Indraprastha Gas Limited (NSE: IGL) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Unidentified Speaker
Kamal Kishore Chatiwal — Managing Director
Mohit Bhatia — Director Commercial
Analysts:
Varatharajan Sivasankaran — Analyst
Yogesh Patil — Analyst
Nitin Tiwari — Analyst
Hardik Solanki — Analyst
Sabri Hazarika — Analyst
Vivek Gupta — Analyst
Maulik Patel — Analyst
Probal Sen — Analyst
Devan Patel — Analyst
Vikas Jain — Analyst
Samaya — Analyst
Presentation:
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Sa. Sam.
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Sa.
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The conference is now being recorded.
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Sam.
operator
Ladies and gentlemen. Good day and welcome to the Interpressed Gas Limited Q3 FY26 earnings conference call hosted by Antec Stock Broking Limited. 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 the conference call please signal an operator by pressing star on your touchstone phone. I now hand the conference over to Mr. Varta Rajan. Thank you. And over to you, sir.
Varatharajan Sivasankaran — Analyst
Thank you, Seema. A very good evening. I would like to extend a very warm welcome to all the participants and the top management of Indirpasu Gas Limited. Over on this call I’d like to specially welcome Mr. Kamal Kishore Chattwar, Managing Director.
Varatharajan Sivasankaran — Analyst
Mr. Mohit Bhatia, Director.
Varatharajan Sivasankaran — Analyst
Commercial Director.
Varatharajan Sivasankaran — Analyst
Mr. Sanjay Kumar, CFO Mr. Majeep Singh, VP Finance. I’ll hand over the floor to Mr. Kamal Kishore chat for the initial remark.
Kamal Kishore Chatiwal — Managing Director
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 2526. I am Kamal Kishore Jatiwal, Managing Director of Intercrust Gas Ltd. 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 Indipest Gas Ltd. 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 citigas 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 MDP 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 vehicle regular customers.
Kamal Kishore Chatiwal — Managing Director
Regulatory developments.
Kamal Kishore Chatiwal — Managing Director
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 a 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 3 to 2 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 segments, Zone 2 tariff will be applicable across our Inc portfolio. Let me now turn to our financial performance for the third quarter of FY2526. 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 BTC and DIMS 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 SEM per day year on year, indicating steady traction across all subsegments. 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 Sri Mohit Bhatia JI to share his comments.
Mohit Bhatia — Director Commercial
Thank you Managing Director Sri Jettywalji Very good evening to everyone. I am Mohit Bhatia, Director Commercial at Indra plus Gas and I extend a warm welcome to all our investors, 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 21-11-25. Although these rules are yet to be notified, we have made provisions of around 28 crore in the current quarter as a one time impact. Excluding these provisions, our EBITDA would have.
Mohit Bhatia — Director Commercial
Been around 500 crore.
Mohit Bhatia — Director Commercial
The market dynamics following the rationalization of 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 FY25 26 financial performance the key highlights are first volume performance the total volume the total sales for the quarter reached 867 million STM up from 838 million STM 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 2425 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 BTC 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 STM 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 was subdued little bit on the revenue and the profitability. Our total revenue for this quarter stood at double 465 crore making an average 8% year on year increase driven by volume growth and steady operational execution across segments. EBITDA stood at 473 crore 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 crore as compared to 285 crore in the corresponding quarter of the previous year demonstrating a robust growth of 25% in TAT. So that concludes our opening remarks and we would like to open the floor for the question and answer session.
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 touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you. We take the first question from the line of Yogesh Patil from Daulat Capital. Please proceed.
Yogesh Patil
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?
Mohit Bhatia
So like if, if I can share you for quarter three. So the. The sales have come down. It was around 80,000 kgs per day in October. Then further tapered to around 54,000 in November and December. It was left to around 22,000 kgs per day. So now almost only below, I think 100 buses are left out. And we what we have been made to understand from dtc. I think by March this DTC volume will be almost zero.
Yogesh Patil
Okay, second question related to unit EBITDA margins or EBITDA margin guidance. We have been giving a 7 rupees per SEM kind of EBITDA margin guidance. Now we have posted a 5.4 rupees per SEM 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.
