Prabhudas Lilladher Recommends Accumulate on Indraprastha Gas; Target Rs 191

• Prabhudas Lilladher upgrades Indraprastha Gas (IGL) to "Accumulate" from "Hold" due to improving CNG volume growth and a better valuation opportunity.
• Total volumes for IGL grew 1.2% QoQ and 3.5% YoY, with EBITDA/scm improving to Rs5.4/scm.
• Adjusted EBITDA/scm stood at Rs5.8/scm in Q3FY26, despite a one-time labor provision.
• IGL expects DTC volumes to reach zero by March 2026, with normalized CNG volume growth from Q3FY27.
• The firm maintains a volume guidance of 10mmscmd for Q4FY26 and an annual 1mmscmd addition for FY27E–FY28E, leading to a revised target price of Rs191.