Indraprastha Gas Stock Soars 6.5% on Nomura's Bullish Upgrade

Gas Ltd. (IGL) shares surged 6.5% to Rs 195 during intraday trading on Wednesday, marking the company's largest single-day gain since June 16. The rally was triggered by a positive rating upgrade from global brokerage Nomura, which shifted its stance on the city gas distributor to "buy" from "neutral," citing a compelling risk-reward profile following a recent sharp correction in the stock. Nomura also hiked its price target to Rs 230 from Rs 185, signaling potential upside of up to 26% from Tuesday's closing price. The upgrade underscores IGL's attractive valuations amid improving fundamentals, including anticipated margin expansion driven by reduced tax and transmission tariffs. The brokerage highlighted the nearing completion of the Delhi Transport Corporation transition, which is expected to boost volume growth and operational efficiency. Further tailwinds include the recent softening of Henry Hub natural gas prices, which should lower costs for IGL's imported gas supplies. Nomura projects a sequential 3% rise in the company's EBITDA margins for Q3FY26, with rupee depreciation having minimal impact. Any potential hikes in gas costs are likely to be cushioned by adjustments in domestic and Brent-linked pricing mechanisms. The upbeat outlook comes as IGL, a key player in Delhi-NCR's piped natural gas distribution, navigates a competitive energy landscape. Investors are optimistic that these catalysts could propel the stock toward fresh highs, reinforcing its position in India's expanding clean energy transition.