ATGL net profit rises 3%

Adani Total Gas Ltd (ATGL) reported a 3 per cent year-on-year rise in standalone net profit to Rs 167 crore for the September quarter of FY27 as higher compressed natural gas and piped natural gas sales helped offset a spike in the cost of natural gas.

Revenue from operations jumped 34 per cent to Rs 2,102 crore as the company sold 17 per cent more CNG and 3 per cent more piped cooking gas (PNG), according to a company statement.

“Cost of natural gas increased by 43 per cent in Q2FY27, driven by sustained volume growth, elevated Brent-linked prices, withdrawal of pooled-gas support and the prolonged West Asia crisis,” it said. Natural gas is the raw material for CNG and PNG.

Natural gas costs rose 43 per cent in the September quarter. Average allocation of domestic administered price mechanism (APM) gas for the CNG segment stood at around 25 per cent, with the shortfall met through high-pressure, high-temperature (HPHT) gas, new well gas, contracts and market purchases. The company said its diversified sourcing portfolio and calibrated pricing helped manage input costs and maintain supply reliability. Profit before tax rose 8 per cent to Rs 235 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 12 per cent to Rs 340 crore, the company said.

For the first half of FY27, net profit fell 7 per cent year-on-year to Rs 300 crore, while revenue grew 31 per cent to Rs 3,999 crore. EBITDA rose 3 per cent to Rs 621 crore, even as profit before tax declined 5 per cent to Rs 414 crore. Sales volumes increased 12 per cent year-on-year to 315 million standard cubic metres (MMSCM) in the September quarter and 13 per cent to 618 MMSCM in the first half. Compressed natural gas (CNG) volumes grew 17 per cent in both periods, reaching 223 MMSCM in the quarter and 441 MMSCM in H1.

Piped natural gas (PNG) volumes rose 3 per cent to 92 MMSCM in the quarter and 4 per cent to 177 MMSCM in the first half. The company attributed the performance to sustained CNG demand, deeper PNG penetration and network expansion, despite higher input costs and a challenging operating environment.

“ATGL delivered a strong performance in Q2FY27, with volumes growing 12 per cent and revenue rising 34 per cent year-on-year, supported by sustained CNG demand, deeper PNG penetration and disciplined network expansion,” CEO Sanjay Pandita said.  “This momentum enabled ATGL to achieve strong double-digit EBITDA growth up by 12 per cent YoY,” he added.

Pandita said elevated Brent crude and spot gas prices, currency depreciation and reduced domestic gas allocation added to operating pressures amid the continuing West Asia crisis.

ATGL added 16 CNG stations during the quarter, taking the total to 723 as of September 30. Its steel pipeline network expanded by 318 inch-km to 16,305 inch-km, while domestic PNG connections increased by 39,574 to about 11.81 lakh households. Industrial and commercial PNG connections reached 10,864.

Including its 50:50 joint venture Indian Oil-Adani Gas Pvt Ltd (IOAGPL), the company’s combined CNG and PNG volumes rose 18 per cent year-on-year to 529 MMSCM. Its pan-India network comprised 1,185 CNG stations and more than 14.31 lakh domestic PNG connections. Beyond gas distribution, its e-mobility subsidiary had installed 5,513 electric vehicle charging points across 26 states and union territories and 225 cities, with installed capacity of about 63 MW. Of these, 4,809 charging points were operational.

Its biomass business sold 460 tonnes of compressed biogas in H1FY27 and more than 6,865 tonnes of organic manure.