The EBITDA per SCM improved significantly. I wanted to know if there were any one-time items?

There were no one-time items.

Okay. Because the contribution per S CM improve d significantly. That's why I was wondering if it is sustainable.

This quarter, the revenue has increased , because of our optimization in the pricing as well as we have actively optimized our gas sourcing and Opex. There were variable factors in this quarter. All this has led to a higher contribution.

For the outlook of FY27, can we model this? Yeah. In FY27, in the next three quarters, we expect EBITDA to be in the line of INR 7-8 per SCM, operating EBITDA. Our revenue growth will be around 25%. That's what is we expect.

Okay. Thank you.

Thank you, sir The next question comes from the line of Mr. Nilesh Ghuge from HDFC Securities. Please go ahead, sir.

Thanks for giving me the opportunity. A couple of questions from my side. Sir, can you tell us the sourcing mix for priority and non-priority sector, APM and HPHT, and then Reliance, GAIL and other?

This quarter, if you see the APM and NWG together were about 32%. HP HT was around 35%, and the balance was the long-term.

Long-term includes the Reliance, GAIL and others?

Yes, other than Reliance and GAIL.

Sir, can you share the same number for the last quarter

First one is Q1 of FY26. Number of APM was 27%. Long-term sourcing was 27%, and HPHT gas was 38%. Correspondingly, the long-term, the RLNG is 32%, which has been increased because of the bulk sourcing with this long-term partner, and the APM, it will remain within the range of 21-22%. You are talking about the Q1FY26, right?

Compared to Q1FY26, corresponding quarter. What are the same number for the Q4 FY26?

APM was around 26%, whereas, as of in Q1, it's around 21%, and the long-term sourcing was 40-32% for this quarter.

As you said that, Mr. Arun mentioned that for next three quarters, the EBITDA per SCM is guiding about INR 7-8 per SCM. This quarter, we reported about INR 10. In earlier communication, you mentioned that your average EBITDA per SCM will be in the range of INR 5.5 -6 per SCM. Indirectly, you are raising that number to, let's say, in the range of INR 6-7 rupees per SCM. Is my understanding correct for FY27?

It will be because of some Opex expenditure, which we are also doing some optimization. If you can see the fixed expenditure, where we have 7.15 per SCM, the fixed expenditure, whereas it is only 7.22. One of the big contributor for us, for this quarter as well, and that will even continue in the future as well. That is also one of the things which can increase this EBITDA per SCM. Apart from that, there are some gains in terms of the pricing as well. So, everyone will benefit from this pricing. Because of our gas strategy, we could not have too much increase in this gas, but then the price sales, it's increased. If it remains continue d, then the EBITDA per SCM would be around INR 6-7 very minimum. *Nilesh Ghuge But sir, if I look at this quarter's number, it seems that your CNG contribution has gone up significantly higher if I compare last year, this quarter or maybe Q4 also because of the drop in the CNG industrial customers. The volume there has gone down because of the non-availability, various reasons. And which we believe that CNG is the high, you can say, EBITDA contributor in terms of a per-unit volume, whereas the industrial commercial, the margins are very narrow. In next quarter or in the subsequent quarter, when your industrial commercial volumes will be back on track. Still, you will be confident that you will maintain that INR 7-8 rupees per SCM kind of EBITDA per SCM margin?

We would be very candid with you. In fact, the sourcing is the key for this good achievement. We can say that for industrial, we had two long -term contracts, one is the GSPC, the other is Shell. With these two sourcing, the pricing formula we had with the gases. As you can understand , that the spot prices were escalating somewhere hovering between USD 16-20, or minimum it was USD 14. So, in this full quarter, we could enjoy the HPHT rate, and that was around USD 9. You can understand the margin had to be good. Going forward also, on price, we are maintaining for the sake of industry survival also. Our gross margin also had been higher for that reason. Sourcing is one of the , I mean, as it was the thing which has given us a better margin in S CM-wise, and going forward also, this HPHT sourcing will continue up to March also. One of the supply, it will continue up to 28 January also. So, that way, we are confident that our sourcing team will contribute to our margin. Till such time, our competitors have not reduced the prices. We will keep the prices at that level only because not only competitors, but the alternate fuel prices are also at high level. These are the prime reason that we are enjoying a better SCM market. I hope that clarifies you your queries in totality.

