Indraprastha Gas Limited (NSE: IGL) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
Nitin Tiwari — Lead Analyst
Kamal Kishore Chatiwal — Managing Director
Mohit Bhatia — Director
Analysts:
Unidentified Participant
E.A. Sundaram — Analyst
Probal Sen — Analyst
Somaiah V — Analyst
Presentation:
Nitin Tiwari — Lead Analyst
Sat Sat SA Foreign.
operator
Ladies and gentlemen, good day and welcome to India Prastha Gas Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touched on phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Tiwari. Thank you. And over to you sir.
Nitin Tiwari — Lead Analyst
Thank you. Good day. Ladies and gentlemen, on behalf of Philip Capital India Ltd. I welcome everyone to Indo Trust Gas Ltd. First Quarter FY26 Earnings Call. Today from the management team of IGL, we have the pleasure of having with us Mr. K.K. chadiwal, Managing Director of IGL Mr. Mohit Bhatia, Director Commercial, Mr. Sanjay Kumar, CFO and Mr. Manjit Gorati, VP Finance. I shall now hand over the floor to the management for their opening remarks which shall be followed by a question and answer session. Over to you, sir.
Kamal Kishore Chatiwal — Managing Director
Good evening ladies and gentlemen. I am Kamal Kishore Jitival, Managing Director of Fintepristh Gas Limited. It’s a pleasure to welcome you all to our Q1FY25 26 earnings call. Thank you for taking the time to join us today. For the benefit of new participants, I would like to begin with a brief overview of. IGL is one of India’s leading city gas distribution companies with a Strong presence in 12 geographical areas across four states. Our mission is rooted in delivering safe, reliable, sustainable energy solution across industrial, commercial, domestic sector as well as the urban mobility segment. We operate through a balanced portfolio that spans both mature and emerging geographical areas providing us with both stable returns and exciting growth opportunities.
On the infrastructure front, IGL continues to strengthen its network. We now operate a steel pipeline network exceeding 2,400 km complemented by an MDP pipeline network of approximately 28,000 km. This infrastructure enables us to supply natural gas to over 3.1 million households, 5,300 industrial units, 7,000 commercial establishment. In addition, we operate more than 955 CNG stations across our area of operations. Operational and financial highlights for quarter one are as follows. In Q1 of FY26 we recorded a healthy 6% year on year increase in overall volumes driven by 6% growth in CNG segment and 10% growth in PNG segment.
It is worth noting that CNG volume growth of 6% was achieved despite a reduction in sales in DTC and LIMS buses which are gradually Transitioning their fleet to ev. If we exclude DTC volumes, our CNG growth stands at around 9% year on year, which is highly encouraging considering the high base. While volumes in Delhi remain stable, we experienced robust double digit growth in our operations outside Delhi, reaffirming the strength of our expanding geographical footprint. One of the key growth drivers was the rise in CNG vehicle adoption. On a 12 month rolling basis, we saw a 17% increase in new and retrofitted CNG vehicles with an average addition of 18,500 vehicles per month during the quarter up from 15,900 a year ago.
On the PNG front, the total sales volumes rose to 2.34 million standard cubic meter per day up from 2.18 million standard cubic meter per day. With growth evident across all business segments. Domestic PNG sales grew 11% supported by the addition of 1.81 lakh new connections per household. The connection consumption remained steady. Industrial PNG volume rose 8% backed by 419 new industrial connections and a 9% increase in the build industrial base. Commercial PNG sales increased by 14% aided by 909 new commercial connections. Expansion of our customer base continues to be fundamental lever driving PNG volume growth.
I would also like to highlight a significant regulatory development that you may be aware of. The PNGRB has recently notified that the transmission tariff for CNG and domestic PNG segment will now fall under a single zone tariff network. While pricing details are evident, this structural reform is expected to benefit the CGD sector immensely, especially in the hinterland. We believe this change will positively impact our cost structure and margins in the near term. With this, I now invite Mr. Mohit Bhatia, our Director Commercial to share additional remarks.
Mohit Bhatia — Director
Thank you Mr. K.K. chhetiwal. And good evening to all our investors, fund houses and analysts. I’m Mohit Bhatia, Director Commercial at Inderprast Gas Ltd. And it’s a pleasure to speak with all of you today. So let me take you through some of the key financial highlights for the quarter. The total sales volume for quarter one stood at 831 million standard cubic cubic meter registering a growth of 6% year over year. This is translating into an average daily volume of 9.13 million standard cubic meter which is up from 8.64 million standard cubic meter of last year.
