Ladies and gentlemen, good day, and welcome to the Indraprastha Gas Limited Q3 FY 2026 Earnings Conference Call, hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Varadarajan. Thank you, and over to you, sir. Thank you, Seema. A very good evening. I would like to extend a very warm welcome to all the participants and the top management of Indraprastha Gas Limited who are on this call. I'd like to, like, you know, specially welcome Mr. Kamal Kishore Chatiwal, Managing Director, Mr. Mohit Bhatia, Director, Commercial, Mr. Sanjay Kumar, CFO, Mr. Manjeet Singh, VP, Finance. I'll hand over the floor to Mr. Kamal Kishore Chatiwal for the official remark. Good evening, ladies and gentlemen. As we enter the final quarter of financial year, I am pleased to connect and welcome you all to discuss IGL's performance for quarter three, FY 2025-26. I am Kamal Kishore Chatiwal, Managing Director of Indraprastha Gas Limited, and I sincerely thank all our shareholders, analysts, stakeholders for your continued trust and engagement. I'm delighted to present the operational and financial performance of Indraprastha Gas Limited for the quarter ended December 31, 2025. I will begin by outlining our progress in volume growth and network expansion during this period. The operational highlights are as follows: This quarter demonstrates steady operational execution and improving margin visibility as we continue to consolidate our leadership position in India's city gas distribution sector. Operating across twelve geographical areas, spanning four states, IGL serves a growing and diversified customer base through robust and scalable infrastructure. Over the course of the year, we have significantly expanded our footprint. Our steel pipeline network now extends over 2,500 kilometers, while our MDPE network has reached approximately 29,200 kilometers. This infrastructure enables us to supply natural gas to more than 32.75 lakh households, approximately 5,400 industrial customers, and around 7,400 commercial establishments. We have added and commissioned 45 CNG stations till now during the year, further strengthening access and convenience for our vehicle, vehicular customers. Regulatory developments during the quarter. Two major regulatory recalibrations occurred that have a very positive structural implication for the city gas distribution sector, particularly for IGL. First is the replacement of the 15% value-added tax with a 2% central sales tax on domestic gas sourced from Gujarat, effective December 2025. While the immediate financial impact was moderated by elevated gas input prices and currency fluctuations, this change will have a positive impact on gas costs going forward. The second was the rationalization of the gas transmission framework through the introduction of two-zone tariff regime, replacing the previous three-zone structure. Effective January 1, 2026, PNGRB has revised its tariff regulation, reducing pipeline transmission tariff zones from three to two. For the CGD sector, Zone One applies universally to CNG and PNG domestic segment, regardless of the delivery point distance from the source. IGL will benefit significantly from this change, as our geographical areas previously fell under Zone Two and Zone Three and will now be classified under Zone One tariff. For industrial and commercial segment, Zone Two tariff will be applicable across our NCR portfolio. Let me now turn to our financial performance for the third quarter of FY 2025-2026. The company recorded a 3% year-on-year growth in total sales volume, with the CNG segment growing 3% and PNG segment growing 5%. Despite lower uptake from DTC and DIMS fleets, consequent to their phased migration towards electric mobility, the CNG segment demonstrated resilient performance. Adjusted for these institutional volumes, the segment delivered growth of approximately 10%, underscoring sustained demand across the wider vehicular ecosystem. In the PNG segment, volumes increased to 2.5 million SCM per day from 2.41 SCM per day, year-on-year, indicating steady traction across all sub-segments. This growth is underpinned by consistent customer additions and stable demand across user categories. This concludes my remarks, and I would now like to invite our Director, Commercial, Shri Mohit Bhatia-ji, to share his comments. Thank you, Managing Director, Shri Chatiwal Ji. Very good evening to everyone. I'm Mohit Bhatia, Director, Commercial at Indraprastha Gas, and I extend a warm welcome to all our investors, fund managers, and analysts joining us today. I hope you have had the opportunity to review our financial results for the quarter. Let me give you the quarter overview. This quarter presented a mixed landscape for the CGD sector. While we benefited from the two major positive regulatory changes, as appraised by our managing director, we have also experienced volatility in gas costs and adverse Forex impacts on procurement expenses. Additionally, there has been changes in the legal landscape. The new labor code became effective 