Kamal Kishore Chatiwal
Yeah, two, three things. First is the transmission tariff. So the total impact if you know for the entire sector was around thousand crores. And out of that igl share was 330crores. We have passed on some of the benefit to the consumers but we are still left with 260 crores. So that should translate to approximately 75 paisa per SEM. Okay, that is one. Second is as the Gujarat VAT was implemented only in December so we could realize only the part. So that impact is around 2025 paisa. Third is the labor code that was implemented. So we had to make certain provisions.
That is a one time provision. Going forward it may not be that high. So that is around 30 pesos extra. So combined all this we are seeing that we should be near to. I mean seven Going forward and 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 send the communication in July. PNGRD communication was in July. And we deferred because we don’t want to basically make the RSP of our CNG product volatile.
So we want to keep it constant. So we deferred the price increase or anything like that. So that was the reason that there was delay. But now going forward we expect that this should come. These benefits should come and automatically it should be near to 67 based on the current prices.
Yogesh Patil
Now you suggested 75 Pisa per unit kind of benefits from the unified tariff rationalization. Out of that how much we have already pass on to the customer in terms of a benefit.
Kamal Kishore Chatiwal
Passing on. Okay, this is the benefit what is left? So one rupee something was there. So now what is left is 70.
Yogesh Patil
And the last just gas sourcing breakup. If you could provide in MMS CMD terms from each source, that would be helpful.
Kamal Kishore Chatiwal
So if you see our Overall procurement was 9.75. Out of that APM was 3.38. NWG was 0.57 million cubic meters per day. HPSP was around 0.5 and RLNG rest was RLNG around 3.3. In percentage terms if I say domestic was around 43% NWG, 7% HPSK, 6% and 42% were RLNG.
Kamal Kishore Chatiwal
Thanks a lot sir.
Yogesh Patil
This was really helpful and wish you best of luck.
operator
Thank you. We take the next question from the line of Nitin Tiwari from Philip Capital India. Please go ahead.
Nitin Tiwari
Hi sir. Thanks for the opportunity. So my question was related to your guidance for volume for this year and for next year. So in the previous call you had indicated that we’d be exiting this year at about 10 mmhcmd. So do we maintain that that guidance and in terms of like, you know, exiting this year at 10? Because I think in the nine months so far we are at 9.43 after nine months. So that would be my first and second question was again on volume. So if you can give us a breakup of like, you know, sales across our nct, NCR and new geographies and also the growth respective growth rates in those regions.
Kamal Kishore Chatiwal
Yeah, we maintain the guidance that as you know, the CGD sector, the last quarter is the best sector. The quarter four of any year you pick up any year that is the best sector. Until now we have performed the average has been 9.4,3. But we have been constantly going about 10 millions per day. The draw from all the sellers is exceeding 10 million. So we will be exiting the quarter at 10 million that we are confident. And the breakup that you have asked.
Mohit Bhatia
So the breakup for the current year 9.43. Which breakup you wanted to know. So daily is contributing to around 5.43. This is CNG plus PNG around 56%. Noida Garcia Bath is contributing to 2.24 per day, around 23%. And the other, the newer gas we can say around 13 to 14%. 1.26 mms cmd per day and the NG is 0.5. So the breakup of 9.43 is.
Nitin Tiwari
And sir, the respective growth rates in these areas in this quarter.
Mohit Bhatia
Yeah. So Delhi as you know it is almost flat as you can say half to 1%. Noida Ghaziabad is growing at around 6.2%. Whereas the outside or the new GS is contributing to almost 17% growth.
Nitin Tiwari
Okay sir, and sir, if I may just like to ask a follow up question on the volume that you mentioned in terms of guidance. So sir, in the previous quarter I think the DTC volumes were about at like 230000 kgs per day. Whereas the numbers that you indicated for this quarter indicate a higher average contribution from BTC at about 50000 kgs per day. So in fact DTC has contributed more in this quarter than it did in the September quarter.
Kamal Kishore Chatiwal
Right.
Nitin Tiwari
So then how do we see this number?
