Mahanagar Gas Ltd (NSE: MGL) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Unidentified Speaker
Ashu Shinghal — Managing Director
Analysts:
Unidentified Participant
Sudeep Anand — Analyst
Probal Sen — Analyst
Yash Nandwani — Analyst
Mayank Maheshwari — Analyst
Yogesh Patil — Analyst
Vivekanand S — Analyst
Daksh Chaudary — Analyst
Akash Jain — Analyst
Sabri Hazarika — Analyst
Nitin Tiwari — Analyst
Bineet Banka, — Analyst
Somaiah V — Analyst
Aditya Welekar — Analyst
Lokesh Manik — Analyst
Presentation:
operator
Sa. Ladies and gentlemen, good day and welcome to Mahanagar Gas Limited Q3 and 9 months FY26 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 the conference call please signal an operator by pressing then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sudeep Anand from Systematic Institutional Equities. Thank you. And over to you sir.
Sudeep Anand — Analyst
Thank you. And very good afternoon to everyone. Thanks for joining us today for the Q3 and 9 months FY26 earnings call of Dash Limited. On behalf of Systematics I would like to thank the management for giving us the opportunity to host the call and also many congratulations for the for the great set of numbers. We have with us the top management represented by Mr. Ashur Singhal, Managing Director Mr. Rajesh Patel, Chief Financial Officer and Mr. Rajesh Wagli, Chief Senior Vice President Marketing. Before we begin I would like to mention that some of the statements made in today’s discussion may be forward looking in nature and we believe that expectations.
Contained in the statements are reasonable. However, these statements involve a number of risks and uncertainties that may lead to a different result. We urge you to consider that quarterly numbers are not a reflection of long term trends or indication of full year results now. Now I would like to hand over. The call to Mr. Asha Singhal for. His opening remarks and then we can move to the question and answer session. Over to you sir.
Ashu Shinghal — Managing Director
Thank you Rutuja and Sudeep. First of all a very good afternoon and welcome to the earnings call of Managar Gas Limited for the third quarter of the financial year 2526. I would like to thank all of you for attending this call today. MGL continues to create CGD infrastructure across its business segment in the licensed areas. During the quarter one 24,908 domestic households were connected and thus we have established connectivity for nearly 3.07 million households. We have laid 120.3 km of steel and PE pipeline taking the total length to over 8,182 km. We have added six CNG stations during this quarter and with this we have 491 stations.
As on 31st December 25th we added 337 industrial and commercial customer. During this quarter as on 31st December we have 5618 industrial and commercial customers. During the quarter there is addition of 32,315 CNG vehicles and now we have more than 1.25 million CNG vehicles registered in our geographies as of 31st December 25th. Coming to MGS operations during the quarter, we achieved overall average sales volume of 4.62 mms cmd as against 4.593 in the previous quarter which is an increase of 0.59%. Current quarter volume consists of CNG volume of 3.281 dpng, volume of 0.604 and 0.735 mms cmd of gas was supplied to industrial and commercial segments compared to the corresponding quarter of last year.
Average overall sales volumes have increased from 4.31 to 4.62 mmstmd, which is an increase of 7.19%. Sales volume of CNG has increased from 3.098 to 3.281 mmscmd, which is an increase of 5.92%. Sales for domestic PNG have increased from 0.554 to 0.604 mmscmd which is an increase of 9.04%. In case of industrial and commercial sales volume has increased from 0.659 to 0.735 Ms. CMD which is an increase of 11.63%. Average gas sales for nine months ending 31st December 25th is 4.556, whereas it was 4.181 mmscmd in the corresponding previous period of the last year which is an increase of 8.97%.
Sales volume in the case of CNG has also increased from 3.022 to 3.241 mmscmd which is an increase of 7.24%. In case of industrial and commercial the volumes have increased from 0.615 to 0.730 MMSEMD which is an increase of 18.76% and the volumes for Domestic PNG has increased from 0.545 to 0.586 MMS CMD which is an increase of 7.53%. EBITDA from operations for the quarter is 352 crore as compared to previous quarter EBITDA of rupees 338 crore. Net profit after tax for the quarter is rupees 202 crore as compared to previous quarter. Net profit after tax of Rs.
193 crore. EBITDA for the nine months ending December 25 is Rs. 1191 crore and net PAT is Rs. 715 crore during this quarter, MGL Annual Report 2025 was honored with a bronze award at the Public Relations Council of India Excellence Award 2025 in the areas required from UEPL related to UEPL MGLs commissioned hundred CNG station in the month of January at Latour. At the time of acquisition, UEPL geographical area is at 53 CNG outlets. Over the last 23 months, 47 hours have been added translating to an average of approximately two stations per month. I’m also happy to announce that board has approved an interim dividend for the current financial year at the rate of 120% which is rupees 12 per equity share.
With this I conclude and would now like to open the floor for the questions. Thank you very much for your patient hearing.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to withdraw 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 Rabal Sen from ICICI Securities. Please go ahead.
Probal Sen
Thank you for the opportunity. Sir, three questions from my side. Firstly, in the 4.62 mm HCMD volume is it possible to bifurcate how much was the UEPL sales volume and to give the corresponding sales in the quarter three of last year.
