Quarterly Financial Results
Adani Total Gas Q1 FY27 Results: Revenue Rises 27% YoY, Volume Growth Remains Strong Despite Higher Gas Costs
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- Adani Total Gas Limited (ATGL) reported a resilient operational performance for Q1 FY27 despite a challenging macro environment marked by elevated global gas prices and geopolitical disruptions.
- Revenue from operations increased 27% year-on-year to ₹1,910 crore, supported by a 13% increase in gas sales volumes.
- However, significantly higher gas procurement costs compressed profitability, resulting in lower EBITDA and PAT compared to the corresponding quarter last year.
- Meanwhile, the company continued expanding its city gas distribution (CGD) network, EV charging infrastructure, and biomass business, reinforcing its long-term growth strategy.
PRICE-SENSITIVE TRIGGER
Event: Adani Total Gas announced its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026 along with the investor presentation highlighting operational, financial and infrastructure expansion during Q1 FY27.
Type: Quarterly Financial Results
Impact: Neutral
Immediate Effect: The quarter demonstrated continued demand growth across the company’s CGD business with double-digit volume expansion and network additions. However, rising gas procurement costs due to higher LNG prices, an increase in the APM gas price ceiling, lower domestic gas allocation and currency depreciation weighed on operating profitability, partially offsetting the benefits of higher revenue.
Metrics:
Key Financial Metrics (Standalone):
- Revenue: ₹1,910 crore (+27% YoY)
- Cost of Natural Gas: ₹1,454 crore (+39% YoY)
- Gross Profit: ₹456 crore (+1% YoY)
- EBITDA: ₹281 crore (-7% YoY)
- EBITDA Margin: 14.7% (vs. 20.1% in Q1 FY26)
- Profit Before Tax (PBT): ₹178 crore (-19% YoY)
- Profit After Tax (PAT): ₹133 crore (-18% YoY)
- Cash Profit: ₹204 crore
Consolidated Financial Highlights:
- Consolidated EBITDA: ₹283 crore
- Consolidated PAT: ₹142 crore
Operational Metrics:
- Total Gas Sales Volume: 303 MMSCM (+13% YoY)
- CNG Sales: 218 MMSCM (+18% YoY)
- PNG Sales: 85 MMSCM (+4% YoY)
Network Expansion:
- CNG Stations: 707 (5 stations added during the quarter)
- PNG Domestic Connections: 11.41 lakh (38,243 new households added)
- Industrial & Commercial PNG Connections: 10,422 (448 new customers added)
- Steel Pipeline Network: 15,987 Inch-Km (415 Inch-Km added)
New Energy Business:
- EV Charging Points: 5,306 across 26 States/UTs and 226 cities
- Installed EV Charging Capacity: ~58 MW
- Compressed Biogas (CBG) Sales: 323 MT during Q1 FY27
- Organic Fertiliser (FOM) Sales: 5,533 tonnes
Highlight:
- Despite a 39% increase in natural gas procurement costs, ATGL maintained double-digit volume growth of 13% and expanded its nationwide clean energy infrastructure across CNG, PNG, EV charging and biomass businesses.
What Happened ?
Adani Total Gas began FY27 with another quarter of healthy operational growth, driven primarily by increasing adoption of cleaner fuels and continued expansion of its city gas distribution infrastructure.
Revenue grew 27% year-on-year as higher CNG consumption and expanding customer additions supported volume growth across the network. Total gas sales increased to 303 MMSCM, with CNG volumes growing 18%, significantly outpacing PNG growth of 4%. The company continued adding new CNG stations, residential PNG households, industrial customers and pipeline infrastructure during the quarter.
However, profitability came under pressure due to external factors rather than operational weakness. The continuing geopolitical tensions in West Asia pushed Brent crude prices higher, increasing the cost of LNG imports. Simultaneously, the increase in the APM gas price ceiling, reduction in domestic APM gas allocation for the CNG segment from around 36% to nearly 30%, and depreciation of the Indian Rupee collectively resulted in a 39% year-on-year increase in natural gas procurement costs.
Instead of passing the entire increase on to customers, ATGL adopted a calibrated pricing strategy aimed at protecting demand and sustaining long-term customer growth. While this approach supported volume expansion and customer retention, it reduced EBITDA and profit margins during the quarter.
