Adani Total Gas Ltd (NSE: ATGL) Q4 2025 Earnings Call dated Apr. 29, 2025
Corporate Participants:
Suresh P Manglani — Executive Director and Chief Executive Officer
Parag Parikh — Chief Financial Officer
Unidentified Speaker
Ravindra Desai — Gas Sourcing and Business Development
Priyansh Shah — Head, Investor Relations
Analysts:
Puneet Gulati — Analyst
Yogesh Patil — Analyst
Varatharajan Sivasankaran — Analyst
Kirtan Mehta — Analyst
Harshraj Aggarwal — Analyst
Somaiah Valliyappan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Adani Total Gas Limited Q4 and 12-Month FY ’25 Investor Update Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Suresh Manglani, ED and CEO. Thank you, and over to you, sir.
Suresh P Manglani — Executive Director and Chief Executive Officer
Thank you. Good morning, everyone. Let me extend a very hearty welcome to all our investors, analysts, fund houses for taking out their time and participating in earnings conference call for full year FY ’25 and also for the quarter four FY ’25 of Adani Total Gas.
At ATGL, like every quarter and for the full year, we have ensured supply of piped natural gas and compressed natural gas and the safe handling of operations and emergencies on 24/7 basis in all our geographical areas. Now we have 34 geographical areas including the recently added Jalandhar geographical in the Punjab.
Our overriding business principle that safety has to be the precondition to work has laid down strong foundation in building safe behavior, culture within ATGL. All our employees and partners working for us are being trained on a continuous basis to follow safe behavior in every action they take. We have continuous training on health and safety for our teams and partners so that our targets of zero fatality is maintained. And I’m happy to inform you all that for entire year ’24-’25 and the quarter four, we have maintained zero fatality as well as excellent HSE track record.
Now let me first give you the highlights on the CGD infrastructure development within ATGL as on 31st March 2025. Our CNG station network has now increased to 647 stations, which includes 123 CNG stations on company-owned, dealer-operated, CODO, and dealer-owned, dealer-operated, DODO, format. We have added 100 new CNG stations in the financial year ’24-’25. As we have been always emphasizing on building up our backbone steel infrastructure, I may inform you all that our steel pipeline infrastructure has now increased to 13,772-inch kilometer.
During the year, we have added 1,750-inch kilometers of steel pipeline this year. On the PNG connection, ATGL added 1,42,301 domestic connections, the new PNG homes, in the year 2024-’25. And now it is serving to over 9.63 lakh domestic homes. So we are almost now coming closer — as a standalone company, closer to serving 1 million homes. Along with our JV, of course, we are already serving 1.1 million or more than 1.1 million homes. And our industrial and commercial consumer, these are the businesses we convert them on piped natural gas. Now we have reached a number of 9,299. During this financial year, we added 968 consumers for the full year.
So if I may give you some, on a thumb rule basis, numbers, on an average, we are adding 400 new PNG homes on a daily basis. We are adding 3 kilometers of steel and PE pipe on a daily basis. We are opening almost every third day a new CNG station. And we are adding around three new businesses, industrial and commercial, we are connecting piped natural gas on a daily basis. And if I give you another statistic, we are adding five — roughly last year, we have added five charge points on our EV e-mobility side on a daily basis.
Let me now give you the update on our other businesses. As you all know that we have two wholly-owned subsidiaries; one, Adani TotalEnergies E-Mobility Limited. This subsidiary deals with the e-mobility ecosystem. Currently, we are setting up the EV charging stations. So ATEL, we call it as an abbreviated form, has expanded its footprint now to be 3,401. These are the installed charge stations — points. And out of that, we have already opened to the public fully energized 2,338 EV charge points. We have spread across 26 states, more than around 230 cities in India. ATEL is currently the number one airport charge point operator in the country with presence across 21 airports, both on inside and as well as outside the airport.
Another subsidiary, Adani TotalEnergies Biomass Limited. You are all aware that ATBL has been working on setting up the Barsana biogas plant, which is closer to the Mathura in UP. So I’m very happy to announce that now the plant is stabilizing. So today, on an average, roughly 7 tonnes per day is the CBG production. We also — because we are now manufacturing or producing the organic manure, so we have also launched our new brand called Harit Amrit. That is FOM, fermented organic manure, as well as phosphate-rich organic manure. Both organic manures will be branded under Harit Amrit and sold in the market. So we have already started dispatching organic manure now through this ATBL.
Now let me share with you the operational and financial numbers achieved by Adani Total Gas during this financial year ’24-’25. On the back of strong infrastructure momentum in our operational performance, ATGL delivered a double-digit volume growth of 15% for the full year, wherein CNG volume grew by 19% year-on-year basis when I compare last year versus this year. This was primarily back of increase in the volume in our existing CNG station as well as rolling out the new CNG stations.
Our volume growth for the full year on PNG side, which is PNG home, industrial consumer and commercial consumer grew by 7%. This is on account of rolling out the piped natural gas to the newer homes as well industrial and commercial consumers. Our overall volume grew by 13% — for quarter four, our overall volume grew by 13% in comparison to the quarter four of FY ’24. This is on a year-on-year basis, 13%.
Now with respect to domestic gas allocation, you’re all aware that domestic gas allocation as well as APM as well as new well gas, which is what now we started getting or the intervention natural gas, which comes from the same APM field for the CNG. The average domestic allocation for CNG for the full year was 61% and for the quarter four, the average allocation was 56%. While PNG continues to get the full allocation of APM gas for home PNG, we get the full allocation of APM.
Recently, post the closure of financial year from 16th April, there was a reallocation of domestic gas for APM gas for CNG transport sector. And there, we are getting 37% as the APM allocation and the remaining we are getting from new well gas and combined is 65% APM as well as new well gas till 16th May. And then again, we may see some realignment of allocation of gas, primarily from the new well gas side. APM allocation is now at 37%.