The revenue for the quarter reached to rupees 4317 crore with an increase of 11% year on year. The EBITDA stood at rupees 512 crore reflecting an 11% decline over last year primarily due to the reason in the per STM gas purchase cost. This was largely the result of reduced allocation of APM gas. The profit after tax pact for the quarter was 356 crore as compared to 400 crore of Q1 of the previous year. However, sequential analysis provides a clear picture. In Q4 of 25 there was a one time impact of 114 crore related to settlement with oil marketing companies.
Adjusting for that, EBITDA per SEM has increased by 33% and currently it stands on Q1 closure that is rupees 6.16 per SCM in terms of sales volume. While our Managing director mentioned that Delhi was flat but the NCR region, particularly Gautam Bud Nagar, I.e. noida, Greater Noida and Ghaziabad geographical areas registered 11% growth whereas the other GIs outside Delhi and NCR registered a 23% growth. Our associate company Central UP Gas Limited has continued its steady growth during the quarter. CUGL sales volume stood at 0.34 million standard cubic meter per day as compared to 0.3 standard meter cube million standard cubic meter in the corresponding last year with an increase of 13% reflecting healthy operational performance.
The company also improved financial outcome with the Profit registering of 17.6 crore up from 15.6 crore in the same quarter of the previous year. Our other associate Mahanagar Natural Gas Limited has continued to maintain robust operational performance during the quarter. MNGL recorded a sales volume of 1.85 million standard cubic meter per day as compared to 1.56 during the corresponding quarter of the previous year with an increase of almost 18% reflecting consistent demand and network expansion. The profit after tax stood at 131 crore as compared to 145 crore in the same period last year, largely impacted by pricing dynamics.
Despite this, the company remains well positioned for sustainable long term growth. As our Managing Director mentioned, we expect further upside in EBITDA margins for IGL once the tariff rationalization takes full effect. With this I would like to conclude the opening commentary and would now request open the floor for further questions.
Kamal Kishore Chatiwal — Managing Director
Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press STAR and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prabhal Sen from ICICI Securities, Please go ahead.
E.A. Sundaram
Thank you for the opportunity. Good afternoon sir. Two questions from my side. Firstly, in terms of the gas sourcing mix, if you can let us know what was the exact APM gas percentage for this quarter excluding new well gas for the CNG segment and also the volumes that we got from Brent Linked long term contracts as well as Henry Hub Link contracts for the quarter.
Kamal Kishore Chatiwal
You see APM as of the second fortnight is around 3.08 mmscmd. So out of the total 6.79. So that is close to around 42%.
E.A. Sundaram
Okay.
Kamal Kishore Chatiwal
Others is that we have got new well gas then HPHT, even IGX, we have the HPHT priority. So you can say 2 third. We are getting the domestic gas that includes your APM, new well HPHT, CBM. So these domestic sources constitute around 2 third. One third is RLNG and the RLNG.
E.A. Sundaram
Is primarily on contractual basis or do we have any spot as well in.
Kamal Kishore Chatiwal
Our portfolio we have more than 100% contracts. So I would say medium and long term is there. There is no spot volume requirement.
E.A. Sundaram
Right. The second question was with respect to the tariff rationalization that you mentioned. Is it possible to get a sense of how much of our volumes today in the domestic and CNG are actually on Zone two versus maybe or zone three as the case may be and what kind of a per se?
Kamal Kishore Chatiwal
Yes, total we have around 83% of our volumes are in that zone. So 83% goes to CNG, transport and domestic. That’s the number. So. And around 85, 87% is in zone two. 13, 14% is in zone three.
E.A. Sundaram
So 87% of our domestic and CNG volumes are in zone two, right?
Kamal Kishore Chatiwal
Yes.
E.A. Sundaram
And sir, is it possible to then share your estimate of what kind of cost savings will occur if these volumes were to move to zone one? Parrots.
Kamal Kishore Chatiwal
I think actually final numbers are not there, but whatever is available from various sources, we feel that 1 rupee per SCM plus minus 30 paisa, 70.
E.A. Sundaram
Paisa to 1 rupee roughly a range is what we expect.
Kamal Kishore Chatiwal
1 rupee 30 paisa should be the range.