Unidentified Speaker
Quarter Q3UEPL average. Was 0.283 mmscmd and sir, corresponding volume. Last year for UEPL. One moment I don’t have readily but I can say you know it was roughly around 2 mmscmd or so.
Probal Sen
0.2 mms. Right? Got it sir. So. So the second question was has there been any price hikes or changes have that has happened? May I continue, sir? Last year same quarter of US 194.194. Got it. So thanks. The second question was any price changes that have happened in any segment in this quarter and or any price changes plan in the fourth quarter. Can you give us any color?
Unidentified Speaker
If you have noted, I think on 1st of February we increase our CNG price by 50 paisa per kg.
Probal Sen
Okay, okay, got it sir. And third question was that this quarter saw Henry Hub prices actually rising quite sharply and yet we have actually managed to show some improvement in our margins on a sequential basis. Just wanted to understand what measures we have taken or any changes in our sourcing mix in this quarter that has Enabled this.
Unidentified Speaker
So we tried taking as less as possible Henry Hub and replaced it either HPHT or spot. However, if you look at the average Henry Hub index and the actual cost of Henry Hub compared to previous quarters hardly gone up by around 0.14 cents. As against that, if you see APM since Brent was lower has seen a savings of almost 20 cents and so is the case with HPHT and NWG etc. So overall there was a, you know, lower. Brent has contributed to all the contracts relating to Brent which is at least more than 20 cents.
In case of NREA the average price was higher by around 1.4 cents. So net net I think there is a reduction in the cost slightly. And since we took the price increase in the previous quarter last month, that is in the month of September, the benefit of that price increase has accrued in this quarter fully. So both put together better sales realization. Despite I think lower realization. In case of industry, our overall company EBITDA per SEM has gone up by around 30 paisa per svm.
Ashu Shinghal
The major point maybe which we have in the recent memory is in the January the HH prices have gone up high. So maybe you had that point in reference when you were asking this question.
Probal Sen
Right. Sir, the last question if I may. Any change in the guidance for medium to long term volume growth? Are we maintaining that 8 to 9% kind of volume growth overall on an annualized basis?
Ashu Shinghal
If you see year on year the growth is around 9% year on year. But we are expecting that Q4 will be slightly better. So we may touch around double digit number and guidance for the future year is around double digit number we are planning.
Probal Sen
Understood sir. Thank you so much and all the best.
Ashu Shinghal
Thank you.
operator
Thank you. The next question is from the line of Yash Nandwani from iifl. Please go ahead.
Yash Nandwani
Thanks for the opportunity sir. First question is on the CNG volume growth. It has been moderated to around 6% in this quarter. So could you help us understand the impact of gas supply disruption that was there due to the pipeline damage in Q3? It was a very small quantity. I mean the production was down for one day.
Sudeep Anand
The restoration took about a couple of days in which we had to shut down quite a few CNG outlets in Mumbai and GA2. So during that time we made sure that, you know, CNG supply was available to BST and STUS and few critical CNG stations because there was only a limited amount of gas which we could draw from Mahape for use in Mumbai and not only cng. The impact of that hit the industrial and commercial sector also pretty hard. So one of the reasons for a drop in industrial volumes is also this thing.
Yash Nandwani
So could you quantify that volume?
Unidentified Speaker
I think roughly it is about 1% of CNG volumes and had that thing not been there, CNG volumes would have been 1% higher.
Yash Nandwani
Okay. And secondly sir, again on Henry of length volume. So how should we look at the margins going ahead in Q4 and next year onwards Given that fact we have seen sharp volatility in the Henry prices and considering a meaningful portion of our volumes are also linked to Henry Hubbling contracts.
Unidentified Speaker
So you know, within the contract I think there is a lot of flexibility available as you are already aware. Probably one can, you know go as low as 60% because of the TIC or pay threshold is 60%. Within that also we can do, you know, some amount of leg behind in taking little less quantity and then recoup it in the subsequent months because the annual average has to be maintained at 60%. So we will do fine tuned management of, you know, how do we induct the cheapest gas available and reduce the costliest gas which is what is done in the Q2 also.
And our endeavor is there, we will do it in going forward also. And so whichever month it is higher, we will manage it through these mechanism.
Yash Nandwani
So you maintain the margin guidance?
Unidentified Speaker
Yeah, yeah, yeah. To a certain extent.
Ashu Shinghal
Margin guidance which was answered in the previous question also we will be around the Same similar numbers, 8 to 8 and a half rupees. Sorry, volume growth was talked about in the earlier question but the margins guidance will be in the similar range of say 8 to 8 and a half rupees. As we have seen for this although 9 months margins are around 10 rupees and Q3 is 8.3 rupees so I’m slightly lower side. But going forward for FY26 given that HH prices are slightly higher as we will be doing some readjustment in our procurement strategies and some of the term contracts will be expiring, some we will be entering into different contracts.
