Adani Total Gas reported a modest rise in March quarter earnings, with profit growth supported by higher volumes, even as margins came under pressure due to elevated gas costs.

The company reported a consolidated net profit of ₹168 crore for Q4 FY26, up 8.9% year-on-year from ₹155 crore.

Revenue from operations rose 16.6% to ₹1,695 crore, driven by volume growth across both compressed natural gas (CNG) and piped natural gas (PNG) segments.

Operationally, volumes grew 13% year-on-year to 297 MMSCM, supported by expansion in the company’s distribution network.

Margins decline on higher gas costs

EBITDA for the quarter rose 13% to ₹301 crore, broadly in line with revenue growth. However, margins slipped to 17.76% from 18.32% a year ago, reflecting cost pressures.

The company flagged a sharp rise in input costs, with natural gas expenses increasing 18% year-on-year, driven by higher spot LNG prices and lower allocation of cheaper domestic gas.

During the quarter, APM gas allocation for the CNG segment declined to around 36% from 41% in the previous quarter, forcing the company to rely more on expensive market-linked gas.

Management commentary

CEO and Executive Director Suresh P. Manglani said the company navigated a challenging cost environment while maintaining growth.

“Despite geopolitical disruptions from West Asia, elevated LNG prices, and currency volatility, our nimble and diversified sourcing strategy ensured uninterrupted gas supply,” he said.

The management also added that the company maintained a calibrated pricing approach.

“ATGL took a calibrated approach in passing the higher gas cost to ensure volume growth does not get impacted.”

Infrastructure expansion continues

During the quarter, the company continued to scale its network:

• CNG stations increased to 705

The company also commissioned additional infrastructure, including city gas stations and LNG facilities, strengthening its footprint across geographical areas.

Dividend announcement

The board recommended a final dividend of ₹0.25 per share for FY26, with June 12 set as the record date. The payout, if approved, will be made on or after June 26.

Shares of Adani Total Gas ended 1.46% higher at ₹636 apiece on the NSE on Monday. The stock has gained about 3.1% over the past year, slightly outperforming the benchmark Nifty 50 index, which has risen nearly 1% during the same period.