Adani Total Gas Limited — Q3 FY26 earnings call

Call held 23 Jan 2026

Management summary

Adani Total Gas reported a robust Q3 FY26, with strong double-digit growth in revenue, EBITDA, and PAT, driven by consistent volume expansion in CNG and PNG. The company continued its network expansion, adding new CNG stations and pipeline infrastructure. Regulatory changes, particularly the simplified transmission tariff, were highlighted as beneficial, enabling price reductions for consumers. Despite challenges from higher gas costs and competition from alternate fuels, ATGL emphasized its strategic focus on consumer-centric growth and sustainability achievements.

Highlights

  • Revenue from operations for Q3 FY26 rose by 17% to INR 1,631 crores, driven by overall volume growth.

  • EBITDA for Q3 FY26 increased by 15% to INR 313 crores, despite several impacts including higher gas costs.

  • Profit after tax (PAT) for Q3 FY26 increased by 10% to INR 157 crores.

  • CNG volume registered strong growth of 17% year-on-year in Q3 and 18% over the 9 months period.

  • The company's S&P Dow Jones Sustainability Index Score rose to 72, placing it 9th globally in the gas utility sector, and its CDP rating was upgraded to category A.

Concerns

  • The benefit from the 2% CST transition was largely offset by higher gas costs and USD exchange rate increase.

  • Profit before tax for the 9-month period was marginally lower by 3% at INR 649 crores.

  • PAT for the 9-month period marginally decreased by 3% to INR 481 crores.

  • Cheaper alternate fuels, particularly LPG propane, are putting pressure on the company's pricing.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹1,631 Cr
    YoY +17%
  • EBITDA
    ₹313 Cr
    YoY +15%
  • PAT
    ₹157 Cr
    YoY +10%
  • CNG Volume Growth
    17%
    YoY +17%
  • PNG Volume Growth
    3%
    YoY +3%

9M FY26

  • Revenue
    ₹4,692 Cr
    YoY +19%
  • EBITDA
    ₹916 Cr
    YoY +3%
  • PAT
    ₹481 Cr
    YoY -3%

What they filed

Q1 FY27: revenue up 27.2%, net profit down 13.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,219 1,294 1,341 1,379 1,451 +19%1,507 +16%1,557 +16%1,754 +27%
EBITDA306 265 266 293 295 −4%305 +15%301 +13%270 −8%
Net profit186 142 155 165 163 −12%159 +12%168 +8%142 −14%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Capacity

  • EV Charge Points Capacity · very soon in the future · Medium confidence 10,000
    With a strong adoption and continuous expansion, which our ATEL team is doing, we are on track record and our ambition of installing 10,000 EV charge points is going to be realized very soon in the future.

    — Suresh P. Manglani, Executive Director and CEO

  • DODO CNG Stations Capacity · ongoing · Medium confidence 400
    That's number, you are only seeing 136, our target was 400, but we are being very calibrated way that dealers should finally get a good IRR.

    — Suresh P. Manglani, Executive Director and CEO

What to watch in Q4 FY26

EV Charge Points Installation Progress

next quarter / very soon in the future
Current Nearing 5,000 charge points
Target Progress towards 10,000 EV charge points

Why it matters

Indicates progress on a key strategic growth area for the company's future energy portfolio.

nearing 5,000 mark charge points across 26 states and union territories covering 226 cities. This equals to 51 megawatts of installed capacity. With a strong adoption and continuous expansion, which our ATEL team is doing, we are on track record and our ambition of installing 10,000 EV charge points is going to be realized very soon in the future.

Risks & concerns

  • Higher gas costs and USD exchange rate increase

    medium

    These factors largely offset the benefit from the 2% CST transition, adding to operational costs.

    Management acknowledged

  • Competition from cheaper alternate fuels

    medium

    When alternate fuels like LPG propane become cheaper, it puts pressure on ATGL's pricing strategy and market share.

    Management acknowledged

  • Non-compliance with natural gas usage regulations

    low

    Management noted instances where people find ways around regulations mandating natural gas use, particularly in regions like NCR.

    Management acknowledged

Q&A highlights

5 direct
Impact of PNGRB 2-zone transmission tariff on gas cost Direct
So 3 zone to 2 zone is a good way to move forward. It brings efficiency. But more importantly, I think what the facilitating part of PNGRB has been done is that they have applied, with the consensus of industry, this was the most complex job that they have to take everybody's concern, including transmission partners. With that consensus, they have applied zone 1 tariff of INR54 for entire PNG domestic and CNG volume, not alone APM volume.

Clarifies the regulatory change, its positive impact on efficiency and pricing for ATGL, and how it enables price reductions for consumers.

Asked by Yogesh Patil

CNG volume growth and vehicle additions Direct
So respective to ATGL GAS, we are seeing growth of around 31% in the vehicle addition quarter-on-quarter, which is an addition of around 45,000 vehicles, compared to the last quarter.

Provides specific data on vehicle conversion/addition, a key driver for CNG volume growth.

Asked by Yogesh Patil

CBG blending in APM gas Partial
So currently, we are purchasing CBG to the tune of 1% of our total consumption. And that is probably you can consider the blending of CBMGinto the natural gas.

