Shares of Mahanagar Gas and Indraprastha Gas fell up to 15% after the government cut gas supply to city gas distributors by 20% for the second month in a row.
Analysts predict higher gas costs of ₹2–6 per scm, which may reduce profits sharply. Nuvama Equities downgraded IGL and MGL to "Reduce," cutting their target prices to ₹369 and ₹1,164. Earnings for gas companies could drop by up to 104% if no price hikes are made to cover rising costs.