Shares of Mahanagar Gas Ltd declined on Thursday, October 30, trading 1.78% lower at Rs 1,272.50 after the company reported a sharp drop in profitability for the September quarter of FY26. The fall comes a day after the Mumbai-based city gas distributor announced its Q2 earnings post-market hours.
Mahanagar Gas posted a net profit of Rs 191 crore for Q2 FY26, down 33.45% from Rs 287 crore in the same quarter last year. Sequentially, profit fell 40% from Rs 318 crore in Q1 FY26, reflecting margin pressure during the period.
Despite weak earnings, the company reported a 14.9% YoY rise in revenue to Rs 2,256 crore, compared to Rs 1,963 crore in Q2 FY25, supported by volume recovery and price adjustments. Revenue also saw a 1.1% sequential rise from Rs 2,083 crore in Q1 FY26.
EBITDA declined 18.2% YoY to Rs 338 crore from Rs 413 crore, with margins contracting to 14.97% versus 21.06% in the year-ago period, pointing to increased input costs and pricing challenges.
Stock performance snapshot
| Metric | Latest |
|---|---|
| Price | Rs 1,272.50 |
| Daily Move | -1.78% |
| Previous Close | Rs 1,295.60 |
| Day Range | Rs 1,260 – Rs 1,277 |
| Market Cap | Rs 125.58 billion |
| P/E Ratio | 11.74 |
| Dividend Yield | 2.36% |
| 52-Week Range | Rs 1,075.25 – Rs 1,586.90 |
The stock has gained 2.93% over the past month, but remains down 2.29% over six months, and up 1.11% year-to-date.
Company update & sector development
Earlier this month, Mahanagar Gas signed an MoU with Oil India Ltd to jointly explore opportunities across India’s LNG value chain and emerging green energy segments, aligning with the country’s long-term energy transition goals. The company continues to expand pipeline infrastructure and CNG network in the Mumbai region.
Outlook
While revenue growth remains steady, margin compression and a sharp decline in profitability have weighed on sentiment. Investors will track how quickly Mahanagar Gas can stabilise operating margins and capitalise on clean-energy partnerships in the coming quarters.
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