India’s gas sector is rapidly evolving, with natural gas accounting for 6% of the country’s energy mix in 2025. The government aims to raise this to 15% by 2030. Domestic gas production reached 35 billion cubic metres in 2023, meeting half of demand, while total gas demand is projected to grow by 3% in 2025.
With a market capitalization of Rs 14,045.71 crore, the shares of Mahanagar Gas Ltd were trading at Rs 1,423.45 per share, increasing around 2.44 percent as compared to the previous closing price of Rs 1,389.60 apiece.
Nomura, one of the well-known brokerages globally, has maintained its ‘Buy’ rating on the gas stock with a target price of Rs 1,680 apiece, indicating a potential upside of 21 percent from the previous closing price of Rs 1,389.60 per share.
Nomura prefers MGL for its strong volume growth outlook, minimal exposure to volatile industrial and commercial segments, and attractive valuations. The brokerage highlights MGL’s resilience in facing EV-related regulatory changes, positioning it more favourably than IGL, thus reinforcing its appeal amid sectoral transitions and competitive pressures.
Looking forward to the company’s financial performance, revenue increased by 22 percent from Rs 1,613 crore in Q4FY24 to Rs 1,964 crore in Q4FY25. Further, during the same time frame, net profit decreased by 5 percent from Rs 261 crore to Rs 247 crore.
MGL operates across 45,691 sq km, covering Maharashtra and Karnataka, with over 47.9 lakh urban households and 11.67 lakh CNG vehicles. Its robust infrastructure includes 467 CNG stations and extensive pipeline networks. Strong customer base and geographic expansion, including subsidiary UEPL areas, position MGL for sustained growth in the city gas distribution sector.
MGL’s total CAPEX reached Rs. 6,906 crore as of March 31, 2025, driven by consistent yearly investments, peaking at Rs. 1,023 crore in FY25. Geographical area (GA I and GA II) received the bulk of allocations at Rs. 3,067 crore and Rs. 3,099 crore, respectively. This strong CAPEX trajectory supports infrastructure expansion and long-term growth.
Mahanagar Gas Limited is an India-based natural gas distribution company. The Company is engaged in the distribution of compressed natural gas (CNG) and piped natural gas (PNG). It also operates in the business of the city gas distribution segment.
Written by Abhishek Singh
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