- Volume growth stays in the fast lane at 13% despite West Asia crisis and elevated gas prices
- CNG volumes jump 18% as cleaner-fuel adoption powers demand across expanding network
- ATGL adds five CNG stations, takes network to 707; PNG household connections cross 11.41 lakh
- EV charging footprint expands to 5,306 points across 26 states/UTs and 226 cities
- Pan-India footprint with IOAGPL touches 1,167 CNG stations and 13.75 lakh PNG households
- CareEdge and CRISIL ESG scores improve to 84 and 66, reinforcing ATGL’s sustainability credentials
NE BUSINESS BUREAU
AHMEDABAD, JULY 22
When geopolitical turbulence sent gas costs higher, Adani Total Gas Ltd (ATGL) chose not to slam the brakes on growth. It kept the fuel flowing, customers connected and its clean-energy expansion moving — delivering a 13% rise in volumes and a 27% jump in revenue in Q1FY27.
Adani Total Gas Ltd, one of India’s largest city gas distribution companies, reported a strong operational and revenue performance for the quarter ended June 30, 2026, even as the West Asia crisis, elevated Brent-linked gas prices, rupee depreciation and higher spot LNG costs created significant pressure on input costs.
ATGL’s revenue increased 27% year-on-year to ₹1,910 crore, supported by robust volume growth. Combined CNG and PNG sales rose 13% to 303 MMSCM from 267 MMSCM in Q1FY26.
However, the sharp increase in gas procurement costs squeezed profitability. The cost of natural gas rose 39% YoY to ₹1,454 crore, while standalone EBITDA declined 7% to ₹281 crore and PAT fell 18% to ₹133 crore.
The quarter thus presented a classic energy-sector balancing act: ATGL expanded volumes, infrastructure and its clean-energy ecosystem while absorbing a substantial part of the cost shock to protect consumer demand.
“ATGL yet again, delivered robust growth in volumes up by 13% YoY and revenue up by 27% during Q1 FY27, driven by strong operational performance, and increasing consumer preference for cleaner fuels.
The operating environment remained dynamic, with elevated gas prices, higher Brent crude prices, compounded by currency volatility, and geopolitical developments negatively impacting global energy supplies. While these factors exerted pressure on gas sourcing strategy for CGD Industry, our focus remained ensuring supply continuity, enhancing operational efficiency, safeguarding CNG and PNG consumers from undue risks and creating long-term value for customers and stakeholders.
We continue to focus on sustainable growth, through disciplined network expansion, digital enablement, and the development of our clean energy ecosystem across CNG, PNG, and e-mobility,” said Sanjay Pandita, CEO, ATGL.
CNG LEADS THE VOLUME CHARGE
CNG emerged as the primary growth engine during the quarter. CNG sales volume increased 18% YoY to 218 MMSCM from 185 MMSCM, supported by network expansion and higher throughput across multiple geographical areas.
PNG volumes also grew 4% to 85 MMSCM despite the challenging geopolitical environment, supported by sustained demand from domestic and commercial consumers.
Overall sales volume increased 13% YoY to 303 MMSCM.
ATGL added five CNG stations during the quarter, taking its standalone network to 707 stations. Its steel pipeline network reached 15,987 inch-km after the addition of 415 inch-km.
The company added 38,243 domestic PNG connections, taking the total to 11,41,108 households. Commercial PNG connections increased to 7,277, while industrial connections reached 3,145.
THE COST STORM BEHIND THE PROFIT PRESSURE
The West Asia crisis had a direct impact on gas sourcing economics during Q1FY27. Elevated crude prices pushed up Brent-linked gas costs across New Well Gas, RLNG and spot LNG.
The increase in the APM gas price ceiling, coupled with currency depreciation, further raised procurement costs.
The cost of natural gas increased 39% YoY to ₹1,454 crore from ₹1,049 crore.
ATGL also faced a reduction in APM allocation for the CNG segment to around 30% from 36% in the previous quarter. The shortfall was met through existing contracts and higher-priced spot procurement.
The company adopted a calibrated approach to passing on the higher gas cost to consumers, prioritising volume growth and continuity of supply.
Timely interventions by the Government of India, including facilitation of continuous gas supply and waiver of imbalance and system disciplinary charges, along with faster statutory permissions from state governments, provided support to the industry.
REVENUE RISES, MARGINS ABSORB THE SHOCK
ATGL’s standalone revenue from operations rose 27% to ₹1,910 crore from ₹1,500 crore in Q1FY26.
Gross profit remained broadly stable at ₹456 crore compared with ₹450 crore a year ago.
EBITDA stood at ₹281 crore against ₹301 crore in Q1FY26, while profit before tax stood at ₹178 crore compared with ₹219 crore.
PAT stood at ₹133 crore against ₹162 crore in the year-ago quarter.
On a consolidated basis, EBITDA stood at ₹293 crore and PAT at ₹142 crore.
PAN-INDIA CLEAN-FUEL FOOTPRINT CONTINUES TO EXPAND
Including its joint venture IOAGPL, ATGL’s pan-India footprint continued to scale up.
Combined CNG and PNG volume rose 13% YoY to 496 MMSCM.
The combined CNG station network expanded to 1,167 stations, while PNG household connections crossed 13.75 lakh, enabling the company to serve more than six million people every day.
Industrial and commercial connections increased to 12,326, while the cumulative steel pipeline network reached 28,675 inch-km.
The expansion reinforces ATGL’s strategy of building a diversified energy infrastructure platform across existing and new geographical areas.
EV CHARGING, BIOMASS ADD NEW ENERGY DIMENSIONS
Adani TotalEnergies E-mobility Ltd (ATEL) expanded its footprint to 5,306 installed EV charging points across 26 states and Union Territories and 226 cities.
Its installed charging capacity increased to approximately 58 MW.
Adani TotalEnergies Biomass Ltd (ATBL) sold 323 MT of compressed biogas during Q1FY27 through dedicated CBG stations and third-party channels.
FOM sales stood at 5,533 tonnes, of which 760 tonnes were sold through the Harit Amrit brand, registering eight-fold YoY growth.
Harit Amrit also launched organic fertiliser products for the nursery segment in 1-kg and 5-kg packs.
ESG SCORECARD GETS A FURTHER LIFT
ATGL continued to strengthen its ESG performance.
CareEdge and CRISIL scores improved to 84 and 66, respectively, from 83 and 61.
The improved ratings place ATGL among the best-performing companies within its peer group and underline the company’s efforts to strengthen its sustainability, governance and responsible-growth framework.
With CNG and PNG volumes rising, infrastructure continuing to expand and new energy businesses gaining scale, ATGL is building a multi-engine growth model — even as it navigates an increasingly volatile global gas market.
