Adani Total Gas Limited (ATGL) has reported a strong operational performance for the quarter and half-year ended September 30, showcasing impressive volume growth and network expansion amid challenging weather conditions.

Volume Growth and Financial Performance

ATGL achieved a 16% overall volume growth year-on-year, with Compressed Natural Gas (CNG) volumes rising 18% in the quarter and 19% in the first half. Piped Natural Gas (PNG) volumes grew by 11% and 9% respectively. This growth translated into improved financial performance:

Network Expansion and Infrastructure Development

The company continued its network expansion strategy:

• Added 12 new CNG stations, bringing the total to 662 stations
• Added 27,000 new home PNG connections, surpassing 1 million consumers
• Expanded steel pipeline infrastructure to 14,524 kilometers across 34 geographical areas

Credit Rating Upgrade

Three major credit rating agencies - ICRA, CARE, and CRISIL - upgraded ATGL to AA+ stable rating, reflecting the company's growing scale of operations, healthy volume growth, and sound financial profile.

E-Mobility Business Growth

ATGL's e-mobility business witnessed growth:

• Expanded to 4,209 installed charging points
• Present across 26 states and 226 cities
• Achieved 42 megawatt installed capacity

Gas Sourcing and Pricing Strategy

The company reported that its combined APM (Administered Price Mechanism) and new well gas allocation moderated to 57% in the quarter from 60% in the previous quarter. To manage this, ATGL has implemented a diversified gas sourcing strategy:

• Approximately 13% Brent-linked volumes
• Around 16-17% Henry Hub-based volumes
• Flexible contracts to optimize costs and remain competitive

Supply Chain Realignment

A supply chain realignment has resulted in a 2% CST levy instead of the earlier 15% VAT for gas supplied outside Gujarat, effective from October 1. This is expected to enhance affordability for CNG and PNG home consumers.

Future Outlook

ATGL remains committed to supporting India's energy transition by delivering affordable, reliable, and cleaner energy solutions. The company's focus on infrastructure development, coupled with its flexible gas sourcing strategy and promotional schemes, positions it for continued growth in the evolving energy landscape.

As Adani Total Gas expands its presence in both traditional CGD business and e-mobility sector, it aims to capitalize on the growing demand for cleaner energy solutions in India's transportation and industrial segments.

Adani Total Gas Limited (ATGL) has reported significant growth in its operations and financial performance for Q2FY26, along with key milestones in its customer base and infrastructure expansion.

Operational Highlights

ATGL achieved a combined CNG and PNG volume of 280 MMSCM for Q2FY26, representing a 16% year-on-year increase. The company expanded its CNG network to 662 stations by adding 12 new stations during the quarter. Notably, ATGL crossed the milestone of 1 million PNG household connections, reaching 1.02 million homes.

Financial Performance

The company's revenue from operations increased by 19% to INR 1,569.00 crores for Q2FY26. EBITDA stood at INR 302.00 crores for the quarter. For the first half of FY26, ATGL reported a 20% growth in revenue to INR 3,060.00 crores, with EBITDA at INR 603.00 crores.

Credit Rating Upgrade

ATGL's financial strength was further validated by credit rating upgrades. Three rating agencies - ICRA, CRISIL, and CARE - upgraded the company's credit rating to AA+ (Stable).

Operational Challenges and Expansions

The company faced a 29% increase in gas costs due to lower APM allocation to the CNG segment, which was replaced by higher-priced gas. Despite this challenge, ATGL continued its expansion efforts, completing approximately 14,524 inch-km of steel pipeline network and adding 147 new industrial and commercial connections.

Awards and Recognition

ATGL's commitment to excellence was recognized with three PNGRB Awards for safety, sustainability, and customer service excellence.

Market Outlook

ATGL's volume growth, infrastructure expansion, and customer base increase demonstrate its position in the city gas distribution sector. The company's ability to grow despite challenges such as increased gas costs highlights its operational resilience.

As Adani Total Gas continues to expand its operations and customer base, its performance in the coming quarters may be of interest to investors and industry observers. The company's focus on safety, sustainability, and customer service, as evidenced by the PNGRB awards, could contribute to its growth and market position in the energy sector.

However, the company may face ongoing challenges related to gas pricing and regulatory matters. How ATGL navigates these challenges while maintaining its growth trajectory could be crucial for its future performance and market standing.