Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Mahanagar Gas Ltd (NSE: MGL) Q4 2026 Earnings Call dated May. 08, 2026
Corporate Participants:
Ashu Shinghal — Managing Director
Analysts:
Gagan Dixit — Analyst
Probal Sen — Analyst
Amit Murarka — Analyst
Yogesh Patil — Analyst
Akash Jain — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Nitin Tiwari — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Managar Gas Limited Q4FY26 earning conference call hosted by Ilara Securities. As a reminder, all participant lines will the listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr.
Gagan Dixit. Thank you. And over to you sir.
Gagan Dixit — Analyst
Yes, thank you. A very warm welcome to everyone to Discuss Mahanagar Guest Q4FY26. It is our pleasure to be able to bring to you the management of Bahanagar g led by Mr. Kumar, Managing Director Mr. A Managing Director Mr. Raesh Patel, Chief Financial Officer and Mr. Rajesh Wadi, Senior Vice President Marketing. So with this word I would now hand over the conference to the manager Guest management, over to you sir.
Ashu Shinghal — Managing Director
A very good afternoon and welcome to the earnings call of Mahanagar Gas Limited for the fourth quarter of the financial year 2025 2026. I would like to thank you all for attending our earnings call today. Due to the supply disruptions arising from the recent ongoing geopolitical crisis in Iran and wider Gulf region which has adversely impacted LNG facilities and created significant challenges in the global LNG supply chain particularly cargoes routed through the state of Hormuz. Our 100% DPNG and major part of CNG requirement is supported by domestically produced gas ensuring 100% supply to these customers.
Gas supplies to industrial and commercial customers is partly curtailed. Prices may be affected due to global indices in the near term. However, they are expected to improve over time. MGL continues to create CGD infrastructure across its business segments in the license area during the quarter one 43,997 domestic households were connected and thus we have established connectivity for nearly 3.21 million households. We have laid 138.48 km of field and PE pipeline taking the total length to over 8320.43 km.
We added 28 PNG stations during this quarter and with this we have 518 stations. As on 31 March 2026, we added 334 industrial and commercial customers during this quarter. As on 31 March 2026, we have 5,924 industrial and commercial customers during the quarter there is an addition of 34,854 CNG vehicles. And now we have more than 1.28 million CNG vehicles registered in our geographies as of 31st March 2026. During the year 3 42,157 domestic households were connected and thus the company have established connectivity for nearly 3.21 million households.
We have laid 499 km of steel and PE pipeline taking the total length to over 8,320 km. We also added 52 PNG stations during the year and with this we have 580 stations as on 31st March 2026. We also have added 872 industrial and commercial customers during the year and Therefore as on 31st March 2026, we have 5,924 industrial and commercial customers. We have added 1 18,590 vehicles during the year and the total vehicle as on 3-31-2026 is 12804828 coming to MGL’s operation during the quarter we achieved overall average sales volume of 4.672 MMScMB as against 4.620 MMScMB in the previous quarter which is an increase in 1.12%.
Current quarter volumes consist of CNG volume of 3.349 MMScMB BPNG volume of 0.605 mm SCMB and 0.719 MMScMB of gas was supplied to the industrial and commercial customers compared to the corresponding quarter of last year. Average overall sales volume has increased from 4.402 to 4.672 mmsmb which is an increase of 6.15%. Sales volume of PNG has increased from 3.125 mmscmd to 3.349 mscmd, which is an increase of 7.12%. Sales for domestic DTNG have increased from 0.591 mmsemd to 0.605 mm SEMD which is an increase of 2.24%.
In case of industrial and commercial sales volume has increased from 0.686 mmscmd to 0.719 Ms. CMD, an increase of 4.87%. Average gas sales for the current year ending 31st March 26th is 4.585 Ms. CMD, whereas it was 4.235 msmd last financial year which is an increase of 8.25%. Sales volume in the case of CNG has also increased from 3.047 mmscmd to 3.67 mmscmd which is an increase of 7.2%. Volume volumes for domestic PNG have increased from 0.556 to 0.590 mmscmd which is an increase Of 6.14%. And in case of industrial and commercial, the volume have increased from 0.632 to 0.727 MMSEMD which is an increase of 15.04%.
RLNG supplies are disrupted due to West ACR crisis and hence supply to industrial and commercial customers is curtailed to approximately 80% as per directives. Time to time impacting the volumes adversely due to major impact of supply of LPG due to the crisis. Government has taken all measures at the central and state level to push faster adoption of PNG and this is a very positive move for the CGT sector in the long run. And MGL is going to seize this opportunity to roll out infrastructure and increase its volume.
Net profit after tax for this quarter is rupees 132 crores as compared to the previous quarter. Net profit after tax of rupees 202 crores. EBITDA from operations for the financial year 202526 is rupees 1451 crores compared to previous financial year EBITDA of rupees 1570 crores. Net profit after tax for FY 202526 is rupees 847 crore compared to net profit after tax for the previous financial year of rupees 1041 crores. I’m happy to announce that board has approved a final dividend subject to the approval of shareholders at the AGM at the rate of 180%.
That is rupees 18 per equity share for the current financial year. Thus including interim dividend already paid at the rate of rupees twelve, total dividend is rupees thirty per share for the financial year 2025 26. With this I conclude and would now like to open the floor for the questions. Thank you very much for the pat.
