Indraprastha Gas gains 3% on JV with RVUNL for solar project in Rajasthan

Indraprastha Gas share price was trading 2.9 per cent higher at ₹217 per share against the previous close of ₹210.93 on the NSE

Indraprastha Gas share price today: Shares of natural gas distribution company Indraprastha Gas (IGL) rose over 3 per cent on Tuesday to hit an intraday high of ₹217.5 on the NSE after the company announced a joint venture agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) to set up a solar plant in Rajasthan

 

At 12:00 PM, the company's share price was trading 2.9 per cent higher at ₹217 per share against the previous close of ₹210.93 on the NSE. In comparison, NSE Nifty50 was up 0.4 per cent at 24,722 levels. The market capitalisation of the company stood at ₹30,030 crore. The stock has surged over 38 per cent from the 52-week low of ₹153.05 touched on November 21, 2024.

 

“Board in its meeting held on 29 March 2025, approved the setting up of Solar Plant in the State of Rajasthan through a Joint Venture with M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL),” the company said in an exchange filing.

 

As per the filing, the joint venture between IGL and RVUNL will have an equity participation from both the companies in the ratio of 74:26, marking a 74 per cent and 24 per cent stake in the venture, respectively.  READ STOCK MARKET LATEST UPDATES LIVE 

The board of directors of the joint venture will comprise six directors, including four nominated by IGL and two by RVUNL. 

Indraprastha Gas Q1 results

In the April-June quarter of fiscal 2025-25 (Q1FY26), the state-run firm posted a 10.9 per cent year-on-year (Y-o-Y) fall in its consolidated net profit to ₹427.81 crore compared to ₹480.22 crore in the year-ago period. However, the company's revenue grew 11.2 per cent Y-o-Y to ₹4,326.75 crore from 3,887.52 crore. 

 

IGL's earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at ₹511.75 crore for the June 2025 quarter, down 12 per cent from ₹581.85 crore in the corresponding period last year.  ALSO READ | Ashok Leyland rises 4% on inking ₹5,000-cr pact with CALB for batteries

Yes Securities on Indraprastha Gas

According to analysts at Yes Securities, over the long term, IGL is positioning itself as a more diversified gas utility, with expansion into renewables (500MW solar project with RVUNL), LNG retailing (3 LNG stations planned), and Compressed Bio-Gas (CBG). 

 

"Piped Natural Gas (PNG) will likely outpace CNG as a growth driver, led by sustained 12 per cent to 14 per cent growth in domestic DPNG and industrial demand. With 3.2 million households and a widening pipeline network, the base effect will support operating leverage. Management is targeting ₹7–8/scm steady-state Ebitda, assuming sourcing mix remains balanced," the brokerage said in a note earlier.

 

However, the rapid rollout of electric buses in Delhi, particularly under the DTC fleet, is structurally displacing CNG buses, a segment that historically anchored IGL's volume growth. While this EV-led substitution remains city-centric for now, it poses a growing long-term threat to IGL’s core business, the brokerage added.

 

The brokerage has maintained a 'Neutral' rating on the stock, valuing the stock on a Price-Earnings Ratio (PER) basis, assigning a 15x multiple with a target price of ₹225.