Mohit Bhatia
Yeah, yeah, yeah I, I got it. See the September there was dip. It was definitely less then two months, October and November I think they, there’s some buses were not flying and they rolled it back and then finally it got shunted out. But December volume it was around 2020 2000. And 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 26th.
Nitin Tiwari
So 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.
Kamal Kishore Chatiwal
Yeah actually in this quarter in Delhi as you know the graph implementation was there. The schools were shut down for a few days and this, this time the pollution was really bad. So schools, the buses were off the roads.
Mohit Bhatia
So those were the major impacts due to this.
Kamal Kishore Chatiwal
The quarter three was slightly other than the dtc. Also the buses volumes were down but okay, now that the weather has improved the graph have been lifted. So we are at normal now.
Kamal Kishore Chatiwal
For DTC Q2 we had an average sale of 40,000. And this quarter the average sale was around 6,000.
Nitin Tiwari
Okay.
Nitin Tiwari
All right. Thank you sir. I’ll get back to the question earlier mentioned.
Unidentified Speaker
About 40,50,000.
Unidentified Speaker
It is actually 6,006 all except my.
Unidentified Speaker
Over there other portion which is dims. That was also 1 lakh 50 thousand last quarter. This quarter it is 1 lakh 30 thousand.
Kamal Kishore Chatiwal
Okay.
operator
Thank you. We take the next question from the line of Hardik Solanki from ICC Securities. Please go ahead. I’m sorry Mr. Hardik, we cannot hear you clearly. Sir.
Hardik Solanki
As you mentioned that you know we will maintain a volume guidance. Can you just you know help us? What with the volume growth for next two to three years. Ga wise if you can just break down Delhi and non Delhi.
Kamal Kishore Chatiwal
Actually our guidance has been that every year we will be adding 1 million. So 9 to 10 and next two years. I think 1 million each in next two years. And majority of that would come. I mean 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%.
Hardik Solanki
Okay.
Hardik Solanki
That’s helpful, sir. Thank you.
operator
Thank you. The next question is from the line of Sabri Hazika from MK Global. Please go ahead.
Sabri Hazarika
Yeah.
Sabri Hazarika
Good afternoon. So firstly on clarification you mentioned that the Gujarat VAT implementation was from December.
Sabri Hazarika
Only, not before that.
Sabri Hazarika
And 2025 pace per SCM is still.
Sabri Hazarika
Pending to be realized. Is that right? I mean for only December quarter we could realize in the last quarter. So if the whole year impact is there, that should be the benefit. No.
Kamal Kishore Chatiwal
I mean you are saying another 2025.
Kamal Kishore Chatiwal
Peso would get added to the gross margin, right? From this. Yes. Yes. Yes. Okay.
Sabri Hazarika
And second is on the DTC 40,000 bottles. I couldn’t get that.
Kamal Kishore Chatiwal
That part which Nitin was asking.
Kamal Kishore Chatiwal
For this quarter was 5,000 6,000. Around 6,000 kg average findings.
Kamal Kishore Chatiwal
And last.
Kamal Kishore Chatiwal
Last quarter, the last quarter this number was.
Kamal Kishore Chatiwal
Fifty. 40,000. 40,000.
Kamal Kishore Chatiwal
40 thousand.
Kamal Kishore Chatiwal
40,000.
Kamal Kishore Chatiwal
It has fallen from 40,000 to 6,000 in quarter.
Kamal Kishore Chatiwal
On quarter. Yes.
Kamal Kishore Chatiwal
Yes.
Kamal Kishore Chatiwal
Okay.
Sabri Hazarika
And 150 to 130 was what?
Kamal Kishore Chatiwal
That was dim.
Sabri Hazarika
Okay. That was DIM from Q2 to Q3. So DIM. DIMP is still at 100.
Kamal Kishore Chatiwal
So DTC and DIMs, they used to comprise around 8 to 10% of our sales. Now that number remains around 4%. Now it is at around 1%.
Sabri Hazarika
Not even 1% DTC plus DIMs. Yes.
Kamal Kishore Chatiwal
And DIMs will also keep gradually declining.
Kamal Kishore Chatiwal
Right? DIMS is a slightly longer period for the transition. Primarily the mandate is for DTC to convert. And DIMS is basically on operator who have the vehicles with the daily integrated transport model. So they are the outside operators. So they have a longer tenure. Basically those buses which have been put up, they will run for eight to ten years. Ten years.