21st November, 2025. Although these rules are yet to be notified, we have made provisions of around INR 28 crore in the current quarter as a one-time impact. Excluding these provisions, our EBITDA would have been around INR 500 crore. The market dynamics following the re-rationalization of the GST rates, the GST 2.0, in particular on CNG vehicles, was reduced from 28% to 18%, resulting in a phenomenal increased vehicle convergence, which have raised from average of 21,000 to 26,000 per month. We expect this momentum to continue in the near future. Further, the company is aggressively pursuing the growth in new geographical areas, and now the new geographical areas, the incremental volume is contributing to almost 57%, that is outside Delhi and NCR. The Quarter 3, FY 2025-2026 financial performance, the key highlights are: First, volume performance. The total volume, the total sales for the quarter reached 867 million SCM, up from 838 million SCM in the same period last year, reflecting a 3% year-on-year growth. Overall, average daily sales volume was 9.43 million SCM, compared to 9.11 million SCM per day in Q3 financial year 2024-2025. On the CNG segment, the CNG segment continued to perform strongly, with average daily sales exceeding 50 lakh KGs per day, equivalent to 6.93 million SCM, representing a 3% growth in terms of SCM terms and a growth of 5% in terms of KG terms. Excluding the DTC volumes in Delhi, CNG sales grew by 10%, underscoring robust underlying demand, with DTC fleet transitions expected to have minimal impact going forward. The CNG segment is well positioned for sustained growth. In the PNG segment, the PNG segment also demonstrated growth with average daily sales of around 2.5 million SCM per day, up from 2.41 million SCM in the corresponding quarter for the last year, representing a growth of 5%. However, the domestic PNG sales growth was around 8%, along with commercial PNG growth of 8%. However, the industrial demand was subdued little bit. On the revenue and the profitability, total revenue for this quarter stood at INR 2,465 crores, making an average 8% year-on-year increase, driven by volume growth and steady operational execution across segments. EBITDA stood at INR 473 crore, compared to INR 360 crore in Q3 of last year, reflecting 31% growth and 7% sequential growth, compared to INR 443 crore in previous quarter. The profit after tax, PAT, for Q3 stood at INR 358 crore, as compared to INR 285 crore in the corresponding quarter of the previous year, demonstrating a robust growth of 25% in PAT. That concludes our opening remarks, and we would like to open the floor for the question and answer session. Thank you. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you. We take the first question from the line of Yogesh Patil from Dolat Capital. Please proceed. ... Thanks for taking my question, sir. Few questions from my side. How many DTC buses phase out during the quarter three? And now, what is the CNG consumption volume of DTC buses? So, like, if I can share you for quarter three, so the sales have come down. It was around 80,000 kgs per day in October, then further tapered to around 54,000 in November, and December, it was left to around 22,000 kgs per day. So now, almost only on below, I think 100 buses are left out, and what we have, we have been made to understand from DTC, I think by March this DTC volume will be almost zero. Okay, very well. Sir, second question related to unit EBITDA margins or EBITDA margin guidance. We have been giving INR 7 per SCM kind of EBITDA margin guidance. Now, we have posted INR 5.4 per SCM in this quarter. What will be the parameters or the things which will boost up the EBITDA margins from the current level of 5.4 to the 7? Any broader idea, if you could give us? Yeah, 2, 3 things. First is the transmission tariff. So the total impact, if you know, for the entire sector was around INR 1,000 crore. And out of that, IGL share was INR 330 crore. We have passed on some of the benefit to the consumers, but we are still left with INR 260 crore, so that should translate to approximately INR 0.75 per SCM. Okay, that is one. Second is the, as the Gujarat VAT was implemented only in December, so we could realize only the part. So that impact is around 20-25 paisa. Third is the labor code that was implemented, so we had to make certain provisions. That is a one-time provision. Going forward, it may not be that high, so that is around 30 paisa extra. Okay. So, combined all these, we, we are seeing that we should be near to, I mean, seven going forward, and if required, any adjustment in prices. The long-term guidance remains that seven to eight is our target range. We were expecting the transmission tariff to be notified much earlier than it was notified, because they sent the communication in July. The PNGRB communication was in July, and we deferred because we don't want to basically make the RSP of our CNG product volatile. So we want to keep it constant, so we deferred the price increase or anything like that. But so, that was the reason that there was delay. But now, going forward, we expect that this should come, these benefits should come, and automatically it should be near to seven, based on the current prices. Now, you suggested INR 0.75 per unit, kind of a benefits from the, unified tariff rationalization. Out of that, how much we have already passed on to the customer in terms of a benefit? This is after passing on. Okay. This is the benefit what is left. So INR 1, something was there, so now what is left is INR 0.75. The last, sir, just gas sourcing breakup, if you could provide in MMSCMD terms, from each source, that would be helpful. Well, you tell. Sanjay, Sanjay will. So if you see, our overall procurement was 9.75. Out of that APM was 3.38, NWG was 0.57 million cubic meters per day. HPHT was around 0.5, and RLNG, rest was RLNG, around 2.3. In percentage terms, if I say, domestic was around 43%, NWG 7%, HPHT 6%, and 42% was RLNG. Thanks a lot, sir. This was really helpful, and wish you best of luck. Thank you. We take the next question from the line of Nitin Tiwari from PhillipCapital India. Please go ahead. Hi, sir. Thanks for the opportunity. So my question was related to your guidance for volume for this year and for next year. So in the previous call, you had indicated that we'll be exiting this year at about 10 MMSCMD. So do we maintain that guidance in terms of like you know exiting this year at 10? Because I think in the nine months so far, we are at 9.43 after nine months. So that would be my first. And second question was again on volume. So if you can give us a breakup of like you know sales across NCP, NCR, and new geographies, and also the growth, respective growth rates in both regions. Yeah, we maintain the guidance that... As you know, the CGD sector, the last quarter is the best sector. The quarter four of any year, you pick up any year, that is the best sector. And till now, we have performed, the average has been 9.43, but we have been constantly going above 10 millions per day. The drawl from all the sellers is exceeding 10 million. So we will be exiting the quarter at 10 million, that we are confident. And the breakup that you have asked- Sir, I'll tell. Yeah, please tell. ... So, the breakup for the current year, 9.43, which breakup you wanted to know. So Delhi is contributing to around 5.43. This is CNG plus, PNG, around 56%. Noida, Ghaziabad, is contributing to 2.24, per day, around 23%. And the other, the newer GAs, we can say, around 13%-14%, 1.26 MMSCMD per day, and the NG is 0.5. So the breakup of, 9.43 is there. Sir, the respective growth rates in these areas, in this quarter? Yeah. So Delhi, as you know, it is almost flat, or as we can say, 0.5%-1%. Noida, Ghaziabad, is growing at around 6.2%, whereas the outside or the new GAs is contributing to almost 17% growth. Okay, sir. And, sir, if I may just, like, you know, ask a follow-up question on the volume that you mentioned in terms of guidance. So, sir, in the previous quarter, I think the DTC volumes were about at, like, you know, 30,000 KGs per day, whereas the numbers that you indicated for this quarter indicate a higher average, contribution from DTC at about 50,000 KGs per day. So in fact- Yeah. DTC has contributed more in this quarter than it did in the September quarter, right? So then how do we see this num- See- Yeah. Yeah, yeah. I got it. See, in September there was a dip. It was definitely less. Then two months, October and November, I think some buses were not plying, and they rolled it back, and then finally it got shunted out. But December volume, it was around 22,000. And further, as I mentioned earlier also, hardly less than 100 buses are left out. And what we have been made to understand from DTC, they will be phasing it out entirely by March 2026. So sir, actually, what I wanted to understand is that in September, our total CNG volume was higher, despite a lower contribution from DTC. In this December quarter, our DTC contribution went up sequentially, but our overall CNG volume went down. Actually, yeah, yeah. Actually, in this quarter, in Delhi, as you know, the GRAP implementation was there. The schools were shut down for a few days. I mean, this time the pollution was really bad. Mm-hmm. So schools, the buses were off the roads. So those were the major impacts. Due to this, the quarter three was slightly other than the DTC also. The buses volumes were down. But okay. Now that the weather has improved, the GRAP have been lifted, so we are at normal now. Nitin, I'll reiterate the numbers for DTC. Yeah. Q2, we had an average sale of 40,000, and- Mm-hmm. This quarter, the average sale was around 6,000. Okay. All right, sir. Thank you, sir. I'll get back to you with further questions. We, you mentioned about 40, 50 thousand. It is actually 6 thousand. Right. All right, sir. My bad, I wrote it there. Other portion, which is CNGs, that was also 150,000 last quarter. This quarter, it is 130,000. Okay. Thank you. We'll take the question from the line of Hardik