Thank you, Seema. A very good evening.

I'd like to extend a very warm welcome to all the participants and the top management of Indraprastha Gas Limited who are on this call. I'd like to specially welcome Mr.

Kamal Kishore Chatiwal, Managing Director; Mr. Mohit Bhatia, Director (Commercial); Mr.

Sanjay Kumar, CFO; Mr. Manjit Singh, VP (Finance).

I'll hand over the floor to Mr. Kamal Kishore Chatiwal for their initial remarks.

Good evening, ladies and gentlemen. As we enter the final quarter of financial year, I am pleased to connect and welcome you all to discuss IGL's performance for Quarter 3 FY 2025-26.

I am Kamal Kishore Chatiwal, Managing Director of Indraprastha Gas Limited, and I sincerely thank all our shareholders, analysts, stakeholders for your continued trust and engagement. I am delighted to present the operational and financial performance of Indraprastha Gas Limited for the quarter ended December 31, 2025.

I will begin by outlining our progress in volume growth and network expansion during this period. The operational highlights are as follows.

This quarter demonstrates steady operational execution and improving margin visibility as we continue to consolidate our leadership position in India's city gas distribution sector. Operating across 12 geographical areas spanning four states, IGL serves a growing and diversified customer base through robust and scalable infrastructure.

Over the course of the year, we have significantly expanded our footprint. Our steel pipeline network now extends over 2,500 km while our MDPE network has reached approximately 29,200 km.

This infrastructure enables us to supply natural gas to more than 32.75 lakh households, approximately 5,400 industrial customers, and around 7,400 commercial establishments. We have added and commissioned 45 CNG stations till now during the year, further strengthening access and convenience for our vehicular customers.

Regulatory developments: during the quarter, two major regulatory recalibrations occurred that have a very positive structural implication for the city gas distribution sector, particularly for IGL. First is the replacement of the 15% value-added tax with the 2% central sales tax on domestic gas sourced from Gujarat, effective December 2025.

While the immediate financial impact was moderated by elevated gas input prices and currency fluctuations, this change will have a positive impact on gas costs going forward. The second was the rationalization of the gas transmission framework through the introduction of two-zone tariff regime, replacing the previous three-zone structure.

Effective January 1, 2026, PNGRB has revised its tariff regulation, reducing pipeline transmission tariff zones from three to two. For the CGD sector, Zone 1 applies universally to CNG and PNG domestic segment, regardless of the delivery point distance from the source.

IGL will benefit significantly from this change as our geographical areas previously fell under Zone 2 and Zone 3, and will now be classified under Zone 1 tariff. For industrial and commercial segment, Zone 2 tariff will be applicable across our I&C portfolio.

Let me now turn to our financial performance for the third quarter of FY 2025-26. The company recorded a 3% year-on-year growth in total sales volume, with the CNG segment growing 3% and PNG segment growing 5%.

Despite lower offtake from DTC and DIMTS fleets consequent to their phased migration towards electric mobility, the CNG segment demonstrated resilient performance. Adjusted for these institutional volumes, the segment delivered growth of approximately 10%, underscoring sustained demand across the wider vehicular ecosystem.

In the PNG segment, volumes increased to 2.5 million standard cubic meters per day from 2.41 scm per day year-on-year, indicating steady traction across all sub-segments. This growth is underpinned by consistent customer additions and stable demand across user categories.

This concludes my remarks, and I would like to invite our Director (Commercial), Shri Mohit Bhatia-ji ji, to share his comments.

Thank you, Managing Director, Shri Chatiwal ji. A very good evening to everyone.

I'm Mohit Bhatia, Director Commercial at Indraprastha Gas, and I extend a warm welcome to all our investors, fund fund managers, and analysts joining us today. I hope you have had the opportunity to review our financial results for the quarter.

Let me give you the quarter overview. This quarter presented a mixed landscape for the CGD sector.

While we benefited from the two major positive regulatory changes as appraised by our Managing Director, we have also experienced volatility in gas costs and adverse forex impacts on procurement expenses. Additionally, there has been changes in the legal landscape.