Kamal Kishore Chatiwal
They are basically contract buses which run on contract basis. They are private party buses, run on contact basis.
Kamal Kishore Chatiwal
Few questions.
Kamal Kishore Chatiwal
So nine months.
Kamal Kishore Chatiwal
I mean what is the CNG station base and capex for nine months?
Kamal Kishore Chatiwal
It’s around CNG. CNG or PNG?
Kamal Kishore Chatiwal
PNG station.
Sabri Hazarika
What is.
Sabri Hazarika
You said 45 till now.
Kamal Kishore Chatiwal
After nine months is around 190 crores.
Kamal Kishore Chatiwal
190 crores.
Kamal Kishore Chatiwal
11 6. Sorry. PNG is 190. The steel network is 190 and PNG is 116 crores.
Mohit Bhatia
So total we have spent around 847 crores in nine months.
Kamal Kishore Chatiwal
Okay. This is the.
Sabri Hazarika
And what is the CNG station based right now?
Mohit Bhatia
So almost 975 stations by you can say 973 to be specific as on end of 31st of January you can.
Mohit Bhatia
Say out of the DTC have we closed that we’ll have to reduce. Yes, around 5560 buses have been closed. Stations have been closed which were run by DT. So that number you can reduce around 925 stations. Operative.
Sabri Hazarika
Right, Right.
Sabri Hazarika
And and last question. What would be C L MMGL volume.
Sabri Hazarika
For this quarter as well as last year? Same quarter mngl is 1.99 cmd.
Sabri Hazarika
Last year it was 1.7.
Kamal Kishore Chatiwal
1.7 to 1 point. Almost 2 million. And cu.
Sabri Hazarika
Last year it was 0.33. This year it is 0.34. They have growth of around 3%.
Sabri Hazarika
Okay. And there was dividends from cog mngl in Q3.
Kamal Kishore Chatiwal
Right?
Sabri Hazarika
Q3 we had dividend from mngl 40 crores.
Kamal Kishore Chatiwal
And Q2 also there were dividends.
Unidentified Speaker
Right.
Sabri Hazarika
Q2 we had final dividend. 67 crores. Around 58 crore from mngl and 9 crores from cugl.
Kamal Kishore Chatiwal
Got it. Thank you so much.
operator
Thank you, sir. Before we take the next question, a reminder to all the participants. If you wish to join the question queue, you May press star n1 on your Touchstone telephone. Ladies and gentlemen, if you wish to ask a question, you May press star n1 on your Touchstone telephone. The next question is from the line of Vivek Gupta from Novus Capital. Please go ahead sir.
Vivek Gupta
Thank you for taking my call. I just had a question. 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 will be able to expand increase volumes?
Kamal Kishore Chatiwal
No, actually if you see the current state of queuing in Delhi and Seattle 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 cna. 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 queue less. I mean there should be no queue at stations. And what about for the industry, small industry which are the commercial segment? The volume can increase. Yeah definitely the, the volumes will increase there now even the digi set conversions for the societies because they have gone for alternate to NG also in some cases. So we are trying to capture those customers and also the commercial transition from say LPG to gas that continues so that 10 to 11% growth would be there. So using the same infrastructure or you will require more.
Vivek Gupta
So for PNG industrial and commercial we are already, we have already reached all the industrial and commercial hubs so probably will not require that much capex to reaching those customers. Given the price reduction of international LNG prices probably we’ll be able to sell more and growth is something which we.
Vivek Gupta
Can expect that will affect margins positively. Yes. Okay, that was it. Thank you.
operator
Thank you sir, the next question is from the line of Molik Patel from Ecuaris.
operator
Please go ahead sir, thanks for the opportunity.
Maulik Patel
Any specific reason that growth in NCR was very like. It’s like 6% it usually be around 11 12% kind of on a run rate what we have seen in the past. Any specific reason for this kind of a number?
