Adani Total Gas Q2 FY26 results: net profit down 11.9% to ₹163.49 crore, revenue up 19.6%

How did Adani Total Gas perform in Q2 FY26?

Adani Total Gas Limited reported consolidated Q2 FY26 revenue of ₹1,576 crore, total income of ₹1,585.07 crore and EBITDA of ₹295.38 crore. Revenue rose ₹258.01 crore or 19.6% from Q2 FY25 and ₹78.06 crore or 5.2% from Q1 FY26, while EBITDA fell ₹10.39 crore or 3.4% year on year but rose ₹2.20 crore or 0.8% sequentially. The EBITDA margin was 18.7%, down 4.5 percentage points from Q2 FY25 and 0.9 percentage points from Q1 FY26.

The consolidated profit margin was 10.4%, compared with 14.1% in Q2 FY25 and 11.0% in Q1 FY26. The company’s results covered the July–September 2025 quarter and were approved by the board on 28 October 2025 as unaudited standalone and consolidated results.

What changed in Adani Total Gas' costs and profit?

Total expenses rose ₹282.01 crore or 25.9% from Q2 FY25 to ₹1,369 crore, outpacing the 19.6% increase in revenue. Cost of materials was ₹999.62 crore, up ₹225.65 crore or 29.2%, while other expenses increased ₹46.65 crore or 20.7% to ₹272.54 crore. Depreciation rose ₹10.33 crore or 20.1% to ₹61.71 crore and finance costs increased ₹3.28 crore or 14.3% to ₹26.29 crore. Employee cost fell ₹1.91 crore or 13.7% to ₹12.07 crore.

Other income increased ₹2.06 crore or 31.1% from ₹6.63 crore in Q2 FY25 to ₹8.69 crore. Tax expense fell ₹6.33 crore or 10.2% to ₹55.44 crore, but there was no exceptional item in either quarter. The filing and call excerpts did not provide a specific explanation for the increase in operating costs, which resulted in EBITDA falling despite higher revenue.

Against Q1 FY26, total expenses rose ₹80.65 crore or 6.3%, including a ₹69.39 crore or 7.5% increase in cost of materials and a ₹12.96 crore or 5.0% increase in other expenses. Finance costs fell ₹1.31 crore or 4.7% and tax fell ₹1.61 crore or 2.8%. Management attributed revenue growth to overall volume growth, including 18% year-on-year CNG volume growth in Q2 FY26.

How did the first half of FY26 go?

For H1 FY26, consolidated revenue rose 20.2% from ₹2,557.43 crore in H1 FY25 to ₹3,074.7 crore, while total income increased 20.1% from ₹2,573.08 crore to ₹3,091.5 crore. Profit before tax fell 7.9% from ₹471.33 crore to ₹434.15 crore and profit after tax declined 8.0% from ₹357.44 crore to ₹328.73 crore. Basic EPS was ₹2.99, down 8.0% from ₹3.25.

Management said overall volume increased 16% year on year in H1 FY26, with CNG volume up 19% and PNG and petroleum gas volume up 9%. It also said the company added around 54,000 home PNG connections during the first half. The earnings-call figures for revenue, EBITDA, profit before tax and profit after tax were presented on a different basis from the consolidated filing figures and have not been used here.

What do the balance sheet and cash flow show?

At 30 September 2025, total assets were ₹8,743.17 crore, compared with ₹7,664.71 crore at 31 March 2025. Total equity increased from ₹4,207.05 crore to ₹4,508.95 crore, while borrowings rose from ₹1,834.10 crore to ₹1,921.17 crore. Cash and cash equivalents fell from ₹224.02 crore to ₹162.27 crore. Inventories declined from ₹115.66 crore to ₹105.71 crore, trade receivables increased from ₹424.01 crore to ₹475.34 crore and trade payables fell from ₹313.80 crore to ₹275.65 crore.

H1 FY26 operating cash flow was ₹460.29 crore, compared with ₹524.8 crore in H1 FY25. Investing cash flow was negative ₹560.61 crore against negative ₹421.02 crore, while financing cash flow was ₹38.57 crore against negative ₹194.67 crore. Capital expenditure was ₹426.44 crore in H1 FY26, up from ₹391.05 crore in H1 FY25, and closing cash in the prior-year period was ₹46.28 crore.

How has Adani Total Gas done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters and reached ₹1,576.38 crore in Q2 FY26, the highest level in the eight-quarter series shown. It began the period at ₹1,244.0 crore in Q3 FY24, the lowest revenue figure listed. Q2 FY26 revenue was higher than the ₹1,498.32 crore recorded in Q1 FY26.

Quarterly profit peaked at ₹185.60 crore in Q2 FY25 and fell to a low of ₹142.38 crore in Q3 FY25. It then rose to ₹154.59 crore in Q4 FY25 and ₹165.24 crore in Q1 FY26 before declining to ₹163.49 crore in Q2 FY26. The EBITDA margin peaked at 23.9% in Q1 FY25, fell to a low of 18.3% in Q4 FY25, recovered to 19.6% in Q1 FY26 and eased to 18.7% in Q2 FY26.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 on 28 October 2025. It also approved the appointment of K. Jairaj as an Additional Director, Non-Executive and Independent, for an initial term of 3 years from 3 November 2025, subject to shareholder approval within three months. The same-day filing also said September sales rose 20%.

What did Adani Total Gas' management say?

Management said Q2 FY26 CNG volumes rose 18% year on year and PNG volumes increased 11%, while overall H1 volume rose 16%. It said the company had 662 CNG stations after adding 12 during the quarter, and the consolidated ATGL and IOAGPL network stood at 1,095 CNG stations. Management also said the company had surpassed 1 million home PNG connections and that EV charging had expanded to 4,209 points with 42 MW of capacity.

Management said Gujarat VAT was realigned to 2% CST from 15% effective 1 October 2025 for gas supplied outside Gujarat, with a 13% net benefit on APM gas to be passed through to consumers. It also said the combined APM and new oil gas allocation moderated to 57% in Q2 FY26 from 60% in Q1 FY26. Management identified moderating APM allocation, propane competition in industrial PNG, the EV ecosystem and differences in station efficiency as risks.

CEO Suresh Manglani said, “Our aim is not to continuously keep making same margin as we are doing today. Our aim is to widen the volume base, make sure healthy financial outcomes.” He also said the company was using a mix of Henry Hub, Brent, spot-market and HPHT indices across different tenures to avoid reliance on a single index. No formal guidance was given.

How did Adani Total Gas shares react?

The results were released after market hours on 28 October 2025. From the price when the filing appeared, ATGL was down 0.7% after five minutes, down 0.5% after 15 minutes and down 0.3% after 30 minutes. On the reaction day, the stock closed 1.9% above its pre-results close. By the next day’s close, it was up 2.4% from that pre-results close, but by the fifth session it was down 0.8%.

Earlier reaction-day moves were 0.9% on 28 July 2025, negative 1.3% on 28 April 2025, negative 3.4% on 27 January 2025, 7.3% on 24 October 2024, 0.3% on 29 July 2024 and 0.4% on 30 April 2024. The filing did not provide reasons for these historical price moves.

How did other LPG/CNG/PNG/LNG Supplier companies do?

Six other LPG/CNG/PNG/LNG Supplier companies were compared for the quarter, with a median revenue growth of 10.6%. Five peers grew more slowly than Adani Total Gas, while one grew faster. One of the six peers reported higher profit.