The shortfall in allocation has impacted profitability. With better gas sourcing portfolio, along with the cost optimize initiatives, massive push on digitalization, operational excellence and performance improvement plan, which we always do — a profitability improvement plan, we call it a PIP, ATGL, I’m happy to inform you all, has been able to navigate the impact which we were otherwise seeing on profitability to minimizing the impact for the quarter — this quarter as well as on the overall full year basis.
Let me now share with you the financial performance of ATGL. Revenue from operations rose by 12% to INR5,398 crores. EBITDA for the full year was INR1,167 crores. This is up by 1% because last year, the EBITDA was INR1,150 crores. Profit before tax was INR868 crores and profit after tax was INR648 crores. This is the full year numbers, which I shared with you all.
Now let me share with you the quarter four numbers. Revenue from operation for this quarter, January to March, grew by 15% to INR1,448 crores. EBITDA for the quarter, with the developments which we — which I informed you all about the decline in the gas allocation, etc. The APM — the EBITDA declined by 10% to INR274 crores. The profit before tax and profit after tax — this is on a year-on-year basis. Profit before tax and profit after tax declined by 12% and 10% to INR198 crores and INR149 crores. On a quarter-on-quarter basis, there is a slight increase on the EBITDA.
In closing, I would like to say that we remain optimistic about growth drivers that shapes up India’s energy transition journey and ATGL’s commitment to play a leading role by providing affordable and reliable low-carbon energy solutions for homes, industrial and commercial consumers and transport and mobility segment. And I would like to acknowledge and be thankful to all our shareholders, analysts, fund houses, consumers, dealers, suppliers, business partners, and above all, our employees for providing trust and continued support.
We would be very happy to take the questions from you. I have with me Mr. Parag Parikh, our CFO; Mr. Navinder Bedi, who is our — driving bio business, Technical Service Head; and Ravindra Desai, who has joined us now recently on the Gas Sourcing and Business Developments; and Priyansh, IR Head; Preyash Jhaveri, who is our Financial Controller and along with other team members. Happy to take your questions. Thank you.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] First question is from the line of Puneet from HSBC. Please go ahead.
Puneet Gulati
Yeah. Thank you so much. My first question is on the sourcing mix. How are you thinking about increasing your sourcing of gas from sources outside of the APM? And is there a plan to do a long-term LNG tie-up as well?
Suresh P Manglani
Thank you, Puneet. Yes, I think as we are seeing now realignment of policy on APM allocation, but the good part is that CGD remains to be part of a very strong vision of Government of India as well as the state government. So we are seeing that the APM gas reduction is being offsetted significantly by priority on new well gas allocation. Now new well gas allocation also has become part of a pro rata allocation, which otherwise earlier used to be on the auction basis allocation. So we have been assured now that we — whatever volume we grow, we’ll get the new well gas allocation, which is again a significant volume, as we stated, 37% versus we are now getting 65%.
And the third is government decision to also give priority to HPHT gas. The first priority remains on CNG and home PNG. So these three sources we see a significant support coming in terms of — of course, the average cost is going up, which, as we stated that we are trying to navigate, minimize because our focus certainly is growth. Focus is ensuring that we maintain affordability of price, good saving for consumer to still opt for CNG. Having said that, of course, as the company which has 34 geographical areas, 95 districts, we have this responsibility to service for a pretty long time on both PNG and CNG side.
We are looking forward always the opportunities to not only source gas on short term and midterm as well as on the longer-term basis to make sure that we remain — we develop — prepare ourselves very well on the portfolio, which we build to mitigate the downfall, which — decline, which is happening on APM side. And the weighted average cost still we make in a manner that we are able to provide both PNG and CNG to our homes and transport consumer, but also our main anchor customer industrial and commercial. All four together will bring the volume.
So we are building — Puneet, as you stated, we are building a portfolio. We are having a strategy in place to make sure that we build our portfolio on longer term, midterm and short term, and we will be considering all these plus, and we’ll have some portion keeping open — very small portion open for the spot buying as well. So it will be a good mix, which we’ll be doing it. And you have seen our track record that despite such a serious decline in 37%, our profitability track record is in front of you all. So I think that we’ll try our best that we maintain the good portfolio on the gas sourcing side.
Puneet Gulati
So you said 68% is APM plus new well gas. So balance 32%, is it possible to get a breakup between HPHT and LNG?
Suresh P Manglani
Yeah, yeah, we’ll give it to you, 65%. What we get is today — from April onwards, this is what I stated.
Puneet Gulati
April till 16th of May, you said.
Suresh P Manglani
So we are getting 37% plus remaining new well gas till 15th of May. That’s what the current notification, and it may get realigned upward/downward, that will come to have a clarity. And HPHT is how much? Entire volume of remaining 35%, we have been able to secure through HPHT. So 100% is being met through APM, new well gas as well as HPHT volume. Good question, Puneet. Thank you.
Puneet Gulati
Yes. Second is if you can talk a bit about the e-mobility business. Now you have almost 3,400 installed and 2,300-plus energized. What kind of utilization rates are you seeing there? And what is the unit economics there? And also what is the revenue contribution and EBITDA, if at all, from this business?
Suresh P Manglani
So again, a very good question, Puneet, actually. This is the one business driver we decided both on sustainable fuel side, e-mobility and the CBG side. CBG is coming up in the one plant bio on the Barsana side, and you will see our further growth on the CBG side as well. On the e-mobility side, yes, we have been continuously growing on — as I said, last year itself, we have set up five EV charge points every day. I’m very happy to say that it is an EBITDA-positive business today for us.
Utilization, the two, three segments. One is we have committed segment where we have minimum guaranteed monthly charges for many fleet operators, we do it. So that is fully assured on the returns basis. It’s a very good utilization, which is coming. Secondly we set up on B2B basis. Again, reasonably a good utilization is happening. Airport, of course, we have 21 airports. We are the only charge point operator as per the Airport Authority of India, they do the very competitive bids, and we have won all those bidding. So we are having a very high utilization there. As the intensification is increasing at airport, we are getting benefit of that part.