Questions and Answers:
Operator
Thank you. We’ll now begin the question and answer session. Anyone who wishes to ask questions may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and. Two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Prabhal Sen from ICICI Securities. Please go ahead.
Gagan Dixit
Thank you. Good afternoon, sir. I hope I’m audible.
Probal Sen
Yeah, you are audible.
Gagan Dixit
Please go ahead. Yes, a few questions. Firstly with respect to the supply disruptions, we understand from Petronet LNG also that the hedge utilization slipped too bust 53% in March versus about 108% average on January. So in terms of our business, did we also see this much of volatility in terms of our gas sales especially in March? Can we just get a sense of how the business was in March?
Probal Sen
As I think MD already said in his opening remarks, as far as domestic PNG and PNG is concerned, 100% supply has been ensured because it’s mostly 100% of the domestic PNG is through APM which is locally produced. As far as PNG is concerned, it is also majority is out of domestically produced and balance was assured through cooled gas mechanism which was announced somewhere around 9th of March. As far as industrial and commercial customer category has been concerned, roughly 80% supply was maintained curtailing around 20% within which probably from time to time directives have changed to ensure that you know, small commercial restaurants, schools, colleges, crematorium, etc.
Should be supplied 100%. And wherever large industrial customers who can afford to, you know, switch to either alternate fuels or who can afford to pay higher market price prevailing at that time can be given. So overall there was not much of an impact. Maybe after 9th of March there are 2, 3 days which are holiday so there was no practical impact. But
Amit Murarka
Second, fourth time maybe Overall in the month of March we lost about 1.25 1.3 lakh CMD out of let’s say fab average of 5.75 over 20, 22% volume. We lost
Probal Sen
In case of industries and industry excluding the commercial.
Amit Murarka
Commercial we managed to maintain supplies because many of them were, you know, going to critical commerce, hospitals, canteens, messes of, you know, government institutions, schools, etc.
Gagan Dixit
Right, right. Essentially
Amit Murarka
For the large industry where the supply was curtailed a bit.
Gagan Dixit
Sorry, sorry.
Probal Sen
Was ready to take, you know, at the prevailing price that also we have given but under the normal this we we curtail the supply to around 80%.
Amit Murarka
Yes, there were about 10 or 12 customers, industrial customers was very critical.
Gagan Dixit
Okay.
Amit Murarka
You source any market price gas. We are. Okay. So then we managed to source a small volume separately and you know that they offshoot at a premium.
Gagan Dixit
Got it. So sir, is it fair to assume that April may have seen similar kind of volume and supply level that we are seeing now or has there been any change in the environment?
Amit Murarka
April is more or less similar as far as industry goes.
Gagan Dixit
Let’s
Amit Murarka
See, may have just started but we’re expecting maybe some small improvement to happen.
Gagan Dixit
Got it. The second question sir was with respect to sourcing mix. So you already mentioned about domestic PNG and of course most of cng. But if I can just get a little bit of granularity out of the 4.7 mmscmd total sale, is it possible to sort of split out how much of let’s say domestic, I mean APM and how much of Henry Hub link and how much of spot we sort of sourced it from? For this quarter.
Probal Sen
APM which is anyway available 100% for domestic PNG
Gagan Dixit
As well
Probal Sen
As including CNG was in the range of around 1.6 mmscmd. Okay.
Gagan Dixit
Okay.
Probal Sen
NWG and pooled gas is another 0.73 or 75. Okay. HPST we could source apart from the term contract maybe through exchange etc which was in the range of around 0.9. Okay,
Gagan Dixit
Okay.
Probal Sen
Because I’m talking about March only I’m very specifically not the quarter.
Gagan Dixit
Okay. Margin. Got it. Okay.
Probal Sen
To a slightly lower level maybe you know, 50 of our 1.5 contracted quantity and we have to rely some for some quantity on spot as well. If you wish to know specifically for the quarter maybe you know, apart from small amount of. Because it will get averaged out so. Yeah,
Gagan Dixit
Yeah, yeah.
Probal Sen
All amount of cool gas was there. Yeah.
Gagan Dixit
So I think this
Probal Sen
Margin is
Gagan Dixit
Useful, sir. March is useful because that will probably be the sort of template for Q1. From what I understand if the situation, this is fairly useful.
Probal Sen
Yeah. But you know the pooled and NWG quantities are, you know, depending on availability has been changing. So I’m really not able to, you know, give you any clue that the same level will continue in April or May forward because depending on the availability of gas, how things move, how the supplies, you know, come from Gulf it will keep on changing and we have to live this time in uncertainty.
Gagan Dixit
One last question if I may. Any price changes and results on the CNG fund in going forward? Is this something that we are looking at?
Probal Sen
We have already taken a price increase on 22nd of April 1 rupee. Okay.
Gagan Dixit
Okay. And
Probal Sen
Let us see how does you know, alternate fuel prices move specifically for CNF into us. We will take a call and definitely we can sustain for some time the higher cost. But if it is slightly longer or it sustains for a longer time, we will be considering appropriate price rise in CNG as well as in domestic PNG required and compared to probably last quarter. Definitely because of the Brent linked alternate fuels are already high. There is an improvement in the realization on INC sector. We follow ultimate fuel link pricing.