The new labor code became effective 21st November '25. Although these rules are yet to be notified, we have made provisions of around ₹28 crores in the current quarter as a one-time impact.

Excluding these provisions, our EBITDA would have been around ₹500 crores. The market dynamics: following the rationalization of the GST rates, the GST 2.0, in particularly on CNG vehicles was reduced from 28% to 18%, resulting in a phenomenal increased vehicle conversions, which have risen which have raised from average of 21,000 to 26,000 per month.

We expect this momentum to continue in the near future. Further, the company is aggressively pursuing the growth in new geographical areas, and now the new geographical areas, the incremental volume is contributing to almost 57% that is outside Delhi and NCR.

The Quarter 3 FY 2025-26 financial performance, the key highlights are: first, volume performance, the total volume the total sales for the quarter reached 867 million scm, up from 838 million scm in the same period last year, reflecting a 3% year-on-year growth. Overall average daily sales volume was 9.43 million scm compared to 9.11 million scm per day in Q3 financial year 2024-25.

On the CNG segment, the CNG segment continued to perform strongly with average daily sales exceeding 50 lakh kgs per day, equivalent to 6.93 million scm, representing a 3% growth in terms of scm terms and a growth of 5% in terms of kg terms. Excluding the DTC volumes in Delhi, CNG sales grew by 10%, underscoring robust underlying demand.

With DTC fleet transitions expected to have minimal impact going forward, the CNG segment is well-positioned for sustained growth. In the PNG segment, the PNG segment also demonstrated growth with average daily sales of around 2.5 million scm per day, up from 2.41 million scm in the corresponding last quarter quarter for the last year, representing a growth of 5%.

However, the domestic domestic PNG sales growth was around 8% along with commercial PNG growth of 8%. However, the industrial demand had was subdued a little bit.

On the revenue and the profitability, total revenue for this quarter stood at ₹4,465 crores, making an average 8% year-on-year increase driven by volume growth and steady operational execution across segments. EBITDA stood at ₹473 crores compared to ₹360 crores in Q3 of last year, reflecting 31% growth and 7% sequential growth compared to ₹443 crores in previous quarter.

The profit after tax, PAT, for Q3 stood at ₹358 crores as compared to ₹285 crores in the corresponding quarter of the previous year, demonstrating a robust growth of 25% in PAT. That concludes our opening remarks and we would like to open the floor for the question and answer session.

Thank you.

Thanks for taking my question, sir. Few questions from my side.

How many DTC buses phase out during the Quarter 3, and now what is the CNG consumption volume of DTC buses?

If I can share you for Quarter 3, the sales have come down. It was around 80,000 kg per day in October, then further tapered to around 54,000 in November, and December it was left to around 22,000 kg per day.

Now almost only below, I think, 100 buses are left out, and what we have been made to understand from DTC, I think by March this DTC volume will be almost zero.

Okay. Fair enough.

Sir, second question related to unit EBITDA margins or EBITDA margin guidance. We have been giving a ₹7 per scm kind of EBITDA margin guidance.

Now we have posted a ₹5.4 per scm in this quarter. What will be the parameters or the things which will boost up the EBITDA margins from the current level of 5.4 to the 7?

Any broader idea if you could give us?

Two, three things. First is the transmission tariff.

The total impact if you know for the entire sector was around ₹1,000 crores, and out of that IGL's share was ₹330 crores. Now we have passed on some of the benefit to the consumers, but we are still left with ₹260 crores.

That should translate to approximately ₹0.75 per scm. That is one.

Second is, as the Gujarat VAT was implemented only in December, we could realize only the part. That impact is around ₹0.20-₹0.25.

Third is the labor code that was implemented, we had to make certain provisions. That is a one-time provision, and going forward it may not be that high, so that is around ₹0.30 extra.

Combine

all this, we are seeing that we should be near to seven going forward. If required, any adjustment in prices.