Yes. Thanks, sir. Thanks, Sharma ji. As far as the -- sorry. Go ahead, sir.

Yeah. Nilesh, adding to what S harma sir, has told, if you look at it, we are in that industry where we are not the price maker. We are the price taker. Based on our portfolio, which is clear, the price taker industry is able to match up with the price and make margins, and that's what has happened. Thank you.

Okay. Yeah. Thanks. Sir, just one question. While answering the question, Arun sir mentioned that top - line growth of 25%. Is it true for FY27?

Yes. YoY, it is 24%.

You are expecting 25% top-line growth in FY27. Is that correct?

Yes. This is how it turns out now, this guidance, I'm telling from Q1. But basis this thing, you can take a range of around 20% onwards. 20% is the safe use. And in that, can you split between volume and value? Is it possible? Volume and value is not possible, but volume-wise, we expect around 10-12% growth in volume. Okay. Thank you. That's all from my side.

The next question is from the line of Mr. Pavan from RT Capital. Please go ahead, sir.

Sir, can you just outline what were the volumes at Namakkal, and what is the volume growth that we are expecting this particular year? I am asking for Q1, and what do we expect? What are we targeting for FY27 as a whole?

In Namakkal, we did the 6 MMSCM in Q1. You see YoY, year back, it was 2.84 MMSCM quarter-wise. It is more than 3.

YoY, what was the growth?

YoY, it is a 102%.

Okay. For FY27, what are we expecting at Namakkal?

It will be in the range of 25-30 MMSCM.

For the full year?

What was this number for the full year FY26? For the full year FY26, I will get back with that number.

Okay. Also, I just wanted to check if the volumes are going to significantly scale up in Namakkal. Wouldn't that impact our EBITDA per SCM margins slightly negatively or am I overrating?

EBITDA guidance we have given, so it will be around INR 7 per S CM that you can take , o verall EBITDA guidance.

Overall, okay. Got it. Thank you.

FY26 Namakkal and Trichy volume, is 14.2 MMSCM.

Okay. We are saying this year, we might end up somewhere between 25 and 30.

Yes. 25 and 30. That's the same position. It will be towards the 30 range only.

Okay. On Banaskantha, which is our main geography, are we still looking at a double-digit growth in terms of volumes?

The next question comes from the line of Mr. Abhir Pandit from Old Bridge Mutual Fund. Please go ahead, sir.

Hi, sir. Thanks for the call. Sir, just had two questions. Primarily, sir, can you just give a bifurcation of the sourcing mix? If you have given it earlier, I apologize, but could you just help me on that? Yes. I will give you the bifurcation. Basically, APM and NWG, it will be around 32% this quarter. HPHT was around 35%, and the balance was RLNG and LNG.

Fine. If I see your realizations on QoQ basis, as well as on a YoY basis, you have taken a 15% hike on a entire company level, right? How was it different across GAs and across the PNG aspect? Could you just help on that? Even on the industrial aspect.

I can make you understand by that the contribution to the profitability, if I say , Banaskantha will be 46% has contributed to the profitability. Fatehgarh Sahib 38%. Diu will be around 8-9%, and Namakkal, Trichy around 5%.

Okay. Are you saying, basically, that you have taken the entire price hike, or you want to take another price hike going ahead, in view of the fact that this gas aspect remains an undecided issue? How are you planning on this?

In fact, the price hikes are always linked to the sourcing. As of now, since the Brent has also started cooling down, we will not pass on and spoil our upcoming market by making another price hike. But at the same time, whatever we have been able to take from market, particularly industrial volumes that we will continue for some time because, you see, the pricing formula of sourcing is so that it doesn't get reflected in the same very month. It is three months average or one month average or something of that sort, or average of the dollar-rupee conversion also. That way, it is still there for some time. Price hike, you can make it immediate. It's actually immediate. But the sourcing, the thing is still somewhere for two months, three months or something like that. Price reduction, at least we are not at all in a position. Till such time, we've billed like this.

