Adani Total Gas Limited (ATGL) reported strong revenue and volume growth in the second quarter of FY27, with revenue jumping 34% year-on-year and sales volumes rising 12%.
This, even as elevated global gas prices, currency depreciation and reduced allocation of domestic gas weighed on its operating environment.
Revenue from operations surged 34% year-on-year to Rs 2,102 crore in Q2FY27, while EBITDA rose 12% to Rs 340 crore. Profit after tax (PAT), however, increased just 3% to Rs 167 crore, as the company navigated elevated global gas prices, the withdrawal of pooled-gas support and the prolonged West Asia crisis.
For the first half of FY27, revenue climbed 31% to Rs 3,999 crore and EBITDA grew 3% to Rs 621 crore. But PAT fell 7% to Rs 300 crore, compared with Rs 324 crore in the corresponding period last year.
The city gas distribution company recorded combined compressed natural gas (CNG) and piped natural gas (PNG) sales of 315 million standard cubic metres (MMSCM) in Q2FY27, up from 280 MMSCM a year earlier. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 12% year-on-year.
For the first half of FY27, sales volumes climbed 13% to 618 MMSCM from 547 MMSCM in the corresponding period last year. However, EBITDA growth was more modest at 3% for the half year, underscoring the cost pressures facing the business.
CNG remained the principal growth engine, with sales volumes increasing 17% year-on-year to 223 MMSCM in Q2FY27, compared with 191 MMSCM in the year-ago quarter. For H1FY27, CNG sales rose 17% to 441 MMSCM.
PNG sales grew at a slower pace. Volumes increased 3% to 92 MMSCM in the second quarter from 89 MMSCM a year earlier, while first-half sales rose 4% to 177 MMSCM.
ATGL attributed the growth to sustained CNG demand, deeper household PNG penetration and network expansion across its geographical areas.
“ATGL delivered a strong performance in Q2FY27, with volumes growing 12% and revenue rising 34% year-on-year, supported by sustained CNG demand, deeper PNG penetration and disciplined network expansion. This momentum enabled ATGL to achieve strong double digit EBITDA growth up by 12% YoY.
"This performance was achieved despite a challenging operating environment marked by the continuation of West Asia crisis, elevated Brent and spot gas prices, currency depreciation and reduction in APM allocation. Our diversified sourcing portfolio, mix of long-term contracts and flexible market purchases along with calibrated price mechanism helped manage cost pressures, maintained supply reliability, and sustained customer demand.
"We remain focused on discipline capital allocation, volume growth, operational excellence combined with digital enablement across CNG, PNG, e-mobility and biomass segments to create long-term value for customers and stakeholders," said Sanjay Pandita, CEO, ATGL.
ATGL continued to expand its infrastructure during the quarter, adding 16 CNG stations to take its standalone network to 723 stations as of September 30, 2026. The company added 21 stations during H1FY27.
Its steel pipeline network expanded by 318 inch-kilometres during Q2FY27, taking the cumulative network to 16,305 inch-kilometres. First-half additions stood at 732 inch-kilometres.
Household PNG connections increased by 39,574 during the quarter and 77,817 during the first half, taking the total to 11,80,682 homes. The company also added 392 commercial PNG connections and 50 industrial PNG connections in Q2FY27.
The total number of commercial PNG connections reached 7,669, while industrial connections stood at 3,195.
The company said the continuing West Asia crisis kept Brent crude and spot gas prices elevated, while currency depreciation added to gas procurement costs.
The withdrawal of temporary pooled gas support, effective July 5, 2026, was followed by a revised high-pressure, high-temperature (HPHT) gas allocation framework introduced by the government. According to ATGL, the revised framework improved domestic gas availability for city gas distribution companies through a demand- and shortfall-based allocation methodology.
To manage supply risks and cost pressures, ATGL said it continued to draw on a diversified sourcing portfolio, including increased domestic allocation, new long- and medium-term contracts and market purchases. The company also pointed to calibrated pricing measures as a way to manage costs while maintaining supply reliability and customer demand.
Including its joint venture, Indian Oil-Adani Gas Private Limited (IOAGPL), ATGL's wider network recorded combined CNG and PNG volumes of 529 MMSCM in Q2FY27, up 18% year-on-year.
The combined network reached 1,185 CNG stations after 18 new stations were added. Household PNG connections crossed 14.31 lakh, with the company saying its network serves more than six million lives daily.
Industrial and commercial connections across the combined footprint rose to 12,925, with around 600 new customers added. The cumulative steel pipeline network reached 29,156 inch-kilometres.
ATGL said it would continue to focus on volume growth, capital discipline and operational efficiency while expanding its presence across CNG, PNG, electric mobility and biomass.
The company's Q2FY27 performance reflects continued demand for CNG and steady expansion of its gas distribution infrastructure. However, the slower growth in first-half EBITDA compared with sales volumes highlights the importance of gas sourcing costs, allocation levels and pricing decisions in determining how much of that growth translates into earnings.