The long-term guidance remains that 7 to 8 is our target range. We were expecting the transmission tariff to be notified much earlier than it was notified because they sent the communication in July, PNGRB communication was in July, and we deferred because we don't want to basically make the RSP of our CNG product volatile.

We want to keep it constant. We deferred the price increase or anything like that.

That was the reason that there was delay. Now going forward, we expect that these benefits should come, and automatically it should be near to seven based on the current prices.

Now, you suggested ₹0.75 per unit kind of a benefits from that unified tariff rationalization. Out of that, how much we have already pass on to the customer in terms of a benefit?

This is after passing on.

Okay.

This is the benefit, what is left. So ₹1 something was there, now what is left is ₹0.75.

The last, sir, just gas sourcing break-up if you could provide in mmscmd terms from each source, that would be helpful.

You tell. Sanjay will.

If you see, our overall procurement was 9.75, out of that APM was 3.38, NWG was 0.57 million cubic meter per day, HPHT was around 0.5, and rest was RLNG around 2.3. In percentage terms if I say, domestic was around 43%, NWG 7%, HPHT 6%, and 42% for RLNG.

Thanks a lot, sir. This was really helpful.

Wish you best of luck.

Hi, sir. Thanks for the opportunity.

Sir, my question was related to your guidance for volume for this year and for next year. In the previous call, you had indicated that we will be exiting this year at about 10 mmscmd.

Do we maintain that guidance in terms of exiting this year at 10 because I think in the nine months so far we are at 9.43 after nine months? That would be my first.

Second question was again on volume. If you can give us a break-up of sales across our NCT, NCR, and new geographies, and also the prospective growth rates in those regions.

We maintain the guidance that, as the CGD sector, the last quarter is the best sector, the Quarter 4 of any year. You pick up any year, that is the best sector.

Till now the average has been 9.43, but we have been constantly going above 10 million per day the drawal from all the sellers, exceeding 10 million. We will be exiting the quarter at 10 million, that we are confident.

The break-up that you have asked

I'll tell.

Please tell.

The break-up for the current year, 9.43 which break-up you wanted to know, Delhi is contributing to around 5.43, this is CNG plus PNG, around 56%. Noida, Ghaziabad is contributing to 2.24 per day, around 23%.

The newer GAs, we can say around 13% to 14%, 1.26 mmscmd per day, and the NG is 0.5. The break-up of 9.43 is.

Sir, the respective growth rates in these areas in this quarter?

Delhi, as it is almost flat or half to 1%. Noida, Ghaziabad is growing at around 6.2%, whereas the outside or the new GAs is contributing to almost 17% growth.

Sir. Sir, if I may just ask a follow-up question on the volume that you mentioned in terms of guidance.

Sir, in the previous quarter, I think the DTC volumes were about at 230,000 kg per day, whereas the numbers that you indicated for this quarter indicate a higher average contribution from DTC at about 50,000 kg per day. In fact, DTC has contributed more in this quarter than it did in the September quarter, right?

Then how do we see this number?

Yeah. I got it.

See the September there was dip, it was definitely less. Then two months, October and November, I think some buses were not plying and they rolled it back and then finally it got shunted out.

December volume, it was around 20, 22,000. Further, as I mentioned earlier also, hardly less than 100 buses are left out, and what we have been made to understand from DTC, they will be phasing it out entirely by March '26.

Sir, actually what I wanted to understand is that in September, our total CNG volume was higher despite a lower contribution from DTC. In this December quarter, our DTC contribution went up sequentially, but our overall CNG volume went down.

Yeah. Actually in this quarter, in Delhi, as the GRAP implementation was there.

The schools were shut down for a few days. This time the pollution was really bad.

Schools, the buses were off the roads. Those were the major impact due to which the Quarter 3 was slightly, other than the DTC also, the buses volumes were down.

Now that the weather has improved, the GRAP have been lifted, we are at normal now.

Nitin, I'll reiterate the numbers for DTC. Q2, we had an average sale of 40,000, and this quarter the average sale was around 6,000.

Okay. All right, sir.

Thank you, sir. I'll get back in the queue for further questions.

