IGL dropped to a day low of Rs 149.01 on Thursday, after the company posted a sharp profit decline and margin contraction in its Q1 results.

The stock had opened flat at Rs 154.54, matching its previous close, but slid through the day as investors digested the June quarter numbers.

On a standalone basis, IGL’s net profit fell 48% year-on-year to Rs 186.18 crore, down from Rs 355.94 crore in the same quarter last year. On a consolidated basis, net profit fell 44% to Rs 237.92 crore from Rs 427.81 crore.

Revenue moved in the opposite direction, with standalone revenue rising 16% to Rs 5,040.15 crore, showing that costs climbed faster than sales during the quarter.

Margins took the biggest hit. Standalone EBITDA fell 42% to Rs 295.50 crore from Rs 511.75 crore a year earlier, and the EBITDA margin shrank to 6% from 13%.

Even so, business volumes kept growing. Total gas volumes rose 6% to 878.98 million standard cubic metres, with CNG volumes up 6% and PNG volumes up 4% over the same period last year.

The weak quarter comes after a round of CNG price hikes earlier this year. In May, IGL raised CNG prices by Rs 1 per kg across all its operating areas, taking the total increase for that month alone to Rs 4 per kg.

The company had said this was meant to help offset rising input gas costs and a weaker rupee. IGL also flagged an ongoing dispute with the Delhi Development Authority over a Rs 330.73 crore demand tied to licence fee increases.

The matter has been referred to the AMRCD mechanism following a Delhi High Court order, and the company continues to treat it as a contingent liability while seeking relief from the petroleum ministry.

By the close of trade on Thursday, IGL shares settled at Rs 151.60 on the NSE, down 1.90% from the previous close of Rs 154.54, after touching a low of Rs 149.01 earlier in the session.

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