Mohit Bhatia
You are right. I think you are right. Last few quarters we were looking at around 10 to 11% so because this gap effect is there in NCR also and this time I think you are aware that due to some high pollution issues and all these schools were closed. So we also envisaged a little bit tapered growth in Ghaziabad or Noida in area but the number of vehicles which are getting added in particularly passenger car segment we are confident to bounce back on the similar numbers.
Maulik Patel
And sir, when you say that the 10mms cmd will be the exit rate and in doing that it will be for that particular month you will exit at around 10 or that quarter you will exit around the average will be around 10 mm SCMD. 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. So 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 and March, the complete March should be about 10.
So the average for the month because two, three days, you know, for the holidays and other reasons, the sales are less on those two, three days. By six days we are doing about 10. But on Sundays the number of vehicles are less. So that brings down the. But going forward in March we will be at 10, about 10 for the whole month. Okay, this is the last question. What was the DTC volume in the base quarter? I think you mentioned that average for this quarter was something around 50,000 kilograms per day. That’s what the average for the Q3, what that number was in the base quarter.
Mohit Bhatia
We stand corrected. It is 5000 kgs per day for this quarter and for the last quarter of the previous means. Previous year, the same quarter it was around 1.5 lakhs per kilogram.
Kamal Kishore Chatiwal
Okay, it was 1.5 lakh. Got it. Okay, thank you sir.
operator
Thank you sir. We take the next question from the line of Prabhul San from ICICI Securities. Please go ahead.
Probal Sen
Thank you for the opportunity, sir. I hope I’m audible. Yes, please go ahead. Yeah, so just with respect to the guidance that you just mentioned in terms of volumes where the target is to essentially add about 1 million scums 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 Link in the view of recent Henry Hub strength, or are we still looking at a diversified kind of a sourcing state just in understand. Trying to understand the readiness to, you know, meet this kind of higher volume target from a sourcing perspective.
Kamal Kishore Chatiwal
Yeah, Going forward we anticipate that right now 42, 43% is RLNG. It should. It will be 50, 50, 50% RLNG and 50% from domestic sources including HPH Gas and APM. And our target to all the potential shippers is Nueville gas price, that is 12% of Brent. And since our major portfolio is already linked to Brent, because apm, Newell, HPST are all linked to Brent, so we for diversification we will have the 50%. I think it will be 50, 50 from Henry Hub and Rent. But if we get some good deals on Henry Hub, then I Think we are open to that.
But our our guidance to them has been that 12% of Brent should be the landed price for us.
Probal Sen
Got it sir, answer. I’m sorry if you’ve answered this earlier, I joined a bit late. But 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.
Mohit Bhatia
Steve, our core business capex we have plans for around 1250 crores for this financial year out of which we have already spent in nine months. 847 crore. And the breakup in terms of like if we say Delhi so Delhi is almost around 45% we have spent and up part is almost say you can say 30 to 35% and Haryana is around 10% you can say so it is like that.
Probal Sen
And sir, for 27 also can we can expect a similar kind of a level.
Mohit Bhatia
So our aspiration or our targets are like that only to around 1200-1500 crores in the core segment.
Probal Sen
Got it sir, thank you. Sorry, the diversification capex, BD capex that will be other than the core business so that it 500 to 800 crores that will be separate I mean into renewables, into cpg, into LNG infra so those will be separate. This is only for the core of CNG and PNG. And will they start to reflect from 27 onwards or is that slightly longer than I was?
Kamal Kishore Chatiwal
I think from 27 they should start reflecting because the JV formation and subsequently the cash calls and all will take some time. 27 onwards they should start reflecting.
So on an overall basis so then somewhere between 1600 to 1700 crore is a reasonable number to assume for the overall capex for 272000 you can say 12001300 core and 600 700. Understood. Thank you so much. Thank you so much and all the best.
operator
Thank you. Before we take the next question, a reminder to all the participants if you wish to join the question queue you may press star into. The next question is from the line of Devang Patel from Sumiksha Capital. Please go ahead.
Devan Patel
Sir, in your comments earlier you mentioned we got benefit of reduction in sales tax but you also faced headwinds from higher gas costs. And could you break down this impact on how it impacted our gas cost which seems to be down by 90 paise quarter on quarter.
