Indraprastha Gas: 4 Buy Calls After Q4 FY26 Results

Indraprastha Gas Ltd (IGL) stayed in focus after reporting its March 2026 quarter (Q4 FY26) numbers, with at least four brokerages maintaining their Buy calls on the city gas distributor. The recommendations came alongside revisions to price targets, reflecting changes in valuation multiples, updated earnings assumptions, and separate value ascribed to joint ventures and investments.

At the stock level, IGL was last seen trading 1.72% lower at ₹154.55 in Wednesday’s trade, even as research notes pointed to potential upside versus current levels.

What brokerages said after Q4 FY26

A key theme across the notes was that analysts continued to anchor their targets on forward P/E multiples while separately valuing investments and JV stakes. Motilal Oswal Financial Services (MOFSL), for instance, reiterated its Buy view and laid out a valuation framework that blends core earnings with JV value.

Other brokerages also stuck to positive ratings but adjusted targets down or up based on their assumptions. Nomura and Jefferies, in separate updates dated May 21 and May 20 respectively, trimmed their targets while keeping Buy recommendations.

MOFSL: target price of ₹220 with JV value add-on

MOFSL said it values IGL at 15x Dec’27E standalone P/E and adds ₹43 per share for the value of JVs, arriving at a target price of ₹220 per share. The brokerage also highlighted a 2% FY27E dividend yield and an 18% EPS CAGR over FY26-28, arguing that the valuation looks attractive on that basis.

The structure of MOFSL’s approach matters for investors because it explicitly separates the core city gas business from the value embedded in joint ventures. That can lead to meaningfully different targets even if two analysts use similar earnings forecasts, depending on what they assume for non-core assets.

Another valuation method: ₹181 revised target from ₹174

A separate note cited in the report valued IGL’s standalone business at 11x FY28E adjusted EPS and assigned ₹28 per share for investments after applying a 25% holding company discount. Based on this approach, the revised target price was set at ₹181 per share, up from ₹174 earlier.

This illustrates how a lower earnings multiple can still yield a higher target when the analyst increases the value attributed to investments, or changes the discount applied to those holdings.

YES Securities: Buy maintained, TP revised to ₹190

YES Securities maintained a Buy rating on IGL based on FY28 financials and said it values the stock on a P/E basis using a 14x multiple, with a revised target of ₹190. The note also included value from investments in MNGL at ₹32 per share and in CUGL at ₹5 per share.

The explicit break-up is useful for readers tracking how much of a target price comes from the base gas distribution business versus minority stakes or strategic investments.

Nomura and Jefferies cut targets but keep Buy

Nomura adjusted IGL’s target price to ₹200 from ₹225 while keeping the stock at Buy (May 21). Jefferies adjusted its target price to ₹180 from ₹205 and also maintained a Buy rating (May 20).

Target cuts alongside unchanged ratings typically signal that analysts still like the underlying risk-reward but are incorporating more conservative assumptions, such as lower valuation multiples or revised medium-term estimates.

The outlier: Nuvama retains Reduce

Not all views stayed positive. Nuvama Institutional Equities retained its Reduce call on the stock while trimming its target price, as per the report. The note did not specify the revised target in the provided text.

A Reduce stance amid multiple Buy ratings underscores that the post-results debate is not only about earnings but also about what valuation multiple the market should assign to IGL.

Snapshot of key brokerage targets mentioned

Market impact: price action versus target dispersion

IGL’s last cited price in the report was ₹154.55, down 1.72% in Wednesday trade. Against that reference point, the targets cited span a wide band, from ₹180 at the lower end of the Buy-rated calls to ₹220 at the higher end.

The spread between targets highlights two practical drivers: differences in the forward valuation multiple (11x to 15x are explicitly referenced) and how much value analysts are assigning to JVs and investments (₹28 per share in one method; ₹43 per share in MOFSL’s framework; and investment values for MNGL and CUGL in YES Securities’ note).

Why the valuation framework is the real story

Across the notes, the key variable is not only the earnings base but the structure of valuation. Some analysts use a higher multiple and then add JV value, while others use a lower multiple and separately account for investments after a holding company discount.

For investors, that means headline target prices should be read alongside their building blocks, especially the multiples applied to FY28E or Dec’27E earnings and the treatment of investments and JVs.

Conclusion

Post Q4 FY26, at least four brokerages maintained Buy calls on IGL even as several trimmed or recalibrated their targets. The key difference across views lies in valuation choices, including forward P/E multiples and the value assigned to JVs and investments.

With more broker updates expected as models are refreshed after results, the next set of revisions will likely continue to focus on the same levers: earnings multiples, investment value, and the assumptions used to translate them into target prices.