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Indian city gas distribution firms’ operating profit to rise 8-12 pc this fiscal

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New Delhi, Nov 20: City gas distribution (CGD) companies in India are projected to clock an operating profit of Rs 7.2–7.5 per standard cubic metre (scm) this fiscal — up 8-12 per cent compared with the second half of last fiscal when margins dropped because of a sudden and steep decline in gas allocation under the administered price mechanism (APM) for the compressed natural gas (CNG) segment, a report said on Thursday.

Consequently, distributors had to take recourse to the spot gas market for supply, which exerted upward pressure on cost. The companies have, thereafter, transitioned to contracted supplies, which is expected to burnish margins.

“Healthy earnings will keep leverage in check despite the proposed capital expenditure (capex) by companies. Our assessment of seven CGD companies, with 70 per cent share of total sales volume last fiscal, indicates as much,” Crisil Ratings said in its report.

CGD companies get gas on priority at lower prices under the APM from legacy gas fields to serve the domestic CNG and piped natural gas-domestic (PNG-D) segments.

Beyond APM, they procure high-pressure, high-temperature (HPHT) gas and imported regasified liquefied natural gas (R-LNG) under contracted and spot purchase mechanisms.

According to the report, in the second half of the last fiscal, APM gas allocated to the CNG segment was reduced to less than 40 per cent of the total CNG requirement, compared with 70 per cent in the first half of the last fiscal.

This led to a substantial increase in gas procurement costs as companies relied on spot purchases, which were 80-100 per cent more expensive than those under APM prices, to protect against supply disruptions.

As a result, spot purchases by volume rose to more than 15 per cent of total supplies from 5 per cent in the first half of the last fiscal.

“Against the 30 per cent reduction in APM allocation for the CNG segment, CGD companies got 15-20 per cent long-term allocations from domestic new well gas, mainly towards the end of last fiscal or early this fiscal. For the balance, they have signed additional medium- and long-term contracts, mainly for HPHT gas and R-LNG,” said Ankit Hakhu, Director, Crisil Ratings.

This will not only improve gas security but also reduce exposure to the spot market, where prices are 25-30 per cent higher on average, he added.

The report noted that realisations are steady this fiscal, following some increase in the second half of last fiscal when companies implemented price hikes to pass on increased costs to consumers, albeit partially and gradually.

However, some of the benefits of reduced gas procurement costs in the current fiscal year will be offset by an increase in other operating costs. These costs will rise as players continue to incur capex to expand gas infrastructure in existing and new geographical areas (GAs) to support volume growth.

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ED attaches Rs 85.2 crore Kolkata land linked to Unity Infraprojects bank fraud case

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The Enforcement Directorate (ED) has provisionally attached an immovable property spread over approximately 14.51 acres in Kolkata valued at Rs 85.20 crore, in connection with a bank fraud and money laundering case involving M/s Unity Infraprojects Ltd. (UIL) and others, the agency said on Friday.

According to the ED, the attached land, located at Mouza Chakgaria in Kolkata, is held in the name of M/s Suburban Agriculture Dairy & Fisheries Pvt. Ltd. (SADAFPL). The attachment was made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The money laundering investigation stems from an FIR registered by the CBI’s Bank Securities & Fraud Branch in Mumbai on a complaint lodged by the State Bank of India.

The FIR alleges that UIL, in connivance with its promoters, directors and associated entities, defrauded a consortium of 23 banks by availing credit facilities of around Rs 3,200 crore. The total outstanding dues, including interest, are estimated at approximately Rs 3,800 crore.

According to investigators, the fraud involved fictitious transactions, round-tripping of funds, manipulation of financial records, and diversion of funds through shell entities.

The ED said its probe revealed that funds from UIL were routed through its wholly owned subsidiary, Unity Realty & Developers Ltd. (URDL), and subsequently used to acquire and hold assets through associated companies. SADAFPL was identified as a step-down subsidiary of UIL through URDL.

Further investigations established a trail linking the Chakgaria land parcel to funds originating from UIL and its group entities, indicating diversion and layering of proceeds generated from the scheduled offences. The property was attached under Section 5(1) of the PMLA to prevent its transfer or disposal pending confiscation proceedings.

The agency noted that in July 2025 it had conducted searches at residential and commercial premises, as well as bank lockers, linked to UIL, its former directors and their family members. During those operations, movable assets worth Rs 31.21 crore were seized or frozen.

The ED had also attached land parcels and flats valued at about Rs 1,493 crore through three separate provisional attachment orders, all of which were later confirmed by the Adjudicating Authority under the PMLA.

With the latest attachment, the total value of movable and immovable assets attached or frozen in the case has risen to about Rs 1,609 crore, the agency said.

The ED further informed that it filed a prosecution complaint before the Designated Special Court, City Civil and Sessions Court, Greater Bombay, Mumbai, on March 27, 2026.

Further investigation is underway.

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Adani Power Q2 profit jumps 141 pc to Rs 7,019 crore on strong demand

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Adani Power Ltd — India’s largest private thermal power generator — on Friday reported a 141.5 per cent year-on-year jump in consolidated profit after tax (PAT) to Rs 7,019.32 crore for the second quarter of FY27, compared to Rs 2,906.46 crore in Q2FY26.

Total reported revenue rose 39.4 per cent to Rs 19,950.60 crore from Rs 14,307.79 crore a year ago, while reported EBITDA jumped 45.7 per cent to Rs 8,743.22 crore.

On a continuing operations basis, revenue from operations grew 29.8 per cent to Rs 17,014.06 crore, while continuing EBITDA was up 18.5 per cent to Rs 6,320.97 crore.

