Why Has UBS Turned Bullish on IGL with a ₹250 Target and Margin Upside Ahead?
UBS Sees Strong Earnings Revival as Tax Overhang Ends
Brokerage firm UBS has upgraded Indraprastha Gas Ltd (IGL) to a Buy rating with a revised target price of ₹250. The global brokerage expects IGL’s profitability to improve meaningfully over the next two quarters as the company benefits from regulatory clarity and easing cost pressures.
✅ UBS highlighted that the tax overhang is now ending, setting the stage for nearly 20% upside in EBITDA driven by improved demand recovery and favorable tariff revisions.
The brokerage also expects upcoming tariff reforms to strengthen pricing flexibility for city gas distribution (CGD) players like IGL. Margins, which were under pressure due to elevated input costs, are likely to expand gradually through FY26 as regulated tariffs realign with global gas price trends.
💡 Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser and Energy Sector Strategist at Indian-Share-Tips.com, observes that the structural demand for natural gas in India remains robust amid ongoing industrial transition and government focus on cleaner energy.
He adds that IGL’s strong balance sheet, dominant market share, and pricing resilience make it one of the better-positioned gas utilities in the mid-cap energy basket. Volume normalization post-tax resolution will further support earnings trajectory.
For readers tracking energy-linked opportunities, it is useful to follow daily derivative insights via 👉 Nifty Options Tip Advisory and broader momentum trends through 👉 Bank Nifty SEBI Registered Advisory to gauge institutional sector preferences.
Investor Takeaway
UBS’ bullish stance on IGL stems from a combination of regulatory tailwinds and margin normalization. With the tax uncertainty behind, investors may see a rerating as the company benefits from steady gas penetration growth and tariff alignment. The counter remains a steady bet within India’s clean energy transition framework.
Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Related Queries
- How Will Tariff Reforms Benefit Indraprastha Gas?
- What Is the Margin Outlook for IGL After Tax Clarity?
