Mahanagar Gas (MGL) Q3 24/25 earnings summary

Executive summary

• Connected 98,469 new domestic households and added nine CNG stations in the quarter, reaching 2.68 million households and 361 stations cumulatively as of December 2024.

• Sole authorized distributor of CNG and PNG in Mumbai, Thane urban, and Raigad, with a customer base of 1.07 million CNG vehicles and 2.68 million PNG households as of December 31, 2024.

• Completed 100% acquisition of Unison Enviro Private Limited (UEPL) in February 2024, expanding operations in Maharashtra and Karnataka.

• Robust infrastructure with 7,223 km of pipelines and 361 CNG stations, supported by a diversified sourcing strategy and favorable regulatory environment.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved and released, with a limited review by statutory auditors confirming no material misstatements.

Financial highlights

• Standalone revenue from operations for Q3 FY25 was ₹1,929.01 crore, up 11.9% year-over-year; consolidated revenue was ₹2,031.51 crore.

• EBITDA for nine months ending December 2024 was ₹1,131 crore; net profit after tax was ₹793 crore.

• PAT for FY24 was ₹7.9 billion, down from ₹12.9 billion in FY23.

• Dividend per share for FY24 was ₹25, with an interim dividend of ₹12 per share declared for the current year.

• EBITDA margin for the nine months dropped to 22.36% from 30.97% year-over-year.

Outlook and guidance

• Projected annual volume growth of 13% for FY25, with double-digit growth expected to continue, primarily driven by CNG and industrial/commercial segments.

• Plans to add over 180 km of steel pipeline and 250 CNG filling stations in the next five years.

• Continued emphasis on cost-effective sourcing, digitization, and expanding reach in Raigad and newly acquired areas.

• EBITDA per SCM guidance maintained at ₹10–12, with margins expected to remain stable barring major external shocks.

• CNG volume growth could accelerate to 15–20% if government policies favor CNG adoption following committee recommendations.