Apart from that, PAT nearly doubled to Rs 11,885.92 crore from Rs 6,211.59 crore in H1 FY27, while reported revenue rose 36 per cent to Rs 39,272.90 crore.

Commenting on the results, CEO S B Khyalia said, “Adani Power continues to grow from strength to strength, achieving newer milestones in profitability and project execution. The primacy of domestic coal-based power in meeting India’s long-term power needs has become clearer every day.”

On industry trends, the company said India’s power demand grew 11.5 per cent to 502 BU in Q2 FY27, with coal and lignite-based generation accounting for 66 per cent of supply. Peak demand reached 270 GW, up 18 per cent year-on-year.

The company sold 26.4 billion units (BU) in Q2 FY27, up from 23.7 BU a year ago. Plant Load Factor (PLF) improved to 70.1 per cent from 62.8 per cent, while operating capacity stood at 18,150 MW.

Meanwhile, power sales under PPAs grew 29.7 per cent to 23.4 BU, with tariff realisation improving 12.7 per cent to Rs 6.4/kWh.

Merchant and short-term realisation improved 33.1 per cent to Rs 7.2/kWh, though volumes were 43 per cent lower due to incremental tie-ups of open capacity in medium-term contracts.

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Centre expects anti-cancer drug prices to fall 20-70 per cent under proposed trade margin cap

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The Centre has told the Supreme Court that capping trade margins on anti-cancer medicines at 30 per cent of their maximum retail price (MRP) is expected to save patients around Rs 2,500 crore annually, with the proposed measure likely to reduce the MRP of such drugs by 20 to 70 per cent.

In an affidavit filed before the apex court in a pending plea seeking regulation of medicine prices, the Union government, through the Department of Pharmaceuticals, said it had decided to rationalise trade margins on anti-cancer drugs after extensive consultations with stakeholders and an assessment of the potential impact on the availability and affordability of medicines.

The proposed cap was intended to curb excessive trade mark-ups while retaining a reasonable margin for distributors and retailers, adding that an expert committee had been constituted to recommend the list of anti-cancer medicines to which the measure would apply, it said.

The Ministry of Health and Family Welfare constituted the committee on October 9 under the chairmanship of the Director General of Health Services, and it is expected to submit its report within 10 to 15 days.

“The trade margin is to be capped at 30 per cent of the MRP, on the same lines as was done in the TMR of 2019. The objective is to retain a reasonable trade margin while preventing excessive margins,” the affidavit stated.

The Centre said the list would cover drugs approved for the treatment of cancer, except inexpensive medicines, and could be periodically updated in view of market developments and public health considerations.

According to the affidavit, the National Pharmaceutical Pricing Authority (NPPA) would place the committee’s recommendations before its authority for deliberation and appropriate directions, following which it would issue a price notification and instructions to manufacturers to ensure that the benefits were passed on to patients.

The government said the proposed measure was expected to reduce out-of-pocket expenditure for cancer patients, improve affordability and accessibility of medicines, and bring greater transparency to the prices actually paid by consumers.

The affidavit was filed in response to a public interest litigation by Dr Sanjay Kulshrestha, which raises concerns over medicine pricing and the need for effective regulation of trade margins in the pharmaceutical sector.

The Centre maintained that a comprehensive statutory and policy framework was already in place to regulate drug prices, including the Drugs (Prices Control) Order, 2013, and that the government had been taking calibrated steps to address excessive margins without compromising the availability of essential medicines.

The government also referred to its earlier intervention in 2019, when the NPPA imposed a 30 per cent trade margin cap on 42 selected non-scheduled anti-cancer medicines.

According to the affidavit, the measure resulted in a reduction in the MRP of 526 brands and generated annual savings of approximately Rs 984 crore for patients, based on information provided by companies.

The Centre said the earlier intervention provided a policy precedent for extending trade margin rationalisation to a broader range of non-scheduled anti-cancer medicines.

However, it stressed that such interventions required careful consideration of their impact on different stakeholders, including small and medium pharmaceutical manufacturers, distributors and retailers, particularly those operating in remote areas.

The affidavit said some industry associations had expressed concerns that extending the cap could affect employment and medicine distribution in remote regions, given the dependence of smaller manufacturers on local traders and multiple distribution channels.

“Implementation of Trade Margin Rationalisation (hereinafter TMR) affects different stakeholders differently and, hence, requires extensive consultation with all stakeholders and a well-calibrated approach,” the affidavit stated.

The Centre said higher trade margins could sometimes be necessary for low-value medicines, drugs requiring specialised storage or handling, fragile products and medicines with low turnover, as retailers might otherwise find it commercially unviable to stock them.

It added that differences in distribution costs and market conditions had to be taken into account while framing a broader regulatory approach.

The government further referred to measures taken under its extraordinary powers under Paragraph 19 of the DPCO, 2013, including the capping of prices of certain diabetes and cardiovascular medicines, the fixation of ceiling prices for coronary stents and knee implants, and the regulation of trade margins on oxygen concentrators and other medical devices during the Covid-19 pandemic.

It also highlighted initiatives such as the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, which provides generic medicines through around 19,000 Jan Aushadhi Kendras, and AMRIT pharmacies, which offer discounts on essential and life-saving medicines.

The affidavit said the government remained conscious of the need to balance affordability, accessibility and availability while regulating medicine prices.

“The Government has, in the public interest, been taking calibrated and consultative steps, including by invoking its extraordinary powers under Paragraph 19 of the DPCO, 2013, to curb excessive trade margins without compromising the availability of medicines,” it stated.

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