Also the volume growth which is coming up 10% we have that flexibility to go in with Brent linked contracts also or other indices. So we do this and HPHT gas will also come on play this new well gas also some quantity variation keep on happening. So overall portfolio management is very critical which we closely monitor. And we are also looking for some hedging to be done at the right appropriate time to further optimize our procurement cost. And on the sales realization side, if you look at Now Brent has started looking up. So industrial realization should increase slightly. Though my APM cost is protected by ceiling and we have already taken, as I said earlier, 50 paise per kg increase in the month of 1st of February. So that will help to a certain extent to maintain margin.
Yash Nandwani
Right sir, thank you so much.
operator
Thank you. The next question is from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead.
Mayank Maheshwari
Thank you for the call. Sir, two questions. One I think was related to around the volume growth in the Mumbai area. I think if you look at the CNG growth definitely has seen a bit of tepidness here. Anything that you can help us around what’s driving that and anything you’re doing to kind of help that growth up.
Unidentified Speaker
Look, in Mumbai the CNG growth is muted basically because of two reasons. One is the BST CNG fleet is you know reducing and they have not yet they have not managed to get more CNG buses. They seem to be going more towards electric. And other big issue in Mumbai is availability of land to open up new CNG stations. We land up opening just you know, single digit kind of additional stations. Whereas GA2, GA3, it’s much easier to you know, get land in open CNG stations. So and these are the two main reasons for the flat or muted growth of CNG in Mumbai.
Mayank Maheshwari
And sir, anything you’d like? Would you be able to quantify the impact of the shift to in to electric from the best buses?
Unidentified Speaker
Well we at its peak BST used to run about 3,000 CNG buses. They are down to a few hundred now. Cumulatively we would have lost about. More than a lakh kgs per day.
Ashu Shinghal
Just to add to that, you know the unutilized capacity as BST is getting used through the Taj scheme where slowly I think the private vehicles are getting filled. So that also in a way adds a number of CNG sessions available to other than BST consumers. And we are also in the process of setting up at least two, three large stations. So in terms of numbers, you may see a single digit numbers getting added in GA1 but those will be with higher capacity in especially in south Mumbai. So that should help going forward. As we have I mean discussed earlier also in Cyan, that is in Wadala we have where our CGD station, City Gate station is there. There we are planning a very big station, maybe the biggest in India which will have around 60 filling points or around 30 dispensing units. It will be done in phased manner. First phase will be completed somewhere In April May and the next phase will be taking another five, six months. So that will be one place where you will be finding CNG filling all the time most likely without any queuing. That can be a big support for the queuing issue.
In the main city we will also.
Unidentified Speaker
Be opening two large CNG stations in South Mumbai on Bombayport Trust land. The first one of them I think should be open in a couple of months and the other one in the coming financial year. Plus in the coming financial year we also expecting to have one large CNG station come up on the Western Express highway in Goregaon maybe in a year and a half time frame. We will also be having a very large station coming up on the Eastern Express highway near Mulund. The numbers may be small but as we have seen that these will be large stations where the sale will be pretty high.
Mayank Maheshwari
So sir, if I put it all in context. If you look at growth in terms of CNG now for you outside of unison, how should we think about that going forward now.
Unidentified Speaker
Outside of unison I think we have been growing at around 7% or so but the base is pretty high in you know the non unison areas. Mumbai and GA2 put together account for a big chunk. So the overall company is growing at whatever 8%, 9%. Mumbai will be percent or 2 below that.
Mayank Maheshwari
Very clear. And the second thing was second question is around strategy around gas sourcing. You did say that you are looking at alternative sources around branching contracts. So if I was to think about in three years time how do you think your mix of gas sourcing will look like in terms of Henry Hub and crude? Obviously domestic is linked to crude as well. So if you kind of put it on all continuing together. How do you see that mix for you which you think is optimal?
Unidentified Speaker
Too early to predict a very ideal mix because things are geopolitically very I mean I would say dynamic in nature and because of small event the prices go up and down especially with gas linked contracts. So what we have found is that we will have a a portfolio which will having all these things. Second is that APM gas will be also maybe slightly more declining in three years time. So having said that I mean Brent is a more stable index if we have to discuss in that manner. And projections in future about Brent is that it will be slightly on a lower side whereas Henry Hub traditionally has been on the very lower side.
But of late there have been some indications that HH can go slightly up. So we will have a mix of both Brent Brent anyways indirectly also HPHT Gas is also slightly linked to Brent contracts as of now APM and NWG is Indian crude basket which again is Brent. So barring our direct contracts of HH which is around 1.6 mmscmd balance, all is you can say directly or indirectly linked to Brent. So if something change very dramatically, unless that point of time we have, we want we will be expecting similar or maybe slightly more inclined towards Brent and less towards hh.
That is as of now if we see three years down the line but we can’t say if things change very unpredictably in future.
Ashu Shinghal
Just to add to take care of current HH volatility we have already signed and started drawing from January some amount of Brent Link contracts, new contracts, almost 12,500 MMBTU and we have already in pipeline another additional maybe 10,000 MMBTU contract from April onwards. But the one which I’m saying we have started drawing is for a period of one year. Another we have tied up for maybe around two to three years timeline. So we are already on that and I think hopefully we should be able to optimize as fast as best as possible.
Mayank Maheshwari
Got it? Very clear.
operator
Sorry to interrupt you Mr. Maheshwari. Yes, thank you very much. Participants who wishes to ask a question please press star and 1. The next question is from the line of Yogesh Patil from Dalet Capital. Please go ahead.
