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Business
Nomura picks top beneficiary of new APM incentive among MGL, IGL and Gujarat Gas
✍️ IndiaIPO
🗓 22 Aug 2026, 04:37 AM
👁 5
Research house Nomura has identified one of the three listed gas distributors – MGL, IGL or Gujarat Gas – as the biggest winner from the newly announced APM incentive.
The securities firm Nomura released a note analysing the impact of the recently announced APM (Additional Performance Metric) incentive on India's listed gas distributors. The incentive, introduced by regulators to boost distribution efficiency, is expected to improve earnings for companies that meet higher service standards.
Nomura compared the three major players – Mahanagar Gas Limited (MGL), Indraprastha Gas Limited (IGL) and Gujarat Gas – on parameters such as network coverage, tariff structures and projected cash flows under the new scheme.
Based on its assessment, Nomura singled out one company as the clear front‑runner, citing its stronger exposure to the incentive‑eligible segments and a more robust balance sheet. The analyst team expects the selected stock to outperform peers as the APM framework rolls out.
Market participants have taken note, with the chosen stock seeing modest buying pressure in early trading, while the other two firms remain under observation for future performance.
The recommendation underscores Nomura's confidence in the APM policy's ability to create differentiated winners among gas distributors, a sector that plays a critical role in India's urban energy supply.
Nomura compared the three major players – Mahanagar Gas Limited (MGL), Indraprastha Gas Limited (IGL) and Gujarat Gas – on parameters such as network coverage, tariff structures and projected cash flows under the new scheme.
Based on its assessment, Nomura singled out one company as the clear front‑runner, citing its stronger exposure to the incentive‑eligible segments and a more robust balance sheet. The analyst team expects the selected stock to outperform peers as the APM framework rolls out.
Market participants have taken note, with the chosen stock seeing modest buying pressure in early trading, while the other two firms remain under observation for future performance.
The recommendation underscores Nomura's confidence in the APM policy's ability to create differentiated winners among gas distributors, a sector that plays a critical role in India's urban energy supply.