E.A. Sundaram
One last question if I may squeeze in, sir. Any change in guidance? I believe earlier also you had mentioned that you would strive to maintain EBIT. Volume growth would be at around 7 or 7 to 8% or 6 to 8%. And EBITDA would be in the range of 6 and a half to 7 rupees. Is that a fair guidance to assume?
Kamal Kishore Chatiwal
No, no, no. We are basically the EBITDA margin should improve and the long Term guidance has always been 7 to 8. So we should be in that range. I think even some of the tax rationalizations discussions are going on with some states. So we are hopeful that we should be in the upper range of that going forward. And we should end the year at around 10 million.
E.A. Sundaram
So volume growth or any long term guidance for the next two to three years on an annualized level, I think.
Kamal Kishore Chatiwal
10 to 11% is the guidance for next two to three years. That includes the gas that we will be acquiring. And based on that we are seeing that.
E.A. Sundaram
Okay, that is very helpful sir. Thank you so much and all the best.
operator
Thank you. The next question is from the line of Yogesh Patil from Daulat Capital. Please go ahead.
Probal Sen
Thanks for taking my question, sir. Sir, again can you give us a detailed breakup in terms of MMSCMD of our gas sourcing volumes like APM? You have already mentioned 3.08 but could you please give us a NWG HPHT Henry Hub crude link. And the spot if you have NWG.
Kamal Kishore Chatiwal
Right Now is at 0.9 kind of numbers. 0.9 and HPST you can say, I mean some of the volumes are on a very short term basis. You know, on a monthly basis we are getting on the exchange. So but long term, if you say it’s 0.43 long term one year contracts but every month they come out with some volume. So we, as you know, the CNG transport segment is on priority list. So we get the first priority and whatever we bid, so 15 to 20% of that we definitely get. So 0.3 to 0.4 from there.
And CBM volume is 0.12.
Probal Sen
Henry Hub, any idea, sir?
Kamal Kishore Chatiwal
So Henry Hub, we have contracted around, I mean 67% of our 4.22 million portfolio. Two third of that is Henry Hub Lint.
Probal Sen
Okay, sir, second question again related to volume growth. You have been guiding a volume growth of 8 to 10%, 10% in FY26 while reported volume growth is in the range of 6% on year. On year side, what would be the key drivers which will drive our volume growth to the 10% in the remaining nine months? Can you just throw some lights on that side?
Kamal Kishore Chatiwal
Actually some of our new gas, even in the existing gas we see a strong growth in the OEM car space, passenger vehicle space which is growing at around 37% as we speak. The last month’s numbers were out and petrol you know, has come down below 50% first time. And 37% is CNG. So that’s a very healthy Growth. And we are also augmenting our stations. Not only outside of Delhi but even in Delhi. We are augmenting stations very aggressively. And wherever we can find space, even in the existing stations we are increasing that. So with that what we plan to do is give some increase the customer experience which should aid us in our conversion.
Probal Sen
Sir, how many CNG DTC buses are right now flying inside a Delhi? And how much is there consumption? Hello.
Nitin Tiwari
Sir.
Probal Sen
Am I audible.
operator
Mr. Yogesh?
Probal Sen
Yes ma’.
Nitin Tiwari
Am.
Kamal Kishore Chatiwal
And second is maybe some of the GS. I mean we may do some acquisition and all. So those volumes will also come in.
Probal Sen
Okay. So sir, next question is related to number of CNG DTC buses inside a Delhi as of now. And how much is the CNG sales volume nowadays?
Kamal Kishore Chatiwal
You see DTC is around 85. 87. 87,000 is remaining. So you can say one and a half, 1.7% of the total volume. So that is left not a significant number. And our sales are exceeding. You know currently we are exceeding 5152 lakhs kg per day.
Probal Sen
Okay. This is 85,000 kgs per day. Is that a correct understanding sir?
Kamal Kishore Chatiwal
Yes. Yes. This is on all on KGS because we sell in KG and then we convert it into scm.
Probal Sen
Okay. And how much time it will take to completely phase out of all these CNG DTC verses?
Kamal Kishore Chatiwal
I think it is. I mean we. It is dependent on the Delhi Transport Corporation how quickly they can deploy the electric buses. So in next two years we are expecting those buses to go out. Whatever is remaining, very less buses are there.
