Daijiworld Media Network – New Delhi

New Delhi, Oct 8: Shares of Indraprastha Gas Ltd (IGL) gained attention after reports that tax rates on gas sourced from Gujarat and sold outside the state were revised. The earlier 15% Value-Added Tax (VAT) has been replaced with a 2% Central Sales Tax (CST), effective October 1, sparking optimism about margin expansion.

In a note, MOFSL highlighted that IGL could see a potential EBITDA per standard cubic meter (scm) upside of 16-20% due to the tax revision. The brokerage forecast EBITDA margin gains of Rs 0.7-1.3 per scm following the Petroleum and Natural Gas Regulatory Board’s (PNGRB) move to a two-zone tariff regime.

MOFSL’s analysis suggests an Rs 0.9/scm EBITDA margin gain for IGL. Based on their projections, the change could lead to 8%, 15%,

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