Revenue Surges Amid Higher Natural Gas Sales

Adani Total Gas Ltd (ATGL) has reported a 3 per cent year-on-year rise in its standalone net profit, touching Rs 167 crore for the September quarter of FY27. The company's bottom line was bolstered by higher sales volumes in both compressed natural gas (CNG) and piped natural gas (PNG), which helped offset a significant spike in raw material expenses.

According to an official company statement, revenue from operations jumped 34 per cent during the quarter to Rs 2,102 crore. The financial growth was underpinned by a 17 per cent increase in CNG sales and a 3 per cent rise in piped cooking gas demand.

Navigating Rising Input Pressures

ATGL noted that the cost of natural gas surged by 43 per cent in Q2FY27. The upward pressure on input costs was driven by sustained volume growth, elevated Brent-linked global prices, the withdrawal of pooled-gas support, and prolonged geopolitical supply disruptions stemming from the West Asia crisis.

During the quarter, the average allocation of domestic administered price mechanism (APM) gas for the CNG segment stood at approximately 25 per cent. The resulting shortfall was successfully mitigated through high-pressure, high-temperature (HPHT) gas, new well gas, alternative market contracts, and spot purchases.

Commenting on the operational performance, ATGL CEO Sanjay Pandita said, "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."

"This momentum enabled ATGL to achieve strong double-digit EBITDA growth up by 12 per cent YoY," Pandita added, highlighting that the company's diversified sourcing portfolio and calibrated pricing strategies played a vital role in maintaining supply reliability.

Financial Highlights and Half-Year Review

For the quarter ending September 30: - Profit Before Tax (PBT): Rose 8 per cent to Rs 235 crore. - EBITDA: Increased 12 per cent to Rs 340 crore. - Overall Sales Volumes: Grew 12 per cent year-on-year to 315 million standard cubic metres (MMSCM).

For the first half (H1) of FY27, however, the company posted a 7 per cent decline in net profit to Rs 300 crore, while revenue expanded 31 per cent to Rs 3,999 crore. EBITDA for the six-month period registered a modest 3 per cent increase to Rs 621 crore, with PBT dipping 5 per cent to Rs 414 crore.

Infrastructure Expansion Continues

Despite a challenging operating environment marked by currency depreciation and reduced domestic gas allocations, ATGL continued to expand its urban gas distribution footprint.

The company added 16 new CNG stations during the quarter, bringing its nationwide total to 723 as of September 30. Its steel pipeline network extended by 318 inch-km to reach 16,305 inch-km. Furthermore, domestic PNG connections grew by 39,574 to total approximately 11.81 lakh households, alongside 10,864 industrial and commercial connections.

When including its 50:50 joint venture, Indian Oil-Adani Gas Pvt Ltd (IOAGPL), the combined pan-India network expanded to 1,185 CNG stations, with total combined volumes rising 18 per cent year-on-year to 529 MMSCM.