Adani Total Gas shares fell 1.87% to ₹699.35 following the earnings announcement, reflecting investor concerns over the company's profitability challenges due to higher cost of natural gas in the global market due to the West Asia crisis. The stock movement comes after the company reported an 18% year-on-year decline in standalone net profit to ₹133.03 crore for the quarter ended June 30, 2026, compared with ₹162.17 crore in the corresponding quarter last year. Despite the day's decline, the stock has gained roughly 18% so far this year, indicating positive long-term investor sentiment despite quarterly profit pressures.
According to the latest company release, Adani Total Gas demonstrated robust operational performance with combined CNG and PNG volume reaching 303 MMSCM (Million Standard Cubic Meters), representing a 13% year-on-year increase and driving strong revenue growth. The company's standalone revenue from operations (excluding excise duty) surged 27.10% YoY to ₹1,743.48 crore in Q1 FY27, up from ₹1,498 crore a year earlier, as reported by Business Standard. CNG volumes increased 18% YoY to 218 MMSCM, supported by network expansion and higher throughput across multiple geographical areas, while PNG volumes grew 4% YoY to 85 MMSCM, aided by healthy demand from domestic and commercial customers despite geopolitical headwinds in West Asia. The company also increased Industrial & Commercial connections to 10,422 with 448 new customers added, while completing a cumulative steel pipeline network of 15,987 Inch KM.
According to reports from Business Standard, Adani Total Gas reported a 17.96% year-on-year decline in standalone net profit to ₹133.03 crore in the first quarter, compared to ₹162.17 crore in the same quarter last year. Profit before tax (PBT) declined 18.70% YoY to ₹178.21 crore, while EBITDA fell 7% YoY to ₹281 crore from ₹301 crore in Q1 FY26. The revenue growth was aided by higher gas sales volumes during the quarter, with the company's share of profit from joint ventures increasing significantly to ₹9.57 crore from ₹4.21 crore in the year-ago quarter. The company's allocation of Administered Price Mechanism (APM) gas for the CNG segment declined to around 30% from 36% in the previous quarter, with the shortfall met through existing contracts and higher-priced spot gas purchases.
According to Business Standard, the most significant cost driver was the cost of natural gas and traded items, which increased 40.3% to ₹1,302.51 crore from ₹928.37 crore, accounting for more than two-thirds of revenue during the latest quarter. The continued geopolitical tensions in West Asia, along with an increase in the APM gas price ceiling, led to a 39% rise in natural gas costs. Elevated crude oil prices also pushed up Brent-linked gas costs across New Well Gas, Regasified Liquefied Natural Gas (RLNG), and spot LNG during Q1 FY27. As reported by Business Standard, the company's EBITDA margin contracted to 14.2% from 19.6%, reflecting the impact of higher input costs due to the West Asia crisis affecting global natural gas prices.
Sanjay Pandita, Chief Executive Officer of Adani Total Gas Ltd., acknowledged the challenging operating environment, stating that "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." As reported by Business Standard, Pandita emphasized that "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." The management's strategic focus on long-term value creation for customers and stakeholders reflects the company's resilience in navigating current market challenges while positioning for future growth opportunities. Adani Total Gas is authorised to operate in 34 geographical areas (GAs) across India and has interests in e-mobility, biomass, and gas meter manufacturing through its subsidiaries and joint ventures.
