Mahanagar Gas Q3 FY26: Profit down 9%, ₹12 dividend

Results snapshot and why it matters

Mahanagar Gas Limited (MGL) reported a mixed set of numbers for the third quarter ended December 31, 2025 (Q3 FY26). The city gas distributor posted double-digit growth in revenue, supported by higher gas sales volumes. But the benefit of higher topline did not fully flow into the bottom line during the quarter. Net profit declined year-on-year, with the company attributing the pressure largely to higher material costs. Alongside the results, MGL’s board approved an interim dividend, setting a clear near-term shareholder payout event. The results and dividend announcement were approved at a board meeting held on February 7, 2026.

Key Q3 FY26 numbers: revenue up, profit down

For Q3 FY26, MGL reported revenue from operations of ₹2,265.97 crore, up 11.58% from ₹2,030.82 crore in Q3 FY25. Total income for the quarter was reported at ₹2,295.38 crore, compared with ₹2,072.73 crore in the year-ago period. Profitability moved in the opposite direction. Net profit after tax (PAT) fell 9.43% year-on-year to ₹201.97 crore, from ₹223.00 crore.

EBITDA for the quarter was ₹351 crore, a 4% increase versus ₹338 crore a year ago. The operating margin was reported at 17%, compared with 16.4% earlier, indicating a modest improvement in margin even as net profit declined. Earnings per share (EPS) for Q3 FY26 stood at ₹20.45, down from ₹22.58 in Q3 FY25.

Volumes supported the topline

The company attributed the revenue growth in Q3 FY26 to an increase in total gas sales volumes. In commentary around the quarter, CNG volumes were reported up 7.2%, while PNG volumes rose 7.5%, pointing to continuing customer demand growth across key segments. Some coverage also referenced a 12% volume increase as a driver behind performance, alongside lower gas costs, though long-term questions on growth have been raised by at least one global brokerage.

Costs weighed on profitability

Despite higher revenue, net profit declined, and the company linked the squeeze to higher costs of materials consumed. This is consistent with the broader pattern in the quarter: operating profitability rose modestly, but net profit still fell year-on-year. The movement suggests that cost lines below EBITDA, or the mix of costs during the quarter, affected the final PAT outcome.

Margins showed a sequential improvement in operating margin to 17% from 16.4% in the previous quarter, based on the data cited. However, the year-on-year decline in PAT indicates that the quarter remained cost-sensitive for MGL even with volume-led revenue gains.

Nine-month performance: strong revenue growth, weaker PAT

For the nine months ended December 31, 2025, MGL reported revenue from operations of ₹6,801.70 crore, up from ₹5,825.84 crore in the corresponding period of FY25. Over the same nine-month period, standalone PAT was reported at ₹714.90 crore, compared with ₹798.96 crore a year ago. Consolidated nine-month PAT was reported at ₹710.93 crore.

EBITDA for the nine-month period was reported at ₹1,190.73 crore, up 1.33% year-on-year. But the EBITDA margin for nine-month FY26 was cited at 19.24%, compared with 22.18% in nine-month FY25, indicating margin compression over the longer period even as quarterly margin data showed a sequential uptick.

Interim dividend: ₹12 per share, record date February 13

MGL’s Board of Directors declared an interim dividend of ₹12.00 per equity share for FY2025-26. The company described this as 120% on the face value of ₹10 per share. The record date to determine shareholder eligibility was set as Friday, February 13, 2026. The dividend is scheduled to be paid within 30 days from the date of declaration.

Separately, a dividend entry also states: “Mahanagar Gas Ltd. has declared a dividend of ₹12.00 on 13 Feb, 2026,” aligned with the record date information.

Market reaction: stock moves after results

Following the results, the stock was reported trading up by about 2% at around ₹1,174.9 in early trade on the Monday after the announcement. Another trading update for February 9, 2026 noted that the stock opened at ₹1,148.50 and was trading near ₹1,178.00.

A separate price move cited in the days around the announcement was a 7.57% jump on February 6, 2026, taking the stock to ₹1,152.60, with the share later trading around ₹1,174.90 by February 9, 2026.

Operating footprint and customer base

In an investor presentation referenced alongside the results, MGL highlighted its operating scale. The company’s infrastructure was reported to span 45,691 sq km. It also reported 491 CNG stations and 30.70 lakh PNG connections. These data points provide context to the volume growth the company reported for the quarter.

What brokerages flagged

A note attributed to JPMorgan said the quarter beat its estimates, helped by lower gas costs and volume growth, but added that long-term growth concerns remain. The comment captures a key tension in the quarter: immediate topline momentum versus questions on longer-term trajectory.

Key figures table

Dividend and key dates

Conclusion

MGL’s Q3 FY26 results combined strong revenue growth with a year-on-year decline in net profit, reflecting the impact of higher input costs during the quarter. For shareholders, the interim dividend of ₹12 per share and the February 13, 2026 record date are the most immediate action points. The company’s scale indicators, including its station network and PNG connections, underline its operating reach as it navigates margin and cost dynamics. The next concrete step disclosed with the dividend is the payout timeline, which the company said will be completed within 30 days of the declaration.