Yogesh Patil
Thanks for taking my question. Sir, could you please share the gas sourcing in MMSCMD term mostly how was the apm, nwg, hh, HPHT and Crude Inc during the quarter?
Unidentified Speaker
Yeah, so case of APM slightly you know the percentage went up but as against that some NWG increases decrease has happened. So both put together more or less, you know around 45 odd percent or you know Q2 was 46 and now it is 45%. I am saying APM as well as NWG. Okay, we have as I said earlier reduced our offtake of Henry Hub by around 4% and swiped it with HPHT and SPOT whenever it was cheaper than Henry Hub. Yeah, I think more or less it. Has remained similar to last quarter.
Yogesh Patil
If possible could you please share these numbers in MMS CMD terms? Sir, if possible.
Ashu Shinghal
I’ll just share like. Come down from almost, you know to 1.3 from the earlier offtake in the current quarter. And both APM as well as NWG it is almost 2.1 mms cmd in the current quarter and was a similar but between APM and NWG there is a better improvement. I have got more APM Slightly and some reduction in nwg.
Yogesh Patil
Okay, fair enough. Sir. Sir, recently Zonal unified tariffs are implemented from the first jam. How has impacted to our overall gas cost? Can you provide a little bit number in rupees per SCM term on the gas cost?
Ashu Shinghal
So you know our gas zone wise earlier before the change roughly 70% was already in zone one and 30% in zone two. Okay. But of that 30% whatever I am consuming for priority segment now zone one will be applicable. As you are aware the zone one rate has gone up from 40 to 54 and zone two roughly from 80 to 105 or 102. Sorry. Right now from this month onwards we have started evaluating inclusive of a transportation tariff. Because it matters where I am getting the gas from and which zone rate is applicable. So if I have to say, even if I manage outside Zone 1 gas for the purpose of industrial commercial, I should be able to manage around 10%.
Okay. So my weighted average for tariff under zone one at least we will be able to achieve 90% or more. And zone two if at all we take it should be below 10%. With that you can work out the weighted average of both. Earlier I said it was 70 30. Now at most I will have 10% zone 2 and 90% zone 1 compared to the volumes and the contracts which we have in place.
Yogesh Patil
Really helpful sir. And the last one, Henry Hub gas cost side little bit clarity. We wanted to understand the lag effect on the company’s gas cost. If today suppose Henry Hub gas prices close 10% down or 10% up then how much time it takes to reflect it into our LNG cost. Is it a one month lag, one and a half month lag or 15 days lag?
Ashu Shinghal
There are multiple contracts, four to five contracts. In some of them it is with a lag of two months and in some of them it is with a leg of one month. When I say one month, so rate is of the previous month and some contract it is previous to previous month rate is applicable. So in fact it evens out the impact to a very large extent. And that is why you don’t see much actual impact on the rate. Weighted average rate of Henry Hub.
Yogesh Patil
Thanks a lot sir. It was really helpful.
Ashu Shinghal
We can always. Do you know which contract I should bring down more and which contract I should consume full depending on the other sources available. So we do that fine tune management to optimize the gas cost.
Yogesh Patil
Thanks a lot sir.
operator
Thank you. The next question is from the line of Vivekanand s from Ambit Capital Please go ahead.
Vivekanand S
Thank you for the opportunity. So my first question is on the volume drivers. So previously you’ve spoken about triggering volume growth by acquiring customers who have larger consumption objectives like fleet owners and you have run CNG in the past. So is there any update on the schemes that you are running to acquire customers and improve volume growth in your core areas? That’s question one. And the second one related to volume drivers is the committee that was formed to explore pollution concerns in Mumbai. The pollution concerns have become perhaps even more prolonged. Right? This insta problem is more severe than before. So do you think that the government mandate to push some of these vehicle segments particularly LCVs or medium commercial vehicles could come in say in FY27 or 28 since you’re part of the panel. Thank you. That’s question one. I’ll ask the next one after this.
Unidentified Speaker
Volume growth. If you’re looking at the CNG segment and the commercial goods vehicle segment rather than having a blanket scheme for everyone we are now trying to target large fleet owners and transporters. We have had some traction with one large transporter in the JNPT area with whom we are signing for converting about 300 of his trucks onto CNG. So we keep continuously looking at these kind of opportunities and offer them a good upfront discount also through a fuel card or something for you know, getting their economics right. And this works better with large transporters we observe because large transporters typically have, you know, a set of vehicles which log in a large number of kilometers.
So it is in that segment where they get the quickest payback for their investment on conversion to CNG or buying a new CNG truck. And of course our attempt to open more and more large format CNG station which can accommodate these big vehicles that continues especially in GA2 and GA3 areas. Regarding that Bombay High Court committee we have, we have prepared a draft recommendation and these are under discussion in the ministry. So they will submit after that consent we will. I mean I’m not exactly aware that when the final report will be submitted to the High Court but there are not going to be very major knee jerk reactions because we have to make sure that not some, I mean recommendations are submitted which are not implementable. So most likely the bigger segment, more polluting segment of the vehicles like BS4 and more below segment vehicles can have been have some span time to be described and other such measures, some routes description, some other measures will be implemented depending on high course intervention and in case High Court Sumoto give some more stringent views than it Will be for overall impact will be found as and when it is prescribed with the court or the government.
