Adani Total Gas Limited — Q4 FY26 earnings call

Call held 28 Apr 2026

Management summary

Adani Total Gas delivered strong financial and operational performance in Q4 and FY26, driven by robust volume growth in CNG and PNG, significant customer additions, and network expansion. Despite geopolitical challenges impacting energy markets, the company maintained profitability through calibrated pricing and received government support for gas supply. ATGL also improved its ESG ratings and is on track with its e-mobility expansion.

Highlights

  • Total revenue for Q4 FY26 rose by 16% to INR 1,696 crores, and for FY26 increased by 18% to INR 6,415 crores.

  • EBITDA for Q4 FY26 increased by 13% to INR 310 crores, and for FY26 rose by 5% to INR 1,225 crores.

  • PAT for Q4 FY26 increased by 4% to INR 156 crores.

  • CNG volumes grew by 17% YoY in Q4 FY26 and 18% for FY26, while PNG volumes increased by 5% in Q4 and 6% for FY26.

  • Customer addition remained strong with nearly 50,000 new domestic PNG connections added in Q4, the highest ever, taking total household tally to 1.1 million for FY26.

Concerns

  • Profit before tax (PBT) for FY26 was marginally lower by 1% to INR 863 crores.

  • Geopolitical tensions in West Asia disrupted global energy markets, resulting in higher natural gas prices, supply chain challenges, and compounded currency volatility.

Key financials

3 periods

Headline

  • Total CNG Stations
    705 stations
  • Total Industrial/Commercial Customers
    9,965 customers
  • EV Charge Points
    5,100 points
  • EV Installed Capacity
    54 MW
  • Steel Pipeline Infrastructure
    15,572 inch-km
  • MDPE Pipelines
    8,300 km
  • IOAGPL CNG Stations
    1,169 stations
  • IOAGPL PNG Homes
    1.31 Mn
  • IOAGPL Commercial/Industrial Consumers
    11,529 consumers
  • IOAGPL Steel Pipeline
    28,000 inch-km
  • IOAGPL MDPE Pipe
    10,500 km

Q4 FY26

  • Revenue
    ₹1,696 Cr
    YoY +16%
  • EBITDA
    ₹310 Cr
    YoY +13%
  • PBT
    ₹214 Cr
    YoY +8%
  • PAT
    ₹156 Cr
    YoY +4%
  • CNG Volumes Growth
    17%
  • PNG Volumes Growth
    5%
  • Domestic PNG Connections Added
    50,000 connections
  • CNG Stations Added
    25 stations
  • Industrial/Commercial Customers Added
    214 customers

FY26

  • Revenue
    ₹6,415 Cr
    YoY +18%
  • EBITDA
    ₹1,225 Cr
    YoY +5%
  • PBT
    ₹863 Cr
    YoY -1%
  • PAT
    ₹637 Cr
  • CNG Volumes Growth
    18%
  • PNG Volumes Growth
    6%
  • Total Household Customers
    1.1 Mn

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

Profitability

  • EBITDA Profitability · Next financial year (FY27) · High confidence INR 1,500 crores
    So I'm saying we are expecting the same revenue growth, which we are currently having in '25-'26 in the next financial year. And EBITDA growth will in line of growth in volume. So we are expecting around we can say INR 1,500 crores of EBITDA.

    — Preyash Jhaveri

Revenue

  • Revenue Growth Revenue · Next financial year (FY27) · Medium confidence Same as current financial year (18%)
    We are expecting the same revenue growth which we have achieved in the current financial year, maybe something more on our newer GA compared to our existing GA in current financial year.

    — Preyash Jhaveri

Volume

  • EV Charging Points Volume · Near term · Medium confidence 10,000
    With strong adoption and continued network expansion, we remain on track to achieve our ambition of installing 10,000 EV charging points in the near term, while sharpening our focus on improving utilization across the network.

    — Suresh P. Manglani

Market Share

  • Natural Gas Share in Energy Basket Market Share · By 2030 · High confidence 15%
    ATGL is well positioned to support the country's transition to a gas-based economy through expanded CGD network aligned with the India's vision to raise share of natural gas in the energy basket to 15% of the energy mix by 2030.

