Indraprastha Gas Ltd (IGL) has signed a joint venture agreement with CEID Consultants & Engineering Pvt Ltd to establish and operate compressed biofuel and compressed biogas (CBG) projects. The company announced the development in a filing to the stock exchanges.
Under the agreement, both partners will hold an equal 50% stake in the newly created entity. The JV’s board will initially consist of four directors — two nominated by IGL and two by CEID. The arrangement does not constitute a related-party transaction and grants no special rights to either partner beyond equal ownership.
Strategic Expansion into Renewable Energy
The joint venture is part of IGL’s broader diversification strategy as the company increases its focus on clean-energy infrastructure. The new platform is expected to support India’s growing push toward sustainable fuel alternatives by building and operating biofuel assets.
Market Reaction to the Announcement
Ahead of the disclosure, shares of IGL closed 2.4% lower at ₹194.20 on Tuesday. The announcement came after market hours.
Financial Performance in Q2
IGL recently reported a 4.5% sequential increase in net profit for the second quarter, reaching ₹372 crore. This growth was driven by steady demand despite pressures from rising input costs.
Quarterly revenue rose 2.8% quarter-on-quarter to ₹4,022 crore. However, EBITDA declined to ₹442 crore, with margins narrowing to 11%, reflecting the impact of higher expenses.