On the B2C side, current utilization is relatively very low. Some places, it could be around 3%, some places 1.5% to 2% and very — some places, maybe 5%. On an average, 2.5%, 3% kind of a thing. Of course, we can see the exact numbers. But my sense is around 2.5%, 3% or less — 1.5%, 2% on the B2C side. But remember, I think we are very optimistic on the policy front development, which is happening on the EV side. So we are not building for today EV charging points. If you see, we are trying to make sure that all the strategic location, whether on B2C side, whether B2B side or tourist places, we should build for the future. So we are very optimistic that, given the e-mobility business is — ecosystem is getting developed, utilization significantly will go on B2C side. But overall, on a net basis, we have EBITDA-positive business.
Puneet Gulati
And how much have you invested so far in this?
Parag Parikh
Today — so, I think, Puneet, this is still — we are still seeding these businesses. So relatively very low. Today, at this juncture, we would have invested a little over INR100 crores. So that’s really the investment as far as the EV business is concerned. And as we just mentioned, I think it is still early stage. Idea is to seed the ecosystem. Likewise, how we were doing it in the CNG side, when you are getting into a newer geography, you’re building the ecosystem of CNG stations across our geographical areas. Similarly, the current intent is to seed the EV ecosystem. And at the same hand, at least keep an eye to ensure that we continue to remain an EBITDA positive. It’s a mixture of both B2B, B2C and intent would be to continue to build that momentum over the coming year.
Puneet Gulati
And lastly, just two things. One is, is it possible to tell what is the investment plan for current year? And what is the breakup of this 3,400 charge points between B2B, B2C and the other parts?
Parag Parikh
As far as investments are concerned, we will continue to have a similar momentum. So we would continue to invest about INR70 crores to INR80 crores as far as the coming year is concerned. INR100 crores, INR110 crores, what I mentioned, is cumulative. We started about 17, 18 months back really in terms of the EV business. So intent is to look at around INR70 crores, INR80 crores as far as the coming year is concerned.
As far as charging stations, as we said, 2,300-plus are already operationalized. The others are closer towards operations of close to another 1,000 charging points. We would want to build similarly a capability of building almost close to around 1,500 to 2,000 over the next year, including the ones which are in the commissioning phase. So that’s, as I said, as far as the investment and as far as the charging stations are concerned. You had one more question. Am I correct, Puneet?
Puneet Gulati
Yeah, the breakup between the B2B and B2C.
Parag Parikh
The breakup, as I said, is slightly — I would say the B2B, B2C breakup is slightly different at this juncture because one is a core dedicated B2B stations but the emerging model is usually getting a minimum guaranteed usage on some of the more public retail charging stations. So it may — one may not be able to break it up into B2B, B2C, but all will boil down to the locations. As we said, now, for example, we are one of the largest charging airport point operator. We have now close to 21 airports. These are both on the air side as well as on the outside.
Now air side, for example, there is no minimum guaranteed, but the fact that you are on the air side itself allows you to have a dedicated usage. Same way, when you’re looking at outside the airports, it allows a better usage because the Ubers and Olas do not have to pay car parking charges if they were to charge. So there are nuances around this. And not exactly, I will say, B2B, B2C in its own strict sense but even in a normal public retail charging stations, we try and work towards getting some minimum guaranteed usage on some of the stations, which allows us to keep, as I said, the — at EBITDA levels positive.
Puneet Gulati
Understood. That’s very helpful. Thank you so much and all the best.
Suresh P Manglani
Thank you, Puneet. Thank you.
Operator
Thank you. Next question is from the line of Yogesh Patil from Dolat Capital. Please go ahead.
Yogesh Patil
Thanks for an opportunity, sir. Sir, as you mentioned, the clarity on APM allocation is still 16th May and further clarity will emerge later. But sir, as per our reading of government circular suggests that CGDs will have clarity on APM allocation two quarters prior. So can you give us some clarity how this APM allocation will work going forward?
Suresh P Manglani
So, Yogesh, first of all, I think, thank you for being consistent participant for our investor call and look forward that you will do the same thing in the future. I think you saw the recent notification which has been published by the Government of India that, going forward, they would be giving clarity to us. Today, it’s a quarterly clarity, which I stated to you that is a 37%, which has been allocated to us now. And if you achieve a better growth, which maybe we get a little better also, that two-quarter clarity, now we’ll be able to see that this will be implemented now. Currently, we are clear that there is — for us, 37% is the APM allocation. Till 15th May, new well gas allocation is extremely good. We — combined is 65%. We need to certainly, Yogesh, wait for the clarity which we receive on a two-quarter basis once it is implemented.
Yogesh Patil
Okay. Thanks, sir. Second question is related to your volume growth guidance for the next year. We have reported closer to 3 MMSCMD volume in the Q4. And so, if you could provide some volume guidance for the next one to two years in terms of the CNG and the PNG, that would be helpful.
Suresh P Manglani
So, Yogesh, again, very good and penetrative questions you are asking. Our exit volume is almost closer to 3 million now. The March 31, we closed with roughly 2.93 million or 2.95 million — 2.93 million, I think. So that is very close to 3 million. We, of course, wish that it should have gone — crossed 3 million, but you understand the CGD sector. You’re following it very well. And we hope that this will happen.
On the guidance, as we stated in the past also that we have been maintaining largely a double-digit volume growth. And given our trajectory of new geographical areas, particularly now 11th round, which are going to be connected with the transmission pipeline expected in this financial year — by December or so, we are expecting. And intensification of Jalandhar geographical area, which we recently got, we have started laying our pipelines, setting up CNG station. We hope to give you a similar track record of maintaining double-digit volume growth in the future as well.
Parag Parikh
I think, Yogesh, pertinent point is quarter four, our exit volume is 2.93 million. Annualized is 2.72 million. So I think that itself will give you a directional comfort and a view on how we are seeing the volume trajectory.