    — Suresh P. Manglani

What to watch in Q1 FY27

New GAs profitability ramp-up

Next quarter
Current Initial focus on consumer base expansion; profitability rising from expanded footprint.
Target Continued improvement in profitability from new geographical areas.

Why it matters

To assess the effectiveness of the 'consumer first' strategy and the ramp-up of newer geographical areas towards self-sustaining profitability.

Our philosophy, as I have been stating in several earlier calls, has been always consumer first. We make sure that, like, for example, in the new geographical area, you will see several marketing intervention to bring the consumer to the CGD network... The initial target is to widen the consumer base. And overall, you are seeing the profitability track record also, which is on a continuous rise. This quarter, in fact, of this financial year is the highest ever EBITDA, which we have actually declared. Because of the same thing as you asked, it's not that it is coming from the same geographical area. It is coming from expanded footprint of ATGL.

Risks & concerns

  • Geopolitical tensions and energy market disruptions

    high

    Geopolitical tensions in West Asia disrupted global energy markets, leading to higher natural gas prices, supply chain challenges, and currency volatility.

    Management acknowledged

  • Impact of calibrated pricing on profitability

    medium

    The company chose not to fully pass on increased gas costs to consumers to maintain volume growth and consumer confidence, which could impact margins if not managed effectively.

    Management acknowledged

Q&A highlights

7 direct
Gas pool price formula and constituents for CGD sector Direct
The pricing formula, what they have derived for the gas pool mechanism is like there were various gases available in the market. So some of them were withdrawn from -- like RLNG, some volume was withdrawn. Some volume was withdrawn from the fertilizers and some was withdrawn from the ONGC consumption. So that, in addition to that, the Vedanta gas plus the HPHT gas, they were made part of this pool mechanism. And whatever would be the average -- weighted average of these volumes available, that was the pool gas price for the CGD sector.

Clarifies the government's methodology for determining gas prices for the City Gas Distribution sector, which impacts ATGL's cost of gas.

Asked by Yogesh Patil

Gas pool price for March 2026 Direct
For the month of March, the gas pool price was $12.42 per MMBtu.

Provides a specific data point on the cost of gas for the reported quarter, crucial for margin analysis.

Asked by Yogesh Patil

Inclusion of imported LNG in the gas pool Partial
So in the month of March, the imported LNG was not available that easily. So that did not include the imported LNG. But in the later part of April, that has come up.

Indicates the evolving composition of the gas pool and potential future changes in gas costs and availability for the CGD sector.

Asked by Yogesh Patil

Sufficiency of gas supply for incremental demand in priority sectors Direct
See, one other thing is that I was expecting this question only from you because this is a bit of a penetrating question that you can understand when you follow the sector that when they give last 6-month average, there will be incremental growth. So certainly, I think government supplied full 6-month average gas supply. And we have the additional portfolio available to us.

Addresses concerns about the company's ability to meet growing demand for CNG and domestic PNG, confirming government support and ATGL's additional sourcing capabilities.

Asked by Yogesh Patil

Timeline for new Geographical Areas (GAs) to reach peak utilization and profitability Direct
Our philosophy, as I have been stating in several earlier calls, has been always consumer first. We make sure that, like, for example, in the new geographical area, you will see several marketing intervention to bring the consumer to the CGD network... The initial target is to widen the consumer base. And overall, you are seeing the profitability track record also, which is on a continuous rise. This quarter, in fact, of this financial year is the highest ever EBITDA, which we have actually declared. Because of the same thing as you asked, it's not that it is coming from the same geographical area. It is coming from expanded footprint of ATGL.

Explains the company's strategy for new GAs, prioritizing consumer base expansion and overall network profitability over immediate individual GA profitability.

Asked by Sridhar Chandran

Pricing flexibility to pass on higher gas costs without impacting demand Direct
The way the pool gas was provided, continuous supply has been maintained. There was a certain increase in the prices. But as I said, our approach has always been consumer first. And you will see from a volume growth, even during this crisis, hardly -- there is a hardly 1% here and there of industrial consumer. Otherwise, there has been a good track record of volume growth. Price has been calibrated. We have not been able to pass through in the interest of a consumer while we maintained our reasonable profitability, which is in front of you all through our announcement of results.

