Adani Total Gas reported a 34% revenue growth to Rs 2,102 crore for Q2 FY27, driven by strong volume gains in CNG. However, profit growth remained modest at 3% due to a 43% surge in gas input costs. The company is actively expanding its CNG network and EV charging points to maintain its growth trajectory while managing margin headwinds through portfolio diversification.
Adani Total Gas Posts 34% Revenue Growth in Q2
Revenue: Rs 2,102 crore (up 34% YoY)
PAT: Rs 167 crore (up 3% YoY)
Reader Takeaway: Robust volume expansion drives top-line growth, but surging gas costs continue to compress operating profit margins.
What just happened
Adani Total Gas Limited (ATGL) released its financial results for the second quarter of fiscal year 2027. The company saw significant top-line expansion, with revenue climbing to Rs 2,102 crore compared to the same period last year. Total gas volumes reached 315 MMSCM, representing a 12% increase, bolstered by a 17% rise in CNG demand.
Why this matters
While revenue growth is strong, the company is grappling with significant margin pressure. EBITDA grew by only 12%, trailing the top-line performance, while net profit grew at a slower 3%. Management attributed this to a 43% spike in natural gas costs, driven by volatility in global energy prices and domestic gas availability constraints.
Operational Performance
The company continues to scale its physical infrastructure. During the quarter, ATGL added 16 new CNG stations, bringing its total to 723. It also expanded its PNG household footprint to 11.81 lakh connections after adding nearly 40,000 new users. In the green energy space, the company now operates 5,513 EV charging points.
Management Commentary and Guidance
ATGL remains focused on its pivot toward an integrated energy platform. Management expects to add 80-90 CNG stations by the end of the fiscal year. Furthermore, the company is ramping up its Compressed Biogas (CBG) production, targeting a 100% increase in output over the next 5-6 months. For its EV business, the strategy is shifting toward B2B captive charging solutions to ensure higher asset utilization.
Risks to watch
The primary concern remains the 16.2% EBITDA margin, which sits below historical levels of roughly 23%. Future margin recovery is highly dependent on geopolitical stability and the ability of the company to secure favorable long-term gas contracts.
What to track next
Investors should monitor the scaling of the CBG division and the adoption rates of the company's B2B EV charging infrastructure, as these segments are critical for long-term margin stability.