Adani Total Gas

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.

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.

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.

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.

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.

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.