TickerSutra

NSE: MGL · BSE: 539957 · ISIN INE002S01010

Mahanagar Gas Limited stock analysis

Mahanagar Gas Limited ranks #2044 in the TickerSutra evidence-ranked universe with a score of 49/100 and 95% data confidence. The latest captured fundamentals show ROCE of 17.1%, quarterly sales growth of 13.9% and quarterly profit growth of -39.4%.
Complete evidence gate pass governance reviewUpdated 29 Sept 2026
TICKERSUTRA SCORE49/100

Avoid / exit review

#2044 of 5,430 ranked equities
Market capitalisation₹10,902.65cr
ROCE17.1%
Quarterly sales growth13.9%
Quarterly profit growth-39.4%
P/E ratio15.1×
Promoter pledge0.0%

INVESTMENT EVIDENCE

What supports—and challenges—the thesis

Evidence in favour

  • Low debt/equity of 0.03×
  • CWIP indicates an active capacity pipeline
  • No promoter shares are reported as pledged

Risks and constraints

  • Operating margin has compressed materially

Still unresolved: Related-party exposure · Broad media sentiment

FINANCIAL TRAJECTORY

Recent operating history

PeriodRevenueOperating profitNet profitOperating margin
2022₹3,560cr₹924cr₹597cr26.0%
2023₹6,299cr₹1,184cr₹790cr19.0%
2024₹6,245cr₹1,843cr₹1,289cr30.0%
2025₹7,261cr₹1,570cr₹1,041cr22.0%
2026₹8,240cr₹1,451cr₹847cr18.0%
TTM₹8,531cr₹1,293cr₹721cr15.0%
Debt / equity0.03×
CFO / EBITDA0.79×
Operating margin15.0%
Free cash flow₹87cr
Sales CAGR · 3Y9.4%
Profit CAGR · 3Y2.3%

EXCHANGE EVENT TRIGGERS

Latest corporate disclosures

0 positive catalysts0 negative catalysts1 routine filings

MANAGEMENT COMMENTARY

Signals from filed documents

Margin pressureHigh severity · 1 mention
Risk easing

The impact of the crisis was more visible in Q4 FY 2025–26, when the company procured higher-cost spot RLNG to meet demand, increasing procurement costs. Despite margin pressures, the company maintained strong volume growth across segments through sustained demand and efficient operations. Emerging Regulatory Tailwinds While the operating environment remains challenging, recent policy and regulatory initiatives have

Capacity expansion plansHigh severity · 1 mention
Positive catalyst

Additionally, the Company evaluates opportunities under Market Determined Pricing mechanisms to enhance sourcing flexibility and cost efficiency. MGL is focused on strengthening supply security and aligning procurement strategies with infrastructure expansion plans and demand growth. The Company continues to explore partnerships and emerging opportunities in the broader gas ecosystem to enhance long-term resilience.

Market share gainHigh severity · 2 mentions
Positive catalyst

Equally important will be the development of reliable supply chains, improved cost competitiveness and the creation of sustainable long-term demand for green hydrogen applications. Core Competencies Adoption of New Technologies Safety and Efficiency Customer Service Strong Partnerships Environmental Sustainability Mahanagar Gas Limited Annual Report 2025-26 Corporate Overview Statutory Reports Financial Statements 14

Export market updatesHigh severity · 2 mentions
Constructive

The incident, while challenging, reaffirmed the strength of MGL’s network design, the agility of its operations team and its unwavering focus on consumer welfare. Geographic Expansion and LNG Integration Expansion is progressing on two fronts. Through the SBU, infrastructure is being scaled across our geographies with trunk pipelines, CGS development and station upgrades, creating a high pressure backbone and extendi

Regulatory updatesModerate severity · 75 mentions
Constructive

Navigating Headwinds: Operational Resilience and Financial Performance in FY 2025–26 The LNG supply disruptions arising from the geopolitical developments in West Asia began to affect operations during the second fortnight of March 2026, impacting our gas sourcing mix in the closing weeks of the financial year. In accordance with regulatory provisions, gas supply to industrial and commercial customers was curtailed t

Pricing commentaryModerate severity · 4 mentions
Constructive

Rajesh Patel: Price and volumes are related, okay? So as earlier question, I answered, there could be some need to do a price increase also. Assuming that things come to a reasonable level and we are able to maintain the prices, then we do expect that growth should be i n the range of 8% to 9% only for CNG.

Margin expansionModerate severity · 1 mention
Positive catalyst

Vikash Jain: And just to -- from whatever which has already been discussed, the Q -o-Q up move in margin, that largely comes from the fact that industrial and commercial did not see that quick a pass - through and a bigger impact in the March quarter. But is that one of t he main reasons for the delta that we have seen the Q-o-Q improvement in margins? Generally, we don't do any pass-through.

Regulatory approvalLow severity · 14 mentions
Watch

Further, the Board of Directors, at its meeting held on May 07, 2026, has recommended a Final Dividend of H 18/- per equity share for the financial year 2025–26. The Final Dividend, if approved by the shareholders at the ensuing 31st Annual General Meeting, will be paid in accordance with applicable laws. Y our Company remains committed to delivering consistent value to its shareholders through regular dividend payou

Pricing pressureLow severity · 2 mentions
Risk easing

Further, a balanced portfolio of long-term and short-term gas supply agreements enables MGL to secure reliable and cost- effective gas supplies. This approach supports competitive pricing across customer segments while driving sustainable growth, operational resilience and profitability. Manas Das Senior Vice President – Business Development & Commercial “Growth is ultimately determined by customer choice.

Institutional interestLow severity · 4 mentions
Watch

Our operations are fully integrated, encompassing network planning, pipeline installation, customer service and asset management, all supported by an enterprise- wide SAP S/4 HANA system. Over the years we have developed an extensive ~1.28 Mn CNG Vehicles 5,924 Industrial & Commercial Customers ~8,320 Km Pipeline Network ~3.21 Mn Domestic Connections 518 CNG Stations Our Consumer Base Customer Segments and Infrastruc

HOW TO READ THIS PAGE

Evidence, freshness and limitations

What does the TickerSutra score mean?

The score ranks captured evidence across financial quality, growth, moat and margins, regulatory catalysts, governance, institutional trend and valuation comfort. It is a research-prioritization tool—not a buy recommendation or price target.

Which sources support this page?

Financial history, ownership and pledge data, NSE and BSE filings, annual reports and available earnings-call transcripts are combined here. Use the source trail and original exchange document before relying on a decision-critical fact.

Why can an item be unresolved?

Unresolved means the current captured source window did not provide enough evidence for that check. It does not establish that a risk or relationship is absent.

Maintained by TickerSutra Research · Snapshot updated 29 Sept 2026 · Read the methodology · Read the disclaimer

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