Adani Total Gas has officially reported significant operational challenges stemming from Middle East geopolitical developments that have impacted its gas supply chain. The company confirmed that some gas suppliers have curtailed supply due to recent escalation of geopolitical developments in the Middle East region, which has directly affected supplies to industrial customers.

Government Regulatory Response

The Ministry of Petroleum and Natural Gas has issued the Natural Gas (Supply Regulation) Order, 2026 dated March 9, 2026, establishing priority allocations for gas supply amid ongoing Middle East disruptions. The order addresses supply constraints caused by disrupted liquefied natural gas shipments through the Strait of Hormuz, where suppliers have invoked force majeure clauses.

Priority Allocation Framework

The government order establishes four priority sectors for natural gas allocation. Priority Sector I includes domestic piped natural gas supply and compressed natural gas for transport, both receiving 100% of their past six months average consumption. Priority Sector IV covers industrial and commercial consumers supplied through city gas distribution networks, who will receive 80% of their historical consumption levels.

Company Response and Coordination

Adani Total Gas has confirmed it is actively assessing the impact of these developments and taking necessary steps to mitigate effects through coordination with respective authorities. The company appreciates the government's prompt efforts in issuing the regulatory order that accords priority for gas supplies to domestic PNG and CNG customers, as well as supply of PNG to industrial and commercial customers.

Market Impact and Implementation

The regulatory order provides an overriding effect on existing contractual arrangements and establishes a pooled pricing mechanism for diverted natural gas supplies. Gas marketing entities and city gas distribution companies must ensure priority allocations are maintained subject to operational availability. The order requires immediate compliance from all entities involved in natural gas production, import, marketing, transportation, and supply, with coordination through Gas Authority of India Limited and the Petroleum Planning and Analysis Cell.

Adani Total Gas Limited demonstrated strong operational and financial performance in the third quarter of FY26, showcasing continued growth momentum across its city gas distribution network. The company's strategic focus on network expansion and customer acquisition delivered impressive results despite challenging market conditions.

Financial Performance Highlights

The company reported robust financial metrics for Q3 FY26, reflecting the strength of its expanding operations:

For the nine-month period, revenue increased 19% to INR4,692 crores, while EBITDA rose 3% to INR916 crores. The company maintained healthy profitability margins despite facing cost pressures from higher gas prices and currency fluctuations.

Volume Growth and Network Expansion

Adani Total Gas continued its strong growth trajectory with significant volume increases across both CNG and PNG segments:

The company's infrastructure expansion remained robust during the quarter. It added 18 new CNG stations, bringing the total network to 680 stations across 34 geographical areas. Of these, 136 stations operate under the Company-owned Dealer Operated (CODO) or Dealer-owned Dealer-operated (DODO) model, providing a complete branded experience to consumers.

Infrastructure Development

Adani Total Gas significantly strengthened its backbone infrastructure during the quarter:

The company added approximately 35,000 new PNG connections during the quarter and 88,000 connections over the nine-month period. In the Industrial and Commercial segment, 148 new customers were added, approaching the milestone of 10,000 total consumers.

Regulatory Benefits and Pricing Strategy

The CGD industry witnessed two significant regulatory developments that strengthened the operational framework. The transition to 2% CST from the earlier 15% value-added tax on natural gas transported outside Gujarat provided cost relief. Additionally, PNGRB introduced a simplified 2-zone transmission tariff structure, applying only zone 1 tariff of INR54 for domestic PNG and CNG transport segments regardless of distance.

In line with its consumer-centric approach, Adani Total Gas reciprocated these regulatory benefits by reducing PNG and CNG prices across various geographical areas in a calibrated manner, enhancing affordability for consumers.

E-mobility and Joint Venture Operations

The company's e-mobility subsidiary, Adani TotalEnergies E-mobility Limited (ATEL), expanded its network to nearly 5,000 charge points across 26 states and union territories, covering 226 cities with 51 megawatts of installed capacity. The company remains on track to achieve its target of 10,000 EV charge points.

Through its joint venture with Indian Oil Corporation Limited (IOAGPL), the combined operations now encompass 1,120 CNG stations, 1.25 million PNG home connections, and over 11,000 commercial and industrial consumers across 53 geographical areas covering 125 districts.

Sustainability Recognition

Adani Total Gas achieved significant recognition for its sustainability initiatives. The company's S&P Dow Jones Sustainability Index Score improved to 72, placing it ninth globally in the gas utility sector and first in India. The Carbon Disclosure Project (CDP) rating was upgraded to category A, the highest leadership category, reflecting the company's commitment to transparent governance and cleaner energy solutions.