Suresh P Manglani
Yeah.
Yogesh Patil
Yeah. And sir, CNG vehicle additions in your geographical area during FY ’25, any ballpark numbers if you have started tracking on your geographical area side, it would be helpful.
Suresh P Manglani
So Yogesh, actually, if you see even the OEMs numbers, ultimately, what has happened, Yogesh, the whole CGD ecosystem has now shifted from localization to universalization. What used to be the phenomena that CNG used to be a local fuel of a particular city or a town, now the way vehicles have grown over the last couple of years, it has become like a transition volume is also coming up as significant. I’ll give you an example of Udaipur, for example. Local number of vehicles will be very limited. Of course, the ecosystem it is getting developed. More of the tourist vehicles will be there because city being smaller, people may be transiting with lesser kilometers per day. Two-wheeler is better there.
But the tourist vehicle, which comes to Udaipur or pass via Udaipur to Nathdwara, etc., volume is very, very good. So I’m sure — I think we are now looking at how India is transiting on ecosystem on CNG. And the good part is you are able to see that even the last quarter, the number of CNG vehicles sold are higher than the diesel vehicles. So we are still — and when we talk to OEMs like Maruti, they appears to be still very bullish. They are having a very good record — this order booking, almost 25% to 30% between — I don’t have the exact number, but I think I am getting the sense that it is around 25%, 30% of the quarter sale is the CNG vehicles. So it is giving us a good sense that — the key is that how do we keep growing and developing ecosystem and maintain the affordability for the consumer.
Yogesh Patil
Okay. So sir, I’m just again, going back to my question number one: APM allocation. So touching to again, is that a correct understanding that more clarity will take a time or it will emerge for the two quarters prior allocation clarification? It will take a little bit more time for you…
Suresh P Manglani
No, sorry, Yogesh. Please complete, sorry.
Yogesh Patil
So my question is, again, on the APM allocation side. Is that a correct understanding that more clarity on these APM allocation where you will get a clarity that two quarters prior, you will have an idea what quantity of gas you will receive? It will take a time to get more clarity on that side? Or this is applicable and you have clarity of next two quarters, you will get that much of quantity of gas?
Suresh P Manglani
So, Yogesh, a couple of things. One, there is now clarity that government has decided that CGDs, because it is a part of their strong vision, they would like to see the way we all want to see as an investor to grow the CGD business — CGD ecosystem in the country. The clarity is now given by the government very clearly with the notification which we received that CGD — the companies will have clarity on APM allocation two weeks — two quarters in advance because — so that we could make our plan of procuring gas on — either from spot market or from auctions or from various other sources. So I think this policy decision is very helpful, and we must appreciate that government is giving continuous support and clarity.
Second is — so I think now it is a part of an implementation. It could happen any time. I don’t think so we should say a long time or some more time. Clarity has just come, decision has just come. And since we have clarity on this quarter, 37% has already been given. So that quarter is still continuing, April, May, June. I think this quarter is still there 37% and the remaining is the new well gas. I think prior to the — to next quarter, we certainly will have clarity and sooner, I think it will happen on the implementation side.
As we stated to you, just see how overall ecosystem is playing. We have APM gas 37%. We combined with new well gas become 65% and rest of the 35% has come from HPHT. So overall basis, if you see, it has still moderated our cost because government has given priority on new well gas, government has given priority on HPHT gas. And we believe since this is the part of a — priority of government, we would continuously getting support in one or other way to make sure that our portfolio cost remains moderated.
Yogesh Patil
Okay. Sir, last question. In your presentation, provided details on the gas sourcing breakup. So just one question on that side, 22% to 25% of RLNG gas is coming from the multiple linkages or multiple sources. So can you give us some idea in terms of how much portion is coming from the crude link and how much portion is Henry Hub link for this RLNG part?
Suresh P Manglani
Yeah. So Yogesh, definitely, we will give you the clarity. But just to give you on — while my team is taking all the details to give you, basically, see, largely, our focus is to build, as I said, and you have seen our track record on the portfolio part. So we definitely, on 25%, we have Henry Hub, we have Brent and as well as we — Soumil, anything else you have?
Unidentified Speaker
WIM link. West India Marker link.
Suresh P Manglani
West India Marker link. Can you just give him a breakup?
Unidentified Speaker
If you talk of — see, if you top up with the different indices, so we can say around 22%, 25% is oil-linked and similar percentage would be — around 20% would be Henry Hub link and minimum percentage on the WIM link, West India Marker link.
Suresh P Manglani
Overall, 25% you have. Of that, you are saying 20%?
Unidentified Speaker
Yes.
Suresh P Manglani
And 25% Henry Hub?
Unidentified Speaker
Henry Hub.
Suresh P Manglani
And WIM link.
Unidentified Speaker
WIM link.
Suresh P Manglani
And remaining?
Unidentified Speaker
Remaining 5% around WIM link. So overall from the total value, 20% will be — 25% will be Brent link, 20% will be Henry Hub link and the balance 5% will be West India Marker link.
Suresh P Manglani
Okay. Okay.
Yogesh Patil
That was really helpful, sir. Thanks. Thanks a lot. I’ll come back.
Suresh P Manglani
Good. You’re welcome. Please come back. No problem. Thank you.
Operator
Thank you. [Operator Instructions] Next question is from the line of Varatharajan Sivasankaran from Antique Limited. Please go ahead.
Varatharajan Sivasankaran
Thank you for the opportunity, sir. Sir, one point in time, there was discussion about potentially some relief on the excise duty front or possibly some kind of any other scope for relief for CGDs. Are those discussions are now not happening? Or do we see any scope for this kind of discussion happening and any kind of result in the near future?
