Adani-Total Gas Q1 profit falls 18 pc on higher gas price

New Delhi, Jul 21 (PTI) Adani Total Gas Ltd, the city gas joint venture of Adani Group and TotalEnergies of France, on Tuesday reported an 18 per cent drop in June quarter profit as the price of gas soared in the aftermath of the West Asia crisis.

Net profit of Rs 133 crore in April-June — the first quarter of the current 2026-27 fiscal year — compared with Rs 162 crore earning in the same period a year back, the company said in a statement.

Revenue was up 27 per cent at Rs 1,910 crore on account of higher volumes of CNG.

The cost of natural gas, which is turned into CNG to run automobiles and piped to household kitchens for cooking, rose 39 per cent to Rs 1,454 crore.

“Higher gas cost due to continued West Asia crisis, and increase in APM gas price

ceiling, the cost of natural gas rose 39 per cent,” the statement said.

“During the quarter, APM allocation for CNG segment reduced to 30 per cent from 36 per cent from the last quarter, the balance was met with existing contracts and higher priced spot procurement.” ATGL said it took a calibrated approach in passing the higher gas cost to ensure volume growth does not get impacted.

CNG volume increased 18 per cent year-on-year while piped natural gas (PNG) connections rose to 11.41 lakhs.

“Despite the geopolitical headwinds in West Asia, PNG volumes grew by 4 per cent year-on-year, supported by strong growth in the domestic and commercial volumes,” the statement said. “Overall volume has increased by 13 per cent.” ATGL said combined CNG and PNG sales volumes rose 13 per cent year-on-year to 303 million standard cubic metres (MMSCM) during the quarter. Across its pan-India operations, including its joint venture IOAGPL, combined gas volumes also increased 13 per cent to 496 mmscm.

ATGL expanded its network by adding five CNG stations during the quarter, taking the total to 707, while PNG household connections increased by more than 38,000 to 1.141 million. Industrial and commercial connections rose to 10,422 after 448 new customers were added.

The company said the quarter was marked by higher gas procurement costs as the West Asia conflict pushed up Brent-linked gas prices, raising the cost of New Well Gas, regasified LNG and spot LNG.

An increase in the administered price mechanism (APM) gas price ceiling and rupee depreciation further lifted input costs, resulting in a 39 per cent year-on-year rise in gas purchase costs.

Despite the cost pressures, ATGL said it ensured uninterrupted gas supplies to priority consumers through operational measures and benefited from government support, including measures to facilitate gas supplies and temporary regulatory relief.

Its electric mobility arm, Adani TotalEnergies E-mobility Ltd, expanded its EV charging network to 5,306 charging points across 26 states and Union Territories and 226 cities, with installed charging capacity rising to about 58 MW.

The company’s biomass business sold 323 tonnes of compressed biogas during the quarter, while sales of its fermented organic manure reached 5,533 tonnes.

ATGL CEO Sanjay Pandita said the operating environment remained dynamic, with elevated gas prices, higher Brent crude prices, compounded by currency volatility, and geopolitical developments negatively impacting global energy supplies. “While these factors exerted pressure on gas sourcing strategy for CGD Industry, our focus remained ensuring supply continuity, enhancing operational efficiency, safeguarding CNG and PNG consumers from undue risks and creating long-term value for customers and stakeholders.” “We continue to focus on sustainable growth, through disciplined network expansion, digital enablement, and the development of our clean energy ecosystem across CNG, PNG, and e-mobility,” he added. PTI ANZ TRB