Adani Total Gas posted a 6% rise in net profit to ₹173 crore for the quarter ending September 2026, driven by strong CNG sales volumes. While revenue increased 34% to ₹2,110 crore, higher gas procurement costs limited overall margin expansion. The company also announced that industry veteran Sanjay Pandita will take over as the new CEO starting November 1.
Adani Total Gas Ltd (ATGL) reported a 6% year-on-year increase in its consolidated net profit, reaching ₹173 crore for the second quarter of the 2026-27 fiscal year. The company’s revenue from operations saw a significant 34% jump, standing at ₹2,110 crore for the period ending September 30.
Volume Growth in CNG and PNG
The revenue growth was primarily supported by a 12% rise in aggregate gas sales volumes, which touched 315 million standard cubic metres (MMSCM) during the quarter. The Compressed Natural Gas (CNG) segment remained the key contributor to this growth, with volumes rising 17% to 223 MMSCM. Meanwhile, the Piped Natural Gas (PNG) segment saw a more modest growth of 3%, reaching 92 MMSCM.
To support this demand, the company continued to expand its infrastructure. During the quarter, Adani Total Gas added 16 new CNG stations, bringing its total network to 723 stations. Its reach into residential areas also increased, with the company serving 11.81 lakh households, an addition of roughly 40,000 new connections in the three-month period.
Impact of Gas Procurement Costs
Despite the strong volume growth, the company faced pressure on its profit margins due to rising expenses. The cost of natural gas procurement jumped by 43% compared to the same quarter last year. This increase was driven by volatile global gas prices, the removal of certain pooled-gas supports, and geopolitical instability in West Asia that affected the energy market.
To manage these costs, the company relied on a diversified gas sourcing strategy and pricing adjustments. These measures helped the company achieve an EBITDA (earnings before interest, tax, depreciation, and amortisation) of ₹340 crore, which is a 12% increase from the previous year. For investors, the ability of the company to pass on these costs or manage sourcing efficiently remains a key area to monitor, as gas prices are subject to global fluctuations.
Strategic Expansion and Leadership Changes
Beyond its core gas business, the company is investing in new energy solutions. Its electric vehicle (EV) charging network has reached 5,513 points across 26 states and union territories. Additionally, the company has started operations in the compressed biogas segment, reporting sales of 460 tonnes in the first half of the fiscal year.
The board also announced a change in top leadership. Current CEO Suresh P Manglani will retire on October 31. Sanjay Pandita, who has previously worked at Reliance Industries and Mahanagar Gas, will step into the role of Executive Director and CEO from November 1. His term is set for three years, and investors will look for continuity in the company's expansion plans under the new leadership.