Suresh P Manglani
Varatharajan, as long as we run the business, we continue to do advocacy as an entity, as the CGD as a sector through CII, through ASSOCHAM, through the Chamber of Commerce as well as we see even MoPNG also supporting. So I think advocacy on multiple front continues as any investors would be looking forward for the improvement in the performance. And more important here as an Adani Group, you know that our main focus is affordability for the consumer. And even the APM prices has gone down, you have seen our calibrated approach of passing through very, very moderately.
So coming back to your question on excise duty, of course, this advocacy has been there on the forefront from our side. We have been requesting government, and we have been expecting that this would happen sooner than later, similarly on the GST side. And we see from all sides support coming. Finally, we need to see there would be certainly some consideration at the government level on the revenue side, etc. So today, we are passing through — passing on the excise duty impact of 14% to the consumer. We hope once our voice is heard, excise duty is exempted or moderated down, GST comes on natural gas. This will really significantly bring a very, very different perspective for the CGD or gas sector as a whole, actually.
Varatharajan Sivasankaran
Fair enough, sir. The other question was about this — as an analyst, we try to assess what is effectively the decline in the APM volume on the part of the producer and accordingly, what is effectively the cut actually implemented on the CGD sector. So this last cut has left us a little baffled. So is it an annual kind of a volume we are looking at? Or is it more like a six- monthly kind of a number? So I’m sure like — just to get your feedback on it, does it look like a six-monthly thing or an annual number to look at?
Suresh P Manglani
No, I think, Varatharajan, I think one thing we should take while you and all of us, we felt that 37% is now a very lower side allocation but immediately, we saw support coming significantly on the new well gas side. So I think we need to see in a calibrated manner. This is the one nominated field, which has been depleting for a very long time. We were expecting that this may continue — the higher allocation may continue a little longer time. But when we saw that this allocation APM is coming down, at the same time, support came on the new well gas side. And third, immediately support came on HPHT side.
Also, government made sure that if anybody is taking HPHT higher than what it requires, the resale will be only on a marketing margin basis. Just see the kind of a policy support which government has put in place that you get APM lower, but it’s still $6.75 today. Then you get new well gas, 12% Indian basket, crude basket. Then you get HPHT gas, again, a controlled price, the way it has worked out, combined with the coal, naphtha, etc.
And then on HPHT restriction, if you resell, you sell only on a marketing margin. I think combined reading of this should all give you a sense that there is a support which is there for the CGD sector. There is a collaborative efforts of investors, sector as a whole, as well as the authorities of government that we must grow this collaboratively. And I think we are seeing that happening.
We are working always as advocacy, we are doing it that it should come more and more in APM. But let’s see, as government has now notified that this will be two quarters in advance. So I think you will have a good visibility. We will have a good visibility on APM. We hope, combined with the new well gas still — and government has written in the same notification around 54%, 55% allocation should continue. So that is also a clarity from government side. They have maintained above 50%. Hopefully, they will maintain it. We, of course, hope that it will go up and up as a business house, as an investor. But I think we need to wait for the clarity which comes from — on the two quarters in advance clarity.
Varatharajan Sivasankaran
Fair enough. And on the new well gas allocation, my understanding is that it was 125% of the reallocated APM volume. So once again, was this a one-off kind of a thing you expect? Or do you expect this trend to continue? Obviously, it’s a function of the production growth from the APM fuels by ONGC. So — but then has there been some visibility given on that front?
Suresh P Manglani
See, one of the thing which government has now done that they have said new well gas, earlier, it used to be given on an auction basis. It means we were not knowing whether we’ll get it or not. We didn’t know that what — who will be able to secure the new well gas actually. Today, government has now stated that now new well gas also, like an APM, there will be an allocation process. So that has brought a huge clarity that now if we sell more, we push volume growth, we are assured to get APM allocated on a pro rata basis, we will be getting new well gas on a pro rata basis. So that’s very good.
Second, investment by ONGC is being — is continuing on new well gas. So it will depend upon how much more new well gas has been able to recover or be explored. We hope this will keep growing while APM field is depleting. So our ratio of above 50%, 55% or more will be maintained by the government.
Varatharajan Sivasankaran
Very clear, sir. Thanks a lot.
Suresh P Manglani
Thank you.
Operator
Thank you. Next question is from the line of Kirtan Mehta from BNP Paribas. Please proceed.
Kirtan Mehta
Thank you, sir, for this opportunity. One question on the volume side. Would you be able to like give us a broad breakup of the CNG volumes in terms of the different categories of vehicles like cars, 3-wheelers, taxis, commercial vehicles, LCVs, and buses?
Suresh P Manglani
So, Kirtan, first of all, I think, like Yogesh, I have been always hearing your sweet voice every time in an investor call, and thank you very much for taking out time and participating consistently, and I hope you will continue to do the same. I think question is very good on breakup side. I don’t know what purpose it would serve you, but largely, 2-wheeler is not on a CNG, except recently launched Bajaj Freedom bike that is still picking up. It’s in a very small proportion because it anyway takes very small gas. Largely, it is public transport, 4-wheeler. And we also see — Ravindra, you would like to give him more detail? Why don’t you give him?
Ravindra Desai
Yeah. So if we look at segment-wise growth, so on an India basis, around 26.4% is the growth for autos. And if you look at HPV, it is 0.1% growth. MPV around 0.3%. LMV 46.6%, LGV 6.5%, LPV 15.1%, HGV 0.5%, 2-wheeler 4% growth and MGV 0.2% growth on an India — pan-India basis. This is the share of CNG vehicles of the total CNG sold.
Suresh P Manglani
So I think, Kirtan bhai, actually, we can definitely provide you more penetrative details as it is available in the public domain. At the station-wise, we are — across all the stations in the country or our geographical area, we are not capturing a type of vehicle-wise. We may actually do the interpretation on how much is a per fill and we make some per — that — so that kind of analysis we could do, but I think there are public sources available as Ravindra was reading to you. Suffice to say that 4-wheeler definitely is consistently growing. Now we are seeing the segment on the diesel side, the 407, etc., small trucks, they are also significantly taking on CNG side. So the growth is coming up from that side.
