1Q beat on higher than expected realisation Quick Note

研报英文原文证据摘录

1Q beat on higher than expected realisation Quick Note

Global Markets Research

Mahanagar Gas MGAS.NS MAHGL IN 30 July 2026

EQUITY: INDIA RENEWABLES & CLEAN ENERGY

Rating1Q beat on higher than expected realisation Remains Buy

Target price INR 1,430 RemainsQuick Note

Closing price INR 1,105 29 July 20261QFY27 results beat estimates on higher realisations; volume largely in line

Mahanagar Gas (MGL) reported 1Q adjusted EBITDA of INR3.4bn, up 32% q-q, and

ahead of both our/consensus estimates by ~40%/30% (Fig.1). The beat can be largely

attributed to higher-than-expected net realization of INR54.7/scm (+12% q-q, 8% ahead of Research Analysts

our estimate), which more than offset the increased gas costs at INR39.9/scm, up 13% q- India Oil & Gas/Chemicals

q and 5% ahead of our estimate. We believe that MGL achieved higher realisation from Bineet Banka, CFA - NFASL

industrial/commercial customers during 1Q because of propane unavailability. Other bineet.banka@nomura.com

operating expenses decreased by 7% q-q as 4Q typically represents a seasonal high for +91(22)4037 4044

these costs (1% below our estimate). Total sales volume of 4.8mmscmd was in line with

our estimate, and up 7% y-y.

Unit EBITDA of INR7.9/scm was up 28% q-q, and 40% above our estimate.

Adjusted net income at INR1.9bn increased 47% q-q, 60% ahead of our estimate.

Overall volume at 4.8mmscmd increased 2% q-q and 7% y-y. Volume for

Industrial/Commercial customers recorded a decline of 7% y-y, likely due to continued

issues with respect to gas availability and potential demand loss due to high prices. CNG

volumes grew a healthy 10% y-y, marking the highest level of the past five quarters.

Maintain Buy rating and TP of INR1,430

We maintain our Buy rating for MGL with a DCF-based TP of INR1,430. The stock