Vivekanand S
Okay, thank you. My second question is on the recent India US trade deal where India has committed to purchasing more from the U.S. have you received any communication from the government to perhaps explore purchase of more energy from the US or ink more contracts with Gale such that you can downstream the energy US Energy.
Unidentified Speaker
I think CGD per se. I mean it’s such a distributed segment. We have around 40 entities taking all the amount of gas. Obviously IGL, MGL, Adani and Gujarat Gas are the biggest players. But having said that we have a mix of APM also available which is domestic gas. We have Nuvale Gas, HPHT gas. Then we have a choice to take hph. Sorry, Henry Hub or Brentling contract. So as this macro level discussion about India and US they are not directly linked to the CGD entities. They are done at a government to government negotiation or B2B negotiations and discussions.
So we don’t generally make any impact towards that direction. Ours is agnostic to who is the seller, either Gale or other parties. We are more concerned about what is the likely movement of these indices whether gas based indices or Brent linked or oil based indices. And how much will be our growth and which is the right mix. Making sure that under different scenarios which can unfold in future, we are equipped to handle with minimum disruption in prices and maintaining the procurement cost to the minimum. So those are our targets. Not very much directly related to India US deals.
Vivekanand S
Okay sir, thank you so much for the detailed clarification. All the best.
Unidentified Speaker
Thank you.
operator
Thank you. Participants, who wishes to ask a question, please press star and 1. The next question is from the line of Daksh Chaudhary from Ratnad Raya Investment Management. Please go ahead.
Daksh Chaudary
Hi sir, my question is possible. Could you provide a breakdown of the revenue from PNG by commercial vehicles and private vehicles?
Ashu Shinghal
Segmental breakdown in Q3 we had about 6,600. Taxis added about 14,000. Private cars about 9,000. Three wheelers, about 2,200 small commercial vehicles. Total vehicles in the quarter were about 32,000. The remaining hundred odd would be a mix of buses and commercial vehicles.
Unidentified Speaker
Maybe he was asking total CNG revenue. Which segment? Four wheelers, three wheelers. How much is being generated?
Daksh Chaudary
Yeah, yeah. Like I’m asking about the revenue from these segments.
Ashu Shinghal
Revenue wise almost equal chunk will come from private car taxis plus three wheelers.
Daksh Chaudary
Okay, can you quantify it?
Ashu Shinghal
About 8 to 10%. 8, 7 or 8% may come from state transport undertakings.
Unidentified Speaker
Private cards will be around 30%. We’ll give you share these numbers separately but broadly they can be corrected. Maybe private private cars and taxis would.
Ashu Shinghal
Be about 35 40%. Almost a similar number for three wheelers 78% stus. And the remaining will be for commercial good vehicles, private buses etc.
Daksh Chaudary
Okay. Okay sir, thank you so much.
operator
Thank you. The next question is from the line of Akash Jin from clsa. Please go ahead.
Akash Jain
Myself thanks for taking my questions. I just wanted to know your guidance or how should we think about margins say for the upcoming quarter where there will be some impact of the share that zone tariff change and you know some of those other things and the recent change in re up price and also your longer term unit margin guidance. How should we think about that please?
Ashu Shinghal
I think we discussed both these points partly but I’ll just repeat I hope you referred about the zone wise transportation tariff change first.
Akash Jain
Yeah.
Ashu Shinghal
As I said at the most you know maximum 10% could fall outside zone two where because we evaluate now including the transportation whether landed cost is the cheapest. Okay so under that scenario my Transportation cost per SEM may marginally go up from 10 paise to 20 paise per SCM. Not more than that. Okay. And coming to Henry Hub. Yes, Henry Hub some impact will be there because of the February Henry Hub index has remained high. So some part of it will be impacted in March and maybe after that we have already taken 50 paise price increase per kg in case of CND from 1st of February.
So that partly offsets the impact and maybe overall realization in case of industrial commercial is looking better compared to previous quarter whereas previous quarter had very low Brent and there was good amount of impact on realization of inc. So with some improvement in INC realization price already price increase already taken there could be marginal impact for this quarter specifically. Okay. And as far as possible we will try and you know postpone our drawl of Henry to subsequent months because you can always do that fine tune management and you know make the 60% threshold over a period of one year and that period has just it is a calendar year so we have balance months in the calendar year to manage that threshold.
So our endeavor will be reduced as much as possible the costliers and take it subsequently when indices improve.
Unidentified Speaker
And regarding the guidance for margins I think we discussed earlier around 10 rupees 20 pais for the this year we have got EBITDA per SEM and going forward maybe 8 rupees to 9 rupees margins would be the numbers which you can look at because many of these impacts which Rajesh just mentioned have been already impacted started impacting Q3 also. So with more portfolio management and things like hedging and procurement at a different point of time with different indices, we should be able to handle different type of scenarios unfolding in future and going forward, it seems that gas will be available.
