Torrent Gas IPO

Strengths · 8

• 01Revenue from operations grew 39.58% in FY2025 and 34.80% in FY2026, from Rs 3,153.63 crore in FY2024 to Rs 5,933.39 crore in FY2026.
• 02EBITDA rose from Rs 400.65 crore in FY2024 to Rs 668.71 crore in FY2025 and Rs 850.79 crore in FY2026.
• 03The company moved from a restated loss of Rs 17.35 crore in FY2024 to a restated profit of Rs 135.05 crore in FY2025 and Rs 280.85 crore in FY2026.
• 04Gas volume excluding trading grew 39.34% in FY2025 and 34.70% in FY2026, reaching 947.73 MMSCM.
• 05EBITDA per SCM improved from Rs 7.93 in FY2024 to Rs 8.98 in FY2026 and Rs 11.00 in the three months ended 30 June 2026.
• 06Net cash generated from operating activities was Rs 891.36 crore in FY2026 against a restated profit of Rs 280.85 crore, and Rs 319.42 crore in the three months ended 30 June 2026.
• 07The net working capital cycle was 1.89 days in FY2026 and 1.32 days in FY2025, so day to day operations lock up little cash.
• 08PNGRB licences cover 17 authorised geographical areas spread over 34 districts, seven states and one union territory, with 557 CNG stations as of 30 June 2026.

Risks · 10

• 01The five largest customers gave 59.73% of revenue from operations in FY2026, 63.07% in FY2025 and 55.49% in the three months ended 30 June 2026. The ten largest gave 63.57% in FY2026.
• 02The company incurred a restated loss of Rs 17.35 crore in FY2024 and states that it may not be able to sustain profitability in the future.
• 03Total adjusted borrowings were Rs 3,364.59 crore as of 31 March 2026 against a net worth of Rs 2,091.92 crore. The net debt to equity ratio was 1.52 times in FY2026 against 1.31 times in FY2025.
• 04Gas procurement cost was 79.01% of total expenses in FY2026 and 79.29% in the three months ended 30 June 2026, and the company relies on a limited number of third party suppliers and aggregators.
• 05Gross margin per SCM fell from Rs 18.53 in FY2024 to Rs 17.43 in FY2025 and Rs 15.93 in FY2026.
• 06Sale of CNG and CBG was 69.24% of revenue from operations in FY2026 and 74.32% in the three months ended 30 June 2026, so wider adoption of electric vehicles could reduce long term demand.
• 07The company depends on several companies within the Torrent Group for operational, financial and strategic aspects of its business.
• 08This is a pure offer for sale of up to 33,50,00,000 equity shares. The company will not receive any proceeds, which go to Torrent Investments Limited after offer expenses and taxes.
• 09Outstanding litigation against the company covers three criminal, three tax and two statutory or regulatory proceedings involving Rs 20.25 crore, plus proceedings against subsidiaries involving Rs 66.31 crore. A PNGRB penalty of Rs 3.29 crore was levied on subsidiary Dholpur CGD Private Limited.
• 10The company does not own its registered and corporate office, site offices and consumer care centres, and takes the risks of leasing them.

Torrent Gas Limited is an integrated city gas distribution company in India. It connects natural gas producers and suppliers to end users. The company sells compressed natural gas (CNG) for vehicles, piped natural gas (PNG) to domestic, commercial and industrial customers, and compressed bio gas (CBG). It also earns from sale of services, which includes gas compression services. The company carries out no manufacturing, so it has no factories. Its registered office is at Samanvay, 600 Tapovan, Ambawadi, Ahmedabad 380 015, Gujarat.

As of 30 June 2026 the company operated in 17 authorised geographical areas covering 34 districts, seven states and one union territory, under licences granted by the Petroleum and Natural Gas Regulatory Board (PNGRB). Its network on that date had 557 CNG stations and about 271,983 PNG consumers, made up of 270,242 domestic consumers and 1,741 industrial and commercial consumers. The CNG station count rose from 439 as of 31 March 2024 to 557 as of 31 March 2026. PNG connections rose from 121,797 in FY2024 to 183,584 in FY2025 and 242,181 in FY2026. Gas volume excluding trading rose from 504.95 MMSCM in FY2024 to 703.60 MMSCM in FY2025 and 947.73 MMSCM in FY2026.

Sales of natural gas totalled Rs 5,851.33 crore in FY2026. Of this, CNG sales were Rs 4,035.74 crore, PNG sales were Rs 1,743.03 crore and CBG sales were Rs 72.56 crore. In FY2024 the same three lines were Rs 2,285.75 crore, Rs 796.73 crore and Rs 15.53 crore. CNG and CBG together made up 69.24% of revenue from operations in FY2026 and 72.97% in FY2024. The company serves customers in the transportation, domestic, commercial and industrial segments, and reports no separate business segments under Indian Accounting Standard 108.

Torrent Investments Limited holds all 1,675,000,000 equity shares of face value Rs 10 each, which is 100.00% of the pre-offer paid up equity capital. Torrent Investments Limited is registered with the RBI as a non-banking financial company and core investment company, and acts as the holding and investment company of the Torrent group across healthcare, power, city gas distribution, electricals and sports. The other promoters are Mehta Family Trust 1, Mehta Family Trust 2, Mehta Family Trust 3, Mehta Family Trust 4, Sudhir Uttamlal Mehta, Samir Uttamlal Mehta, Jinal Sudhirbhai Mehta and Varun Sudhir Mehta, none of whom hold equity shares in the company. The company has grown by acquisition as well, including 51.00% of the equity shareholding of Dholpur CGD Private Limited.

The industry

According to the CRISIL Report quoted in the offer document, the natural gas value chain in India has three parts: upstream exploration and production, midstream transportation and processing, and downstream distribution to end users. The downstream part is anchored by city gas distribution networks that supply PNG and CNG and are regulated by the PNGRB. CGD coverage has expanded a lot in recent years, but regional gaps remain, with mature networks in some states and under penetration in eastern and northeastern India. The abridged disclosures do not give a market size figure for the CGD industry. Torrent Gas holds PNGRB licences for 17 authorised geographical areas across 34 districts, seven states and one union territory, and sold 947.73 MMSCM of gas excluding trading in FY2026.

Customer concentration: The five largest customers gave 59.73% of revenue from operations in FY2026, 63.07% in FY2025 and 68.44% in FY2024. The ten largest gave 63.57% in FY2026.