Adani Total Gas: Fueling Growth and Sustainability in Q3 & 9MFY26

Adani Total Gas Limited (ATGL) has reported a robust performance for the third quarter and the first nine months of Fiscal Year 2026, demonstrating consistent volume growth and disciplined execution across its diversified energy platform. The company, a prominent player in India's City Gas Distribution (CGD) sector, continues to expand its infrastructure and strategically invest in sustainable energy solutions, including e-Mobility and Biomass. Despite facing headwinds from rising gas costs and currency fluctuations, ATGL has maintained a strong financial position and advanced its ESG commitments, reinforcing its position as a key contributor to India's energy transition.

For the nine-month period ending December 31, 2025 (9MFY26), ATGL's Revenue from Operations increased by a significant 19% year-on-year, reaching INR 4,692 Crore. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) also saw a 3% growth, totaling INR 916 Crore. In the third quarter alone (Q3FY26), Revenue from Operations rose by 17% to INR 1,631 Crore, with EBITDA increasing by 15% to INR 313 Crore. While these figures highlight strong operational momentum, Profit Before Tax (PBT) and Profit After Tax (PAT) for 9MFY26 experienced a marginal decline of 3% and 4% respectively, primarily due to increased gas costs and adverse foreign exchange rates.

Operational Expansion and Strategic Diversification

ATGL's core CGD business continues to be a major growth driver. The company's CNG volume increased by 18% year-on-year for 9MFY26 and 17% for Q3FY26, while PNG volume grew by 7% for 9MFY26 and 3% for Q3FY26. This growth is underpinned by a continuous expansion of its network:

• CNG Stations: Increased to 680, with 33 new stations added in 9MFY26. Of these, 136 are Company-Owned Dealer-Operated (CODO) or Dealer-Owned Dealer-Operated (DODO) stations, providing a full branded experience.
• Steel Pipeline Network: Expanded to approximately 14,862 inch-km, enhancing reach across its 34 Geographical Areas (GAs).
• PNG Connections: Home connections grew to 1.05 million, with 87,497 new homes connected in 9MFY26. Commercial and Industrial (C&I) connections increased to 9,751.

Beyond CGD, ATGL is strategically diversifying into new sustainable energy verticals. The e-Mobility segment, operated through its subsidiary Adani TotalEnergies E-mobility Limited (ATEL), has rapidly grown to nearly 5,000 charging points across 26 states and union territories, covering 226 cities, with an installed capacity of 51 megawatts. The company aims to reach 10,000 EV charge points in the near future. In the Biomass segment, ATGL sold 1,218 metric tons of Compressed Biogas (CBG) in 9MFY26, with peak daily sales reaching 7.5 metric tons in December 2025. The 'Harit Amrit' brand for organic fertilizer has received positive market response, particularly in Uttar Pradesh, Madhya Pradesh, and Gujarat.

Financial Summary Table

Navigating Challenges and Strengthening ESG

The company faced significant cost challenges in 9MFY26, with gas costs increasing by approximately 25%. This was primarily driven by lower APM (Administered Price Mechanism) and NWG (New Well Gas) allocation, an increase in Henry Hub (HH) linked RLNG (Regasified Liquefied Natural Gas) prices, and an unfavorable USD to INR exchange rate. While regulatory changes, such as the transition to a 2% CST (Central Sales Tax) for gas supplied outside Gujarat and a simplified 2-zone transmission tariff structure, offered some relief, their benefits were largely offset by these higher input costs.

ATGL's management demonstrated proactive risk management by strengthening its gas sourcing efficiency. The company strategically shifted part of its HH-linked volumes to Brent-linked RLNG and spot contracts, effectively mitigating the impact of higher HH prices. This diversified procurement approach, coupled with calibrated pricing adjustments, helped sustain revenue and EBITDA growth despite the challenging environment. The industrial segment, however, experienced some pressure due to the availability of cheaper alternative liquid fuels like LPG propane.

ATGL's commitment to sustainability and governance has garnered significant recognition. The company's S&P Dow Jones Sustainability Index (DJSI) score improved to 72 from 62, placing it 9th globally in the gas utility sector. Furthermore, its Carbon Disclosure Project (CDP) rating was upgraded to 'A' (leadership category) from 'B'. These dual upgrades underscore ATGL's unwavering commitment to responsible growth, transparent governance, and a cleaner energy ecosystem. The company also received the prestigious Gold award for safety excellence at the Apex India Safety Awards 2025, reflecting its strong focus on safety.

Digital Leadership and Future Outlook

Digitalization and customer delight are central to ATGL's strategy. The company leverages platforms like 'SOUL' for integrated business operations and 'Adani Gas App: 360°' for customer engagement. Initiatives include Adani Gas Mitra (self-help kiosks), 99% digital payment adoption, 1M+ self-billed invoices via WhatsApp, 70% online refunds, and 24x7 multilingual support through an Unmanned CDC Bot. These efforts aim to enhance customer experience and operational efficiency.

Looking ahead, ATGL is well-positioned for industry-leading growth, supported by its pan-India presence across 53 GAs, strong promoter backing from Adani and TotalEnergies, and robust infrastructure. The company anticipates a significant increase in natural gas's share in India's fuel mix, from 7% currently to 15% by 2030, presenting a large opportunity for accelerated switch to natural gas. ATGL's focus on low-carbon verticals like EV charging and biogas, coupled with its disciplined capital allocation, ensures a path towards sustainable growth and long-term value creation for all stakeholders.