Indraprastha Gas shares rise 6.5% as Nomura upgrades rating to 'buy' from 'neutral'

Indraprastha Gas shares rise 6.5% as Nomura upgrades rating to 'buy' from 'neutral'

Indraprastha Gas shares jumped 6.5% to Rs 195 apiece on December 17 as Nomura upgraded city gas distributor to "buy" from "neutral". This is the biggest intraday percentage gain since June 16.

Nomura also raised price target to Rs 230 from Rs 185, implying up to 26% upside from previous close.

Nomura cites attractive valuation and expects IGL's margins to improve from lower tax and transmission tariffs and the Delhi Transport Corporation transition that's nearing completion, aiding volume growth.

The brokerage sees the softening of Henry Hub gas prices as positive for the company due to the lower cost of imported gas.

The global brokerage forecasts IGL's EBITDA margin to improve sequentially by 3% in Q3FY26, with limited impact from rupee depreciation and higher gas costs offset by domestic and Brent-linked gas prices.

The shares of Indraprastha Gas have seen a sharp correction of 14% over the past one month, the brokerage said in its report. The risk-reward turns of the company are favourable after a sharp stock correction, the brokerage said.

So far in 2026, the stock fell 6%.

In November, IGL reported a 4.5% quarter-on-quarter rise in net profit to Rs 372 crore for Q2, compared to Rs 356 crore in the previous quarter. The state-owned company's revenue grew 2.8% to Rs 4,022 crore from Rs 3,913 crore.

On the operational front, IGL's EBITDA dropped 13.6% to Rs 442 crore from Rs 511.7 crore.