Here's why Indraprastha Gas shares gained up to 6% on Tuesday
Published on 07/10/2025 03:13 PM
Here's why Indraprastha Gas shares gained up to 6% on TuesdayThe change applies more to IGL instead of MGL as a large portion of its APM gas allocation comes from Uran in Maharashtra, where the CST / VAT treatment remains the same.By Sonal Bhutra | Hormaz Fatakia October 7, 2025, 3:13:40 PM IST (Published)1 Min ReadShares of Indraprastha Gas Ltd. (IGL) surged as much as 6% on Tuesday, October 7, after sources told CNBC-TV18 that there have been changes in the tax implications on gas that is sourced from Gujarat.
Sources highlighted that a 15% Value Added Tax (VAT) was charged earlier, which will now be revised to a 2% levy of Central Sales Tax (CST). This new measure has taken effect from October 1 this year.
Such a move will lead to lower gas sourcing costs for IGL, thereby having a positive impact on the company's margins.
According to a note from Equirus, such a move will improve IGL's Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) by 20% and lead to cost savings worth ₹360 crore.
"This change does not impact MGL, as a large portion of its APM allocation comes from Uran, Maharashtra, where CST/VAT treatment remains unchanged," Equirus added.
Shares of IGL are trading 5.7% higher on Tuesday at ₹220. The stock has gained 4% in the last one month.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsIndraprastha GasIndraprastha Gas IGLshare market today