Synopsis: A leading city gas distributor reported strong Q1FY26 growth, backed by robust revenue and profit, extensive pipelines, and a large customer base. With infrastructure expansion and rising natural gas demand, it is positioned for long-term growth and operational efficiency.
India’s natural gas sector is expanding fast, as policy pushes shift the energy mix from 7% gas now toward 15% by 2030. Consumption reached about 5,875 MMSCM in July 2025, with city gas and transport demand surging. Half of the overall use is met by imports—highlighting dependency, while domestic output was 2,967 MMSCM in July, down 3.7% year-on-year.
With a market capitalization of Rs 12,758.63 crore, the shares of Mahanagar Gas Ltd closed at Rs 1,295.45 per share, increased around 0.07 percent as compared to the previous closing price of Rs 1,294.55 apiece.
Brokerage Recommended
Morgan Stanley, one of the well-known brokerages globally, gave a ‘OverWeight’ rating on this gas stock with a target price of Rs 1,749 apiece, indicating a potential upside of 35 percent from Monday’s closing price of Rs 1,292.10 per share.
Morgan Stanley sees strong growth potential for MGL from the upcoming Navi Mumbai airport and new road networks, which could double its total addressable market over the next decade. As natural gas becomes central to Mumbai’s transport ecosystem, MGL’s annual gas consumption growth may rise by 100 bps, reaching 7% CAGR through FY25–35.
The company reported strong Q1FY26 growth, with revenue rising 25% to Rs 2,083 crore from Rs 1,666 crore. Net profit also grew 10% to Rs 318 crore, reflecting robust operational performance, improved margins, and effective cost management, signaling a positive start to the fiscal year.
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Mahanagar Gas has secured gas supplies, a strong customer base (1.13 mn CNG vehicles, 2.85 mn households), extensive pipeline reach, commitment to health and safety, and robust financials with 3-year revenue CAGR of 24.82% and FY25 RoE of 18.94%.
Mahanagar Gas operates across Maharashtra and Karnataka, covering 45,691 sq km and serving 47.96 lakh urban households. The company runs 471 CNG stations, 690 km of steel pipelines, and 7,284 km of PE pipelines. It supports 11.9 lakh CNG vehicles, 28.9 lakh PNG household connections, and 5,224 industrial-commercial customers, highlighting a strong footprint in gas distribution and mobility.
Mahanagar Gas is a leading city gas distribution company in India, supplying Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) in Mumbai and surrounding areas. The company is committed to providing safe, efficient, and reliable energy, while aiming to be a world-class, consumer-friendly, and environment-conscious organization that creates value for all its stakeholders.
Written by Abhishek Singh
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