Gagan Dixit
Right. Right. Perfect sir. That is extremely useful. Thank you so much for your time. I’ll come back.
Probal Sen
Sure. Thank you.
Operator
Thank you. A reminder to all participants that you may press star and one to ask question. The next question is from the line of Yogesh Patil from Dollar Capital. Please go ahead.
Yogesh Patil
Thanks for an opportunity sir. But just continue with the previous participant question. Apm, hpht, nwg, hh. If we add up all them it is giving closer to 4mm SCMD only. So remaining was a spot. Is it a correct? Understand.
Probal Sen
We did sign some of the term contracts in the beginning of Jan. Some is also signed during April. Okay. But due to the disruption the quantity may not come fully. Your understanding is correct. But spot is likely to be in the range of, you know, 0.4 or so, not 0.7 as you are expecting.
Yogesh Patil
Okay, fair enough. Sir. The recent price hikes in a DPNG and the cng so how much percentage it has cover up the increase in gas cost of the last two months. Any broader idea? If you could hear
Probal Sen
Last two months.
Yogesh Patil
Yeah, I mean we have seen the gas cost has gone up from March and the April only if I’m not wrong and we have taken BPMG and the CNG price hikes in a month of April. So just wanted to understand how much percentage of that increase in gas cost we have already covered up or the burden has already passed on to the consumer and the partial burden we have taken up any probable number. If you could share.
Probal Sen
If you consider domestic PNG as you know it is 100% through APM supply and there is a 25 cent increase from 1st of April linked to this whatever credit for a committee circular. Okay, so 25 cents plus there is a upside in the cost duty exchange rate. So considering both this we have taken a hike of 1 and a half rupee on 22nd April 2026. Before that also there was some hike but little earlier than this. So that more or less covers you know the DPNG increase. We also consider that okay the for some time exchange rate at spike but it could stabilize so we didn’t want it to take a complete hit and we will watch out further.
How does exchange rate move from here? As far as CNG is concerned? I think you can understand that it’s a temporary volatile situation so there could be increasing the gas cost but as far as pricing is concerned we would prefer to keep it in a stable manner and we might absorb this short term volatility and if it is stabilizes at a higher level, definitely we will take a call to increase price. Also considering how is the moment on alternate fuel, petrol, diesel, we will certainly take a call and do the pass through.
But to very to be very specific to your answer CNDs since we have taken only 1 rupee increase and prior to that probably in February we take some increase. It’s certainly not fully passed on cost increase. Considering mixing of pooled gas and current brand level, other gas prices have gone up so it is not fully passed on. But we consider that this is a short term phenomena. It should improve going forward.
Yogesh Patil
Sir, next question. As per the 9 March government notification, CGDS will get the supply based upon the last six months average sales volume. But now the question comes here how are you managing the incremental growth in the CNG and the dpng? Are we sourcing from the spot or you just mention about the recently contracted the LNG which you are still not getting. So are you right now managing the incremental CNG sales and the DPNG sales volume through the spot?
Probal Sen
So you know any term contract during this time can go under force majo whether recently signed or signed earlier. So that impact was there on us as well. Okay, so definitely for CNG as well as domestic PNG we might have to source some amount of spot.
Yogesh Patil
Okay sir. And lastly is sequentially our other expenses have gone up. Is there any one off item which has lead to increase in other expenses
Probal Sen
You are referring year on year then I can tell you see CNG volumes have gone up by almost 8%. So directly variable expenses like power and fuel, LCV, transportation, dispensing charges etc has gone up in line with the volume increase. Okay. Other than that there is an increase of around 3035 crore. In case of employee salary which mainly consists of, you know there is a provision, actual provision on account of new wage code which is in the range of around 14 crores. And maybe in the same employee category there was a normal increment which consists of around 11 crore and some marginal increase on account of some welcome activity.
Other than that miscellaneous OPEX is mainly repair, maintenance and some of the rent for the you know CNG plot or store etc which we have hired and some of them are already commissioned, some of them work is still going on has gone up. So this is broadly is a breakup or reason for increase in the operating cost.
Yogesh Patil
Thanks. Thanks a lot sir and all the best.
Operator
Thank you. The next question is from the line of Vikas Jain from clsa. Please go ahead.
Akash Jain
Yeah, thanks for taking my questions. I have a Couple of them. Firstly sir, if you could give the breakup of commercial and industrial volume for this particular quarter. So where did it stand in terms of ML?
Probal Sen
I think Mr. Wagle already said 0.57 was industry. And if my total was 0.719 balance is commercial,
Amit Murarka
This
Probal Sen
Is for this quarter,
Amit Murarka
1.4, 1.5.
Probal Sen
But this is not a representative volume because despite demand we have to curtail. Even though we might have selected new customer, we have differed because overall category was asked to be curtailed at 80%. Yeah,
Akash Jain
Okay, okay. And I just want to understand, see till March, honestly there wasn’t really so much of impact that you would have felt because by the time the government put in those restrictions, it was more towards the latter part of March. And pricing increases for many contracts like new well gas only happened later. Right? So is it fair and at the same point of time, how does the after now that you’re getting gas based on the allocations that Everybody is at 80% how does that work? I mean are your old contracts still live?