Kirtan Mehta
Right, sir. This is useful. One more question was on the e-mobility side. You talked about around — we are covering 21 airports where we have the chargers available. What is the average utilization rate there? And how do we see utilization developing over one or two years particularly at the airport chargers?
Parag Parikh
So, I think, firstly, these airports have been awarded to us. And some of them, we are yet to install commission as far as our charge points are concerned. Having said that, some of the existing ones which are already in operations are giving us good utilization. Like I said, there are two sort of utilization. One is which is on the air side and one is on the outside. On the outside, we do see utilization to be better compared to a pure public retail charging station, simply from the fact that it has a locational advantage. We have seen in a pure B2C sort of utilization at around 1.5% to 2%, whilst the more sort of concentrated utilizations have even gone and crossed double digits.
So it’s a very wide variety actually of the utilization that we have seen between pure public retail charge points to some which are more concentrated in terms of locations. Going forward, like — as I said, we do see pickup both in terms of the EV mobility space and therefore, the utilization of these charging points going up. So we do see, at both the sides, the utilization going up. And it will take a little while, if I may say, but our intention is to continue to ensure that this 1.5%, 2% keeps getting pushed up on a year-on-year basis.
Kirtan Mehta
Right, sir. One last question probably on the LNG — long-haul LNG. Would you be able to update in terms of where are we and how do we plan to develop it over the next couple of years?
Suresh P Manglani
No, I think, Kirtan bhai, again, LNG for transport, as we call it LTM, LNG for transport and mining, again, we are seeing policies part getting developed. We have already started setting up LNG stations. We have now two stations and some more are under construction. One Tiruppur is operational and Dahej is coming up very shortly. And other many places, our stations are under construction at various stages right now. And we have also taken a view that wherever we are setting up LCNG plant, a small-scale LNG plant for feeding the CGD volume, even there, depending upon the — how close we are with the market or the highways, we would set up the LNG station.
So what we are now looking at is that some sort of a policy development on LNG for transport and mining side. On the other side, our business development team is working with the lot of transporters and associations to see the interest. And depending upon we get this clarity, we will further boost the investment on the LTM side. But currently, we are continuously working. And currently, we are actually developing some of these good location LNG stations also.
Kirtan Mehta
Right. At the Tiruppur, what would be the current throughput?
Suresh P Manglani
Current throughput will not be very high. I think it must be around 1,500 to 2,000 kgs per day — 1.5 to 2 tonnes per day, right? We are expecting 3.5 to 4 tonnes because it’s an ecosystem development. As you must have seen since you follow this sector very intensively, when we started new geographic area, there were no volume. Now today, you see proportion of volume in our basket is very good.
I think same thing will happen in LNG. It’s chicken and egg, whether on e-mobility side, CBG station side, LNG station side that who blinks the first. So I think as an investor, we are investing, and we are now continuously developing the market on that side. We hope very soon it will be 3.5 to 4 tonnes because we are seeing a lot of interest coming from the truck operators or the long-haul vehicles operators.
Kirtan Mehta
Sure, sir. Just probably one more question, if I can add. In terms of the sort of the — how do you think about the consolidation in the sector with so many players operating? And at what stage we can see consolidation coming up in the CGD sector?
Parag Parikh
I think you are seeing the volatility of the sector. And any sector volatility on things like APM could emerge as possibilities as far as consolidation of the sector is concerned. So I would say a lot will depend on how APM as one area unfolds. ATGL in that sense has been a more fuel operator across different fuels. So we are talking about LTM, EV, CBG, CNG, while some players may be pure play CGD players. So we do see some of that, therefore, turning out into opportunities. I would say, as far as consolidation is concerned, slightly away. I would say good about 18 to 24 months minimum before we see some consolidation. So in a two- to four-year space, you may see some consolidation in the sector.
Kirtan Mehta
Thank you, sir, for sharing your detailed views.
Parag Parikh
Thank you, Kirtan bhai.
Operator
Thank you. Next question is from the line of Harshraj Aggarwal from YES Securities. Please proceed.
Harshraj Aggarwal
Hello. Hi, sir. Thank you for taking my question. I have a few questions. Firstly, sir, could you help us with the volume breakup of the PNG segment in the quarter and for the year?
Parag Parikh
Sure. So I think if you were to go by the quarter breakup, about two-third, as we said, is really constituting CNG. Within the other one-third or if I were to look at from an absolute overall number, close to about 22% is on the industrial side, about 3% to 4% is on the commercial side and the balance 8% is on the domestic. So that’s really the breakup as far as the volume from — of the PNG is concerned. It is similar, if I were to say — if you were to look at it from an annual basis to a quarter basis. In the meanwhile, one of the interesting developments has been in terms of contribution of the newer geographies over the existing geographies. So newer geographies used to contribute about 27%. Now they are almost one-third of the overall contribution of volume.
Harshraj Aggarwal
So sir, apart from this, now we are seeing the propane prices correcting. So obviously, how do you see the growth happening from the industrial segment?
Ravindra Desai
Yeah. Definitely, with the softer crude prices, there is some correction in the propane prices, but you might also see that the different indices are also varying accordingly. We have seen that the Henry Hub prices have rolled back from around $4 to around $3 recently. So the diversification has probably helped us to average out the prices and compete with the alternate fuels like propane and all.
Suresh P Manglani
You see, these cyclic changes we have seen in the past. We have been a long-term player, and we would be a long-term player. That’s the reason I have been emphasizing that as a prudent operator, where customers are expecting some stability of the prices, and they want us to be as current as possible. So that’s where the responsibility is on us to build a good portfolio with the various diversified indices. When you said propane is coming down, Brent also is coming down. We have a good linked Brent contracts. And we are also prudent to see how do we build our future portfolio to take these kind of cyclical pressures. So I think we’ll be able to still build our volume on I&C side. In fact, our pressure — our priority is on building I&C volume now significantly.