Earlier you mentioned about 40 50,000, it is actually 6,000. Six

All right, sir. My bad over there.

The

other portion which is DIMTS, that was also 1,50,000 last quarter. This quarter it is 1,30,000.

Okay.

[unclear]

Thanks for the opportunity. As you mentioned that you maintain volume guidance, can you just help us what will be the volume growth for next two to three years?

GA-wise if you can just break down, Delhi and non-Delhi?

Actually, our guidance has been that every year we will be adding 1 million, 9 to 10. Next two years, I think 1 million each in next two years, and majority of that would come, Delhi will continue at 8% to 10% after once the impact of DTC is away.

So 8% to 10% would be the NCR zone and outside would be 17%

to 18%. That's helpful, sir.

Thank you.

Good afternoon, sir. Firstly on clarification, you mentioned that the Gujarat VAT implementation was from December only, not before that.

And ₹0.20-₹0.25 per scm is still pending to be realized, is that right?

For only December quarter we could realize in the last quarter. If the whole year impact is there, so that should be the benefit.

No, I mean QoQ you're saying another ₹0.20-₹0.25 would get added to the gross margin, right, from this?

Yes, yes. Yes.

Okay. Second is on the DTC, 40,000 to what was I couldn't get that part which Nitin was asking.

DTC sales for this quarter was 5,000-6,000, around 6,000 kg average per day. The last quarter this number was 40,000.

40,000.

40,000.

It has fallen from 40,000 to 6,000 in quarter-on-quarter?

Yes. Yes.

Okay. And 150 to 130 was what?

That was DIMTS.

That was DIMTS from Q2 to Q3. DIMTS is still at 130 and

DIMTS is still at 130. DTC and DIMTS, they used to comprise around 8% to 10% of our sales.

Now that number remains around 4%. DTC alone used to be 6%, 7%, now it is at around 1%.

Not even 1%.

DTC plus DIMTS?

Yes.

DIMTS will also keep gradually declining, right?

DIMTS is a slightly longer period for the transition because primarily the mandate is for DTC to convert, and DIMTS is basically on operator who have the vehicles with the Delhi Integrated Transport model. They are the outside operators.

They have a longer tenure basically, because those buses which have been put up, they will run for 8 to 10 in 10 years.

They are basically contract buses which run on contract basis. They are private party buses run on contract basis.

I had

a few bookkeeping questions. Nine months, what is the CNG station base and capex for nine months?

CNG or PNG?

CNG station, you said 45?

Actually, till now nine months is around ₹190 crores.

₹190 crores

No,

116,

sorry. PNG is 190.

Steel network is 190, and CNG is ₹116 crores.

MDPE, 516. Total we have spent around ₹847 crores in nine months.

MDPE, 516. That is the total.

What is the CNG station base right now?

We're almost 975 stations by, you can say, 973 to be specific as on end of 31st of January, you can say.

Out of that DTC has been closed, so that we'll have to reduce.

Yes.

Around 55-60 stations have been closed which were run by DTC. That number you can reduce, around 925 stations are operative.

Right, right. Last question, what would be the CUGL and MNGL volume for this quarter as well as last year's same quarter?

MNGL is 1.99 mmscmd.

Last year it was 1.7.

1.7 to 1. almost 2 million.

CUGL, last year it was 0.33, this year it is 0.34. They have a growth of around 3%.

Okay. There was dividends from CUGL, MNGL in Q3, right?

Q3 we had dividend from MNGL, ₹40 crores.

₹40 crores. Q2 also there were dividends, right?

Q2 we had final dividend ₹67 crores, around ₹58 crores from MNGL and ₹9 crores from CUGL.

Got it. Thank you so much.

Thank you, sir, for taking my call. I just had a forward-looking question.

In the future, when LNG prices come down and the demand for commercial increases, would you have to put up more infrastructure, or within the existing infrastructure you'll be able to increase volumes?

No, actually, if you see the current state of queuing in Delhi, NCR, it is still a cause of worry and we need to put up more stations. Because the moment we provide more convenience, more people will be attracted to convert to CNG.

