New Delhi, June 10 -- Mahanagar Gas Ltd (MGL) just got some cushion amid the falling share of cheaper administeredprice mechanism (APM) gas in its overall sourcing mix. Three things should help here: increase in price of compressed natural gas (CNG) and domestic piped natural gas, sustained volume growth, and lower crude oil prices.

MGL's cost of gas jumped in FY25 as the share of APM gas dropped to 56% from 70% in FY24. Thus, its Ebitdaper scm (standard cubic meter) fell sharply to Rs.10.2 from Rs.13.9 in FY24.At its recent investor meet, the city gas distributor guided for 10%+ volume growth over the next 2-3 years, along with Ebitda of Rs.9-11 per scm despite lower APM allocation, down to 39% in FY26 so far. Ebitda is short for earnin...