Solanki from ICICI Securities. Please go ahead. Okay, sir. Just to know, as you mentioned, we, as we- I'm sorry, Mr. Hardik, we cannot hear you clearly, sir. Thanks for the opportunity. As you mentioned that, you know, you will maintain volume guidance, can you just, you know, help us, what will be the volume growth for next 2-3 years? GA-wise, if you can just break it down, Delhi and non-Delhi. Actually, our guidance has been that every year we will be adding 1 million, so 9-10. Next two years, I think 1 million each every in next two years. Majority of that would come... I mean, Delhi will continue at 8%-10% after once the impact of DTC is away. So 8%-10% would be the NCR zone, and outside would be 17%-18%. Okay, that's helpful, sir. Thank you. Thank you. The next question is from the line of Sabri Hazarika from Emkay Global. Please go ahead. Yeah, good afternoon, sir. So firstly, on clarification, you mentioned that the Gujarat VAT implementation was from December only, not before that, and INR 25 per SCM is still pending to be realized. Is that right? I mean, for only December quarter, we could realize in the last quarter. So if the whole year impact is there, so that should be the benefit. No, I mean, QOQ, you are saying another INR 20-25 would get added to the gross margin, right? From this. Yes, yes, yes. Yes. Okay. And, second is on the DTC, 40,000 to, what was... I couldn't get that, that part, which Nitin was asking. See, the DTC sales for this quarter was 5,000, 6,000, around 6,000 KG average per day. Last quarter? Last quarter, the last quarter, this number was 50- Forty thousand? Forty thousand. Forty thousand. ... 40,000. It has fallen from 40,000 to 6,000 in quarter-on-quarter? Yes, yes. Okay, and 150-130 was what? That was DIMS. Okay, that was DIMS from Q2 to Q3. So DIMS, DIMS is still at 130, and- DIMS is still at 130. DTC and DIMS, they used to comprise around 8%-10% of our sales. Now, that number remains around 4%. So dimps- DTC alone used to be 6%-7%, now it is at around 1%. Not even 1%. DTC plus DIMS? Yes. DIMS will also keep gradually declining, right? So DIMS is a slightly longer period for the transition, because primarily the mandate is for DTC to convert, and DIMS is basically an operator who have the vehicles with the Delhi Integrated Transport model. They are the outside operators. So they have a longer tenure, basically, because those buses which have been put up, they will run for 8-10 years. They are basically contract buses which run on Right. Contract basis. They are private party buses that run on contract basis. A few bookkeeping questions. So, nine months, I mean, what is the CNG station base and CapEx for nine months? It's around, for CNG, CNC, CNG or PNG? CNG station, what is... You said 45- Actually, till now, up 9 months is around INR 190 crore. INR 190 crores? No, INR 116 crore. 116. Sorry. PNG is INR 190. The steel network is INR 190, and CNG is INR 116 crores. MDPE is MDPE, 560. Total, we have spent around INR 847 crore in 9 months. Okay, that is the total. What is the CNG station base right now? So we're almost 975 stations, or you can say 973 to be specific, as of the end of the 31st of January, you can say. Out of the DTC have been closed, so that will have to reduce. Yes. Around 55-60 buses have been closed. Stations have been closed, which were run by DTC, so that number you can reduce. Around 925 stations are operative. Right. Right. And, and, last question, what would be CUGL, MNGL volume for this quarter, as well as last year, same quarter? MNGL is 1.99 MMSCMD. Last year, it was 1.7. 1.7 to almost 2 million. And CUGL- CUGL, last year, it was 0.33, this year it is 0.34. They have growth of around 3%. Okay. There was dividends from CUGL, MNGL in Q3, right? Q3, we had the dividend from MNGL, INR 40 crore. INR 40 crore. Q2 also there were dividends, right? Q2, we had final dividend, INR 67 crore. Around INR 58 crore from MNGL and, INR 9 crore from CUGL. Got it. Thank you so much. Thank you, sir. Before we take the next question, a reminder to all the participants, if you wish to join the question queue, you may press star and one on your touchtone telephone. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchtone telephone. The next question is from the line of Vivek Gupta from Novus Capital. Please go ahead, sir. Thank you, sir, for taking my call. I just had a question, a follow-up question. In the future, when LNG prices come down and the demand for commercial increases, would you have to put up more infrastructure, or within the existing infrastructure you will be able to expand, increase volumes? No, actually, if you see the current state of queuing in Delhi NCR, it is still a reason, cause of worry and we need to put up more stations. Because the moment we provide more convenience, more people will be attracted to convert to CNG. Okay, so- Although the queuing time has reduced drastically from earlier, say, half an hour to now 5-6 minutes, but our vision is to make it queueless. I mean, there should be no queue