IGL is also expanding into renewable energy, with plans for solar power plants in Rajasthan, while pursuing backward integration through meter manufacturing
Amid LPG shortages, the government has asked CGD firms to provide PNG connections to schools, colleges, and community kitchens within five days where pipeline infrastructure exists
Ongoing Middle East conflict may reduce India's city gas distribution sales volumes by 8-10 per cent due to LNG supply disruptions, though price pass-through may cushion margins
CGD companies may experience higher input gas prices, potential supply cuts and margin pressure amid regulatory and competitive constraints, according to Kotak Securities
The brokerage said INR depreciation of about 6% Y-o-Y in Q3 has weighed on margins of OMCs and CGD players, partly offsetting the benefit of softer crude oil prices.
After moderating in FY26, India's gas demand is expected to rebound in FY27 on higher industrial offtake and city gas distribution expansion, aided by softer LNG prices
On the bourses, IGL share price rallied up to 5.54 per cent to an intraday high of ₹193.35 per share, while MGL share price rose up to 4.22 per cent to an intraday high of ₹1,159.25.
Nomura has maintained a 'Reduce' rating on Gujarat Gas Ltd (GGL), citing intense competition in the I&C space, subdued volume growth prospects, and constrained pricing power.
Motilal Oswal Financial Services believe that IGL shall be affected the most by this significant reduction in the domestic gas allocation, followed by MGL and then Gujarat Gas.
Given the weak demand, and lower price arbitrage versus petrol/ diesel, and upcoming Assembly elections, price increases will be gradual, hitting margins across H2FY25
CLOSING BELL: Global cues triggered by Powell's positive remarks boosted sentiment. The Sensex scaled a new high at 63,583, while the Nifty 50 came within striking distance of 18,900 on Thursday.