Probal Sen
Thanks a lot sir. This was really helpful.
operator
Thank you. I request each participants to ask two questions only. The next question is from the line of Sabri Hazarika from MK Global. Please go ahead.
Nitin Tiwari
Yeah.
E.A. Sundaram
Good afternoon. So two questions. Firstly what was. What was the CapEx for Q1FY26 and how many CNG stations did you add?
Mohit Bhatia
So see we have taken like on the core business for the annual the financial year around 14 to 1500 crores for this year. So we had incurred around 290 crores during the Q1 on.
Nitin Tiwari
290. 290 crores.
Mohit Bhatia
Yeah. 290 crores. So on the capex incur was 290 crore. So as you know that like in the first quarter normally we plan to put up the CNG stations and all. So we have a plan for commissioning of 102 stations during the entire year. So first quarter it’s all in the execution stage. So number not much numbers get commissioned during the first quarter. But for the entire year we have a plan of 102 target for commissioning.
E.A. Sundaram
Okay, second question is what is the industrial and commercial PNG realizations for Q1 and also the average for FY25 last year?
Mohit Bhatia
Yeah. So for Q1 we had double digit growth basically in industrial and commercial sector also. So industrial sector grew by around 8 to 10%. Roughly 8% you can take. And the commercial grew by 14%. It is slightly better than the last year average. Now we are clogging a daily average volume of around 0.8 million per day in case of industries. And in terms of commercial sale we are clogging around 0.24 million SCM per day. So almost, almost around 170 commercial customers and around 100 industrial customers during this quarter we have added also.
E.A. Sundaram
Yeah, thanks for that. But I also wanted to know the realizations, the pricing. Pricing, sir?
Mohit Bhatia
Pricing?
E.A. Sundaram
Yeah. Industrial and commercial price for Q1 as well as FY25.
Mohit Bhatia
So for Q1 our average price if.
Kamal Kishore Chatiwal
You see is around 49 to 50 rupees in term in case of industrial and around rupees 60 for commercial.
E.A. Sundaram
And last year also it was like this only.
Kamal Kishore Chatiwal
No, we have increased the prices slightly. One rupee in domestic and one or two rupees in industrial and commercial. And industrial is, you know, a very dynamic thing based on the alternate fuel. So we have to somehow sometimes compete with that. So that is a very dynamic space. But commercial is stable at 60 and domestic at 50. So we had increased prices there.
E.A. Sundaram
Got it sir. Thank you so much and all the best.
operator
Thank you. The next question is from the line of Lokesh Manek from Ralam Capital. Please go ahead.
Nitin Tiwari
Is it better? Yeah, it is better.
operator
Can you please come little closer to the device?
E.A. Sundaram
Yeah.
Nitin Tiwari
Is it better?
operator
Yes.
Mohit Bhatia
You are better?
Nitin Tiwari
Yes, perfect sir. So my query was, you know, we’ve seen significant increase in om expenses specifically in power and fuel in the last couple of years and we have not seen a throughput in, you know, sales to that extent. So any color on, you know, what is the nature of, you know, this power and fuel expense and what is driving this increase?
Kamal Kishore Chatiwal
I think we’ll be happy to share with you that your concern is right. And we are, we have been working on this. So this quarter we have in fact reduced the power and fuel cost for scm. So there has been as compared to say quarter on quarter also or sequential also from one point there is a 5 to 6 paisa improvement in power and fuel cost and we continue to work on that. To reduce it further. Second area is the repair and maintenance cost. Also there also we have improved by 8 paisa per scm from 1.5 rupees per SEM to 1.42.
Nitin Tiwari
So. But why is this cost going up? We are laying the pipelines. Is it for that duration?
Kamal Kishore Chatiwal
Yeah, its cost is not going.
Nitin Tiwari
I’m asking why did it go up? Because the gas were developing so you had to transport through road. Is that the reason this cost was going up?
Kamal Kishore Chatiwal
Actually power and fuel, those ga that is a separate head. What happens is when you commission a station. So initially the capacity utilization is slightly less than what you would normally want. So takes time to, you know, the full capacity utilization to take effect. So there is some bit of operational inefficiency to begin with. But then if you rationalize, you know, once you scheduling and all those things, there are few strategies we have deployed to reduce that. Even the sourcing of power is one issue that we are aggressively working on to source a renewable power.
Because in some places the cost of power is also very high. In addition to that, the fuel cost also, you know, the gas. Because now rlng is the major component of the fuel. So sourcing that also is important. Just to add one more clarification here.