at stations. What about for the industry, small industry, which are the commercial segment? The volume can increase. Yeah, yeah, definitely. The volumes will increase there. Now, even the DG set conversions for the societies, because they have gone for alternate to NG also in some cases. So we are trying to capture those customers. And also the commercial transition from, say, LPG to gas, that continues. So that 10%-11% growth would be there. Using the same infrastructure or you will require more? So for PNG, industrial and commercial, we are already, we have already reached all the industrial and commercial hubs. So probably, we'll not require that much, CapEx, to reaching those customers. Given the price reduction of, international LNG prices, probably we'll be able to, sell more and, growth, is something which we can, expect. That will affect margins positively? Yes. Yes. Okay. That was it, sir. Thank you. Thank you, sir. The next question is from the line of Maulik Patel from Equirus. Please go ahead. Yeah, sir, thanks for the opportunity. Any specific reason that growth in NCR was very, like, it's like 6%? It usually be around 11, 12% kind of on a run rate, what we have seen in the past. Any specific reason for this kind of a number? You are right. I think you are right. Last few quarters, we were looking at around 10%-11%. So because this gap effect is there in NCR also, and this time, I think you are aware that due to some high pollution issues and all, the schools were closed. Mm. So we also envisaged a little bit tapered growth in Ghaziabad or Noida area. But the number of vehicles which are getting added, in particularly passenger car segment, we are confident to bounce back on the similar numbers. Okay. Okay. And sir, when you say that the 10 MMSCMD will be the exit rate, and in doing that, it will be for that particular month, you will exit at around 10, or that quarter you will exit around, the average will be around 10 MMSCMD? I think the average 10 for the quarter, what we are suggesting is that in the March month, it should be at 10. The entire month should be at 10. So that is the exit rate, because for the quarter, we are now at 9.4-9.5 number. Mm. Going forward, this month, we are touching 10, and March, the complete March should be above 10. So the average for the month, because two, three days, you know, for the holidays and other reasons- Mm. The sales are less on those 2-3 days. 5-6 days we are doing above 10, but on Sundays, the number of vehicles are less. Mm. So that brings down the average. But going forward, in March, we will be at 10, above 10, for the whole month. Okay, got it. Sir, the last question: Sir, what was the DTC volume in the base quarter? I think you mentioned that average for this quarter was something around 50,000 kg per day. That's what the average for the Q3. What that number was in the base quarter? We stand corrected. It is 5,000 kgs per day for this quarter. For the last quarter of the previous, that means previous year, the same quarter, it was around 1.5 lakh per kg. Okay, it was INR 1.5 lakh. Got it. Okay. Thank you, sir. Thank you, sir. We take the next question from the line of Probal Sen from ICICI Securities. Please go ahead. Thank you for the opportunity, sir. I hope I'm audible? Yes, please go ahead. Yeah. So just, with respect to the guidance that you just mentioned in terms of volumes, where the target is to essentially add about 1 million SCMs per day every year. Just wanted to understand, what will be the sourcing strategy, what kind of contracts are we sort of in the market for? Whether we are looking at only Brent-linked in the view of recent Henry Hub strength, or are we still looking at a diversified kind of a sourcing strategy? Just to understand, trying to understand the readiness to, you know, meet this kind of higher volume target from a sourcing perspective. Yeah. Going forward, we anticipate that, right now, 40%-43% is RLNG. It will be 50/50. 50% RLNG and 50% from domestic sources, including HPHT, New Well Gas, and APM. And our target to all the potential shippers is New Well gas price, that is 12% of Brent. And since our major portfolio is already linked to Brent, because APM, New Well, HPHT are all linked to Brent. So we, for diversification, we will have the 50%, I think it will be 50/50 from Henry Hub and Brent. But if we get some good deals on Henry Hub, then I think, we are open to that. But our guidance to them has been that 12% of Brent should be the landed price for us. Got it, sir. Sir, I'm sorry if you have answered this earlier. I joined a bit late. Mm. But can you refresh your guidance for CapEx for 2027 and 2028? If you can break it down in terms of NCR and outside NCR a bit. See, our core business CapEx, we have planned for around INR 1,250 crore for this financial year, out of which we have already spent in nine months INR 847 crore. And the breakup in terms of, like if we say Delhi, so Delhi is almost around 45% we have spent, and UP part is almost, say, you can say 30%-35%, and