Highlights the company's balanced approach to pricing, absorbing some cost increases to protect consumer demand and volume growth, while still maintaining reasonable profitability.

Asked by Sridhar Chandran

Breakup of PNG volumes into domestic, industrial, and commercial segments Direct
So in terms of percentage breakup of the different segments, so the PNG constituted around 50% of the volume. And the CNG plus... CNG plus domestic is around 78% and the balance is industrial plus commercial, 22%. And if you want further breakup, the industrial volume would be around 20% and the rest is commercial around 2.5%.

Provides a detailed breakdown of the company's gas sales by customer type, offering insight into revenue mix and demand drivers.

Asked by Arya Patel

Gas sourcing mix for Q4 FY26 Direct
On the gas sourcing portfolio, For CNG (T) so 85% of our volumes are met from the APM allocation plus HPHT and WG volumes and the different contracts for care. So balance around 16%, we are buying from the market on a spot basis. So we have a different portfolio of various indices, including the Brent-linked contracts plus asset-linked contracts. So this is a diversified portfolio, which help us to take care during these crisis times.

Details the company's gas sourcing strategy, indicating a diversified portfolio with a significant portion from allocated domestic gas and a smaller part from the spot market.

Asked by Arya Patel

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q4 and FY26

Adani Total Gas reported robust financial results for Q4 FY26, with total revenue increasing by 16% YoY to INR 1,696 crores. For the full financial year 2025-26, revenue rose by 18% to INR 6,415 crores. EBITDA for Q4 FY26 grew by 13% to INR 310 crores, and for the full year, it increased by 5% to INR 1,225 crores. PAT for Q4 FY26 saw a 4% increase to INR 156 crores, demonstrating resilient execution despite market challenges.

Robust Volume Growth and Customer Expansion

The company achieved strong volume growth across its core businesses, with CNG volumes increasing by 17% YoY in Q4 FY26 and 18% for the full financial year. PNG volumes also grew by 5% in Q4 and 6% for FY26, reflecting expanding footprint and market penetration. Customer additions were a key highlight, with nearly 50,000 new domestic PNG connections added in Q4, marking the highest ever quarterly addition, contributing to a total of 1.1 million household customers for FY26.

Expanding Infrastructure and E-Mobility Footprint

ATGL significantly expanded its infrastructure, with steel pipeline increasing to 15,572 inch-km and MDPE pipelines to 8,300 km. The company added 25 new CNG stations in Q4, bringing the total network to 705 stations. In its e-mobility business, ATEL now operates 5,100 EV charge points across 26 states and 226 cities, supported by 54 megawatts of installed capacity, and aims to install 10,000 EV charging points in the near term.

Strategic Gas Sourcing and Government Support

In response to geopolitical tensions, the government prioritized PNG and CNG supply, with GAIL acting as the nodal agency. ATGL's gas sourcing portfolio for CNG (T) is diversified, with 85% of volumes met from APM, HPHT, and WG allocations, and the remaining 16% sourced from the spot market. The gas pool price for March 2026 was $12.42 per MMBtu, with imported LNG being included in the pool from late April, indicating an evolving supply landscape.

Commitment to Sustainability and Future Outlook

Adani Total Gas demonstrated strong ESG performance, with its CareEdge-ESG rating improving to 83 out of 100 and NSE Sustainability score to 73 from 67. The company is well-positioned to support India's transition to a gas-based economy, targeting 15% natural gas share in the energy basket by 2030. Management provided guidance for FY27, expecting EBITDA to be around INR 1,500 crores, in line with projected revenue and volume growth.

Consumer-First Approach and Calibrated Pricing Strategy

Management emphasized a 'consumer first' philosophy, ensuring uninterrupted supply and system stability while safeguarding consumers from undue risk. Despite increases in gas prices, the company calibrated its pricing to maintain reasonable profitability without fully passing on costs, which helped retain consumer confidence and sustain volume growth, with only a marginal 1% impact on industrial consumers. This approach is crucial for widening the consumer base in new geographical areas.

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