Harshraj Aggarwal
Sir, one further question on this in terms of the gas pricing. Do you think that the long-term prices, which is crude-linked or Henry Hub-linked would be cheaper than the spot LNG or you see the spot LNG falling to a larger extent? Given the scenario in the last couple of years, the spot LNG has been on the higher side. And we have the long-term contracts in place where — which is cheaper than the spot LNG. So how do you see that scenario changing? Or what is your view on that?
Suresh P Manglani
I wish I could predict these things actually. But having said that, I think spot plays with the events which are happening, some event here and there happening internationally on Suez Canal or any other thing, geopolitical, suddenly, you see spot playing its own play. But we are seeing that part. And that’s the reason when I stated in the beginning, we said why we’ll build significant or a majority would be our short-term, midterm and long-term contracting part. Some portion we’ll keep on a spot so that we can exploit our spot if the market is cheaper.
Our view is that as we are looking at the market currently from ’27-’28 onwards, market is moderating down in the prices. And from that point till 2032 kind of a thing, we are seeing there is a supply side excess happening and that we could always seize the opportunity. And beyond that, again, we see some sort of a demand growing. So that is the kind of a thing we can suggest.
Henry Hub forward curve, of course, today, if you look at it, it looks like a bit of growing higher. But our expectation is that it will moderate down in the future. Brent is the way it is playing since it is a multi-country, multi-size issue. We will — it will play in the range-bound price range.
Harshraj Aggarwal
Okay. Sir, last question I have is on the capex. If you could help us the target for FY ’26 and where are we going to majorly spend this number?
Suresh P Manglani
Parag?
Parag Parikh
So I think as far as capex is concerned, we will continue to look at capex, which allows us to generate, commercialize, and monetize our assets. So that’s where our focus will be as far as rollout of capex is concerned. As you may be aware, we’ve mentioned it earlier in the past, some of the newer geographies that are awarded to us are yet to get the national grid connectivity. And therefore, we will do a measured capex as far as the newer 11th round geographies are concerned and selectively continue to monetize on the 9th, 10th round of the geographies that were awarded. As a number, we did a capex this year of close to about INR900-odd crores. And next year, we will continue to do similarly in that range.
Harshraj Aggarwal
Thank you. That’s all, sir, from my side.
Operator
Thank you. Next question is from the line of Somaiah V from Avendus Spark Institutional Equities Private Limited. Please go ahead.
Somaiah Valliyappan
Yeah. Thanks for taking my question, sir. Sir, first question is on the newer GAs. Just wanted to understand this allocation of APM and new well gas. Is there any differential treatment for newer GAs where things are kind of really starting up versus established GAs? Like at an inflection point, we get a higher allocation and then it kind of comes down? Or is it the same, whether it’s a new or established GA?
Suresh P Manglani
So, Somaiah, actually, the way you see the clarity is that now new well gas would be given on an allocation basis, not on auction basis. Now depending upon how much new well gas is going to be produced and what is the kind of a volume growth each CGD comes up, depending upon that, the pro rata allocation will happen. So this time, while the APM declined to 37%, the offset was done through new well gas allocation. Of course, you know the differential is that APM, we have fixed price now from 1st April. It is $6.75 per MMBtu, whereas new well gas will vary depending upon the crude prices.
So India crude basket, ICB, 12% on a monthly basis. So depending upon how that — the ICB will keep behaving, our prices will vary, but it still remains moderated one. So that is what would happen that more new well gas coming up, more allocation will happen. Tomorrow, if the production is a little lesser or allocation is lesser, then we get lesser allocation. But currently, it looks like that it will — we will be able to get a good offset for the new well gas. And then there is an HPHT, which comes — and again, there is a priority for — first priority of HPHT is on a CNG and home PNG. And then only it can be sold to other sectors. So again, we are ring-fenced there also that if APM is down, new well gas — new well gas is down, we get HPHT gas.
Somaiah Valliyappan
Got it, sir. Sir, I was just trying to understand this, let’s say, 37% of APM allocation. So this is whether we do it in our established GA or let’s say, for example, Jalandhar that we are starting. So it will be that 37%, which is fixed for both. It is not that something that we are starting because we lack a bit of an operational leverage or something, you get a bit of support in the initial period, a higher allocation and later it kind of goes down?
Suresh P Manglani
So this is a good question you asked, actually. I should have clarified in the beginning, and I’m sorry that there may be some sort of a confusion, but let me clarify. Another tweak of this policy, which was there that, since beginning, the initial GAs, when you start the development like Jalandhar we started or any other company starting new GA, you get the full support up to 6,000 MMBtu. There’s no allocation. You get first priority — sorry, 6,000 SCM, not MMBtu. Sorry. 6,000 SCMD is a good amount to allow the GA to run on a full APM. So if it goes beyond 6,000 SCMD, then you come into the allocation process. So barring that part, if your geographical areas which are below 6,000, they get a full 100% allocation.
Once you are out of this threshold, you come under the normal pro rata allocation, depending upon how much growth you bring, you get a volume. So let’s say, today, 37%. Next quarter when it starts, we’ll sum up — everybody will sum up to the government how much has been the sales of a CGD and how much each CGD has done it. And then how much is available on APM. They will allocate pro rata basis.
So it could be 37%, it could be more, it could be less depending upon how the sector will perform. And then there is an offset — similar allocation is now going to happen in new well gas. There is no 6,000 here because 6,000 is supported by APM. So I hope I clarified that other than that, there is no other differentiation that newer GAs, which are virgin, which are coming up, 6,000 SCMD full — up to that 100% allocation, beyond that pro rata allocation as any other GA across the country.
Parag Parikh
This is not a new regulation. This has always been in existence in the past.
Suresh P Manglani
Yeah.
Parag Parikh
I hope it clarifies to you.
Suresh P Manglani
Somaiah?
