Adani Total Gas Q1 Revenue Jumps 27% but Profit Drops 14% as Gas Costs Bite
Adani Total Gas, which runs city gas distribution networks supplying CNG to vehicles and piped natural gas to homes and industries, reported its June 2026 quarter results on July 21. Consolidated revenue from operations surged 27% year-on-year to ₹1,906.79 crore, but net profit fell 14% to ₹141.72 crore as higher natural gas costs and rising finance charges squeezed margins. The results show a company delivering strong volume-led growth while grappling with the reality that more than three-fifths of every revenue rupee now goes toward buying gas.
Revenue Growth Stays Strong, but Profitability Takes a Hit
The top line has been on a consistent upward march. Revenue from operations has risen every quarter for eight straight quarters, from ₹1,239.06 crore in Q1 FY25 to ₹1,694.61 crore in Q4 FY26 and now ₹1,906.79 crore in Q1 FY27 . The 27% year-on-year jump is the fastest in at least two years.
However, the cost of natural gas and traded items—the single largest expense—climbed to ₹1,302.51 crore, up 40% from ₹928.37 crore a year ago . As a percentage of revenue, gas costs stood at 68.3% in Q1 FY27, compared with 62.0% in Q1 FY26 and an average of roughly 62.7% through FY26 . This sharp increase reflects lower allocation of cheaper APM gas, higher spot prices driven by geopolitical tensions in West Asia, and a stronger dollar pushing up the cost of imported LNG .
The squeeze flows straight to the bottom line. Consolidated profit before tax came in at ₹186.90 crore, down from ₹222.29 crore a year earlier. Net profit dropped to ₹141.72 crore from ₹165.24 crore . Earnings per share slipped to ₹1.29 from ₹1.50.
| Metric (Consolidated, ₹ crore) | Q1 FY27 | Q4 FY26 | Q1 FY26 | YoY Change |
|---|---|---|---|---|
| Revenue from operations | 1,906.79 | 1,694.61 | 1,498.32 | +27.3% |
| Cost of natural gas & traded items | 1,302.51 | 1,064.10 | 928.37 | +40.3% |
| Finance costs | 39.10 | 34.91 | 27.60 | +41.7% |
| Profit before tax | 186.90 | 226.92 | 222.29 | -15.9% |
| Net profit | 141.72 | 168.34 | 165.24 | -14.2% |
Finance costs have also risen sharply—up 42% year-on-year to ₹39.10 crore—as total borrowings expanded to ₹2,168.12 crore at the end of FY26 from ₹1,834.10 crore a year earlier, with short-term debt more than doubling to ₹571.43 crore .
Volume Growth Remains the Bright Spot
The company does not disclose absolute volume figures in its quarterly financial statements, but management commentary from recent quarters paints a picture of robust demand. In the April 2026 investor presentation, ATGL reported standalone sales volumes of 1,133 MMSCM for FY26, up 14% year-on-year, with CNG volumes growing 18% to 782 MMSCM . The Q4 FY26 earnings call noted CNG volume growth of 17% year-on-year for the quarter and 18% for the full year, while PNG volumes rose 5% and 6% respectively .
New geographical areas are becoming a larger part of the mix. Volumes from new GAs grew 32% in FY26, and their share of total volumes improved to 38% from 32% in FY25 . Management has consistently said its strategy is to widen the consumer base first and let profitability follow, describing a "consumer first" philosophy where gas cost increases are passed through only partially to protect demand .
The infrastructure build-out continues. The company added 58 CNG stations in FY26, taking the total to 705, along with 1,800 inch-km of steel pipeline and 1.37 lakh new domestic PNG connections . The joint venture with Indian Oil—IOAGPL—adds another 464 CNG stations and over 2.1 lakh PNG home connections to the consolidated network .
Management Sees ₹1,500 Crore EBITDA in FY27
On the Q4 FY26 earnings call, interim CFO Preyash Jhaveri guided for FY27 EBITDA of around ₹1,500 crore, which would represent roughly 22% growth over the ₹1,225 crore reported for FY26 . The company expects revenue growth to continue at a pace similar to FY26, with newer GAs potentially contributing more .
This optimism rests on a diversified gas sourcing strategy. The company has shifted part of its Henry Hub-linked LNG volumes to Brent-linked contracts and spot purchases to mitigate price spikes, and it holds a portfolio spanning APM gas, new well gas, HPHT gas, RLNG, and spot procurement . The PNGRB's move to a simplified two-zone transmission tariff, which applies a lower zone-1 tariff to CNG and domestic PNG, has also helped contain costs for roughly 70% of ATGL's volumes .
E-Mobility Scales Past 5,000 Charge Points
The wholly owned subsidiary Adani TotalEnergies E-Mobility Limited ended FY26 with 5,100 installed EV charge points across 26 states and 226 cities, supported by 54 MW of installed capacity . The company added 1,699 charge points during the year and says it remains on track toward a target of 10,000 points, with increasing focus on B2B clients to improve utilisation .
US Legal Matter Nears Resolution, No Financial Impact
The company's Q1 FY27 results note that the US SEC filed for a final judgment against a non-executive director on May 15, 2026, with the director consenting to pay civil monetary penalties without admitting or denying allegations. The US Department of Justice separately moved to dismiss its criminal indictment against the same director with prejudice on May 18, 2026. Both steps are pending court approval . ATGL has consistently stated it is not named in any of these proceedings and that there is no financial impact on the company .
Pending GA Acquisitions Remain Unresolved
The company's long-pending acquisition of three geographical areas—Ludhiana, Jalandhar, and Kutch (East)—signed in November 2020, remains unconsummated. While the PNGRB transferred the authorisation for Jalandhar to ATGL during FY25, the overall transaction is yet to close . The company has not provided a timeline for completion.
---