Haryana is around 10%, you can say. So it is like that. Sir, for 27 also, can we, we can expect a similar kind of a level? ... So our aspiration or our targets are like that only to around INR 1,200-INR 1,500 crore in the core segment. Got it, sir. Thank you. Thank Thank you so much. We will be adding, Sorry. The diversification CapEx, BD CapEx, that will be other than the core business. Mm-hmm. that INR 800 crore, INR 500 crore-INR 800 crore, that will be separate, I mean, into renewables, into CBG, into LNG infra. Mm-hmm. Those will be separate. This is only for the core of CNG and PNG. Will they start to reflect for 2027 onwards, or is that slightly longer term, the diversification? I think from 2027 they should start reflecting because, the JV formation and subsequently the cash flows and all will take some time. So from 2027 onwards, they should start reflecting. So on an overall basis, sir, then somewhere between INR 1,600 crore-INR 1,700 crore is a reasonable number to assume for the overall CapEx for 2027. Is that fair to look at it? Maybe around 2,000, you can say. 1,200, 1,300 crore and 600, 700, uh- Understood. the diversification, maybe. Understood. Thank you so much. Thank you so much, and all the best. Thank you. Before we take the next question, a reminder to all the participants. If you wish to join the question queue, you may press star and two. The next question is from the line of Devang Patel from Sameeksha Capital. Please go ahead. Sir, in your comments earlier, you mentioned you got benefit of reduction in sales tax, but you also faced headwinds from higher gas costs and Forex. Could you break down this impact on how it impacted our gas cost, which seems to be down by INR 0.90 quarter-over-quarter? So if you see, our exchange rate has gone from, say, around 86, 87 to 90, 91. So around 7%-8% rupee devaluation, rupee devaluation is there, which has resulted in around INR 2-INR 2.5 increase in gas cost. Which was partly offset by the Gujarat VAT reduction, which happened during the last quarter. So our gas cost per SCM, if you see, that is more or less remain same, only INR 0.50-INR 0.60 reduction is there. Had these rupee devaluation not been there, our gas cost would have been much lower and EBITDA margin would have been much higher. Just on the, Central, could you quantify what is the benefit we get? I don't remember exactly, but that's a total impact. Total impact, INR 0.40 in rupee terms. INR 0.30... The total impact that we assessed at that time was around INR 0.35-INR 0.40 for SCM. Did you get this for the whole quarter or only December? Actually, the benefit, we got only for the December month, but for this quarter it will be for full three months. Okay, understood. Sir, and could you give an update on the tender process in the Middle East that you are participating in? Yeah, we have qualified for the stage 1, and we have been given the tender for phase 2. So, I think we are in the process and bid submission is April 23. So we'll be participating in that, and it looks a very good opportunity, in the sense that it is a very planned kind of a thing, that with CGS is only at a 5,500-meter distance, and the industrial cities are planned. The gas prices there are much more competitive as compared to alternate fuels, so there is a natural push for the switch, as well as the government push will also be there. And each industrial city, in our assessment, going forward, would be around 1.5 million. So we are looking at 4 now, so 6 million total is the long-term sales potential there. Sir, since you've submitted the bids, could you give a ballpark estimate of what kind of CapEx it entails? So right now, the bid has to be submitted by April 26. 23rd April, 26th, the bid submission date is there. So the CapEx calculation is still going on. Okay, sir. On the captive power plant that you are planning, is there any progress there? Actually, the JV with Rajasthan is taking some time, that in the sense that the land allocation, because it is being transferred from the other agency to that, the other JV partner company. So that is taking time. In the meantime, for our operational efficiency and other things, we are coming out with a 200 megawatt tender. So that will be through tender route, and whoever has got the land and the connectivity, CTU connectivity, so that is the precondition, and they can participate, and then we will evaluate that. So that is also under progress. It should come out within next month or so. Okay, sir. Thank you so much. Thank you. The next question is from the line of Vikas Jain from CLSA. Please go ahead. Hi, sir. Thanks for taking my questions. Sir, for simplicity, if you were to look at volume growth that you have reported this quarter- ...impact of the changes that we have seen for DTC buses, what would that number have been? I know you've shared a few numbers, and, like, a little lost on that. But if you were to just take out the DTC and impact of that, what would the volume growth be, either CNG or overall volume growth? Overall would be around 9.6 in that case. Would have been 9.87. 