Okay, perfect. My next question is related to what is the amount of CapEx that you are looking at in FY27?

FY27, we have plan of INR 150 crore and we don't target more than that. INR 150 crore will be investing in NT alone out of the IPO proceed, which we are carrying. For the remaining two in the Diu & Gir Somnath, we have got a tap-off from GSPL. That tap -off will also be one. In BK, we are further reinforcing, making our stations online from the daughter booster station, and domestic fronts are opening up also. Another INR 50 crore we have planned in BK, INR 50 crore rupees Diu & Gir Somnath, Fatehgarh make it another 50. INR 250 crore of CapEx.

Okay, perfect. Okay. Fine. Sir, just on FY27 plan, you currently have increased by almost have 150 CNG stations. What would be the plan for FY27? How much would be in Namakkal and Trichy, and how much will be in Banaskantha?

Banaskantha, actually, is almost, like, saturating. What we have st rategized that around 10 -15 stations only. Last year, we had a good number there. At this time, we let our dealers stabilize and capitalize on their volumes. We are not adding much. We will be in the range of 10 -15 only in Banaskantha, although that is a CNG hub for us. The profit builder also is in Banaskantha, but let the dealer also, seek the taste of higher volume. In remaining two, Namakkal and Trichy, we are accounting more for C OCO location. Unfortunately, land prices and other things are discouraging. Mostly collocated with empty, we are going. We'll be doing around 15-17 stations this year in Namakkal and Trichy, 5 around in Diu & Gir Somnath and only 2 in Fatehgarh.

Okay. Fine. Sir, just one more question related to the NGT aspect in Fatehgarh Sahib. Has it been resolved, and have volume started kicking in? Or how are you looking at the process there as to when the volumes shall ramp up again in Fatehgarh Sahib?

This is something which is bothering everybody. What has happened, NGT has given a February order in the month of late February. But at the same time, I mean, the war also broke out. So, 9th of March, following month only, before things could have taken convictions off, immediately, the supply cut started. Actually, we could not take much advantage of the NGT order by enforcing the Punjab Government or the PPCB, Punjab Pollution Control Board. Because , we were having sufficient supply of 80% At the same time, the current government is undergoing election. I have hopes that they will be aggressive in implementing the NGT order. But even if they don't do, there is a natural growth already happening that side, and we are in a position to add more industries. More industries are coming, which are currently at least the impact of NGT order is so that CTE and CTO, the Consent to Operate and Consent to Establish is not being granted to any newer industries which are not on natural gas. That is an upstarting volume. Once the NGT is fully implemented, we are sure that volume will ramp-up, I mean, nicely.

Okay. Perfect. Thank you, sir. That's all from my side. Thank you.

The next question comes from the line of Mr. Saket Kapoor from Kapoor and Co. Please go-ahead sir. Mr. Saket Kapoor, please go ahead with your question, sir.

The sustainable EBITDA margin, if you could just explain to us , what are the key factors that has actually contributed to these enhanced margin? Whether those factors are in continuity or there was something one-off wherein we have expanded because our EBITDA growth has been several times higher than our revenue growth. Is this primarily due to economies of scale? Could you please elaborate on the key factors driving this improvement in EBITDA?

I can only say you, although you may have missed our clarifications in past questions. But we'd like to say that as you said, our sourcing has been responsible for giving us a better gross margin. Of course, our tight operating cost management has yielded into this kind of PAT, currently, higher EBITDA per SCM. We were just mentioning, the cost of repetition. I would like to say that our sourcing is even for industrial volumes. That is tied up long -term contract for five years, up to 2030. We have got this volume done in April 25 with GSPC and Shell. With that contractual obligation, we enjoy a restricted price. Of course, as per market dynamics and the competitors, we stand in an advantageous position, not only in Q1, Q2, Q3 also. Till such time, the prices have stabilized, and we are not forced to reduce the prices and industry volume doesn't decline because of the higher price consumption, because of the alternate fuel and all such things. Our EBITDA per SCM will continue for at least one or two more quarters. In the meanwhile, the NGT orders have come that will help us to maintain a higher volume growth in the industrial sector. We assume that this year onwards, I mean, this quarter onwards, we should be in a position to give better results QoQ and YoY.

