Adani Total Gas Reports 19% Revenue Growth Despite 9% Profit Decline in Q2 FY26

Adani Total Gas Ltd, the joint venture between Adani Group and France's TotalEnergies, reported a 9% decline in its September quarter net profit due to increasing input gas prices.

The company's net profit fell to Rs 162 crore during July-September, the second quarter of fiscal year 2025-26, compared to Rs 178 crore in the corresponding period last year, according to a company statement.

Gas costs increased by 26% during the quarter as ATGL had to supplement lower allocation of below-market priced APM gas with more expensive alternatives. This situation arose from declining production from state-owned ONGC's legacy fields, forcing city gas retailers like ATGL to source pricier gas from difficult fields and imported LNG.

The company implemented a strategic approach in transferring higher costs to consumers, choosing not to pass on the entire input price increase. Despite this challenge, revenue from operations grew by 19% to Rs 1,569 crore.

ATGL achieved significant volume growth, selling 18% more CNG at 191 million standard cubic meters and 11% more piped natural gas at 89 mmscm during the quarter.

Suresh P Manglani, CEO of ATGL, highlighted the company's performance: "Team ATGL has yet again delivered an impressive set of numbers with volume growth of 16%, revenue growth of 20% on YoY basis, and EBIDTA at Rs 603 crore despite combined APM and new well gas supplies moderating down to 59% in first half of FY26 from 70% in H1FY25 and US dollar further appreciating by 4% against Indian rupee resulting to an increase in the gas cost."

The company reached a milestone of over 1 million piped cooking gas connections and expanded its CNG station network to 662 locations.

Manglani emphasized that their focus on digitalization across project management, operational excellence, and value optimization has contributed to improved physical and financial outcomes. He also noted that while they are monitoring APM gas allocation for the CNG segment, their diversified gas sourcing portfolio enables them to maintain a calibrated pricing approach with consumer interests as a priority.

ATGL currently holds city gas licenses for 34 Geographical Areas, with additional licenses for 19 GAs through a joint venture with Indian Oil Corporation called Indian Oil-Adani Gas Private Limited (IOAGPL).