Clarifies current CBG blending levels and its impact on the gas mix, though future implications are still being discussed.

Asked by Yogesh Patil

Gas mix (New Well Gas, APM, HPHT, R-LNG) and April allocation changes Direct
So we have not -- what has happened, the APM allocation has increased a bit, which is probably good for the industry. And in terms of the domestic gas, considering APM, New Well Gas and HPHT, I would say it would comprise of around 65% to 70% of our portfolio, and the balance would be R-LNG. So we are not seeing much depletion in this domestic gas production in the last quarter.

Provides insight into the current gas sourcing mix and stability of domestic gas allocation, which impacts cost structure.

Asked by Varatharajan

Target for new CNG station outlets (standalone and JV) Partial
So Varatharajan, actually see, there is 1 guiding factor for us is that we have bidded our minimum work program on CNG stations, right? While so 680 numbers is currently. And as we have said, that we are rolling it out every year, additional number in this next quarter also, we'll see some more numbers.

Indicates ongoing network expansion but lacks specific numerical targets for future additions, making it harder to quantify growth.

Asked by Varatharajan

Average throughput per CNG outlet Direct
So if you ask me, there will be -- let's say, if you ask Faridabad, for example, Faridabad will have very high throughput of, let's say, 6,000 odd or maybe ranging to up to 10,000 to 12,000, 15,000 kgs per station. If you ask Ahmedabad, it may be generally minimum 4,000, but ranging in around 5,000 to 6,000 going upward and upward because these are mature GA.

Explains the variability in throughput based on GA maturity, providing context for network utilization and profitability.

Asked by Varatharajan

Economics for DODO station dealers and vehicle additions breakup (OEM vs retrofit) Direct
I think for a DODO dealer, the more important is that he has to see the not only the immediate volume, but over the period where volumes are going to be heading. And then we also help them to see that even if he comes with a one land parcel, which is not strategic, we will guide him to bring the better location. That's number, you are only seeing 136, our target was 400, but we are being very calibrated way that dealers should finally get a good IRR. ... So you will say that around two-third, one-third could be the proportion of the OEM vehicles versus a retrofit vehicle. The exact numbers, Ravindra will supply to you through Adish

Addresses dealer confidence and profitability for DODO stations, and provides an estimate for the split between new OEM CNG vehicles and retrofitted ones, indicating market trends.

Asked by Kirtan Mehta

2 min read 6 chapters

Detailed narrative

Financial Performance Overview

Adani Total Gas delivered a robust performance in Q3 FY26, with revenue from operations increasing by 17% year-on-year to INR 1,631 crores. EBITDA for the quarter grew by 15% to INR 313 crores, despite impacts from higher gas costs and USD exchange rate fluctuations. Profit after tax (PAT) also saw a 10% increase, reaching INR 157 crores for the quarter. For the nine-month period, revenue rose by 19% to INR 4,692 crores, though PAT marginally decreased by 3% to INR 481 crores.

Operational Highlights & Network Expansion

The company continued its strong growth trajectory, with CNG volume rising 17% YoY in Q3 and 18% over the nine-month period. PNG volume registered 3% growth in Q3 and 7% over the nine-month period. ATGL added 18 new CNG stations, bringing the total network to 680 stations, with 136 being Company-owned Dealer Operated (CODO) or Dealer-owned Dealer Operated (DODO). The steel pipeline infrastructure expanded to 14,862 inch-kilometres, and 8,100 kilometres of MDPE pipeline were laid, supporting last-mile access.

Regulatory Changes & Impact

The CGD industry benefited from two key regulatory developments. First, the transition to a 2% CST from the earlier 15% VAT on natural gas, though largely offset by higher gas costs and USD exchange rate increases, provided some relief. Second, the PNGRB introduced a simplified 2-zone transmission tariff structure, applying a zone 1 tariff of INR 54 for domestic PNG and CNG supplies. This reform, covering approximately 70% of ATGL's volume, is expected to boost growth and has enabled price reductions for consumers.

Strategic Initiatives & Consumer Focus

Adani Total Gas is actively expanding its e-mobility network, with its subsidiary ATEL now having nearly 5,000 EV charge points across 26 states and 226 cities, with an ambition to reach 10,000 points soon. The company has also launched substantive incentive plans for CNG consumers, including cashbacks of INR 15,000-20,000 for new vehicle purchases and INR 1 lakh-1.5 lakh for bus/truck conversions, to widen its consumer base and drive volume growth.

Sustainability & Safety Achievements

ATGL's commitment to sustainability was recognized with its S&P Dow Jones Sustainability Index Score rising to 72, placing it ninth globally in the gas utility sector. Its Carbon Disclosure Project (CDP) rating was upgraded to category A. The company also received the prestigious Gold award for safety excellence at the Apex India Safety Awards 2025, reflecting its focus on responsible growth and operational safety.

Industry Outlook & Competitive Landscape

While the company maintains a strong sourcing portfolio, it acknowledges pressure from cheaper alternate fuels, particularly LPG propane, which impacts pricing. Management noted that the industry is requesting policymakers for connection incentives and consumption-linked incentives for MSMEs to encourage natural gas adoption, which would boost infrastructure utilization and ensure a level playing field. The company remains optimistic about future policy reforms.

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