Okay. To conclude , this EBITDA margin closer to 19% is a good sustainable number for the ensuing quarters also. This much understanding we can take home.

We hope and pray, but we can't guarantee 19% always.

Not always, but it is in the bank, sir. From 10-19 is a big number. But to maintain it to 19 or 17, 16 is also a big number. Only one should invest in a model.

The second thing, rest assured that our efforts are on, but 19 may not be a fact or going forward, but it will be better than 19. Somewhere, we will land in between. Figures are very difficult to say at this moment.

Okay. Then pertaining to the opportunity at Namakkal and the efforts done, I think so that tie-up with the Tamil Nadu bus authority also, what exactly are we eyeing as a contribution from the GA going forward? What kind of further CAPEX are anticipated? It will be done for this year?

We have mentioned here just now that CAPEX of INR 150 crore plus will be allocated only for Namakal and Trichy because infra is at the rollout stage, and we'll be meeting that target actually in Namakkal and Trichy that way. With regard to volumes, as you had mentioned that Tamil Nadu State Transport Corporation tie-up has happened. Furthermore, another 50-100 buses they are going to convert into CNG, but they are buying also. 80% buses are new buses, 30% are retrofitted buses. We have opened our dispensing facility in their depot itself. So that then we don't go here and there. We have fast-fueling dispensers we have installed. This volume will go on increasing. You understand that CNG is a profit builder for any of the CNG company, volume builder also, so that will continue. Number two, as regards CAPEX is concerned, CAPEX, will be prerequisite for any future growth. We are trying to aggressively invest the IPO money as well as our ploughed-back profit money also in rollout of higher infrastructure so that more and more domestic and industrial customers are also attracted towards us, besides the CNG s tations. That will also help us making many of our CNG station online in place of currently we are operating through two model. One is daughter booster model. The second is LNG model. Both the models are less profitable than the online station model. Our CAPEX are having multiple aims. One is that our operational cost of supplying feeding gas to all the ROs should be lower. Secondly, infra will help us in expanding the government's push also for more and more domestic connection s and commercial because of LPG's crisis. The commercials are also be lining us for connections. That is another attractive market, which will help us. Of course, industrial, we have yet to catch many potential industries there that side. SIPCOT is one area where the industrial city is there, industrial town is there. We are trying to reach that so that many more customers are feeded through our natural gas. Namakkal and Trichy is our aspirational GA, wherein through CAPEX and our meticulous rollout of the routes, we are trying to build the volume. It may take one or two year time, but that should be one of the pride GA. That is what we can conclude for you.

Right. Two small points. Firstly, on the volume growth. Taking into account how we have done performed on the volume front and the factors that have led to it , where do we see our volume growing in the ensuing part of the financial year? Sir, then in your IRM business and financial update, you mentioned about this successfully completed full conversion of commercial customer base in Diu to PNG, advancing clean energy penetration across the license area. The benefit of this, and how will this be a margin-accretive step? Or if you could explain these two points?

Though, in view, a small Nagoa beach is there. That beach is having more than around 250 commercial installation, hotels, small huts, and the picnic hubs and all that. Now, that Nagoa beach is completely fed by our natural gas because of the compulsion, you can say, that LPG was in scarce supply. Through the creek, we had already reached that island. Everyone is now connected. By the end of July, not a single one will be left, I believe. They are connected, and volume is going to grow replacing entire LPG. This is what is the deal story.

Okay. What is he monthly revenue run rate? Average one?

Overall due? My finance team will precisely tell you, sir.

Yes Sir, Could you also share your outlook on volume growth? What are your expectations regarding volume expansion going forward, and do you anticipate a meaningful increase in volumes?

Volume growth, we expect minimum around 10%. Last year, we clocked 224 MMSCM. We expect that it will be in the range of 250 MMSCM by this year end.

On the volume. On the sourcing part, we have increasing the number of sources and the dependent part so that we have mapped out our sourcing for the remaining part of the year in a meaningful manner.

