IGL shares soar over 3% after entering into JV agreement to set up solar plant in Rajasthan; Check details

At around 11:38 am, the stock of IGL was trading 2.89% higher at ₹217.02 per equity share.

The natural gas distributor will form a joint venture (JV) with the state-owned Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) in an equity participation in the ratio of 74:26, the company said in a regulatory filing on Monday evening.

While IGL will hold a 74% stake in the JV, RVUNL will have a 26% shareholding. Furthermore, the solar JV’s board will comprise six directors, which includes four nominated by the former and two by the latter.

IGL’s board of directors had initially approved the formation of the JV in March.

“This is to inform that the board in its meeting held today, i.e., March 29, 2025, has inter alia approved the setting up of a solar plant in the State of Rajasthan through a Joint Venture with M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), with an estimated equity investment of approx. ₹382 crores by IGL,” it had said.

The JV will have an initial paid-up capital of ₹5 lakh, which will be divided into 50,000 equity shares of ₹10 each.

IGL stock performance

Over the week, the shares of the natural gas supplier have risen 2.23%. On a year-to-date basis, the scrip gained 3.73%. It has soared 16.91% over six months.

While the stock hit a year’s low of ₹153.05 on November 21, 2024, it reached a 52-week high of ₹285.18 per equity share a year ago on September 2, 2024.

IGL’s total market capitalisation stands at ₹30,116.83 crore, as of September 2, according to data on the NSE.

Q1 performance

The New Delhi-headquartered firm reported a 10.9% year-on-year (YoY) decline in its consolidated net profit to ₹427.81 crore in the June quarter of the 2025-26 financial year (Q1FY26). During the corresponding period a year ago, its profit stood at ₹480.22 crore.

IGL’s revenue from operations jumped 11.2% YoY to ₹4,326.75 crore during the quarter under review, as against ₹3,887.52 crore in the first quarter of FY25.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹511.75 crore, slipping 12% YoY to ₹511.75 crore in Q1FY26 from ₹581.85 crore in the June quarter of the previous fiscal year.