IRM Energy Q2 profit more than doubles on CNG sales growth

IRM Energy Limited reported Q2FY27 profit after tax of Rs 25.43 crore, up 102.50% year on year, after total sales volume reached a record 61.23 million metric standard cubic metres (mmscm). Revenue from operations rose 28.70% to Rs 333.91 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) increased 77.23% to Rs 47.32 crore.

What drove IRM Energy’s Q2FY27 profit growth?

IRM Energy’s Q2FY27 profit growth reflected higher sales volume, a changing sales mix and operating leverage from its CNG and PNG network. Revenue from operations, net of excise duty, increased by Rs 74.47 crore to Rs 333.91 crore from Rs 259.44 crore in Q2FY26, while total income rose 28.20% to Rs 368.32 crore.

The company recorded its highest quarterly sales volume of 61.23 mmscm, compared with 54.66 mmscm in Q2FY26. Management said 25% growth in compressed natural gas (CNG) volume and 50% growth in commercial piped natural gas (PNG) volume supported the increase, alongside expanding network capacity and an improving sales mix.

How did IRM Energy’s margins change in Q2FY27?

IRM Energy’s EBITDA margin rose by 388 basis points to 14.17% in Q2FY27 from 10.29% in Q2FY26. EBITDA excluding other income increased by Rs 20.62 crore to Rs 47.32 crore, growing faster than revenue from operations, which rose by Rs 74.47 crore over the same comparison.

Profit after tax margin increased by 278 basis points to 7.62% from 4.84%, as profit after tax rose by Rs 12.87 crore. Management linked the first-half performance to disciplined gas sourcing, efficient operations and greater utilisation of infrastructure across its geographical areas.

The first half showed a larger margin increase than Q2 alone. H1FY27 EBITDA margin was 16.54%, versus 10.07% in H1FY26, an increase of 646 basis points in the financial table; management described the expansion as 648 basis points. H1FY27 EBITDA excluding other income more than doubled to Rs 109.10 crore from Rs 52.56 crore.

Which gas segments lifted IRM Energy’s sales volume?

IRM Energy’s CNG segment contributed most to Q2FY27 volume growth, rising 24.58% to 39.73 mmscm from 31.89 mmscm a year earlier. The increase of 7.84 mmscm exceeded the company-wide increase of 6.57 mmscm because industrial PNG volume declined during the quarter.

Commercial PNG was the fastest-growing reported segment by percentage, increasing 50.00% to 0.90 mmscm from 0.60 mmscm in Q2FY26. Industrial PNG volume fell 7.85% to 18.19 mmscm from 19.74 mmscm, while domestic PNG volume declined 0.82% to 2.41 mmscm from 2.43 mmscm.

For H1FY27, total volume grew 9.78% to 120.16 mmscm from 109.46 mmscm. CNG volume increased 23.07% to 79.06 mmscm and commercial PNG rose 60.58% to 1.67 mmscm, whereas industrial PNG decreased 12.38% to 34.69 mmscm.

How large was IRM Energy’s network at September 2026?

IRM Energy operated 156 CNG stations and 576 CNG dispensing points as of September 30, 2026. The station count was 34% higher year on year and dispensing points rose 36%, alongside Q2FY27 CNG sales volume of 39.73 mmscm.

The company had 89,308 domestic PNG connections, up 14% year on year, as well as 657 commercial connections, up 48%, and 235 industrial connections, up 8%. Its pipeline network comprised 7,313 inch-kilometres of steel pipeline and 3,441 kilometres of medium-density polyethylene pipeline.

IRM Energy develops, operates and expands city gas distribution networks across four geographical areas covering six districts in Gujarat, Punjab and Tamil Nadu. Management said it was strengthening CNG and PNG infrastructure in Namakkal and Tiruchirappalli, while pursuing deeper penetration in Banaskantha, Fatehgarh Sahib and Diu & Gir Somnath.

Conclusion

IRM Energy’s Q2FY27 results combined 12.02% total sales-volume growth with faster increases in earnings. Revenue from operations rose 28.70% to Rs 333.91 crore, EBITDA excluding other income grew 77.23% to Rs 47.32 crore, and profit after tax increased 102.50% to Rs 25.43 crore as CNG and commercial PNG growth offset lower industrial PNG volume.

The next measures to watch are network development in Namakkal and Tiruchirappalli and customer penetration in Banaskantha, Fatehgarh Sahib and Diu & Gir Somnath. Management’s stated plan spans mobility, domestic, commercial and industrial segments; the September 30, 2026 operating base included 156 CNG stations, 576 dispensing points and 89,308 domestic PNG connections.