Shares of Indraprastha Gas Limited (IGL) gained momentum, as CNG vehicle registrations across India experienced significant growth in October 2024. According to a Citi report, Pan-India CNG vehicle registrations surged by 69% month-on-month and 45% year-on-year, reflecting rising consumer interest in CNG vehicles due to cost efficiency and environmental benefits. This growth creates a favorable outlook for companies like IGL and Mahanagar Gas Limited (MGL).
Strong Regional Performance
In IGL’s and MGL’s key operational areas, CNG vehicle registrations have shown impressive gains. IGL’s area recorded a 40% month-on-month increase and a 55% year-on-year rise, while MGL’s region saw a 60% month-on-month jump and a 47% year-on-year growth. This robust regional demand bodes well for both companies, paving the way for potential revenue expansion.
Volume Growth Outlook for FY25
Citi’s analysis projects that the CNG vehicle base for IGL and MGL, excluding two-wheelers, could expand by approximately 9-10% in FY25. This anticipated growth aligns with the companies’ strategy to capture the expanding CNG market in India, positioning them to benefit from the trend toward cleaner and more cost-effective fuel options.
The ongoing shift towards CNG vehicles supports strong growth prospects for both IGL and MGL, reinforcing their roles in advancing India’s transition to sustainable fuel alternatives.