It is only a matter of time that which gas will be available. Some of the Russian gas will find its market in some other areas like China and some other places. So there will be obviously supplies coming from different countries like Qatar is also increasing their supply and some supplies from us will also be added and there will be some shift in rearrangement in Europe also. So we expect that there will be not much of a disruption happening in gas or Brent market at least for next near future.
Akash Jain
Thank you so much. Just one more thing. Could you also provide the breakup of APM and new well gas? You said both together were, you know where APM share increased and new well decreased a little bit in that mix.
Ashu Shinghal
Total APM available was roughly 39% and 6% was NWG.
Akash Jain
Thank you so much sir. Thank you. Thank you.
operator
Thank you. Participants, who wishes to ask a question, please press star and 1. The next question is from the line of Sabri Hazarika from MK Global Financial Services. Please go ahead.
Sabri Hazarika
Yeah, so just one clarification. You mentioned The EBITDA per SCM for nine months is around how much? Around 10.4, right?
Unidentified Speaker
No, it is 9.5. Sorry, I correct myself. 9.5 rupees is for this nine months and 10.2 rupees was for the last financial year nine months.
Sabri Hazarika
Okay, 9.5. And your guidance for this year would be how much and next year? Next year would be next year would be how much?
Unidentified Speaker
I mean this year for nine months it is 9.5, right. So maybe Q4 will be coming. So we will be in the range between again maybe slightly more than nine. Or in that range for next year it is eight to nine rupees which.
Sabri Hazarika
We were talking about eight to nine rupees. Okay, so okay, fair enough. So. Eight to nine versus nine again.
Unidentified Speaker
It is, I mean depends on so many situation as you might have seen that some years it has gone in double digit, then it has come down slightly and if you look back three, four years back it was in the range of six seven rupees also. So these keep on changing depending on our procurement cost as well as alternate fuel cost, industrial, commercial, Brent movement and our optimization in procurement and operational efficiencies. And so on and so forth. So we have also been increasing lot of our assets to upgrade it. Like we have gone for SAP upgradation, customer relationship management.
We have had Salesforce. Some of our older assets have been shifted. We are also going for more carbon neutrality and maybe by 2036 we will have net zero scope one and two importing green energy also for reinification of our electric driven compasses in Mumbai region and nearby areas. So all these things, I mean somewhere or other reflect on the margins for a temporary reason, temporary space but over a long period of time they will be taking the company in the right straight.
Sabri Hazarika
Got it. Secondly, what was the capex for the nine months?
Ashu Shinghal
Roughly 760 crores.
Sabri Hazarika
Okay, so. So you’ll be ending at 11001200 crore.
Ashu Shinghal
For the fleet in that range. Yes.
Sabri Hazarika
Okay. Yeah. And I. I’m not sure whether you have answered this before but can you give us a breakup of volume between the various gas.
Unidentified Speaker
Maybe around 50% will go to G1 or slightly less than that if we include SBU also and GA2 is similar around 45% and then GA3 which is rigor will be around 0.3 mm SCM. So which is. I don’t know how much percentage it is. 7, 8%. Yeah. And SBU whole put together is around 0.3 so it is again 7 to 8%.
Ashu Shinghal
GA1, GA2 both roughly 2 million 2 million each. That makes four rigor and you know upl will be around 0.65. Yeah.
Sabri Hazarika
Okay. 0.6. 0.65. Yeah. Thank. Thank you so much.
operator
Thank you. The next question is from the line of Nathan Tiwari from Philip Capital India Ltd. Please go ahead.
Nitin Tiwari
Good evening. Thanks for the opportunity and pardon me for a very nice line of questioning. I just wanted to understand that how does the gas pricing of the contract works? I mean when you suppose when you’re importing HH Link gas and if the price of gas changes in the transit so at what point in time, I mean is the gas price fix and it leaves the port in US or when it lands in India? And how does entire dynamic work?
Unidentified Speaker
The question within which you are asking I think is applicable more to the person who’s directly importing the gas. Okay, so we don’t import rlng whether Henry Hub or Brent Link directly. We enter into contract with the suppliers who gives us aggregators like Gale or Shell or any of these OMCs. Okay. So we typically have a contract where pricing formula is one part is linked to the benchmark. It could be Henry of it could Be rent. Okay. Other part is either fix or some portion linked to variation. But the change in the high C and all that is.
operator
Please go ahead.
Unidentified Speaker
Because we are not importing any cargoes directly.
Nitin Tiwari
Right. So it is really applicable.
Ashu Shinghal
Yeah. Just to further clarify, add on to what Rajesh has mentioned. These are different contracts entered at different points of time. So if HH contracts are there, we have the liberty to some extent that which index we are choosing some of the conditions we can and some are the standard conditions. So HH is maybe one particular month date rate is there, which is all across the industry. Similar practices being followed on that day, particular whatever is the HH rate is taken. The rate for the next month. Brent is on average for the month. So generally these are the traditional practices which are the contracts available in the market.
And we follow similar, I mean practices in practice in the contracts which we have. Although some fine tune adjustments will be there from contract to contract depending on the market.
Nitin Tiwari
Got it. So the flexibility that you mentioned is between you and Gail in terms of how much drawdown you want to take from the contract, is that right?