Although the queuing time has reduced drastically from earlier say half an hour to now five, six minutes, but our vision is to make it queueless. There should be no queue at stations.

What about for small industry which are the commercial segment? The volume can increase

Definitely. The volumes will increase there.

Now even the DG set conversions for the societies because they have gone for alternate to NG also in some cases. We are trying to capture those customers.

Also the commercial transition from say LPG to gas, that continues. That 10% to 11% growth would be there.

Using the same infrastructure, or you will require more?

For PNG industrial and commercial, we have already reached all the industrial and commercial hubs. Probably will not require that much capex to reaching those customers.

Have given a price reduction of international LNG prices. Probably we'll be able to sell more and growth is something which we can expect.

That will affect margins positively.

Yes. Sir.

That was it, sir. Thank you.

Sir, thanks for the opportunity. Is there any specific reason that growth in NCR was 6%?

It used to be around at 11%, 12% kind of on the run rate, what we have seen in the past. Any specific reason for this kind of a number?

See,

you are right. I think you are right.

Last few quarters we were looking at around 10% to 11%. Because this GRAP effect is there in NCR also, and this time I think you are aware that due to some high pollution issues and all, the schools were closed.

We also envisaged a little bit tapered growth in Ghaziabad or Noida area. The number of vehicles which are getting added, in particularly passenger car segment, we are confident to bounce back on the similar numbers.

Okay. Sir, when you say that the 10 mmscmd will be the exit rate, do you mean that it will be for that particular month you will exit at around 10, or that quarter the average will be around 10 mmscmd?

I think the average 10 for the quarter, what we are suggesting is that in the March month, it should be at 10. Entire month should be at 10.

That is the exit rate, because for the quarter we are now at 9.4, 9.5

numbers, and

going forward this month we are touching 10. March, the complete March should be above 10.

For the average for the month, because two, three days, for the holidays and other reasons, the sales are less on those two, three days. Five, six days we are doing above 10, but on Sundays the number of vehicles are less.

That brings down the average, but going forward in March we will be at 10, above 10 for the whole month.

Okay. Sir, the last question, sir, what was the DTC volume in the base quarter?

I think you mentioned that average for this quarter was something around 50,000 kg per day. That's what the average for the Q3.

What that number was in the base quarter?

We stand corrected. It is 5,000 kgs per day for this quarter.

For the last quarter of the previous year the same quarter, it was around 1.5 lakh per kg.

It was 1.5 lakh. Got it.

Thank you, sir.

Thank you for the opportunity, sir. I hope I'm audible.

Yes, please go ahead.

Yeah. Sir, just with respect to the guidance that you just mentioned in terms of volumes, where the target is to essentially add about 1 million scmd per day every year, just wanted to understand what will be the sourcing strategy, what kind of contracts are we sort of in the market for, whether are we looking at only Brent-linked in the view of recent Henry Hub strength, or are we still looking at a diversified kind of a sourcing mix?

Just trying to understand the readiness to meet this kind of higher volume target from a sourcing perspective.

Going forward, we anticipate that right now 42%, 43% is RLNG, it will be 50-50, 50% RLNG and 50% from domestic sources, including HPHT, new well gas, and APM. Our target to all the potential shippers is new well gas price, that is 12% of Brent.

Since our major portfolio is already linked to Brent, because APM, new well, HPHT are all linked to Brent, for diversification, we will have the 50%, I think it will be 50-50 from Henry Hub and Brent. If we get some good deals on Henry Hub, then I think we are open to that, but our guidance to them has been that 12% of Brent should be the landed price for us.

Got it, sir. Sir, I'm sorry if you have answered this earlier, I joined a bit late.

Can you refresh your guidance for capex for '27 and '28? If you can break it down in terms of NCR and outside NCR as well.

See, our core business capex, we have plans for around ₹1,250 crores for this financial year, out of which we have already spent in nine months ₹847 crores. The break-up in terms of if we say Delhi, Delhi is almost around 45% we have spent, and UP part is almost you can say 30% to 35%, and Haryana is around 10% you can say.