Somaiah Valliyappan
Yes, sir. It does, it does. Thank you. Sir, second question is on the newer GAs. I mean, in general, what would be — how much capex that would be required to develop a GA? I understand it is different depending on what is the potential population density, square kilometers that you are addressing, everything would be different. But let’s say, 0.3, 0.4 MMSCMD potential target GA, what is the capex entailment to get it to that level? That is one. And second, what are the kind of return expectations, given where things are today in terms of margins for, let’s say, a new entrant or someone who wants to develop a new GA?
Suresh P Manglani
So, Somaiah, again, while we could guess in a generic way that what should be the capex for 0.3. But unfortunately, the way GA, geographical areas, are now spread, if you see, we have in Ahmedabad where we are sitting, we have Mumbai. Those are the towns which used to be originally the city gas distribution. And today, a geographical area has four districts, five districts, six districts, spread at 20,000 square kilometers. So bringing 0.3 there could be very easy as well as very difficult. There could be one very industrial good park and suddenly, you get 0.5 million. You have Morbi, an example, in one place, you get a 7 million volume. So what is the investment? Very small.
So tomorrow, we will be supplying in Mundra, for example. So what is the investment? So I think difficult to give you generically this answer that how much would be an investment for a 0.3. Suffice would be say that if you see our track record, every CGD, every prudent investor, would invest calibrately, initial some money, INR50 crores, INR60 crores, INR70 crores, maybe depending upon how far is the connectivity transmission pipeline. They will invest in the initial investment to start and launch the geographical area. And thereafter, you calibrate your investment.
You start investing as you start growing the market. And you have seen our track record that all newer geographical area investment has been calibrated, volumes have been growing. Many geographical area is now more than 0.1. They are crossing — they will be now coming closer to 0.15. That’s the way ecosystem happens in CGD. You can see, if you’ve been tracking this sector, all geographical areas, whether originally you take from Gujarat, Maharashtra and others, all have grown that way. It’s an ecosystem development. It takes some time to build. And once you build, it goes on sustainably.
Somaiah Valliyappan
Got it, sir. Sir, one clarification on the HPHT part. You said one-third is HPHT. So this is — these are contracts, medium-term contracts, they end up and they come up for renewal? Just want to understand on that.
Suresh P Manglani
Yeah, yeah. HPHT contract, originally, the way it used to happen, they used to — and depending upon the operator as well, right? Largely, it is coming from Reliance BP field currently. So it used to be put on the auction side. And every CGD, depending upon its — how much is the portfolio bid and how much is the gap, they used to bid for the volume for CNG and home PNG. So this is our case. I’m not telling you as a policy. Our case is for — currently, the gap is being filled through HPHT. And as you rightly said, if there is a contract which expires, the gap may come shorter. It may be — instead of 35%, may come down.
But what has happened new phenomena that almost all HPHT gas now, which is waiting to produce other than what has been supplied under the original contracts to all the CGDs, remaining is coming on the Indian gas exchange, IGX, for — again, there IGX is also the same thing. First priority is for CGDs to bid on IGX like in a spot market and — but we’ll get the same HPHT prices. And if there is a residual gas available, anybody can bid and take away. So that’s the way there. Don’t take it in the sense that one-third is for everybody, HPHT. This is current scenario of ATGL that one-third gap is being bridged through HPHT.
Somaiah Valliyappan
Understood. Just wanted to check if I got this right. So in case if there is a term contract for us that is ending, because CGDs get a priority, there is not much of a risk. If we choose to continue with HPHT, we can get that quantity. So that is — is that the right way?
Suresh P Manglani
Absolutely. Originally, when we signed the five-year contracts, for example, that was also to be bid by the CGD entity. Somebody bid for five years, somebody may have bid for three years, some for other year. Whatever contract we have signed, that is getting honored by the respective operator and by us as well.
Somaiah Valliyappan
Understood. Thanks for that.
Suresh P Manglani
Thank you. Thank you.
Operator
Thank you. Next follow-up question is from the line of Yogesh Patil from Dolat Capital. Please go ahead.
Yogesh Patil
Thanks a lot, sir, for taking my question again. Sir, need some data points on the industry level. What is the total APM and NWG allocation to CGD industry? And if you could provide us breakup in terms of CNG and the PNG domestic side, it would be helpful.
Suresh P Manglani
So, Yogesh, one thing is that I was expecting that you will definitely ask supplementary question and you asked it. It’s very good. I think that’s the reason — that shows us that how much interest you are taking in the CGD sector. Parag, would you like to give him a breakup?
Parag Parikh
So, I think on an industry-wide breakup — just hold on, I’ll just calibrate the numbers. So overall — Yogesh, overall, industry is about close to 27. Out of the 27, close to half, about 13, 12.5 — 13 MMSCMD is on APM. NWG constitutes another close to 4 million.
Yogesh Patil
Okay. Sir, one more question policy-related. Is it mandatory for biogas producers to sell that biogas to CNG only or CNG consumers or CNG stations, or the same molecule can be sold to the PNG industrial and commercial customers?
Suresh P Manglani
No, CBG, it is outside authorization of CGD. It governs under biofuel policy. MoPNG has been encouraging and promoting development of CBG in India. So if, let’s say, a producer or a developer brings the CBG on the plant, it has a complete freedom. It has a complete freedom to sell through its own CBG station, give it to the CBG nodal point — nodal agencies like GAIL and other oil marketing companies or supply to industrial and commercial consumers. There’s a complete freedom on CBG side.
Yogesh Patil
Okay. Thanks a lot, sir. That was really helpful.
Suresh P Manglani
Thank you, Yogesh.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Priyansh Shah for the closing comments.
Priyansh Shah
Thank you. Thank you, everyone, for participating on the call. And I would also like to thank the management, who have shared the insights of the company. And in case of any further additional questions, please do write to us. Thank you and have a great year. Thank you.
Operator
[Operator Closing Remarks]