Mahanagar Gas Posts Strong Revenue Growth, But Profit Margins Collapse
Mahanagar Gas saw a 13.9% YoY revenue jump in Q1 FY27, but profit fell 39.5% as net margins shrank sharply.
Mahanagar Gas reported a sharp divergence in Q1 FY27 results. While revenue grew nearly 14% year-on-year, profit fell by almost 40%, highlighting significant margin pressure.
Mahanagar Gas delivered a quarter of contrasting fortunes. The city gas distributor reported a healthy 13.9% year-on-year jump in revenue for Q1 FY27, but this was overshadowed by a steep 39.5% decline in profit. This sharp divergence points to a significant squeeze on profitability, with the net profit margin falling to 7.4% from 14.0% a year ago.
The sequential picture offers some relief. Revenue grew 15.1% from the previous quarter, and profit rebounded by 48.6% from a low base in Q4 FY26. However, the broader trend over the past year reveals a persistent challenge. The company's net profit margin has been under pressure, dropping from double digits to the 5-9% range in recent quarters.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 2,598.9YoY +14% | 2,258.9 | 2,282.07 |
| Profit (₹ Cr) | 192.64YoY -40% | 129.62 | 318.58 |
| Net Profit Margin (%) | 7.4YoY -47% | 5.7 | 14.0 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 7.6%, well below the 10.2% reported for the full FY26.
- The company maintains a strong balance sheet with zero debt and a robust interest coverage ratio of 55.1.
- The stock trades at a P/E of 10.9, a 34.5% discount to the industry average, reflecting investor concerns over profitability.
The key question for Mahanagar Gas is whether it can stabilize its margins in the coming quarters while sustaining its revenue momentum.
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· MGL
(BSE)
ISIN: INE002S01010
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