Adani Total Gas Q1 profit falls 14.2% as higher costs squeeze margins

Adani Total Gas reported ₹141.7 crore in consolidated Q1 net profit, down 14.2% year-on-year, despite a 27.3% rise in revenue to ₹1,907 crore. EBITDA fell 7.9% to ₹270 crore and margin contracted to 14.2% from 19.6% as gas and traded-item costs climbed.

— Source publishedTue, 21 Jul, 2026, 15:53 IST·First seen Tue, 21 Jul, 2026, 16:02 IST·Source CNBC-TV18 · Companies

What happened

Adani Total Gas reported a 14.2% decline in Q1 net profit as sharply higher gas and traded-item costs compressed EBITDA margin, despite 27.3% revenue growth

Key facts

  • Consolidated net profit: ₹141.7 crore, down 14.2% YoY
  • Revenue from operations: ₹1,907 crore, up 27.3% YoY
  • Natural gas and traded-item costs: ₹1,302.5 crore versus ₹928.4 crore
  • EBITDA: ₹270 crore, down 7.9% YoY
  • EBITDA margin: 14.2% versus 19.6%
  • Profit before tax: ₹186.9 crore, down 15.9% YoY
  • Share price closed 1.67% lower at ₹701
  • Stock up roughly 18% year-to-date

Why this matters

The results highlight the value of acquisitions or partnerships that improve gas sourcing, supply-chain efficiency, and higher-margin service mix rather than simply adding volume.

What to watch

  • Next domestic gas allocation and administered-price revisions.
  • CNG and PNG retail price changes versus input gas-cost movements.
  • EBITDA per unit of gas sold and quarterly margin trend.
  • Volume growth in CNG, PNG household, and industrial/commercial segments.
  • Competitive pricing actions by other city-gas distributors.
  • Capex intensity, new station additions, and customer-connection growth.
  • Any increase in LNG exposure or traded-gas share of sales.
  • Prioritize calibrated CNG and PNG tariff revisions to protect unit economics without materially impairing volumes.
  • Shift procurement toward lower-cost domestic gas allocations and optimize LNG/traded-gas sourcing.
  • Accelerate high-utilization CNG station and PNG connection rollout while moderating lower-return capex.
  • Increase focus on industrial and commercial contracts with pass-through clauses or shorter repricing cycles.
  • Communicate a margin-recovery roadmap, including gas-cost sensitivity and expected timing of price pass-through.