It is like that.

Sir, for '27 also we can expect a similar kind of a level?

Our aspiration or our targets are like that only, to around ₹1,200 to ₹1,500 crores in the core segment.

Got it, sir. Thank you.

Thank you so much. Sorry.

We will be adding diversification capex, BD capex, that will be other than the core business. That 800 ₹500 to ₹800 crores, that will be separate, into renewables, into CBG, into LNG infra.

Those will be separate. This is only for the core of CNG and PNG.

Will they start to reflect for '27 onwards or is that slightly longer-term?

I think from '27 they should start reflecting, because the JV formation and subsequently the cash calls and all will take some time. From '27 onwards, they should start reflecting.

On an overall basis, sir, then somewhere between ₹1,600 to ₹1,700 crore is a reasonable number to assume for the overall capex for '27? Is that a fair assumption?

Or

maybe around 2,000, 2,000 you can say. 1,200, 1,300 core and 600, 700 diversification BD.

Understood. Thank you so much.

Thank you so much and all the best.

Sir, in your comments earlier, you mentioned we got benefit of reduction in sales tax, but we also faced headwinds from higher gas cost and forex. Could you breakdown this impact or how it impacted our gas cost, which seems to be down by ₹0.90 quarter-on-quarter?

If you see, our exchange rate has gone from say around 86, 87 to 90, 91. Around 7% to 8% rupee devaluation rupee devaluation is there, which is which has resulted in in around ₹2 to ₹2.5 increase in gas cost, which was partly offset by the Gujarat VAT reduction which happened during last quarter.

Our gas cost per scm if you see, that is more or less remain same. Only ₹0.50 to ₹0.60 reduction is there.

Had these rupee devaluation not been there, our gas cost would have been much lower and EBITDA margin would have been much higher.

Just on the CENVAT, could you quantify what is the benefit we gained?

I don't remember exactly Gujarat VAT. Gujarat VAT got

totally eliminated.

The total impact that we assessed at that time was around 35 to 40 paisa per scm.

Did we get this for the whole quarter or only December?

Actually, the benefit we got only for the December month, but for this quarter it will be for full three months.

Understood. Sir, and could you give an update on the tender process in the Middle East that we are participating in?

We have qualified for stage one, and we have been given the tender for phase two. There, I think we are in the process and bid submission is April 23.

We'll be participating in that, and it looks a very good opportunity in the sense that it is a very planned kind of a thing, that with CGS is only at a 50 500 meter distance, and the industrial cities are planned. The gas prices there are much more competitive as compared to alternate fuels, there is a natural push for the switch as well as the government push would also be there.

Each industrial city, in our assessment, going forward would be around 1.5 million. We are looking at four now, 6 million total is the long-term sales potential there.

Sir, and since we submitted the bids, could you give a ballpark estimate of what kind of capex it entails?

No, right now the bid has to be submitted by April 26. 23rd April '26, the bid submission date is there.

The capex calculation is still going on.

Sir. On the captive power plant that we were planning, is there any progress there?

Actually, the JV with Rajasthan is taking some time, that in the sense that the land allocation, because it's being transferred from other agency to the other JV partner company. That is taking time.

In the meantime, for our operational efficiency and other things, we are coming out with a 200 MW tender. That will be through tender route, and whoever has got the land and the connectivity, CTU connectivity, so that is the precondition, and they can participate and then we will evaluate that.

That is also on the progress. It should come out within next one month or so.

Sir. Thank you so much.

Hi, sir. Thanks for taking my questions.

Sir, for simplicity, if you were to look at volume growth that you have reported this quarter, ex of the changes that we have seen for DTC buses, what would that number have been? I know you've shared a few numbers, I'm a little lost on that.

If you were to just take out the DTC and ex of that, what would the volume growth be, either CNG or overall volume growth?

Overall would be around 9.6 in that case.

9.87.

9.87.

Okay. So

CNG

would be 9.8.

Overall would be 9.43 is the overall.