9.87. Okay. So, CNG. CNG would be 9.8. Sorry, overall. Overall would be 9.43 is the overall. Okay. You can say around from 150, we are down to 6,000. Yeah. So that is the change. 150 is in kg, so, it will be around from 2 to, say, 10. So 1.1, 9 point to point. 2 lakh, yes. 2 lakh. So you can add 0.2 to that, so 9.63. Okay. So yeah, 9.63 versus 9.1, right? Yeah, yeah. 9.11. Yeah, yeah, exactly. That's a 6% growth, right? No, we are talking in KG terms. If I tell you the last year, last year number, overall CNG sales was 47.55 lakh KG. If I remove the DTC and DIMS sales, it is 44.14 lakh KG. Current year, our total sale was 50.01 lakh KG per day. If I remove the DTC and DIMS sale, it is 48.63. So from 44.14 lakh KG to 48.63 lakh KG per day of sale, which is, increase of 4.49 lakh KG per day. Almost 10%. Which is 10.17% of CNG sales. So 10.17% is the growth for CNG segment, if we exclude DTC and DIMS. DTC now, for all practical purposes, of course, it might be still impacting the base for- 5,000 is the number in the current quarter. Got you. So Q4, sorry, Q3 of next year will be the period when you will not see any impact of DTC sales going down. DIMS might still be having some impact there, but probably this 1.32 lakh KG sales of DIMS, which we had in this quarter, probably next 2-3 years I think it is going to be there, and then probably it will go down. Sorry, you mean that 1.32 lakh KG sale is going to gradually- It could continue next 2-3 years. That's what is the understanding- At that kind of a level, roughly at that kind of level, not... No, no major declines. Yes. Okay. Yes. So the bigger part of the decline, which was impacting headline growth, is now done. Yeah, it is almost done, and whatever is left, like by Q4, it will be almost zero, that we can- The drag which is there, that will be there for maybe next 2-3- Yeah -quarters probably. Q3 of 27 is when we'll not see any drag, and the normal growth will reflect in the overall growth. Okay. And, so, sir, so that is where you get the confidence that from here on, you'll roughly be adding, growing at about 10%? Yes. Okay. Yes, yes. Just to understand, so you did explain that there are these, the two, three elements with which margin should be higher. So, based on that, roughly, INR 1+ should be higher gross margin for this quarter, this coming quarter, where we are in, based on those. You said INR 0.75 net, plus about INR 0.25 from Gujarat, and I think there was one more thing, right? Labor code implementation, one-time, INR 0.30. Right. That will be, I mean, INR 0.25, that will become from there. So INR 1.25, you can say. Okay, so do you think that is broadly the rate that we are dealing with right now? Yeah. Right. Plus, in case we are able to add CBG, so that, as you are aware, the CBG, like, excise duty exemption has come. Mm. So, that it—I mean, it depends on us now that how we are able to ramp up our CNG in our network. Okay. So, but would that be very material immediately? No, I mean, it'll take some time for it to- Immediately, I mean, it will take one year or so to be going from 1% to 5%. So 5%-10%, if we are able to do, that will be having material impact. Okay, okay. In terms of your sourcing, you're confident that most of it, you would not have to depend so much on LNG. I mean, most of it will come from New Well Gas, is what you think? Oh, no. 50% we said going forward, we are... Yeah. Incremental also, the 50%, anyway, we have to be sourcing from, say, 500,000 every year, we will be adding. Okay. Okay. Next year, I think some HPHT gas is also coming in, which we will get apart from NWG. Some HPHT gas is getting freed up. I think that will also come to market. 50%, we are expecting that we will have to source additionally. Okay, sure. Okay, thank you so much, sir. Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital India. Please proceed. ... Hi, sir. Thanks for the opportunity. Just wanted to understand, to what percentage of your gas sourcing is the Gujarat VAT applicable, the Gujarat VAT decision? 43%, the APM gas. It's only applicable to the APM, not to LNG, right? Which is pretty- LNG also, 7% is 7%. So you can say 50% of the gas. 50-50% of the gas. Okay. Yeah. And, uh- APM and NWG. Right, sir. And, and secondly, sir, you indicated the DTC volume for the base quarters. So if you can also indicate the DIMS volume for the base quarter as well as for the second quarter. I'll tell you the DTC and DIMS volume again. Yeah. For the current quarter, DTC volume was 5,000 KG per day. Okay. DIMS volume was 1.32 lakh KG per day. INR 1.32 lakh. Okay. The previous quarter, DTC volume was 44,000 KG per day- Mm-hmm. DIMS volume, 1.47 lakh KG per day. Sorry, that was not clear. Please, say that again. 