Mahanagar Gas Ltd. shares climbed more than 3% as the market opened on Friday after the city gas distributor reported a sharp sequential improvement in its June quarter earnings, supported by higher revenue and operating performance.
The stock was trading at Rs 1,148.7 apiece on NSE around 9.35 am today, up from its previous close at Rs 1,118.5.
Market participants are likely to watch whether the company can sustain its earnings momentum and operating margins in the coming quarters amid changes in input costs and demand trends.
Revenue, Operating Profit Improve
The company posted a net profit of Rs 193 crore for the first quarter of fiscal 2027, up 48.5% from Rs 130 crore reported in the March quarter.
Revenue from operations rose 15.6% quarter-on-quarter to Rs 2,373 crore in the quarter ended June 30, compared with Rs 2,053 crore in the preceding quarter.
Operating performance also strengthened during the quarter. Earnings before interest, taxes, depreciation, and amortisation increased 31.9% to Rs 343 crore from Rs 260 crore in the previous quarter, reflecting improved profitability.
Also Read: Mahanagar Gas Q1 Result: Net Profit Rises 49%, Revenue Surges To Rs 2,373 Crore
Share Price Movement
The June quarter performance marked a broad-based improvement across key financial metrics, with higher revenue translating into stronger operating profit and net earnings, helping lift investor sentiment as the stock had otherwise remained muted since the beginning of 2026. Since then, the stock has only gained 1.8%; however, in the past week, the stock is up 6.7%, which includes today's gain as well.
With a market capitalisation of Rs 11,320.9 crore as at the end of the preceding session, this stock is trading at a price-to-earnings multiple of 15.36.
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