Okay.

You can say around from 150 we have down to 6,000. That is the change.

150 is in kgs, it will be around from 2 to say 10. So 0.19, 0.2,

2 lakh.

2 lakh. You can add 0.2 to that, 9.63.

Okay. Yeah, 9.63 versus 9.1, right?

Yeah.

9.11.

Exactly.

That's a 6% growth, right?

No, if you see, we are talking in kg terms. If I tell you, the last year last year number, overall CNG sales was 47.55 lakh kg.

If I remove the DTC and DIMTS sale, it is 44.14 lakh kg. Current year, our total sale was 50.01 lakh kg per day.

If I remove the DTC and DIMTS sale, it is 48.63. From 44.14 lakh kg to 48.63 lakh kg per day of sales, which is a increase of 4.49 lakh kg per day, which is 10.17% of CNG sales.

So 10.17% is the growth for CNG segment if we exclude DTC and DIMTS.

DTC now, for all practical purposes, of course, it might be still impacting the base for

5,000 is the number in the current quarter. Q4 sorry, Q3 of next year will be the period when you will not see any impact of DTC sales going down.

DIMTS might still be having some impact there, but probably this 1.32 lakh kg sales of DIMTS which we had in this quarter, probably next two, three years, I think it is going to be there and then probably it will go down.

At that kind of a level, roughly at that kind of level, no major decline, sir.

Yes.

Okay. The bigger part of the decline which was impacting headline growth is now done,

kind of? It is almost done and whatever is left by Q4 it will be almost zero that we can

This drag which is there, that will be there for maybe next two

to three

quarters probably. Q3 of '27 is when we'll not see any drag and the normal growth will reflect in the overall number.

Okay. Sir, that is where you get the confidence that from here on you would roughly be growing at about 10%?

Yes. Yes.

Okay.

Just to understand, you did explain that there are these the two, three elements with which margin should be higher. Based on that, roughly ₹1 plus should be higher gross margin for the next for this this quarter, this coming this quarter where we are in, based on those.

You said ₹0.75 net plus about ₹0.25 from Gujarat and I think there was one more thing, right?

Labor code implementation one-time ₹0.30. That will be ₹0.25 that will be come from there, ₹1.25, you can say.

That you think is broadly with the run rate that we are dealing with right now? Right.

Plus in case we are able to add CBG, so that as you are aware that CBG, excise duty exemption has come, it depends on us now that how we are able to ramp up our CBG in our network.

Okay. Would that be very material immediately?

No, it'll take some time for it.

Immediately, it will take one year or so to be going from 1% to 5%. So 5% to 10% if we are able to do, that will be having a material impact.

Okay. In terms of your sourcing, you're confident that most of it you would not have to depend so much on LNG, most of it will come from new well gas is what you think?

No. 50% we said going forward.

Incremental also the 50% anyway we have to be sourcing from say 0.5 million every year we will be adding.

Okay.

Next year, I think some HPHT gas is also coming in which we will get apart from NWG. Some HPHT gas is getting freed up, I think that will also come to market.

So

50% we are expecting that we will have to source additionally.

Okay. Sure.

Okay. Thank you so much, sir.

Hi, sir. Thanks for the opportunity.

Just wanted to understand to what percentage of your gas sourcing is the Gujarat VAT decision?

43% that APM. NWG also, 7% is 7%.

You can say 50% of the gas.

50% of the gas. Okay.

APM and NWG.

Right, sir. Secondly, sir, you indicated the DTC volume for the base quarters.

If you can also indicate the DIMTS volume for the base quarter as well as for the second quarter?

I'll tell you the DTC and DIMTS volume again. For the current quarter, DTC volume was 5,000 kg per day.

DIMTS

volume was 1.32 lakh kg per day.

1.32 lakh. Okay.

The previous quarter, DTC volume was 44,000 kg per day,

and

DIMTS volume 1.47 lakh kg per day.

Sorry, that was not clear. Please say that again.

44,000 kg for DTC. 1.47 lakh for DIMTS.

