New Delhi: Adani Total Gas Ltd (ATGL) reported lower net profit for the first quarter of FY2026-27 even as revenue climbed sharply, as a steep rise in gas costs compressed margins across the business. On a consolidated basis, net profit fell about 14 percent year-on-year to Rs 141.72 crore in the quarter ended June 30, 2026, from Rs 165.24 crore a year earlier.
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Standalone net profit fell about 18 percent to Rs 133.03 crore from Rs 162.17 crore. Revenue from operations rose about 27 percent on both consolidated and standalone basis — to Rs 1,906.79 crore (consolidated) and Rs 1,896.74 crore (standalone).
The revenue growth came alongside a roughly 40 percent year-on-year jump in the cost of natural gas and traded items, to Rs 1,302.21 crore standalone (Rs 1,302.51 crore consolidated), a rise that outpaced the top line. The company puts its gas procurement cost increase at 39 percent. As a result, standalone EBITDA fell about 7 percent year-on-year to Rs 281 crore (Rs 283 crore consolidated), and standalone profit before tax dropped about 19 percent to Rs 178.21 crore.
By the company's own figures, gross profit rose just 1 percent even as revenue rose 27 percent. The standalone EBITDA margin narrowed to roughly 15 percent from about 20 percent a year earlier. Below the operating line, finance costs rose about 42 percent to Rs 39.01 crore and depreciation about 18 percent, reflecting continued network expansion, adding further pressure on profit.
Against the immediately preceding quarter (Q4FY26, ended March 2026), standalone revenue from operations rose about 12.5 percent, but standalone profit before tax fell about 17 percent and net profit about 15 percent, with EBITDA down about 9 percent. Consolidated net profit fell about 16 percent sequentially and profit before tax about 18 percent. Earnings per share (not annualised) came in at Rs 1.21 standalone (against Rs 1.47 a year earlier and Rs 1.42 in the prior quarter) and Rs 1.29 consolidated (against Rs 1.50 and Rs 1.53).
The squeeze predates this quarter. On a full-year basis, standalone revenue for FY26 rose about 18 percent to Rs 6,415 crore over FY25, but standalone net profit fell about 2 percent to Rs 637 crore and profit before tax was roughly flat (down about 1 percent), even as EBITDA rose about 5 percent, indicating profitability was under pressure across FY26, not only in Q1FY27.
The company attributes the cost pressure to the West Asia crisis whose full impact was felt in the first quarter of FY27 — elevated Brent crude prices lifting Brent-linked gas costs across new well gas, regasified LNG and spot LNG, an increase in the administered price mechanism (APM) gas price ceiling, and a depreciation in the rupee against the dollar. It also says the APM allocation for its CNG segment was cut to about 30 percent from 36 percent in the prior quarter, with the balance met through existing contracts and higher-priced spot procurement. The company says it took a "calibrated approach" to passing on higher gas costs so as to protect volume growth, which, on the numbers, came at the expense of margins.
Operationally, standalone CNG and PNG sales volume rose 13 percent year-on-year to 303 MMSCM, but the growth was skewed: CNG volume rose 18 percent to 218 MMSCM while PNG grew only 4 percent to 85 MMSCM. Including the IOAGPL joint venture, pan-India volume was 496 MMSCM, also up 13 percent. The network stood at 707 CNG stations (five added, with three company-owned dealer-operated stations closed), about 11.41 lakh domestic PNG homes (38,243 added), 10,422 industrial and commercial connections (448 added) and 15,987 inch-km of steel pipeline. New geographical-area volumes rose 32 percent to 1.37 mmscmd.
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Consolidated profit fell less steeply than standalone because the share of profit from joint ventures — chiefly Indian Oil-Adani Gas Pvt Ltd — more than doubled year-on-year to Rs 9.57 crore from Rs 4.21 crore. The two wholly-owned subsidiaries, the e-mobility arm (ATEL) and biomass arm (ATBL), together posted a small net loss of Rs 0.86 crore for the quarter. The board did not declare any dividend alongside the Q1 results.
