Adani Total Gas Reports 6% Rise in Q2 Net Profit as Revenue Grows

Adani Total Gas Ltd (ATGL), backed by the Adani Group and France’s TotalEnergies, has reported its financial results for the second quarter of FY27, posting a six per cent year-on-year increase in consolidated net profit to ₹173 crore.

During the July-September quarter, revenue from operations rose 34 per cent to ₹2,110 crore. This growth was driven by a 12 per cent year-on-year increase in total gas sales volumes, which reached 315 million standard cubic metres (MMSCM). Compressed natural gas (CNG) volumes increased by 17 per cent to 223 MMSCM, while piped natural gas (PNG) volumes grew by three per cent to 92 MMSCM.

The company continued to expand its physical footprint during the quarter. ATGL added 16 CNG stations, bringing its total network to 723 stations. Its domestic PNG connections expanded by nearly 40,000 to reach approximately 11.81 lakh households. The steel pipeline network also grew by 318 inch-km, reaching 16,305 inch-km.

Despite the revenue and volume growth, profitability faced pressure from higher input costs. The cost of natural gas increased by 43 per cent year-on-year during the quarter. The company attributed this to elevated Brent-linked and spot gas prices, the withdrawal of pooled-gas support, and the ongoing West Asia crisis. To manage these pressures, ATGL utilized a diversified sourcing portfolio and calibrated pricing.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter rose 12 per cent year-on-year to ₹340 crore. Alongside its core gas distribution business, ATGL is developing its clean energy portfolio. Its electric vehicle charging network expanded to 5,513 installed charge points across 26 States and Union Territories and 225 cities, while the company reported sales of 460 tonnes of compressed biogas during the first half of FY27.

ATGL operates city gas distribution networks across 34 geographical areas, alongside another 19 areas managed through its joint venture with Indian Oil Corporation, Indian Oil-Adani Gas Private Ltd.

In leadership updates, the company announced that Chief Executive Officer Sanjay Pandita will take over as Executive Director and CEO from November 1 for a three-year term. He succeeds Suresh P Manglani, who is stepping down upon superannuation after the close of business on October 31. Pandita brings over 25 years of experience in the energy sector, including roles at Reliance Industries/Jio-bp, Mahanagar Gas, Gujarat Gas, and Nayara Energy.

Following the financial results and announcements, ATGL shares closed 1.06 per cent lower at ₹553.3 apiece on the BSE on Thursday.

"Adani Total Gas demonstrates steady operational growth despite facing significant headwinds from rising natural gas input costs and geopolitical pressures. The 34 per cent rise in revenue and consistent volume growth indicate strong underlying demand for both CNG and PNG segments. Furthermore, the company's active diversification into electric mobility and compressed biogas, alongside a smooth leadership transition, positions it well to navigate the evolving energy landscape while managing cost sensitivities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes