Shares of Indraprastha Gas Ltd rose more than 2% in early trade on Monday after the city gas distributor raised compressed natural gas prices across Delhi-NCR, signalling a potential improvement in its ability to absorb higher input costs.
The stock came into focus after IGL increased CNG prices by Rs 3.89 per kg from Aug. 29. The revision took the retail CNG price in Delhi to Rs 86.98 per kg from Rs 83.09 earlier. The move comes as the company faces elevated spot LNG prices amid renewed disruptions linked to the West Asia crisis.
The stock is trading at Rs 150.9 apiece on NSE around 9.31 am today, gaining over its previous close at Rs 147.6.
CNG Price Hike Supports Revenue Recovery
The latest price revision is significant for IGL as imported LNG has become an important source of gas for meeting rising CNG demand. Higher international gas prices had put pressure on the company's input costs, making it difficult to fully protect margins without passing part of the increase on to consumers.
IGL said the latest increase was required to partially offset the rise in input gas costs while maintaining reliable CNG supplies. The company has also highlighted stronger CNG consumption in line with India's economic activity, which has increased the requirement for imported spot LNG.
The price increase covers IGL's operating areas across Delhi-NCR. CNG now costs Rs 95.59 per kg in Noida and Ghaziabad and Rs 92.01 per kg in Gurugram.
ALSO READ: CNG Price Hike: IGL Raises Rates By Rs 3.89/kg, Check New Delhi-NCR Prices, Effective Date
Margin Pressure Remains A Key Concern
The stock's reaction comes against the backdrop of a challenging period for city gas distributors, with international gas prices remaining volatile. IGL's latest move indicates that the company is trying to restore some of the margin lost to higher gas procurement costs through planned price increases.
However, the sustainability of the stock's gains will depend on how international LNG prices behave and whether further increases can be passed through without materially affecting CNG demand.
Stock Price Movement
Despite today's surge, the stock has been down more than 27% over a year, losing around 22% in 2026 itself.
Currently, it is trading at a price-to-earnings multiple of 15.27 with a market cap of Rs 21,061.62 crore.
For IGL, investors will now track the impact of the higher CNG prices on realisations and margins, particularly if elevated LNG costs persist amid continued geopolitical uncertainty.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.