Indian Gas Exchange IPO

Strengths · 6

• 01The company says it is India's first and only authorized physical delivery based gas exchange, with 19 delivery points linked to five regional hubs.
• 02Revenue from operations rose from Rs 34.85 crore in FY2024 to Rs 61.01 crore in FY2026, and profit after tax rose from Rs 23.05 crore to Rs 42.02 crore.
• 03EBITDA margin was 96.07% and net profit ratio was 68.88% in FY2026, because the business runs on a platform with no plants.
• 04The company has no borrowings in FY2024, FY2025 and FY2026, and its current ratio was 1.51 in FY2026.
• 05Registered participants grew from 303 in FY2024 to 360 in FY2026, and total trade value grew from Rs 3,671.17 crore to Rs 7,181.54 crore.
• 06Return on equity was 25.72% and return on capital employed was 31.71% in FY2026.

Risks · 10

• 01The top 10 participants gave 66.47% of revenue from operations in FY2026, and the top 5 gave 39.08%.
• 02Fees depend on traded volumes, and the exchange handled only 2.82% of India's gas consumption in FY2026, so any fall in volumes hits revenue directly.
• 03The business depends on gas policy and PNGRB rules, including the current cap that allows only 10% of domestic production to be traded on exchanges.
• 04The exchange depends on access to the national gas pipeline network and on its 19 delivery points.
• 05Other income is large: total income was Rs 84.84 crore in FY2026 against revenue from operations of Rs 61.01 crore.
• 06Operating cash flow swung from negative Rs 189.82 crore in FY2024 to Rs 3.29 crore in FY2025 and Rs 156.69 crore in FY2026.
• 07The offer is fully an offer for sale of up to 1,67,10,000 shares by IEX, so the company receives no money from it.
• 08The promoter's weighted average cost of acquisition is Rs 10.00 per share, the same as the face value.
• 09The statutory auditors have reported a matter on accounting software maintained by a third party for FY2026, and one tax proceeding of Rs 50.30 million is pending against the promoter.
• 10The company relies on IEX and on people linked to IEX, and its business could be hurt if IEX is no longer associated with it.

Indian Gas Exchange Limited (IGX) runs an online exchange where natural gas is bought and sold for physical delivery. It describes itself as India's first and only authorized national level physical delivery based gas trading exchange, citing the CRISIL report. It has one operating segment and no manufacturing plant, because all business happens on its platform.

Participants on the exchange include gas producers, gas marketing companies, city gas distribution companies, power generation companies, refineries, fertilizer companies, LNG terminal operators and industrial consumers. The exchange had 360 registered participants at the end of FY2026, up from 303 at the end of FY2024.

Gas is delivered through 19 delivery points across India, connected to five regional hubs: Northern, Southern, Eastern, Western and Central. In FY2026 the exchange traded 76.79 Mn MMBTu in 1,924 trades, with a total trade value of Rs 7,181.54 crore.

The company earns transaction fees, annual subscription fees and membership, processing and transfer fees. The registered office is in Saket, New Delhi, the corporate office is in Noida and there is a regional office in Ahmedabad. The promoter is Indian Energy Exchange Limited (IEX), which is listed on NSE and BSE and holds 47.28% of the company before the offer.

The industry

The CRISIL report sizes the addressable market for exchange based gas trading at 16.40 BCM in FY2026, which is about 24.53% of India's total gas consumption. This market is expected to grow at a CAGR of about 24.7% from FY2026 to FY2030, against about 11.7% for overall natural gas consumption. The exchange handled 1.94 BCM in FY2026, about 2.82% of India's gas consumption. Growth depends on more spot LNG and on any rise or removal of the current cap that lets only 10% of domestic production be traded on gas exchanges.

Customer concentration: Top 5 participants gave 39.08% of FY2026 revenue from operations (39.68% in FY2025), and the top 10 gave 66.47%.