Sabri Hazarika
So if you see our exchange rate has gone from say around 8687 to 1991 so around 7 to 8% rupee devaluation. The valuation is There which is, which has Resulted in around 2.2.5 rupees increase in gas cost which was partly offset by the Gujarat VAT reduction which happened during the last quarter. So our gas cost per SCM, if you see that is more or less remain same. Only 50 to 60 pack 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.
Devan Patel
Just on the Senrad, could you quantify what is the benefit we gained?
Kamal Kishore Chatiwal
I don’t remember exactly.
Kamal Kishore Chatiwal
The total impact that we assessed at that time was around 35 to 40 paise for SCN.
Kamal Kishore Chatiwal
And did you get this for the full quarter or only December?
Kamal Kishore Chatiwal
Actually the benefit we got only for the December month but for this, this quarter it will be for full three months.
Devan Patel
Okay, understood. Sir, could you give an update on the tender process in the Middle east that you are participating in?
Kamal Kishore Chatiwal
Yeah, we have qualified for the stage one and we have been given the tender for phase two. So there I think we are in the process and bid submission is April 23rd. So we will 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 5,500 meter distance and the industrial cities are planned, the gas prices there are much more competitive as compared to alternate fuels. So there is a natural push for the switch as well as the government push will also be there.
And each industrial city in our assessment is going forward would be around 1.5 million. So we are looking at 4 now. So 6 million total is the long term sales potential there.
Devan Patel
Sir. And since you submitted the bids could you give a ballpark estimate of what kind of CAPEX it entails?
Kamal Kishore Chatiwal
No, right now the bid final, the bid has to be submitted by April 26. 23rd April 26. The bid submission date is there. So the job the CAPEX calculation is still going on.
Devan Patel
Okay sir. And on the power plant that you are planning, is there any progress there?
Kamal Kishore Chatiwal
Actually the JV with Rajasthan is taking some time. That in the sense that the land allocation because it being transferred from their agency to that the other JV partner company. So that is taking time. In the meantime for our operational efficiency and other things we are coming out with a 200 megawatt tender. So 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, we will evaluate that so that Is also in the progress. It should come out in next within next month or so.
Devan Patel
Okay, thank you so much.
operator
Thank you. The next question is from the line of Vikas Jain from clsa. Please go ahead.
Vikas Jain
Hi sir. Thanks for taking my questions. Sir, for simplicity, if you were to look at volume growth that you have reported this quarter X of the changes that we have seen for DTC buses what would that number have been? I know you’ve shared a few numbers and like a little lost on that. But if you were to just take out the DTC and X of that what would the volume growth be?
Kamal Kishore Chatiwal
Either CNG or overall volume overall would be around 9.6. In that case 9.87. 9.87.
Vikas Jain
Okay. So CNG.
Kamal Kishore Chatiwal
Overall overall would be 9.43 is the overall.
Vikas Jain
Okay.
Kamal Kishore Chatiwal
You can say around from 150 we have down to 6,000. So that is the change. 150 is in kgs. So it will be around from 2 to say 10. So 1.1. 9.2 point. So you can add 0.2 to that. So 9.63.
Vikas Jain
Okay. So yeah. 9.63 versus 9.1. Right?
Kamal Kishore Chatiwal
Yeah, 9.11. Yeah exactly.
Vikas Jain
That’s a 6% growth, right.
Sabri Hazarika
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 dim seal it is 44.14 lakh kg. Current year our total sale was 50.01 lakh kg per day. If I remove the DTC and dim sale it is 48.63 from 44.14 lakh kg to 48.63 lakh kg per day of sale which is a increase of 4.49 lakh kilogram per day which is 10.17% of CNG sales. So 10.17% is the growth for CNG segment if we exclude DTC and them.
Vikas Jain
So DTC now for all practical purposes of course it might be still impacting.
Kamal Kishore Chatiwal
The base for 5,000 is the number.
Sabri Hazarika
In the current quarter. So Q4. Sorry Q3 of next year will be the period when you will not see any impact of DTC sales going down. Dims might still be having some impact there. But probably this one 1.32 lakh kg sales of TIMS which we 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.
Vikas Jain
So you mean that 1.32 lakh kg.