For example, the earlier contracts you had from Henry Hub, are you still getting gas at the same price or there is a pooled price at which you get the gas, you know, required?
Probal Sen
I think my broad understanding and probably that is the way supplies have worked is every contract has some supply or pay threshold or pick or pay threshold. Right.
Akash Jain
So
Probal Sen
For the purpose of pool gas over and above the supply or pay commitment has been pulled and given as a full price to all the cities. But balance gas has definitely come to all of us. But there is a caveat. If there is a force measure even that can be reduced. But as far as Q4 is concerned, we have got up to supply or pay level all the contracts we have received by gas. And as far as you are saying that, you know, impact of this crisis not only at the second of the March, it was for the full second half of the March.
So second fortnight we received full gas and part of the first fortnight as well. So it started around 12th of March almost. So I would say 2 third of the month of March was impacted and 10 days or 11 days was normal.
Akash Jain
No. So for example CNG I believe you said, correct me if I’m wrong, 0.7 mls cmd is what you are using Nual gas for that? No,
Probal Sen
No, no, no. I think Mr. Yogesh Patil from Dollar said the contract wise and APM what I gave numbers total to around 4. So where did you source balance 0.7. So when it says balance 0.7 it is meant for all the categories, not only for. What
Akash Jain
Is the new well gas number that you said? Sorry, I missed taking that number.
Probal Sen
Fuel. Gas I said in the second fortnight was in the range of 0.4 more than little more than point 4.
Akash Jain
Okay, so that’s about 10%, a little 12% of your CNG requirement. So on that, for example, gas price has gone up by 70% or so. Right? Like it’s now $14 or so right now for the month of May.
Probal Sen
No, no, not really. Not really, not so much. It ranged maybe, you know, 11, 11 and a half dollars. Maybe it spiked a little bit in April and then again it is looking down probably now because you see Brent also went up and then came down and Indian crude market also went up and came down.
Akash Jain
Okay, but the May price is based on April price, right? I mean, April. Yeah. Yes. Okay. Okay.
Probal Sen
So in the price, no, the moment you change the weighted average source of gas, it may change. So we are really not having any clue how does it get calculated?
Akash Jain
Okay, I get that. So sure. But in terms of your blended price of raw material, that has gone up considerably in April, May as compared to where it was in March. Right. Is that correct?
Probal Sen
Certainly, yes. Because if cool gas hovers between 11 to $14 and other indices are also up because the earlier quarter we were below even the ceiling and because Brent was hovering 60, $65 kind of a thing, now Brent is at 90 or $100, there is going to be impact on the gas cost. Also exchange rate went up and slightly. They have now come down. So that is saving a little bit.
Akash Jain
Okay, and so given all of this, you what is your volume growth guidance for say FY27 and also your margin guidance, if any. And then, you know, okay. And as things normalize, do you maintain guidance beyond the war to be how it was historically? And could you repeat those numbers?
Probal Sen
If you look at, you know, whatever blessings in disguise have happened due to this war is circular or gadget notification dated 24th of March where a lot of, you know, functioning of CGD has been eased out. Also there is a reduction in the road reinstatement charges. Formations are becoming faster. If you apply for a road digging permission and it is not received within specified time, you can, you know, assume it is a deem permission and start your work. RI charges has been slashed down and central has specified very lower RI charges.
So it will save on the cost. It will foster my network creation. So we are very positive that there will be certainly very good boost to the volumes Especially in PNG industrial, I mean domestic, PNG industrial and commercial customers. Because we will be able to connect the customers faster. Including even, you know, private societies where you have a neighboring society who was not giving the earlier permission according to that notification. Even private, private property also they have to give permission or give reasoning.
So there are a lot of enablers which has come for CGD industry and that will definitely, you know, put us on a fast track as far as laying pipeline and connecting the new customer is concerned. So our guess is if I have clocked 8.25 overall volume growth this year, it should be certainly more than that. We should be able to, you know, cross double digit if this remains for a longer time. And we are able to see, of course there are constraint in terms of how do you get the required amount of labor, plumbers, contractors to execute that work.
Okay. Because all the CGTs are eyeing for the same pool of resources as far as pipeline laying abilities or the labor available in the country. So considering that our view is if we do faster connection volumes will be maintained or it will be increasing coming to margins, I think it’s a very difficult call as of today because nobody knows how long this kind of a situation and supply of RLNG will improve. So. But our endeavor is if you know there is a room compared to the alternate fuels, we will be certainly trying to take required price increase to pass through the gas cost impact.
So maybe our vision endeavor could be we will maintain more than 8 rupees EBITDA per SEM. But we’ll have to consider multiple factor before we decide to do any price changes. However, one good factor is if Brent is remaining slightly higher, it is helping us in industrial commercial sector realization much better compared to earlier 2/4 I would say where Brent was in the range of 65 $70 and now it is at least 90 $100. So giving a number is really difficult. As of now,
Akash Jain
More than 8 rupees in FY27
Probal Sen
Will
Akash Jain
Possibly mean an exit of closer to double digit. Right. Because first quarter is more or less in front of us and that’s going to be most likely lower than what the 4Q margins are. So more than 8 average for FY27 will require a reasonably high margin exit for the year. Right.
