IGL shares jump 3% after CNG price hike in Delhi NCR. What lies ahead?

Indraprastha Gas (IGL) shares jumped about 3% on Monday after the company raised compressed natural gas (CNG) prices in Delhi-NCR by Rs 3.89 per kg amid higher liquefied natural gas (LNG) import costs.

This marks the fifth CNG price hike in Delhi-NCR this year and the first since May, taking CNG prices in Delhi to Rs 86.98 per kg.

Shares of IGL rose to Rs 152.39 apiece on Monday morning.


The company, in a statement, said a large portion of input gas for CNG is being met through imported LNG, whose rates in the spot or current market have seen a sharp spike since the beginning of the conflict in the Middle East earlier this year. "With international LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of Rs 3.89 per kg has now become necessary to partially offset the increase in input gas cost," the company said.

In May, IGL raised CNG prices by a total of Rs 6 per kg in four phases over 10 days, citing a global increase in energy prices amid the West Asia conflict.

Following the latest hike, CNG is priced at Rs 95.59 per kg in Noida and Ghaziabad, Rs 95.47 per kg in Meerut and Rs 92.01 per kg in Gurugram. CNG prices vary across states due to differences in value-added tax (VAT) rates, similar to petrol and diesel.

Also read | CNG price hiked by Rs 3.89/kg in Delhi-NCR amid West Asia crisis; check city-wise rates

Citi on IGL share price

Citi maintained its ‘Buy’ call on the shares of IGL, with a target price of Rs 180 per share, implying nearly 22% upside potential from the stock’s previous closing price of nearly Rs 150 apiece.

The CNG hike implemented over the weekend could lift blended realisations by nearly Rs 1.8 per scm, ET Now reported Citi as saying. It noted that Q1 EBITDA margin fell to a multi-year low of Rs 3.4 per scm. In terms of price hikes, IGL has lagged its peers who have raised CNG prices since October 2024, Citi further said.

CNG still remains around 49% cheaper than petrol on running cost, and volume growth could benefit from a favourable base effect from Q3 onwards, Citi said.

IGL share price

IGL shares have fallen more than 21% in 2026 so far, and 27% in one year. After hitting a record low of Rs 141.74 apiece in April this year, the stock has recovered around 8% to trade at Rs 152.39 apiece today.

In the longer term, the shares of IGL have delivered negative returns of more than 35% over three years and 45% in five years.

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