Ashu Shinghal
Understanding contract to contract, it can vary like there can be contract which have more take or pay. There can be contracts which have got less take and pay. And this is a evolving market like it is again a demand supply or a buyer seller arrangement. So some of the instruments every time economics or dynamics changes. So sellers are more flexible. Sometimes they are not very flexible. So we have to go with what is available in the market at that point of time. Obviously we can’t dictate everything from the buyer side. So market keeps on changing, but more or less from the rigid contracts which were there available maybe five years back.
Now the things have started shifting to more of a buyer market than the seller market. Because multiple buyers are coming into the market and with multiple flexibilities are being offered to the sellers, by the sellers, to the buyers. So buyers can tailor some of these conditions in the contract and accordingly the buyers sell the gas and may mark their rates at which those gas is sold. So it’s a very flexible dynamic situation and we have to make sure that whatever type of contracts we are choosing or the terms and conditions which we are choosing is beneficial for the company in the long run.
Nitin Tiwari
Understood. So thanks for the very elaborate answer. I’ll get back in the queue. Thank you.
operator
Thank you. The next question is from the line of Vinit Banka from Nomura. Please go ahead.
Bineet Banka,
Hi sir. Thank you for the opportunity. Just one question on CBD blending. So I understand There was some exemption on excise duty in this budget. So what could be the impact on EBITDA for LCM or mgl? And what is the current volume of CBG lending for the company?
Unidentified Speaker
Right now it is not very significant. At two, three places we are doing some CBG blending. Maybe you can give exact numbers in. Case it’s below 1%. Actually very small number operating three sessions on CBG.
Akash Jain
So EBITDA per SEM will be 14,000 kg a day. Yeah, 14,000 kg per a day in overall sale of almost 20, 22, 23 lakh kg. 23 lakh kg per day. So it’s very small amount. And this excise duty impact will be over a period of time. Right now all the CBG players, they find it difficult to make an economically viable proposition at several places because the feedstock availability is one issue. The quality of feedstock, the rates at which it is available. So to promote CBG promotion as a big macro level policy, the government has included this benefit for CBG producers and that will make CBG prediction more viable rather than having a very big impact on the CGD entities as such.
But if you see five years down the line, maybe CBG will have a very significant protection level. And then we can see that these type of incentives and promotions by the government will overall benefit the greenification of the TGD grid as well as for betterment of the environment and the viability of CVG plant as a whole.
Bineet Banka,
What is the current cost of CBG that you procure compared to say your gas procurement cost? Any number you can share.
Unidentified Speaker
There are two schemes. One is, I mean there are three schemes I would say. One is that CBG producer is free to sell its gas at its own price to anybody. Second is they can accept SATAT scheme which is an ongoing scheme at which some discount price is available. And third is synchronization scheme at which tripatrate agreement is signed between CBG producers, CGD entity and GALE which is the coordinating agency for this type of arrangement. Under the synchronization scheme, the better output or the inputs which is available to both CGD and the CBG entity is under synchronization.
So several of those CBG players are coming up with synchronization scheme in which they get a price which is determined by, I mean government from time to time and the returns are much better. They are on discount to slightly on CNG and with excise duty exemption that return to the CBG player will further improve as well as it will become Beneficial for CGD entity also.
Bineet Banka,
Thank you, sir.
Unidentified Speaker
Yeah, the CNG or CGD entity gets the cost of whatever quantity of CBG which is inserted into the grid at APM prices. So that is the advantage for the CGD entity. Whereas the CBG producer gets a price at CNG relevant prices at that place. So that is the advantage of cbg. So in net whatever is the cost of CBG is getting distributed on unified blending price mechanism of apm.
Ashu Shinghal
So if you look at, you know, if APM price without blending is say $6.75 overall at the country level, APM price blended with CBG is in the range of say $6.95 or so. So it’s around, you know, 18, 20 cents are added on account of CBG blending that is current. All CGD entities in the country. Hello.
Bineet Banka,
Thank you.
Unidentified Speaker
Thank you.
operator
Thank you. The next question is from the line of Somaya V from Amendes Park. Please go ahead.
Somaiah V
Yeah, thanks for the opportunity. Sir, the first question is initial remarks. You didn’t mention about one of the contracts that you have signed for one year in MMBTU terms. So this is equivalent to a.0.3.4 times MMA CMD for this year. And is it a take or pay contract?
Unidentified Speaker
Every contract has take or pay. So these contract also has take or pay. Okay.
Unidentified Speaker
Referring to the Brent contract which you made.
Unidentified Speaker
Yeah, Brent contract. Yes. But one, this, this has more than one contract. The contract which we have signed through IGX there it is 100% you have to take. But that is a smaller quantity because through IGX you don’t have, you know, it’s a firm price and full quantity you have to draw. But the other contract which is one on one with the party, there is threshold of take or pay and it can be adjusted over a year’s time.
Ashu Shinghal
It is on a year’s annual quantity takeoff basis.
Somaiah V
Got it. So you were referring to one that has started from January. The other one will start from April. So these are the two contracts.
Ashu Shinghal
So only two contracts have started from January where smaller quantities through IGX and larger part of the contract is one on one bilateral contract. And some more contracts are starting from April. Bilateral. Those bilateral contracts will always have a core pay thresholds.
