85B	16.40B	15.02B	11.73B
Balance Sheet
Total Assets	0.00	155.81B	142.20B	126.21B	111.02B	90.50B
Cash, Cash Equivalents and Short-Term Investments	35.94B	35.94B	30.10B	18.30B	30.61B	26.89B
Total Debt	0.00	934.90M	811.70M	827.70M	1.08B	1.46B
Total Liabilities	-106.42B	49.39B	45.70B	46.89B	35.16B	27.16B
Stockholders Equity	106.42B	106.16B	96.33B	79.31B	75.86B	63.34B
Cash Flow
Free Cash Flow	0.00	10.35B	3.03B	11.09B	5.61B	6.63B
Operating Cash Flow	0.00	21.99B	15.32B	22.31B	18.98B	15.46B
Investing Cash Flow	0.00	-15.19B	-11.03B	-8.41B	-15.85B	-18.26B
Financing Cash Flow	0.00	-7.54B	-3.16B	-13.59B	-3.28B	-2.97B

Indraprastha Gas Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 194.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IGL, the sentiment is Negative. The current price of 194.4 is above the 20-day moving average (MA) of 190.79, below the 50-day MA of 195.98, and below the 200-day MA of 203.32, indicating a bearish trend. The MACD of -3.33 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IGL.

Indraprastha Gas Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIL	77 Outperform	₹1.09T	9.95	―	4.39%	5.91%	-5.42%
IGL	75 Outperform	₹253.89B	15.90	―	0.77%	8.88%	-13.51%
GSPL	71 Outperform	₹172.37B	15.51	―	1.69%	0.44%	-33.05%
MGL	69 Neutral	₹103.71B	10.61	―	2.62%	19.78%	-14.38%
GUJGASLTD	69 Neutral	₹285.51B	25.58	―	1.47%	-2.39%	-12.17%
ATGL	66 Neutral	₹609.90B	97.47	―	0.04%	16.61%	-10.87%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%