Probal Sen
That’s why I’m saying that it is very difficult to give a number but our endeavor and let’s hope that things normalize. But I am saying that in the long run this is going to be a very good opportunity for MGL to create Infrastructure and volume and margin. Both
Amit Murarka
Our focus on increasing infrastructure and volumes will be at a slightly higher priority than maintaining margins. If you have to temporarily lose margins for gaining volumes, I think we’re okay to do that because margins can be changed pretty quickly. What these kind of opportunities to grow infrastructure volume, they don’t. They come pretty rarely.
Akash Jain
Okay.
Probal Sen
Post
Akash Jain
War normalization margin guidance. Sir, before I kind of let go,
Probal Sen
Another positive thing on margin is earlier you had a lot of volatility in Henry Hub whereas we have 1.5 contracted quantity even if we are getting half of that at least. And so I hope that you know there is a force measure and we continue to get that which has stabilized below $3. So there is already a respite in terms of pricing of Henry Hub which is almost no 1/3 of our contracted quantity or little more than 1/3 of our contracted quantity. So there are multiple factors which are against and some are positive also I’m saying.
Okay sir, thank you. Thanks for answering my questions.
Operator
Thank you. The next question is from the line of Gaurav Jain from ICICI Prudential Mutual Fund. Please go ahead.
Unidentified Participant
Thank you for the opportunity. A couple of questions from my side. One is on the Henry Hub, the volume that we are getting is at HH Linked and the earlier terms only or is there some change in the pricing that we are getting it at? That is first. Second sir, you mentioned somewhere that you while you can add more commercial and industrial users but you are not adding it currently because of restriction of 80% of total gas in that sector or something. So. But we have the opportunity because there is demand.
So how does that tie? These are the two questions sir.
Probal Sen
First Henry Hub it is formula. There can be change in the quantity. The formula and the pricing remain same. Link to the index and whatever constant and the slope you have. So there is no change for whatever supplies you are getting. What I said in case of industrial commercial connection is we will be connecting the customers faster. But because of the overall 80% curtailment of the volume, unless I get you know some market link volume and the customer is ready to take volume may not increase. Okay.
Amit Murarka
Commercial side there is a good potential for increase because the situation of LPG is not very good. A lot of demand is there for piped gas even at a premium. So we are getting a lot of registrations. I mean previously the registrations would number in hundreds. Now they are coming in thousands. And with the ease of infrastructure, laying pipeline permissions etc. We will connect these customers and overall commercial volumes are not that high. Plus the government is also telling us that, you know, give uninterrupted supply to critical commercial customers who are involved in food.
And
Probal Sen
So small restaurants are falling in that critical customer category.
Amit Murarka
They are continuing to get the requirement. And that one sector is growing very hard high. It is only some large industries who are facing some curtailment. And that too at present, I think the curtailment level has reduced significantly in the month of May. Hopefully if that continues, we will be back to our normal INC volume growth.
Unidentified Participant
And lastly sir, on Spot lng, if you can highlight that at what price, from what region, how easy is the availability, I mean whatever color you can give on the spot LNG availability for you and the country at large also that will be helpful.
Probal Sen
What lng we are sourcing through IGX or wherever. We have a framework agreement with multiple suppliers. We keep on checking. If somebody has a quantity, then we get it. So that’s the two mechanism through which we get spot lng. As far as pricing, I think it is available in the public domain. It is ranging between, you know, eleven and a half to $13, sometimes $14. And that keeps on changing depending on the volumes available, depending on the time at which you are trying to approach the market.
Amit Murarka
We don’t source cargoes directly, so usually through aggregators.
Akash Jain
Got it sir. Thank you and all the best.
Operator
Thank you. The next question is from the line of Amit Murad from Axis Capital. Please go ahead.
Gagan Dixit
Yeah, hi, good evening and thanks for the opportunity. So when you say that you expect more than 10% growth in FY27, I think you also said that industrial is down 20%. So are you like expecting much higher growth from domestic PNG as well as cng if you could break out the expected growth rate segment wise? Also
Probal Sen
I think I would like to correct the understanding. What I said is since you know, infrastructure laying has been eased out and there is a demand increasing for PNG due to LPG curtailment, definitely we have a opportunity to connect more and more customers. So going forward if we are able to work and leave the infrastructure and connect the customers, this year we have done 8%. We can definitely, you know, if number of customers get added faster, we can achieve 10% volume. Okay, not necessarily. I’m saying 26, 27.
The
Amit Murarka
Delta will probably come from pipe gas. PNG may be, you know, at the usual normal rate of growth. Yeah, so pipe gas and
Gagan Dixit
Like is it possible then that we add maybe lot of customers and maybe we get like 20% or higher growth rate? In pipe gas volume this year that seems like a real possibility.
Probal Sen
If you see industrial commercial last year, I’m saying 24, 25, we grew by 24%. This year also we have grown by 15%. And with this happening, if our ability to lay and connect is faster because of lot of easement on the road, digging formations etc. We expect that we will be able to do better than in the past.
