Adani Total Gas Reports 34% Revenue Growth in Q2 as Gas Costs Rise
Adani Total Gas Limited (ATGL) reported a 34% year-on-year rise in revenue for the second quarter of the 2026-27 financial year, reaching ₹2,102 crore, as sales volumes increased and demand for compressed natural gas (CNG) remained strong. However, higher gas costs affected profits for the first half of the financial year, with profit after tax falling 7% to ₹300 crore.
The Ahmedabad-based company announced its results on 22 October 2026 for the quarter and half-year ended 30 September 2026. Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12% to ₹340 crore in the July-September quarter. For the first six months, EBITDA increased by 3% to ₹621 crore.
Sales volumes grew 12% year on year in the second quarter to 315 million standard cubic metres (MMSCM). For the April-September period, volumes rose 13% to 618 MMSCM. The figures show that demand continued to grow even as international gas prices and currency movements put pressure on the cost of supplies.
CNG sales provided much of the volume growth. They increased 17% in the second quarter to 223 MMSCM, compared with 191 MMSCM a year earlier. For the first half, CNG sales also rose 17%, reaching 441 MMSCM against 376 MMSCM in the corresponding period of FY26.
Piped natural gas (PNG) sales grew at a slower pace. Second-quarter sales increased 3% to 92 MMSCM, while first-half sales rose 4% to 177 MMSCM. The figures suggest that transport-related gas demand grew faster than household and business PNG consumption during the period.
CEO Sanjay Pandita said revenue had risen 34% year on year in Q2FY27, supported by sustained CNG demand and wider PNG coverage. He also pointed to the effects of the continuing West Asia crisis, high Brent crude and spot gas prices, rupee depreciation and lower allocation of gas under the administered pricing mechanism (APM).
“Our diversified sourcing portfolio, mix of long-term contracts and flexible market purchases along with calibrated price mechanism helped manage cost pressures, maintained supply reliability, and sustained customer demand.”
The cost of natural gas increased 43% in the second quarter, according to the company. ATGL said the withdrawal of temporary pooled-gas support from 5 July 2026 added to the pressure. APM gas allocation for the CNG segment averaged around 25% during the quarter, leaving the company to meet the shortfall through high-pressure, high-temperature (HPHT) gas, new well gas (NWG), long-term and short-term contracts, and purchases from the market.
The Government introduced a revised HPHT allocation system after the pooled support ended. The company said the revised method uses demand- and shortfall-based calculations to improve domestic gas availability for city gas distribution companies.
The higher costs were reflected in the half-year profit figures. Profit before tax fell 5% to ₹414 crore, while profit after tax declined 7% to ₹300 crore. Cash profit slipped 1% to ₹458 crore. In Q2FY27, profit before tax stood at ₹235 crore and profit after tax at ₹167 crore, up 8% and 3%, respectively, from the same quarter last year.
ATGL added 16 CNG stations during the quarter, taking its standalone network to 723 stations by 30 September. It also added 39,574 household PNG connections, bringing the total to 11.81 lakh. Commercial PNG connections reached 7,669 after 392 additions, while industrial connections rose to 3,195. The company added 318 inch-kilometres of steel pipeline during the quarter, taking its network to 16,305 inch-kilometres.
These additions reflect the work required to expand city gas distribution networks. CNG stations serve vehicles, while PNG pipelines supply gas directly to homes, factories, hotels and other businesses. Growth depends on customer demand, access to gas supplies, pipeline construction and local permissions.
Across India, including its joint venture Indian Oil-Adani Gas Private Limited (IOAGPL), ATGL reported combined CNG and PNG sales of 529 MMSCM, up 18% year on year. The wider network had 1,185 CNG stations, with 18 added during the quarter. Household PNG connections crossed 14.31 lakh, while industrial and commercial connections reached 12,925. The combined steel pipeline network stood at 29,156 inch-kilometres.
ATGL also reported progress in businesses outside conventional gas distribution. Adani TotalEnergies E-mobility Limited (ATEL) had installed 5,513 electric vehicle charging points across 26 states and union territories and 225 cities. Installed capacity reached about 63 megawatts, with 4,809 charging points operational.
Adani TotalEnergies Biomass Limited (ATBL) sold 460 tonnes of compressed biogas (CBG) during H1FY27. Of this, 195 tonnes were sold through dedicated CBG stations, with the remainder supplied to third parties. Sales of organic manure exceeded 6,865 tonnes, including more than 1,757 tonnes under the Harit Amrit brand. The company also held farmer awareness sessions as it expanded the brand in regional markets.
The results come as India continues to develop gas distribution infrastructure and promote cleaner fuels. Government measures announced earlier in 2026 included steps to protect supplies for domestic PNG and CNG transport users during disruptions to international gas shipments. Such policies matter to city gas companies because changes in domestic allocations can affect the amount they must buy from other suppliers.
ATGL’s sustainability scores also improved. Its score from the National Stock Exchange’s sustainability assessment rose to 75, while the Stakeholders Empowerment Services score reached 75 out of 100.
On a consolidated basis, ATGL reported profit after tax of ₹173 crore for Q2FY27 and ₹315 crore for H1FY27. These figures include the results of its subsidiaries and joint ventures, so they differ from the standalone profits of ₹167 crore and ₹300 crore.
The next test for the company will be whether rising sales can continue to offset the cost of buying gas. Its latest results show that demand and network expansion supported revenue growth, while higher input costs limited gains in profit during the first half of FY27.