14,144 lakh KG for DTC. Okay. 1.47 lakh, DIMS. Okay. And the base quarter? Yes. The base quarter was, DTC was 1.55 lakh. Okay. DIMS was 1.85 lakh. Understood, sir. Thank you so much, sir. Thank you. We take the next question from the line of Samaya from Avendus Park. Please proceed. Yeah, thanks for the opportunity, sir. One clarification. So in this quarter, you said 50% is RLNG. Within this, can you give a sub-breakup in terms of spot and Henry Hub and Brent-linked contracts? Broadly, spot was not there, that you can, Spot is nil. We have not got any spot. Some quantity we have got from IGX, which is generally the HPHT gas available on, available there. So IGX, we bought maybe 1 or 2% of the total requirement. And, apart from that, our Henry Hub and, Brent-linked contract, RLNG contracts, are in the ratio of around 60/40. Out of the total RLNG, around 40% is Brent-linked and around 60% is Henry Hub. Got it, sir. Now, also, we have a bit of a flexibility in terms of the Henry Hub contract. I mean, we can- Yes. In case of the cost, we do have. So we can push it depending on, in case we feel Brent is relatively lower, so we have the flexibility. Yes, yes, it is there. Got it, sir. Sir, also, the next couple of year CapEx, so you did mention about the trajectory there. So in terms of CNG station additions, what we plan to put in, within this, how much will go into the pipeline so broadly, and what kind of volume, you know, contribution maybe over the next two, three years, this can contribute the CapEx that we are spending over the next couple of years? So roughly around 80-100 CNG stations we are targeting year-over-year for maybe roughly next 3 years or to 5 years. So out of the total CapEx almost you can say 40%-45% will go on the CNG, and balance will be on the steel pipeline network as well as the MDP. So it will be like that. And as mentioned earlier, the total overall incremental volume we are anticipating 1 million to add year-over-year. So out of this around you can say 65%-70% will come from CNG, and around maybe 30-35% maybe from the PNG, both industrial, commercial, and the PNG. Got it, sir. If you take at least number of stations, 100 stations per annum, average selling 6,000 KG per station, it will be around 600,000 KG, which translates to around 8.8 million cubic meter per day of sale, 100 stations. Understood. 0.8 million is the number which you can add from CNG, and PNG is growing at around 12%-14%, depending upon industrial volume is dependent upon prices. And growth also. So both put together, 1 million is something which is very achievable. Sir, within these 100 stations, between the GAs, I mean, Delhi, NCR, and other new GAs, how would this... You can see it all depends, we have the target for 180 to 100, and we are plotting for land in Delhi also, as MD also mentioned, for the queuing part. And we are also anticipating the DTC old stations, hybrid and all, they are also offering the sites in Delhi. So if what we expect, if it goes on, so almost, say, 25%-30%, we should get in Delhi also. And otherwise, mostly it will be outside GAs, and somewhat in Ghaziabad and NCR part also. ... Okay, so one last question. So in terms of, opportunities for, you know, getting into the other GAs or inorganic foray, in general, in terms of the recent MWPs and what are the opportunity sets are? Is there a chance for a consolidation in the industry in the next couple of years, because of some bit of, aggressive bidding on the MWP side? Is there an opportunity set that's still available, and then how are we looking at it? Actually, this is a regulated, you know, license kind of a business. So here, unless some regulations are modified and facilitated for these mergers and acquisitions, it will be very difficult because all those GAs will be carrying huge penalties, and that will deter the potential buyers. And unless something is thought on those lines, that how do you make it possible? Something similar to, say, NCLT mechanism or something like that is thought of, that, with those kind of penalties, it will be difficult for them to sell it also. Because they are right now in negative, you know, valuations are in negative zone. So it, that, I think, is a potential bottleneck for M&A, but we are... We see that going forward, if we have to achieve the kind of growth, the mergers have to take place, because smaller entities day by day will find it difficult. Because the sourcing is now becoming a very, very critical aspect, and those who are able to source will give the benefit to the consumers. So that is our assessment of the situation. Because players are there who are ready to, you know, bid for those M&A activities, but the field is not right. You know, the penalties and other things, because they will have to inherit those also. Thanks for your thoughts, sir. Thank you. Thank you. Ladies and gentlemen, we take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Yeah, thank you, all the investors and all the participants for participating in the third earnings call of IGL. Thank you, Mr. Varadarajan, and Antique Stock Broking. We will meet again in the month of April or May, with a better set of results. Thank you so much. Thank you. And then the- On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.