Indraprastha Gas share price up 8% in 2 days after Q4 results; Motilal Oswal upgrades the stock to a buy; details here

Indraprastha Gas share price jumped nearly 4 per cent in morning trade on the BSE on Tuesday, April 29, extending gains to the second consecutive session. A day after rising 4 per cent, Indraprastha Gas share price opened at ₹187 against its previous close of ₹185.40 and rose 3.7 per cent to an intraday high of ₹192.20. In two days, Indraprastha Gas share price has jumped nearly 8 per cent.

The stock has been witnessing healthy buying momentum after it reported its March quarter (Q4) results.

Indraprastha Gas Q4 results 2025

After market hours on April 27, the company said its Q4FY25 standalone profit fell 8.8 per cent year-on-year (YoY) to ₹349.23 crore against ₹382.80 crore in the same quarter last year. However, sequentially, or on a quarter-on-quarter (QoQ) basis, its profit rose 22.2 per cent compared to ₹285.82 crore in Q3FY25.

Revenue from operations for the quarter under review stood at ₹4,340.50, up 9.5 per cent YoY against ₹3,964.42 crore and 4.7 per cent QoQ against ₹4,146.39 crore.

Motilal Oswal upgrades the stock to a buy

After the Q4 results of Indraprastha Gas, domestic brokerage firm Motilal Oswal Financial Services upgraded the stock to a buy rating, pegging the target price at ₹225, implying a 21 per cent upside potential.

The brokerage firm upgraded the stock as it believes its EBITDA margin is bottoming out at a time when valuations look attractive.

"At 2.7 per cent FY27E dividend yield and 9 per cent EPS growth, we believe the valuation is attractive. Hence, we upgrade our rating to buy from neutral," Motilal said.

"We believe that earnings have bottomed out now. We now estimate a CAGR of 11 per cent and 9 per cent in EBITDA and PAT, respectively, over FY25-27E. We value Indraprastha Gas at 15 times FY27E consolidated P/E, and add ₹44 per share as value of JVs to arrive at our target price of ₹225," said Motilal Oswal.

On the margin front, Motilal Oswal believes the recent CNG price hike of ₹1 to ₹3 on April 7, 2025 will support margins. Moreover, with only ₹1 per kg price hike in Delhi since June 2024, the company has the scope for increasing CNG prices further in Delhi.

Besides, raw material costs have declined recently. Lower crude oil and Henry Hub index prices, coupled with the Indian rupee's appreciation QoQ, should reduce gas costs going forward and support Indraprastha Gas' margins.

"We build in EBITDA/scm of ₹6.2 and ₹6.5 in FY26 and FY27, respectively, versus medium-term guidance of ₹7 and ₹8. Further, we estimate 7 per cent YoY volume growth in both FY26 and FY27 versus 10 per cent YoY growth guided by management in FY26," said Motilal Oswal.

Indraprastha Gas share price trend

Indraprastha Gas share price has been under pressure over the last year, falling about 17 per cent, considering today's high.

The stock hit its 52-week high of ₹285.30 on September 2 and a 52-week low of ₹153.25 on November 21 last year.

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