Somaiah V
Got. Sir. Sir, also any update on the battery cell manufacturing project?
Unidentified Speaker
I mean as we have mentioned maybe discussed in last earnings call, also the land is in our position but there has been some changes in overall global scenarios related to the prices at which the battery is being sold. So we have everything Is in place in terms of technology availability. We have got some of those batteries in India and testing in with different users and we are getting a very positive feedback. Except for the fact that the last six months or so the price of the battery has come down significantly. Much of it is to the fact also that the price of procurement of materials, primarily the cathode material which has come down so it has impacted the battery cell overall prices to come down significantly.
Now we are slightly reassessing the situation trying to find a mechanism and proposition which is best suited for all the parties involved. And therefore we are slightly putting it in a maybe few months hold to finalize this contractual arrangement wherein we can survive in different scenarios when the prices of the battery are maintained at a lower level for a significantly longer period of time. And we are also looking at some of the strategic partners to make it run and maybe mitigate some of the risk.
Somaiah V
Sir, also when we. For the next 12 months the CapEx outlook that we have. How much are we considering as a capex for this project or investments for this project from our side?
Ashu Shinghal
For battery project you mean?
Somaiah V
Yes sir.
Ashu Shinghal
We have in our hand approval of roughly 380 crores and for two phases. Okay, so that’s the maximum.
Unidentified Speaker
But I think next readjustment which I said maybe this can be slightly lower than the number which Rajesh just mentioned. Because if we bring some more equity parts obviously it will be intimidated to the exchange as and when it happens. Right now it is on a very preliminary stage of discussion. So we can’t just declare anything as of now. But yes, it will be. The higher limit is what Rajesh was mentioned which has been declared to the exchange a few months back. Few. Maybe one year back.
Somaiah V
12 months back.
Unidentified Speaker
12 months back.
operator
Sorry to interrupt. May we request Mr. Somaya to please rejoin the queue. We have other participants waiting for return. Thank you. The next question is from the line of Danak Oteja from Nuama. Please go ahead.
Unidentified Participant
Hi Mr. Bookkeep. Bookkeeping questions on my side. Can you please specify what was the share of HPHC in your source index?
Ashu Shinghal
Contracted quantity we had roughly 0.6. And we have been buying HPHT through IGX also. So in the last quarter we bought little amount of IGX hpht.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Aditya Velika from Access Securities. Please go ahead.
Aditya Welekar
Yeah. Thank you for the opportunity. Just one question. What is our capex guidance for FY27? Capex should be in the range of around 1200 crores. And that will be towards which geographical area?
Ashu Shinghal
Mainly GA2, GA3 larger amount, maybe slightly lesser amount. Only on CNG in GA1 and all three unison acquired areas. Roughly 200 crore.
Aditya Welekar
Understood. Thank you. That’s it from my side.
operator
Thank you. The next question is from the line of Lokesh Manik from Vallum Capital. Please go ahead.
Lokesh Manik
Yes. Hi. Good evening to the team. Just one clarification. Under the SKU CBG schemes that you mentioned the synchronization scheme is the one that benefits cgbs. The clarification here was that would the. Scheme be supply agnostic in the sense. That whether it be an HPH.
operator
I’m sorry to interrupt you, Mr. Lokesh but we are unable to hear you clearly. Sir.
Lokesh Manik
Yeah. Is it better now?
operator
Yes. Please go ahead.
Lokesh Manik
Yes. Yes. Sir. I was saying that in the synchronization which is scheme even the HPHD gas will be available at APM price if it gets blended with cbg.
Unidentified Speaker
No, no. It is not like that. It is only this scheme. The synchronization scheme is only for CBG prediction, not for hph.
Ashu Shinghal
HPHT is available to CGD on priority basis. If CGD company and other sectors bid for that gas, CGD gets the first priority. If the price quoted by the CGD and other companies similar. That’s the only priority of allocation during bidding of HPHT gas.
Lokesh Manik
So the blending benefit will be in which source of gas.
Ashu Shinghal
And CBG loaded.
Unidentified Speaker
To the overall consumption of APM in the country by CGD entities. And the beneficiary is the CBG producers and also the CGD entities to the extent in whichever entities using that CBG. Like if we are taking say 20,000 tons. 20,000 kg of CBG in our area of APM will be allocated to us over and above our APM allocation which traditionally happens.
Lokesh Manik
Understood? Understood.
Unidentified Speaker
By 20,000. To the extent APM prices and this 20,000 will be rationalized over the overall consumption of APM in the whole country.
Lokesh Manik
Understood? Understood. Understood. Thank you so much for the clarity, sir.
Unidentified Speaker
Thank you.
operator
Thank you. Ladies and gentlemen. Due to time constraints, that was the last question for today. I would now like to hand the conference over to the management of Mahanagarh Gas limited for closing comments.
Unidentified Speaker
Thank you so much to all our shareholders and stakeholders for posing confidence on the company. And I hope that the same and true and the investment is maintained in the company. Thank you so much for joining for the earnings call today.
operator
Thank you. On behalf of Systematic Institutional equities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.