Beyond its core CGD business, the company continued strengthening its clean energy ecosystem. The EV charging network expanded to more than 5,300 charging points across India, while the biomass business recorded higher compressed biogas (CBG) and organic fertiliser sales. ESG performance also improved with upgraded ratings from both CareEdge and CRISIL, reflecting continued progress on sustainability initiatives.
key details
Business & Operational Highlights:
Adani Total Gas continued expanding its city gas distribution (CGD) infrastructure during Q1 FY27 while strengthening its presence in adjacent clean energy businesses such as electric vehicle charging and compressed biogas (CBG). Despite a volatile energy pricing environment, the company maintained network expansion and customer acquisition across multiple business segments.
City Gas Distribution (CGD):
Infrastructure Expansion
- Expanded the CNG network to 707 stations, adding 5 new stations during the quarter.
- Steel pipeline network increased to 15,987 Inch-Km, with 415 Inch-Km commissioned during Q1 FY27.
- Domestic PNG connections reached approximately 11.41 lakh households, adding 38,243 new homes.
- Industrial and Commercial PNG customer base increased to 10,422, with 448 new customer additions.
Volume Performance:
Demand remained healthy despite elevated fuel prices.
- Total gas sales volume increased 13% YoY to 303 MMSCM.
- CNG sales rose 18% YoY, driven by higher throughput across multiple geographical areas and network expansion.
- PNG sales increased 4% YoY, supported by growth in domestic and commercial consumption despite geopolitical challenges affecting global gas markets.
Clean Energy Business:
ATGL continued investing beyond traditional CGD operations.
- E-Mobility
- EV charging network expanded to 5,306 charging points.
- Operations now cover 26 States/UTs and 226 cities.
- Installed charging capacity increased to approximately 58 MW.
- Biomass Business
- Sold 323 MT of Compressed Biogas (CBG) during Q1 FY27.
- Organic fertilizer (FOM) sales reached 5,533 tonnes.
- “Harit Amrit” organic fertilizer recorded nearly 8x YoY growth.
- Introduced new retail fertilizer packs for the nursery segment.
ESG Progress:
The company reported continued improvement in sustainability performance.
- CareEdge ESG score improved to 84.
- CRISIL ESG score improved to 66.
- Both upgrades place ATGL among the better-performing companies within its peer group.
Operational Note:
Management highlighted that Q1 FY27 remained challenging because of:
- Elevated Brent crude prices.
- Continuing geopolitical tensions in West Asia.
- Increase in the APM gas price ceiling.
- Depreciation of the Indian Rupee.
- Reduction in domestic APM gas allocation for the CNG segment.
Despite these headwinds, the company maintained uninterrupted gas supply through diversified sourcing and operational efficiency measures while avoiding significant disruption to consumers.
Risk Analysis
Summary:
- ATGL continues to demonstrate healthy demand growth and infrastructure expansion. However, profitability remains sensitive to fluctuations in global gas prices, domestic gas allocation policies and foreign exchange movements, all of which influenced earnings during Q1 FY27.
Key Risks:
- Higher gas procurement costs following a 39% YoY increase.
- Reduced domestic APM gas allocation requiring greater dependence on higher-cost LNG procurement.
- Brent crude price volatility directly affecting LNG-linked gas costs.
- Currency depreciation increasing imported gas expenses.
- Margin pressure if higher input costs cannot be fully passed on to customers.
- Geopolitical disruptions affecting global energy supply chains.
- Continued capital expenditure requirements for expanding CGD, EV charging and biomass infrastructure.
Worst Case:
- If geopolitical tensions continue to elevate global gas prices while domestic gas availability remains constrained, ATGL could face prolonged margin pressure despite healthy volume growth. Delays in cost recovery through pricing could further impact profitability until procurement costs normalize.
Risk Level: Medium
Company Commentary
Management emphasized that the company’s priority remains balancing growth with affordability while expanding India’s clean energy ecosystem.
Key management commentary includes:
- ATGL delivered 13% volume growth and 27% revenue growth despite a difficult operating environment.
- Operational focus remained on ensuring uninterrupted gas supply and protecting customers from excessive price volatility.
- Continued investment in network expansion, digital enablement and customer experience.
- Long-term growth strategy remains centred on expanding the City Gas Distribution network while scaling e-mobility and biomass businesses.
- The company aims to strengthen India’s transition toward cleaner fuels through sustained infrastructure development and operational excellence.
Official Exchange Filing: Adani Total Gas Limited