Amit Murarka
But again one more caveat on it because we are already into May now, the monsoon won’t start soon. So once the monsoon starts then it’s not going to be, you know, possible to lay too much infrastructure on public roads, inside housing societies, inside industrial premises. Yes, that work will continue but there would be some slow slowing in growth in June, July onwards.
Probal Sen
So basically because of LPG dependence is very uncertain. There’s a lot of demand for commercial LPG household. If you see the notification, wherever there is a gas connection available, if somebody is using LPG that will not be allowed beyond three months and he has to mandatorly offer. So in our view that will help us grow our domestic customers also high compared to what we have done in the past. Okay, so that will result in definitely volume growth.
Gagan Dixit
Sure, sure. And I guess then CAPEX would also be higher this year. If you are looking to lay so much of your pipeline infrastructure,
Probal Sen
Some capex may get reoriented. As Mr. Wagli said earlier, we will be focusing on laying of pipeline infrastructure and connecting the customer. So we may, you know, And. And there is a reduction in the RI cost substantially so that will get saved. So overall there could be an increase but not very substantial because RI was almost more than half.
Gagan Dixit
What is the guidance that you give for capex then? For 27?
Probal Sen
Certainly it will be whatever we have been giving. 1,200 crore range. It can be little more than that if you are able to do. And see, as I also said, there is a consent on the labor supply, plumbers, etc. Because every CBD is now in the same situation. So there’s a lot of pushing for the resources happening. There could be some impact of, you know, this crisis on the availability of material also. So unless labor and material both are available, depending on the availability of both these, we will be definitely connecting more people and infrastructure.
Amit Murarka
Only one uncertainty which used to be there in the past on capex which is will we get permissions or. No, that has gone, that has gone away.
Operator
Sure, thank you. The next question is from the line of Vinit Panka. Please go ahead.
Gagan Dixit
Hi sir, thanks for the Opportunity. Sir, the recently contracted volume that you talked about which we signed in Jan and April. Are these Brent linked?
Probal Sen
Yes, Brent linked.
Gagan Dixit
What is the logic of filing brand link contract when mvn is like 3, $4 per. I think
Probal Sen
These were contracted sometimes before. Okay. And to balance our portfolio of industrial commercial supply with Henry Hub. You are more scrut towards Henry Hub. So you know in the shorter period, like a quarter or two quarters things can move over here and there. But if you have balanced portfolio it helps over a longer period of time.
Gagan Dixit
Okay. And sir, why was NVF volume cut to 50% in March? Is it going to the pool gas?
Probal Sen
Yes, must be going to the full gas. We don’t get any this but our supply is cut it definitely. Where will you know Gail will get the gas from all the term contracts which they have. They will pull by you know curtailing the supply to every buyer to the extent of supply or pay and they will put it to pool for coming to supplying to CGD requirement. But we do not know.
Amit Murarka
We don’t have direct visibility on that. So difficult to answer.
Gagan Dixit
So any idea when this pooling mechanism will be discontinued? Because NDM is the cheapest source of gas for you and this has been cut in by 50%
Probal Sen
I think all depends on how fast and when West Asia crisis or over which nobody can run today I think.
Gagan Dixit
Okay. Okay. And sir, do you have any flexibility in terms of increasing HPHP gas? Because new world gas is now much more expensive than even the hphp. So any. Any way you can increase HPSD in place of new? Well,
Probal Sen
HPST gas has been coming through IGX in small quantities and there are some old contracts which are expiring and whenever they come up for rebidding. Since CGD has a priority now we will be hopeful that we will get some HPHD in coming months. Definitely there will be some availability of HPHT in this quarter or
Gagan Dixit
Lastly, how is the pricing of old gas derived
Probal Sen
Pricing of the
Gagan Dixit
Pulled gas?
Probal Sen
We. We are not private to that so we don’t know.
Gagan Dixit
Okay. But pulled gas is basically the imported gas, right? So probably the weighted average of all the volumes that come together.
Probal Sen
I think it is anybody’s guess. I. I will not be able to. It could be some local also. I don’t know. You should ask.
Gagan Dixit
Okay sir, lastly, so incremental volume, how much upside do you have a number on how much volume upside we can see on BPNG conversion because of LPG supply not being there? Not so easier access to lay down pipeline. Maybe not for the near term, maybe the longer term. What is the incremental volume of cycle there?
Amit Murarka
Look, historically DPNG has not grown very fast. About 6% or so. Definitely this can go to double digits again. One thing we need to keep in mind that our penetration in the city of Mumbai for example in whichever buildings we are in at is pretty high. Almost 90% residential potentially in our expansion areas. If we go towards the municipalities which are in the suburbs and further away there, the per capita consumption comes out to be lower. So today if we have 2 million burning DPNG customers, we are trying to add at least 4 or 5 lakhs additional to that in the shortest possible span of time.
But the incremental addition will not give you the same per capita consumption because this is going out in the extended suburbs. But definitely the volume contribution will expect to be more than 10%
Probal Sen
Apart from even extended suburbs in the existing area where you know it was gasified, say 90% and 10%. People who stay six months in India and six months outside or somewhere else outside Mumbai, since they will be mandated to switch to PNG because of the government notification, their average consumption also will be low. So I think the additional connections will not ensure the same per capita consumption.