Mohit Bhatia
This power and fuel cost is mainly.
Kamal Kishore Chatiwal
For the operation of compressors which we have to utilize for dispensing the gas CNG to the vehicle.
Mohit Bhatia
So this is mainly power and fuel.
Kamal Kishore Chatiwal
Is mainly on that account.
Nitin Tiwari
Understood. So second question was a clarification you mentioned. Realization in industrial is 49 to 50 rupees and the commercial is 60 rupees. This is per SEM or per KT.
Kamal Kishore Chatiwal
Now all these are parasium except for CNG. All other sales are on parasium basis.
Nitin Tiwari
That’s it from my side. So thank you so much.
operator
Thank you. The next question is from the line of S. Ramesh from igl. Please go ahead.
Nitin Tiwari
Hello, good evening and thank you very much. So when you are talking about this exit rate of 10mms cmd from the current nine, can you share with us what is the actual volume in MMSCMD from the new gas and how you see that by the end of the year? And what is the volume you expect from the existing areas for this 10 million cubic meter setting?
Mohit Bhatia
So thanks. I think a great question but I would like to like to give you a comfort in a different direction. See if we see the incremental volumes in terms of MMSCMD per day for this quarter which ended in the Q1. So there has been an incremental volume of 0.5 mm SCMD. Right. So if we break up that. So Almost around now 15% of the incremental volume is coming from Delhi, whereas around 40 to 43% is coming from Noida Part and Gazia bath, whereas around 40% incremental volume is coming from the newer GS.
Nitin Tiwari
So this 0.5 is based on the March quarter or the last year? First quarter?
Mohit Bhatia
This. This year, Quarter over quarter. Last year. Last year, yeah, last year, this, this Q1 versus last year. Q1.
Nitin Tiwari
Okay. The second thing is when you talk about growth in CNG this quarter you’ve done 5%. We keep talking about very healthy vehicle additions. We also see 37% for CNG passenger vehicles. But we don’t see that getting translated into volume growth for your company. And we all know that you have done a wonderful job in last two years. So what exactly is happening and how do you see that volume growth go to that 8, 9% because that daily thing is more or less in the numbers. So on a sustainable basis on a base, how do we see that Translate into the 89% growth?
Mohit Bhatia
Yeah, absolutely. I think. Fantastic. See if you, if you just recall our managing director also in this opening remarks said if we exclude the dtc, DTC sales of the DTC buses CNG segment is almost growing at 8 to 9%. So you can say that now we are almost in the last leg of the DTC volumes. It has been almost phased out and in coming time I think the base is going to be almost zero and then the natural growth as well as the whatever the newer GS additional volumes is coming. So we are quite confident and hopeful that around 8 to 10% CNG traction will happen.
Nitin Tiwari
Okay, if I’m explaining just one last question on this shift towards Zone one tariff, how much of that would you have to pass on and how much of that can you retain in terms of margin improvement?
Kamal Kishore Chatiwal
I think we have been postponing our price rise in anticipation of this tariff because public consultation was done in March. So we are expecting that by, in, by this first quarter it will be notified. But I think the calculation is taking some time. So we will see that once we are in the range of 7 to 8, we will then review the situation.
Nitin Tiwari
Thank you very much and wish you all the best. I’ll join with you.
operator
Thank you. The next question is from the line of Somaya V from Amendes Park. Please go ahead.
Nitin Tiwari
Yeah, thanks for the opportunity.
Somaiah V
I hope I’m audible.
operator
Yes, you’re audible.
Somaiah V
Hello.
Mohit Bhatia
Yes, please go ahead.
Somaiah V
Yes, sir. So two questions, sir. One, you mentioned about discussions regarding state taxations. So if you could just elaborate. Currently, what is the level of taxations and what do we expect there and what could be the potential savings that we can get from there?
Kamal Kishore Chatiwal
You see, there are two states that, I mean, first was Rajasthan where 14% wet was there. That has come down to seven and a half. And further, you know, there are some representations for rationalizing it to 5% in line with the other neighboring states. The second is the up where you know, you have 10% input, 12 and a half on all the output. So total 23, 24% impact is there. So they are 5, 5%. So maybe 10, 11%. We are thinking from 23 and a half to 10%. So some of them we would like to pass on to the customer because I mean the state government has done so much.
