Adani Total Gas Q2 FY27 Revenue Rises 34%

Quarterly performance at a glance

Adani Total Gas Ltd reported revenue from operations of Rs 2,102 crore for the second quarter of FY27, up 34% from Rs 1,569 crore in the year-ago period. The company said the growth was led by sustained volume expansion and calibrated pricing. Q2 volume rose 12% year-on-year to 315 million metric standard cubic metres, or MMSCM. EBITDA increased 12% to Rs 340 crore. However, profit after tax grew only 3% to Rs 167 crore, reflecting pressure from a sharp increase in gas procurement costs. The results cover the quarter ended September 30, 2026.

Revenue outpaces operating profit growth

The difference between revenue and profit growth was a notable feature of ATGL's quarterly performance. Revenue increased at nearly three times the pace of EBITDA growth, while PAT growth was lower still. Management said natural gas costs rose 43% year-on-year during the quarter. Higher Brent and LNG prices, currency depreciation, and lower domestic gas availability contributed to the increase. The company was unable to fully pass on the higher input cost to customers. As a result, EBITDA margin was about 16.2%, below historical levels above 23% cited in the earnings discussion.

CNG remains the main volume driver

CNG volume increased 17% year-on-year to 223 MMSCM in Q2 FY27. This was the larger contributor to the company's total quarterly gas volume of 315 MMSCM. PNG volume rose 3% to 92 MMSCM over the same period. The figures indicate that growth was concentrated in the vehicle-fuel segment, while piped natural gas recorded a slower expansion. ATGL also said the volume contribution from new geographical areas increased to 41%, compared with 35% in Q2 FY26. This shift reflects the company's effort to deepen its presence beyond established markets.

CNG station network expands further

ATGL added 16 CNG stations during the quarter, taking its network to 623 stations. For the first half of FY27, the company added 21 stations. Management has outlined a target of adding 80 to 90 stations during FY27. The station additions support higher CNG availability and are aligned with the growth reported in CNG volumes. Network expansion also remains important as the company seeks to raise penetration in its licensed geographical areas. The results did not provide a separate revenue contribution from new stations.

Household and commercial customer additions

The company connected 39,574 new PNG households in the second quarter. Its total household PNG connection base reached 11.81 lakh at the end of the period. During H1 FY27, ATGL added 77,870 new household connections and said it aims to close the year with more than 2 lakh additions. Industrial and commercial customer additions also accelerated. About 900 such customers were added in the first half, or 1.4 times the additions made during the full FY26. The industrial and commercial customer base stood at 10,864.

First-half numbers show margin pressure

For the first half ended September 30, 2026, ATGL reported revenue of Rs 3,999 crore, up 31% year-on-year. Half-year volume rose 13% to 618 MMSCM. EBITDA increased 3% to Rs 621 crore, substantially slower than revenue and volume growth. The first-half figures underline the impact of increased gas costs across both quarters. Management described the operating environment as challenging globally, while pointing to resilient execution in its core city gas distribution business. The company did not disclose H1 PAT in the supplied results details.

Key operating and financial metrics

Gas sourcing and pricing backdrop

During the earnings call, management addressed questions on CNG pricing in key markets, including Ahmedabad, where analysts noted price increases in June, July and August. It said that, out of 70%, around 40% was linked to markers such as Henry Hub and Brent-linked contracts, including spot exposure. This link to international benchmarks helps explain why global gas prices and currency movements affected procurement costs. The 43% rise in gas costs was not fully transferred to consumers during the quarter. That limited margin recovery despite the rise in revenue.

Investments in distribution infrastructure

ATGL expanded its steel network by 732 inch-kilometres in H1 FY27. The company said its capital allocation remains focused on strengthening the core city gas distribution network while scaling adjacent clean-energy businesses. Building network infrastructure is necessary for serving additional household, commercial and industrial customers. The higher proportion of volumes from new geographical areas also shows that recently developed markets are becoming more material to operations. These investments are being made alongside an increase in CNG station capacity. The results point to a continued emphasis on physical distribution reach.

EV charging and biogas initiatives

Beyond city gas distribution, ATGL reported 5,513 EV charging points across 26 states and union territories and 225 cities. Installed charging capacity stood at 63 MW. The company also said it plans to double compressed biogas production at its Barsana plant. These initiatives sit alongside the company's core CNG and PNG operations. No financial contribution from the EV charging network or the biogas plant was disclosed in the supplied information. Their operational scale nevertheless indicates ATGL's presence in adjacent clean-energy infrastructure.

What the results mean for investors

The Q2 results show that ATGL continued to add volumes, customers and distribution infrastructure despite a difficult cost environment. Higher CNG consumption, new station additions and increasing contributions from new areas supported revenue growth. But the rise in natural gas cost restricted EBITDA and PAT expansion, resulting in a lower margin profile. For investors, the key operating variables remain gas sourcing costs, the extent of price pass-through, and the pace of network utilisation. Management's FY27 targets include adding 80 to 90 CNG stations and more than 2 lakh household connections. Subsequent disclosures will show how those targets progress and whether input-cost pressure eases.