Kamal Kishore Chatiwal
Sale is going to continue next to three years. That’s what is that kind of a.
Vikas Jain
Level at roughly at that kind of level. Not no major declines. Okay. So the. The bigger part of the decline which was impacting headline growth is now done.
Mohit Bhatia
Yeah, it is almost done. And whatever is left like by Q4 it will be almost zero that we.
Sabri Hazarika
Can this drag which is there that will be there for maybe next 2 to 3/4 totally Q3 of 27 is when will not see any drag. And the normal growth will reflect in the overall.
Vikas Jain
Okay. And so sir, so that is where you get the confidence that from here on you’d roughly be adding growing at about 10%.
Sabri Hazarika
Yes.
Vikas Jain
Okay.
Kamal Kishore Chatiwal
Yes.
Vikas Jain
And just to understand. So you did explain that there are these the two three elements with which margin should be higher. So based on that roughly 1 rupee 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 75 net plus about. About 25 paise from Gujarat. And I think there was one more thing, right.
Kamal Kishore Chatiwal
Labor code implementation one time 30 that will be. I mean 25 peso that will be come from there. So 1.25 you can see.
Vikas Jain
Okay. So that you think is broadly with the run rate that we are dealing with right now.
Kamal Kishore Chatiwal
Yeah. A plus in case we are able to add CVG. So that as you are aware that CBG excise duty exemption has come. So that.
Mohit Bhatia
I mean it depends on us now.
Kamal Kishore Chatiwal
That how we are able to ramp up our CV CBG in our network.
Vikas Jain
Okay, so but would that be very material immediately? No, I mean it’ll take some time for immediately.
Kamal Kishore Chatiwal
I mean it will take one year or so to be going from 1% to 5%, 5 to 10% if we are able to do that will be have a material impact.
Vikas Jain
Okay. Okay. And. And in terms of your sourcing, you are confident that most of it you would not have to depend so much on lng. I mean most of it will come from new. Well gas is what you think 50%.
Kamal Kishore Chatiwal
We said going forward.
Vikas Jain
Yeah.
Kamal Kishore Chatiwal
Incremental also the 50%. Anyway we have to be sourcing from say half a million every year we will be adding.
Vikas Jain
Okay. Okay.
Sabri Hazarika
Next year I think some HPFP gas is also coming in which we will get apart from NWG HPHD gas is getting freed up. I think that will also come to market.
Kamal Kishore Chatiwal
So 50% we are expecting that we will have to source additionally.
Vikas Jain
Okay, sure. Okay. Thank you so much, sir.
operator
Thank you. The next question is from the line of nitin Tiwari from Philip Capital India. Please proceed.
Nitin Tiwari
Hi sir. Thanks for the opportunity. Just wanted to understand what percentage of your gas sourcing is the Gujarat VAT application cable. The Gujarat.
Kamal Kishore Chatiwal
This 43%. The APM.
Nitin Tiwari
It’s only applicable to the APM, not.
Kamal Kishore Chatiwal
To LMG which is also 7%. Is 7%. So you can say 50% of the gas.
Nitin Tiwari
50. 50% of the gas.
Kamal Kishore Chatiwal
Okay. Yeah. And WG right sir.
Nitin Tiwari
And. And secondly sir, you indicated the DTC volume for the base quarters. So if you can also indicate the dim so volume for the base quarter as well as for the second quarter.
Sabri Hazarika
I’ll tell you the decision dims for you again.
Nitin Tiwari
Yeah.
Sabri Hazarika
The current quarter DTC volume was 5000 kg per day.
Nitin Tiwari
Okay.
Sabri Hazarika
Volume was 1.32 lakh kg per day.
Nitin Tiwari
1.32 lakh.
Kamal Kishore Chatiwal
Okay.
Sabri Hazarika
The previous quarter DTC volume was 44,000 kg per day. 1.47 lakh kg per day.
Nitin Tiwari
Sorry, that was not clear. Please say that again.
Sabri Hazarika
144 lakh kg for DTC.
Kamal Kishore Chatiwal
1.47 lakh. Okay.
Nitin Tiwari
And the base.
Sabri Hazarika
Yes and the base quarter was DTC was 1.55 lakh.
