Adani Total Gas Q3 FY26 Profit Rises 10% on Strong Volume Growth

Adani Total Gas Ltd. (ATGL) announced its financial and operational results for the third quarter and nine months ending December 31, 2025, showcasing a period of robust growth despite market challenges. The company reported a solid performance with a 10% year-on-year increase in standalone profit after tax for the quarter, largely driven by strong volume growth and consistent network expansion across its operational areas.

Quarterly Financial Performance

In the third quarter of fiscal year 2026, ATGL's standalone revenue from operations grew by a significant 17% to ₹1,631 crore, compared to ₹1,397 crore in the corresponding period of the previous year. This revenue growth translated into improved profitability. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a 15% rise, reaching ₹313 crore from ₹272 crore. Consequently, the Profit After Tax (PAT) for the quarter increased by 10% to ₹157 crore, up from ₹143 crore in Q3 FY25.

Nine-Month Financial Overview

For the nine months ending December 31, 2025, ATGL's revenue from operations stood at ₹4,692 crore, marking a 19% increase from the ₹3,950 crore recorded in the same period of the previous fiscal year. EBITDA for the nine-month period was ₹916 crore, reflecting a modest 3% growth over the ₹893 crore from 9M FY25. However, the profit after tax for the nine-month period saw a slight decline of 4%, coming in at ₹481 crore compared to ₹499 crore in the prior year, indicating some margin pressure over the extended period.

Operational Strength and Volume Growth

The company's financial growth was strongly supported by its operational performance. Total sales volume for Q3 FY26 increased by 12% year-on-year to 289 million metric standard cubic meters (MMSCM). This growth was primarily led by the Compressed Natural Gas (CNG) segment, which saw its sales volume jump by 17% to 200 MMSCM. The Piped Natural Gas (PNG) segment also recorded growth, with sales volume increasing by 3% to 89 MMSCM. For the cumulative nine-month period, the total volume was up 14% to 836 MMSCM.

Infrastructure Expansion

ATGL continued its aggressive network expansion across India. During the third quarter, the company added 18 new CNG stations, bringing its total network strength to 680 stations. The domestic PNG network was also significantly expanded, with 34,210 new households added, taking the total number of domestic connections to over 1.05 million. The company also added 127 commercial and 21 industrial connections during the quarter, further deepening its market penetration.

Management Commentary

Suresh P. Manglani, CEO & ED of ATGL, commented on the results, stating, "Team ATGL has delivered yet another strong quarter with double-digit growth in volumes, revenue, and EBITDA." He highlighted the company's diversified sourcing strategy, which helped manage the gas basket efficiently despite challenges such as lower availability of APM gas and higher Henry Hub-linked RLNG prices. Manglani also pointed to supportive regulatory changes, including tax reductions and simplified tariffs, which are expected to create a more affordable pricing environment for consumers.

Strategic Diversification into New Energy

Adani TotalEnergies E-mobility Limited (ATEL), a subsidiary of ATGL, is making significant strides in the electric mobility space. The number of installed EV charging points is approaching the 5,000 mark, with a total capacity of 51 MW. This expansion is a key component of ATGL's broader strategy to position itself as a comprehensive energy transition company, moving beyond natural gas.

Commitment to Sustainability

The company's focus on sustainability was recognized with dual upgrades in its ESG ratings. ATGL's S&P Dow Jones Sustainability Index score rose to 72, placing it 9th globally among gas utilities. Furthermore, its CDP rating improved to 'A', reaffirming its commitment to a responsible and sustainable energy transition.

Conclusion

Adani Total Gas's Q3 FY26 results demonstrate resilient growth, driven by strong sales volumes and continued infrastructure expansion. Despite facing headwinds from gas pricing and availability, the company's strategic sourcing and operational efficiency have enabled it to post healthy financial numbers. The continued expansion into e-mobility and a strong focus on ESG position ATGL for sustainable long-term value creation for its stakeholders.