Adani Total Gas Q2 FY26 Earnings Results

Adani Total Gas Limited, incorporated in 2015, is a key player in the city gas distribution (CGD) sector, providing natural gas to domestic, commercial, industrial, and vehicle segments.

Financial Highlights (Q2 FY26):

• Revenue from operations increased marginally by 19.03% to ₹1,451 crore from ₹1,219 crore last year.
• Total expenses rose 26.04% to ₹1,244 crore from ₹987 crore.
• Consolidated net profit declined 12.37% to ₹163 crore from ₹186 crore.
• Earnings per share (EPS) dipped 11.83% to ₹1.49 from ₹1.69.

Key Insights:

• Despite revenue growth driven by higher sales volumes, the profit declined mainly due to a 29% jump in gas costs, driven by lower APM gas allocation and increased costs of alternate gas sources such as NWG and HPHT.
• The company expanded its customer base, crossing 1 million PNG connections and increasing CNG stations to over 662, with a 16% volume growth in CNG and PNG segments.
• Operationally, gross margins were impacted by elevated input costs, but the company maintained its strategic growth through infrastructure expansion and a diversified sourcing strategy.
• The company’s efforts in safety, sustainability, and customer satisfaction continue to be recognized via PNGRB awards and increased market standing.

Market Outlook:

Despite the profit decline, Adani Total Gas’s volume growth and infrastructure expansion indicate resilience and growth potential. The company remains focused on balancing cost management with growth investments in the evolving natural gas sector.

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