Nitin Tiwari
Okay.
Sabri Hazarika
Was 1.85 lakhs.
Kamal Kishore Chatiwal
Understood sir.
Nitin Tiwari
Thank you so much sir.
operator
Thank you. We take the next question from the line of Samaya from Avendus Park. Please proceed.
Samaya
Thanks for the opportunity sir. One clarification. So in this quarter we said 50% is RLNG within this can we give a breakup in terms of Spot and Henry up and Brent Link contracts.
Sabri Hazarika
Broadly Spot was not there that you can spot is nil bought any spot some quantity we had bought from IGX which is generally the hpst gas available on available there. So IGX we bought maybe 1 or 2% of the total requirement. And apart from that our Henry Hub and Brent linked contract 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 linked.
Samaya
Got it sir. And also we have a bit of a flexibility in terms of the entry of contract. I mean in case of the cost we do have so we can push it depending on in case we feel Brent is relatively lower. So we have the flexibility.
Sabri Hazarika
Yes, yes.
Samaya
Got it sir. Also the next couple of year capex so you did mention about the trajectory there. So in terms of CNG station additions what we plan to put and within this how much it goes into the pipeline so broadly and what kind of volume you know contribution maybe over the next two, three years this can contribute the CapEx that we are spending over the next couple of years.
Mohit Bhatia
So roughly around 80 to 100 CNG stations we are targeting year over year for maybe roughly next three years or to five years. So 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.
Kamal Kishore Chatiwal
Well as the mdp.
Mohit Bhatia
So it will be like that. And as mentioned earlier, the total overall incremental volume we are anticipating 1 million to add year on year. So out of this around you can say 65 to 70% will come from CNG and around maybe 30, 35% may be from DPNG.
Kamal Kishore Chatiwal
Both industrial commercial and the PNG.
Sabri Hazarika
100 stations per annum average selling 6,000 kg per station it will be around 6 lakh kilograms which translates to around 8.8 million cubic meter per day of sale. 100 stations, 0.8 million is the number which you can add from CNG and PNG is growing at around 12%, 15% depending upon the industrial volume is dependent upon prices. So Both put together 1 million is something which is very achievable.
Kamal Kishore Chatiwal
This 100 stations between the gas, I mean Delhi, NCR and other newer gas, how would this see?
Mohit Bhatia
You can see it all depends. We have the target for 180 to 100 and we are floating for land in Delhi also as MD also mentioned for the queuing part. And we are also anticipating the DTC old stations hybrid and all, they are also offering these sites in Delhi. So if what we expect if it goes on so almost say 25 to 30% we should get in Delhi also and otherwise mostly it will be outside GS and somewhat in Ghaziabad and NCR part also.
Samaya
Okay, so one last question. So in terms of opportunities for you know, getting into the other gas or inorganic foray in general, in terms of the recent mwps and what are the opportunity sets, Is there a chance for a consolidation in the industry in the next couple of years because of some bit of aggressive being on the MWP side? Is there an opportunity that’s still available? And then how are we looking at it? Actually this is a regulated, you know, license kind of a business. So here unless some regulations are modified and facilitated for these mergers and acquisition, it will be very difficult because all those DAs would be carrying huge penalties and that will deter the potential buyers.
And unless something is thought on those lines. But 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 they will. They are right now in negative, you know, valuations are in negative zone. So that I think is potential bottleneck for M and A. But we are, we see that going forward if we have to achieve the kind of growth the mergers have to take place with smaller entities with going day by day will find it difficult because the sourcing is now becoming a very, very critical aspect.
And those who are able to source will give the benefit to the consumers. So that is our assessment of the situation because players are there who are ready to, you know, bid for those MND activities. But the field is not right, you know, the penalties and other things, they will have to inherit those also. Thanks for the thoughts. Thank you.
operator
Thank you, ladies and gentlemen. We take that as the last question for today. I would now like to hand the conference over to the management for closing comments.
Sabri Hazarika
Thank you all the ministers. Thank you, Mr. Vadrajan. And please stop broking. Probably we will meet again in the month of April or May with better set of results. Thank you so much.
operator
Thank you. On behalf of Antique Stock Broking Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.