Amit Murarka
Even if it were 20% increase on the customer base of DPNG. Burning customers, actively burning customers, that may translate into a maybe 12% or so. Yeah, kind of increase in volumes. NDPNG.
Gagan Dixit
Sure sir. Thank you. Thanks for the answer. Thank you.
Operator
Thank you. The next question is from the line of Indra Kumar Gupta from TL Capital. Please go ahead.
Gagan Dixit
Thank you for the opportunity. I think the first question was answered. I just have a second question which is mode of housekeeping. Can you please break down the CNG vehicles added in terms of buses, cars, autos for FY26.
Unidentified Participant
So year over year we have added taxis, 26,000 private cars 48,238 three wheelers, 33,200 private buses, 223 minibuses, 188. We have MSRTC buses, 48 trucks, 318 temples, 105 small commercial vehicles, 7402 wheelers, 2465. So in total around 1.18 lakhs of the individuals have been added in this financial year. Last financial year.
Unidentified Participant
Okay, thank you.
Operator
Thank you. The next question is from the line of Nitin Tiwari from Philip Capital. Please go ahead.
Nitin Tiwari
Hi. Thank you for the opportunity. Good evening. Sir, my question first is a clarificatory one. If you could just for the sake of. What was, what was our gas supply breakdown for the fourth quarter and also for the month of March. I suppose you gave it out for the month of March. And then, I mean, if we can put the contracted quantity in perspective as well, that would be the first one.
Probal Sen
You want March again yourself or.
Nitin Tiwari
No, if you can, if you can first, I mean, give out the contracted quantity that we have against that. How much did we get in the fourth quarter and in March? That’s what I’m trying to understand.
Gagan Dixit
How much you got in the.
Probal Sen
Okay. Hs we got around, you know, in the Q4.78.
Nitin Tiwari
Okay. Against the contract of 1.5 you said. Right,
Probal Sen
Correct, right. Yeah. Okay. Because see, it was also done by us in some months purposely because it says price was high. So we try taking. So I’m saying this quantity will not matter because depending on the relative price in the next month or next quarter, we will keep on changing. Because you saw, you know, in January, February, when Henry was seven and a half dollar, we did, did not take even contracted quantity and we took spot spot. So I’m giving you.
Nitin Tiwari
And in the month of, in the, in the month of March, how much was this quantity, the term HH quantity
Probal Sen
In the month of March. Sorry, you’re saying in the month of March? Yeah, I’ll tell you. For the second fortnight was little more than half a million.
Nitin Tiwari
Okay. And so
Probal Sen
First fortnight it was almost 0.75 or 7,8. So average could be pointed 65 or 0.7.
Nitin Tiwari
Okay. Second Fortnite was 0.5 and first Fortnite was 0.7. Right?
Probal Sen
Yeah,
Nitin Tiwari
Sure, sir. And if you can have the same figures for your HPHC contracted quantity as well as other terminal NG contract.
Probal Sen
I don’t have php, whatever we get, you know, contracted or through igs, I have the combined number. As I said earlier, in the month of March we have taken almost 0.9 HPHT.
Nitin Tiwari
Okay. And in the fourth quarter,
Probal Sen
Fourth quarter combined HPHT, 0.7 average.
Nitin Tiwari
Okay. And same figures, quarter APM and NWG for the fourth quarter. And for the month of March again,
Probal Sen
No, no APM for the full quarter on an average was more than 1.73. Okay. For March, first fortnight could be in the range of 1.7. But second fortnight was somewhere around 1.56 or something.
Nitin Tiwari
Okay. And NWG, sir,
Probal Sen
WG both you can take little more than 0.4 quarter as well. Yeah,
Nitin Tiwari
For the quarter
Probal Sen
Both March also little more than point 4. Not much difference between. Because balance came through pooled gas
Nitin Tiwari
Sorry, sir, you had initially mentioned that NWG pool was around 0.73 to 0.75 for the month of March. Right.
Probal Sen
I said NWG plus pool. I had said. Okay,
Nitin Tiwari
Okay, okay. So NWG was 0.4.
Probal Sen
A little more than 0.4. Yes.
Nitin Tiwari
Okay. And remaining was old, right?
Probal Sen
Yeah. But as I said earlier, also these quantities keep on changing. There is no guarantee,
Nitin Tiwari
You understand, sir, But I mean, what I’m trying to understand is that in the fourth quarter, basically pool pricing came in only in March, right? So, yeah. So I mean, when we are looking at the quantity for the entire quarter, the effect of pool would be only in the month of March. So what was the NWG quantity for the entire quarter? It was still 0.4 only. And
Probal Sen
Pulled was there for some part of first fortnight also. So not only the second fortnight, March. Yes. You are saying roughly 2 3rd of the March was having pulled.
Unidentified Participant
Pulled.
Probal Sen
Yes.
Unidentified Participant
All
Nitin Tiwari
Right,
Operator
Thank you. The next question is from the line of Tanay Kotecha from Nuama. Please go ahead.
Gagan Dixit
Hi. Hi. Thanks for the opportunity. So it seems that there’s a 1% year on your form in your PNG domestic volumes. Is there any specific reason for this end?
Probal Sen
There’s no fall in domestic PNG volume. Are you talking about per capita consumption or you’re talking about absolute volume? Fall.