APM is 21% as you understand. The balance is , as like I said, through New Well Gas 11%. This all makes 33%. HPHT volume, which we have tied up, that is 35% of our total volume. CBG blending also happens to 1%, and long term is 32%. You can appreciate that on a spot, we are hardly forced to arrange our supplies to the extent of only 1%. Almost all is either through IGX or through a preferential allocation APM, HPHT, our portfolio remains very much sound enough. I mean, Namakkal and Trichy, which is not linked to the national grid, we need to depend heavily upon Indian Oil Corporations and no terminal , and slightly to some extent Kerala's Kochi terminal. These two terminals are helping us out for feeding our Namakkal and Trichy growth through liquid. Because gas tap-off is still not in a high potential. GAIL line is coming in IOCs. One more line is hot tapping, I mean, SV station, we have arranged. But all that will take at least one and a half, one year, nine months. That' sort of reason is there. Till such time, some spot volume viewed arranged from Indian oil or from, BPCL or the PLL, these kind of sources from Kochi. That only will go for spot sort of arrangement or short terms, you can call it better. Otherwise, our sourcing portfolio is robust enough to take car e of my ongoing demand. Even the long terms are ramped up in such a manner that, after six months, we have a higher volume tied up, and another after six months, volume tied up, which is matching to the growth which we had anticipated in 2024-25. Things are not out of hand, and the spot reliability is least.

Okay, sir. Thank you for all the elaborate answer. Only through the point of our payment of commission to the promoter, there were also some discussion by the minority shareholder and the shareholder community of whether we are putting any ceiling or whether the promoters are considering the request from shifting from a percentage to an absolute number. Pease do an abreast on how that point is shaping up and what are the thought process on the same going ahead.

First of all, no commission. This is a license fee which has been arranged, well declared in a IPO document also, and that 2% goes to them. It is not sort of profit to any of the promoter s, well declared in IPO document. That is consistently going. As of now, I can't promise you whether this will continue at a reduced rate or same rate or maybe abolished altogether. But in spite, with or without this kind of license fee, we are growing that much, as a management, we can assure you a lot. We can only say that we are committed to my all investors, stakeholders, shareholder for giving better and better performance. This whole year is around INR 20-25 crore which goes to them. You can discount that, which is already accounted for in my PAT this quarter and going forward also. This is already accounted for and discounted for. I should be happy with the PAT at least, tremendous, Saket.

Yes, sir. I'm very positively surprised by our numbers. That is the reason I was trying to incline to get a sense whether, on higher base, are we in a position to even match these performance for the ensuing part of the year? Because that would be a commendable job to contain these numbers going ahead. Then the team has done a remarkable job.

Saket, it'll be highly optimistic to say that same performance, as scale up as in Q1, will be repeated every quarter. But it will be definitely subdued going forward, not up to this extent.

Thank you so much, sir. The

Thank you very much, Akash. I hope that we have been able to answer more clearly, lucidly, frankly, and with full transparency all the questions of the investors. I would like to formally now, based on record, thank you all for joining us today and for the active participation in our Q1 FY27 Earnings Conference Call. On behalf of the entire IRM management team, I would like to express my sincere thanks and gratitude to all our shareholders, investors, analysts, and business partners for their continued trust and support, they have reposed on us time and again. We hope that we have been able to address your key questions and provide cleaner perspective on the IRM's performance. Should you have any other further questions, please feel free to contact us on our Investor Relations Advisor through our Investor Relatio ns Advisor, E&Y, and we will be happy to assist you. Rather, we are also quite often trying to interact all of you. In person, I mean, more than happy to give any sort of clarification. Thanks, you all. Thanks to Krishna, Akash, EY team for the successful conduct of this meeting. Thanks to my team also who has been, shoulder to shoulder working very hard for giving better and better results going forward. Thanks a lot to everybody. *Moderator Thank you so much, sir. Ladies and gentlemen, this concludes your conference for today. On behalf of EY, we thank you for your participation. You may disconnect your lines now. Thank you, and have a pleasant day.