Mumbai:The Board of Directors of Mahanagar Gas Limited (MGL), a leading city gas distributor, today approved the unaudited financial results for the quarter and nine months ended December 31, 2025. Despite a rise in revenue, the company reported a decline in profitability. In a move to reward shareholders, the Board declared a significant interim dividend.
Q3 FY26 Standalone: Key Financial Highlights
The company's performance for the quarter ending December 2025 showed mixed results:
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Revenue from Operations: Increased by 11.6% to ₹2,265.97 Crore from ₹2,030.82 Crore in Q3 FY25.
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Net Profit: Declined by 9.4% to ₹201.97 Crore, down from ₹223.00 Crore a year ago.
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Earnings Per Share (EPS): Stood at ₹20.45 for the quarter.
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EBITDA: Was ₹352.07 Crore, with a margin of 17.10% on net revenue.
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Total Gas Sales Volume: Grew by 8.97% to 1,252.94 Million SCM for the nine-month period.
Nine-Month FY26 Standalone Performance
For the cumulative period (April-December 2025), the trend of higher revenue but lower profit continued:
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Revenue from Operations: Grew 16.75% to ₹6,801.70 Crore.
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Net Profit: Declined 10.5% to ₹714.90 Crore.
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EPS for 9M: Stood at ₹72.37.
Interim Dividend Declaration
Providing a silver lining for investors, the Board declared an Interim Dividend of ₹12 per equity share (120% on face value of ₹10) for FY 2025-26. The company has fixed Friday, 13 February 2026 as the Record Date to determine shareholder eligibility. The dividend will be paid within 30 days of declaration.
Operational & Business Update
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Volume Growth: The company witnessed healthy volume growth across segments for the nine-month period:
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CNG Sales: Up 7.24% to 891.18 Million SCM.
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PNG (Domestic): Up 7.53% to 161.02 Million SCM.
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PNG (Industrial/Commercial): Up 18.76% to 200.74 Million SCM.
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Legal & Regulatory Matters: The company noted ongoing legal cases related to gas pipeline tariffs and a GST demand order. Based on legal opinions, MGL believes it has a strong case and has not made any provisions, expecting no material outflow.
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Impact of Labour Codes: The notification of new Labour Codes resulted in a one-time increase in gratuity liability (past service cost) of ₹9.94 Crore, which has been accounted for in the employee benefit expenses.
Outlook
Mahanagar Gas's Q3 results reflect the challenges of margin compression despite robust volume and revenue growth. The company's focus remains on expanding its network and customer base in its licensed geographical area. The declaration of a healthy interim dividend underscores its commitment to shareholder returns amidst a period of adjusted profitability.