So we would like to increase our conversions in those areas by reducing the prices.
Somaiah V
Would it be possible to. I mean, what level of cost savings at the consolidated level it can bring for us in case of this? The numbers goes down the way that you say, or if you can help us with the volumetric in these regions.
Kamal Kishore Chatiwal
Would translate to around eight rupees per kilogram. So per SEM would be around, you can say five and a half to six rupees per se.
Somaiah V
But this is in those regions I’m more looking into at a consolidated level. Yeah. Okay. Sir, second question.
Kamal Kishore Chatiwal
You also mentioned you can say 20% of our volumes are from up. So to that extent, I mean, the overall impact would be in the range of 1, 1 and a half rupees per se.
Somaiah V
Got it, sir. So second question, I mean you referred to acquisition opportunities. I mean in case we identify one or you know, choose one, what would be the criteria for us? And second, are we seeing more opportunities currently industries, you know, next one or two years you expect some kind of consolidation here. If you could just help us on this.
Kamal Kishore Chatiwal
You see, our criteria is very simple that if we come in, if we acquire something, is there a potential to maybe increase by the sale? How in how many times in how many years can we double the sale? So that would be our criteria. And what is balance, you know, to for growth as well as if in case the sourcing inefficiency is there, because right now, unlike earlier cases where it was fully dependent on the apm, now we have to source gas. So what is the sourcing efficiency we can bring in, what is the infrastructure efficiency that we can bring and what is the capex efficiency? So all these factors combined will evaluate the ga.
And second is not many gas are online because simply because all of them have a minimum work program and lot of penalties are there. So while evaluating I think that is a major bottleneck that the penalty levels of EGA would add on to the valuation.
Somaiah V
Got it sir, one last question on the margin. So our medium term as you said seven to eight rupees is something that we look out for. So in general how do we approach this? For instance I mean there is a risk of ABM deallocation. So we think in case if there is some cut we are in a quite comfortable position to take a price hike and then we can get to that 7 to 8. So that’s how we’ll approach it because currently we are at six rupees. And as you mentioned probably this tariff thing is something that you’re waiting for.
So are we quite comfortable taking price hikes at where spreads are today in case if there is any cost led impact for us.
Kamal Kishore Chatiwal
So once everything is in place then we will be able to know what is our EBITDA level Because right now we don’t know the numbers. We are at 6.16 in the first quarter averages were 6.16. And maybe if we take the full effect of whatever increase we have taken in the first quarter it may increase to 6.26 6.3 levels. So any increase in this or reduction in transmission tariff as well as the state taxes as well as some other taxes also are rationalized. The total effect we will evaluate and then see that how do we mitigate the risk of APM going down 7 to 8% annually.
So all those factors we will see but we will try to keep the long term in the range of 7 to 8 in case if it is on the upper end then we may try to think of I mean giving some benefit to the consumer and in case of lower end we may try to take some price hike because we have the headroom to take a price hike.
Somaiah V
Got it. Sir, just one clarification. This excise duty on cng do we see or has there been any representation from our side asking for a reduction or any thoughts on that? Would that be a kind of a lever for the industry in terms of addressing in case if there is any APM price cut.
Kamal Kishore Chatiwal
So that the industry has already represented that one is that to the sector under gst. Second is the rationalization of excise duty. Then third one would be your Gujarat vat. Is there a way that we can reduce that? So these are the three factors that we have represented any timelines that we.
Somaiah V
Are looking at or still open.
Kamal Kishore Chatiwal
I think, I mean three to four months something should happen.
Somaiah V
Got it sir. Thank you. Thanks.
operator
Thank you. The next question is from the line of S. Ramesh from igl Please go ahead.
Nitin Tiwari
Hello. Hello. Yeah, yeah, thank you. I am from Nirmal Bank. Just a correction there. So thank you very much for the follow up. So. So if you talk about the Henry Hub sourcing it’s about 2/3 so isn’t that a risk because India prices have gone up by about a dollar so how do you manage that risk in your overall gas cost?
Kamal Kishore Chatiwal
No, I don’t know where which index you are tracking right now because Henry Hubb has come down I would say currently is it. It is at $3 earlier it was at 3.$94. Currently it is at $3. Now the reason why I asked you are right. If you look at it our overall portfolio you know only 1/3 is linked to Henry Hub rest 2/3 is linked to Brent because APM, Newell, HPST all are linked to. You know they have a major share of crude Brent linked and Henry Hub is 1/3. But still we will try to balance our portfolio and try to source some more crude links so that the rlng that we Source is balanced.
