Adani Total Gas Navigates Rising Input Costs and Growth Challenges

Adani Total Gas Ltd, the joint venture between Adani Group and France's TotalEnergies, announced a 9% decline in its net profit for the September quarter of the 2025-26 fiscal. The drop, attributed to a surge in input gas prices, saw net earnings fall to Rs 162 crore from Rs 178 crore in the same timeframe last year.

The increase in gas costs was fueled by a 26% hike in the quarter, as ATGL offset a lower allocation of cheaply priced APM gas with expensive alternatives. Despite this, Adani Total Gas achieved a 19% growth in revenue to Rs 1,569 crore, driven by increased sales of CNG and piped natural gas.

Amid production declines in state-owned ONGC’s legacy gas fields, ATGL maintained its focus on volume growth through a careful strategy of passing on higher costs. Digital advancements and value optimization also played a key role in the firm's operational success, with the company expanding its CNG stations and piped connections significantly.