Okay. The base quarter?

Yes. The base quarter DTC was 1.55 lakh.

Okay.

DIMTS was 1.85 lakh.

Understood, sir. Thank you so much, sir.

Thanks for the opportunity. Sir, one clarification.

In this quarter, we said 50% is RLNG. Within this, can you give a sub-break-up in terms of spot and Henry Hub and Brent-linked contracts?

Broadly, spot was not there, that you can

Spot is nil.

not any spot. Some quantity we have got from IGX which is generally the HPHT gas available there.

IGX, we bought maybe 1% or 2% of the total requirement. Apart from that, our Henry Hub and Brent-linked RLNG contracts are in the ratio of around 60 to 40.

Out of the total RLNG, around 40% is Brent-linked and around 60% is Henry Hub.

Got it, sir. Also, we have a bit of a flexibility in terms of the Henry Hub contract we do have, we can push it depending on in case we feel Brent is relatively lower, we have the flexibility.

Yes, that is there.

Got it, sir. Sir, also the next couple of years capex, you did mention about the trajectory there.

In terms of CNG station additions, what we plan to put and within this, how much it goes into the pipeline. Broadly, and what kind of volume contribution maybe over the next two, three years this can contribute the capex that we are spending over the next couple of years?

Roughly around 80 to 100 CNG stations we are targeting year-over-year for maybe roughly next three years to five years. Out of the total capex, almost you can say 40% to 45% will go on the CNG, and balance will be on the steel pipeline network as well as the MDPE.

It will be like that. As mentioned earlier, the total overall incremental volume we are anticipating 1 million to add year-on-year.

Out of this, around you can say 65% to 70% will come from CNG and around maybe 30%, 35% maybe from the PNG, both industrial, commercial and D-PNG.

If you take around number of stations, 100 stations per annum, average selling 6,000 kg per station, it will be around 6 lakh kg, which translates to around 8 0.8 million cubic meter per day of sales, 100 stations. 0.8 million is the number which you can add from CNG, and PNG is growing at around 12%, 14% depending upon industrial volume is dependent upon prices and that growth also.

Both put together, 1 million is something which is very achievable.

Sir, within this 100 stations, between the GAs, Delhi, NCR, and other newer GAs, how would this See,

you can see it all depends. We have the target for 100, 80 to 100, and we are scouting for land in Delhi also, as MD also mentioned for the queuing part.

We are also anticipating the DTC old stations hybrid and all, they are also offering the sites in Delhi. If it goes on, almost say 25% to 30% we should get in Delhi also.

Otherwise, mostly it will be outside GAs and somewhat in Ghaziabad and NCR part also.

Sir. One last question.

In terms of opportunities for getting into the other GAs or inorganic foray, in general in terms of the recent MWPs and what is the opportunity set, sir? Is there a chance for a consolidation in the industry in the next couple of years because of somebody of aggressive bidding on the MWP side?

Is there an opportunity set that's still available and then how are we looking at it?

Actually, this is a regulated license kind of a business. Here unless some regulations are modified and facilitated for this mergers and acquisition, it will be very difficult because all those GAs will be carrying huge penalties and that will deter the potential buyers.

Unless something is thought on those lines that how do you make it possible, something similar to say NCLT mechanism or something like that is thought of that with those kind of penalties, it will be difficult for them to sell it also. Because valuations are in negative zone.

That I think is potential bottleneck for M&A, but we see that going forward if we have to achieve the kind of growth, the mergers have to take place because smaller entities day by day will find it difficult because the sourcing is now becoming a very, very critical aspect. Those who are able to source will give the benefit to the consumers.

That is our assessment of the situation. Got it.

Players are there who are ready to bid for those M&A activities, but the field is not ripe, the penalties and other things, because they will have to inherit those also.

Thanks for the thoughts, sir. Thank you.

Thank you, all the investors and participants for participating in the Q3 earning call of IGL. Thank you, Mr.

Varadarajan and Antique Stock Broking. Probably we'll meet again in the month of April or May with better set of results.

Thank you so much.