5050 both Henry Hub and crude.
Nitin Tiwari
Okay, fair enough. So if I just quiz in the thought on your adjacencies like the genie with Acme Solar and you know your gas power meter do we see any material progress in terms of the capitalization and addition to your top line bottom lines in the next 2, 3 years or will it take 4, 5 years?
Kamal Kishore Chatiwal
The meter manufacturing IGTL that is started the commercial production, I mean it is in trial phase right now but it has been commissioned and we are awaiting all the approvals. Various approvals are needed so we are awaiting approvals. So by August end the company should be selling the meters in the open market and they have got some orders also so that is in operation. The JVV with Acme I think it was not with Acme it was with Rvunl Rajasthan Vidyuth Padan Nigam the state discom so and that was an MOU right now and with an intent to form a JV so things are progressing on that front.
Nitin Tiwari
So you don’t have a JV with atmosphere log. That’s what I remember seeing some filing.
Mohit Bhatia
That’S why it is not there. I think some.
Kamal Kishore Chatiwal
I think we were looking at position of some of the assets of Equality may Earlier so we had done a due diligence also.
Nitin Tiwari
And on our LNG retailing. Any thoughts? Yes.
Kamal Kishore Chatiwal
On that front also we are commissioning three stations hopefully in this quarter they should be commissioned. One is by August end it will be commissioned in Delhi NCR and two more one in R and one in Greater Noida. So they will be commissioned in next three, four months. So with this we will be having four station operational and we are planning for five, six more stations strategically along the highways and we see a potential there.
Nitin Tiwari
Thank you very much and we show all the best.
operator
Thank you. The next question is from the line of Siddhesh Ramachandra Jain from Access Capital. Please go ahead. So.
Nitin Tiwari
Main question is regarding the strategic diversification against solar plant which you mentioned in last call. Can you give some light on that?
Mohit Bhatia
So we already had a memorandum of understanding with Rajasthan Vidyut Utpadan limited that is the discom of Rajasthan and the discussions are going on for further acquisition of the land and other formation of the JV as a jv. So that is under progress and hopefully something will be will be catching up.
Nitin Tiwari
Also last time there was EV policy some draft with Delhi government EV policy. Is there any progress on that front?
Mohit Bhatia
So that was only. I think it was spelled out somewhere in media and all nothing concrete development of the draft policy happened with Delhi government and after that I think subsequent some developments happened. And this commission of air quality management has also come out with 2, 3 notifications wherein they have included CNG in particularly as a clean energy fuel along with EV and other biofuels. So this is thing but nothing as such in concrete it has come out regarding the EV policy of Delhi government.
Kamal Kishore Chatiwal
Just to add to that Delhi government has extended the present policy up to March 26 to enable more consultation with all the stakeholders.
Nitin Tiwari
Okay, thank you.
operator
Thank you. The next question is from the line of Nilesh Muge from HDFC Securities. Please go ahead.
Nitin Tiwari
Yeah. Hi, good afternoon sir. Do we get any kind of concession on our for on transmission tariff on domestic PNG and CNG from Gail?
Kamal Kishore Chatiwal
No, no. Actually right now there are three tariff zones as far as transmission is concerned. Zone 1, Zone 2, Zone 3 now with the new tariff order or what PNGRB has done is that for this priority sector only one zone will be applicable.
Nitin Tiwari
So to that currently we are not getting.
Kamal Kishore Chatiwal
We are not getting currently any benefit.
Nitin Tiwari
Currently we are not. So currently we are paying as far as you mentioned that around 85 87% we paid zone Terry then remaining zone 3 tariff on the remaining world, right?
Kamal Kishore Chatiwal
Yes, yes.
Nitin Tiwari
Okay. Okay, thanks. Thanks a lot.
operator
Thank you. Due to time constraints, we will take this as the last question for today. I now hand over the conference to management for closing remarks.
Kamal Kishore Chatiwal
Hi. So thank you, everybody, for joining this earnings call for IGL for quarter one. And I also thank Mr. Nitin from Philip Capital for arranging this call and hope to see you all next time.
operator
On behalf of Philips Capital. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Mohit Bhatia
It.
Nitin Tiwari
Sa.