Adani Total Gas Q1 profit drops 18% to ₹133 crore as input costs surge; revenue rises 27%

Adani Total Gas (ATGL) reported an 18% year-on-year (YoY) decline in its standalone net profit to ₹133 crore for the quarter ended June 30, 2026, as higher natural gas procurement costs eroded margins despite robust growth in volumes and revenue. The company had posted a net profit of ₹162 crore in the corresponding quarter last year, it said in an exchange filing.

Revenue from operations rose 27% YoY to ₹1,910 crore from ₹1,500 crore a year ago, driven by a 13% increase in overall sales volume, led by strong growth in compressed natural gas (CNG) demand. Total gas sales stood at 303 MMSCM during the quarter, compared with 267 MMSCM in the year-ago period. CNG sales grew 18% to 218 MMSCM, while piped natural gas (PNG) sales increased 4% to 85 MMSCM.

However, the company's largest expense, cost of natural gas, jumped 39% YoY to ₹1,454 crore from ₹1,049 crore. ATGL attributed the sharp increase to elevated gas procurement costs arising from the prolonged geopolitical tensions in West Asia and the increase in the ceiling price of Administered Price Mechanism (APM) gas.

"During the quarter, APM allocation for the CNG segment reduced to 30% from 36% in the previous quarter, with the balance requirement met through existing contracts and higher-priced spot gas procurement," the company said.

During the quarter under review, gross profit remained largely unchanged at ₹456 crore against ₹450 crore in the corresponding quarter last year. EBITDA declined 7% YoY to ₹281 crore from ₹301 crore, while profit before tax (PBT) fell 19% to ₹178 crore from ₹219 crore.

Despite the pressure on earnings, the company continued to expand its distribution network and customer base during the quarter. It added five new CNG stations, taking the total network to 707 stations, while the number of domestic PNG connections crossed 11.41 lakh after adding over 38,000 households during the quarter. The company also added 392 commercial PNG customers and 56 industrial PNG customers.

Sanjay Pandita, CEO of Adani Total Gas, said the company delivered robust operational growth despite a challenging operating environment marked by elevated gas prices, higher Brent crude prices, currency volatility and geopolitical uncertainties.

"ATGL yet again delivered robust growth in volumes of 13% year-on-year and revenue growth of 27% during Q1 FY27, driven by strong operational performance and increasing consumer preference for cleaner fuels. While these factors exerted pressure on gas sourcing strategy for the CGD industry, our focus remained on ensuring supply continuity, enhancing operational efficiency, safeguarding CNG and PNG consumers from undue risks, and creating long-term value for customers and stakeholders," he said.

The company said it remains focused on sustainable growth through disciplined network expansion, digital enablement and the development of its clean energy ecosystem spanning CNG, PNG and e-mobility.

Ahead of the earnings announcement, shares of Adani Total Gas settled 1.87% lower at ₹699.35 on the BSE, valuing the company at ₹76,915.22 crore.