Gagan Dixit
Absolute volume, sir, before to be 4,
Probal Sen
Domestic volume year on year has grown by 7%, 6.6%. There is an increase in domestic volume. There is no fall in the domestic volume.
Gagan Dixit
All right, no problem. Okay, no problem.
Operator
Thank you. The next question is from the line of Yashmananda from Investment. Please go ahead.
Gagan Dixit
Hi sir. Am I audible?
Operator
Yeah, you are.
Gagan Dixit
Thank you all for the opportunity. Most of my questions are answered just one. If you look at a longer term version, we were sort of talking about the energy prices sort of going downwards in say two, three years because of the increased capacity coming in in us. What do you think would be the price in the long term at which it would become attractive for most of the Indian people to switch? So last time you were mentioning somewhere around 9 to $10 would be the price at which price sensitive customer would convert.
What will be the price right now for you?
Amit Murarka
It totally depends on what the alternate energy source of alternate fuel prices are. You know, 10, 15 years back. I mean, $5 look very high today.
Gagan Dixit
Okay, so basically it will be a function of say petrol, diesel versus lng. Right.
Amit Murarka
LPG and industrial fuels.
Gagan Dixit
Okay. Industrial fuels. Okay, understood, sir. Yeah, thanks a lot. So thanks a lot for that.
Operator
Thank you. The next question is from the line of Shreyas Diwan, an individual investor. Please go ahead.
Unidentified Participant
Thanks for taking my question. I just wanted to understand that when the brand goes from let’s say 60 to 95, right. There is of course an input cost pressure that we get because of our sourcing mix. And there is an output price benefit that we get from our Inc because it’s linked to the Brent crude. But as a net impact generally is this beneficial for our company like when it goes from 60 to 95 or it hurts us? That’s what I wanted to understand.
Probal Sen
See, as you rightly said, the realization will go up. Okay, when you say Hertz is. Because if my input gas cost is linked to Brent more proportion then it may remain similar. But we have a mix and mixes skew towards HH which has remained low while Brent is higher. So under this scenario it should benefit us in terms of net margin.
Amit Murarka
Especially in the INC segment, the absolute terms the increase in gas cost is lower than the realization. So that way higher oil prices help us in inc.
Unidentified Participant
Correct? In Inc. They do help us. But in the other segments where we still there is a. There’s an input cost that gets, you know, impacted because of our like the resources which are linked to the brand that is also going to have a negative impact at an overall level. So at an overall level I just wanted to understand.
Probal Sen
See as far as domestic PNG is concerned it is fully through ATM which has a feeling even CNG, 1/3 of the quantities through APM which has a ceiling. If I have 0.9 roughly HVHT which is also ceiling driven. So it doesn’t impact directly
Amit Murarka
But directionally. If you look if there are sustained high level of Brent then you know, after some time petroleum prices do go up. Yes, the government will stabilize for some time but that cannot happen indefinitely.
Probal Sen
So if Brent is up and petrol diesel prices are kept artificially at a lower level then I will certainly get impacted. But otherwise it is not there. So Brent going up generally will help. Generally
Amit Murarka
Good for margins. Okay,
Operator
Thank you. The next question is from the line of Amit Muraka from Access Capital. Please go ahead.
Gagan Dixit
Yeah, hi. Thanks for the opportunity. So I just wanted to understand like the CNG vehicle addition seem to have slowed down a bit as we can see from the Wahan data. So what are the reasons for this program
Probal Sen
Which period you are referring to? Nigel? I mean sorry Amit,
Gagan Dixit
Like when I was looking in the last six months.
Probal Sen
So if you see last two quarters we have added almost 67,000 vehicles. Okay. Which is quite a high number compared to earlier 2/4, which was roughly 50,000. In fact. There is an increase. There is an increase. No decrease.
Gagan Dixit
Okay, maybe. Maybe I’ll just reconnect with you. I saw the data
Probal Sen
Presentation as well. You can see them.
Gagan Dixit
Sure, sure, yeah, sure. And on, on the margin, if I can just reconfirm, you mentioned that the near term margin is a bit lower than what it was in Q4, right? I mean, what you’re seeing right now in April and March. In April you said that the cost price increase is not fully covered for the cost increases. That understanding is correct, right?
Unidentified Participant
Yeah. Yeah. Specifically in case of CNG complete pass through could not be done. Yeah. Hello.
Operator
Thank you. Due to time concentration, we take this as a last question. I now hand the CONFERENCE over to Mr. Gagan, sir. Thank you. And over to you.
Gagan Dixit
Yeah. Before we end the call, I would like to mention that some of the statements made in today’s discussion will be forward looking in the nature and we believe that expectations contained in the statement are
Nitin Tiwari
Reasonable.
Gagan Dixit
However, these statements involve number of risks and uncertainty that may lead to different results. I consider that quarterly numbers are not a reflection of long term trends or indication of full year results. With that I will now hand over the call to the management for closing remarks. Over to you, sir. Thank you everybody for joining us on this call.
Amit Murarka
Thank you. Thank you so
Gagan Dixit
Much. Thank you.
Amit Murarka
Thanks so much.
Operator
Thank you. On behalf of Alara securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.