Adani Total Gas Ltd. (ATGL), a joint venture between the Adani Group and TotalEnergies of France, has emerged as a strong contender in India’s city gas distribution (CGD) space. Over the past few quarters, the company has navigated policy changes, volatile input costs, and regulatory resets.

Despite these headwinds, ATGL has shown consistency in expanding its infrastructure and increasing its consumer base. As we head into Q1 FY26, all eyes are on the company’s execution strategy and financial resilience amid the growing energy sector.

Numbers of ATLG: FY25 Financial Review

To predict the company’s strategy in the next quarter, we first need to review its performance in the previous year to better understand its market position.

Q4 FY25 Financials

During Q4 FY25, ATGL posted a consolidated net profit of ₹154.59 crore, reflecting a 7.9% reduction in profit compared to the same period last year. The decline in profitability was largely due to higher input costs, triggered by reduced allocation of government-subsidised natural gas.

To meet growing demand, the company procured costlier LNG from the open market, impacting margins.

On the revenue front, ATGL recorded ₹1,453.37 crore, a 15.4% YoY increase, driven by higher CNG and PNG sales volumes. The company’s EBITDA for the quarter came in at ₹274 crore, reflecting the pressure on operational efficiency.

ATGL enhanced its footprint by launching 42 new CNG stations, increasing the total to 647, and raising expectations of the stock as one of the volume shockers. This vigorous network expansion is in line with its CGD sector growth plan.

Year-End Performance Summary

In FY24, although total revenue rose by 12% to ₹5,398 crore in FY25, ATGL’s net profit slipped by 1.9%, settling at ₹654 crore compared to ₹667.5 crore in FY24.

The topline improvement was backed by a 15% YoY rise in overall gas volumes. Notably, CNG volumes rose 19%, while PNG volumes improved by 5%. These numbers reflect rising urban demand and the company’s efficient supply-side strategies.

EBITDA for FY25 rose by 1% to ₹1,167 crore, showcasing ATGL’s ability to sustain operating margins under cost inflation. Its e-mobility arm, Adani TotalEnergies E-Mobility Ltd (ATEL), also gained traction by installing EV chargers at key urban hubs, especially airports.

What to Expect in Q1 FY26

Looking forward to Q1 FY26, several tailwinds could influence ATGL’s earnings trajectory:

• Policy Support: The government has partially reinstated cheaper domestic gas allocations to CGD players, including ATGL. This should ease input cost pressures and improve gross margins starting from Q1 FY26 and positively influence Adani Total Gas share price.
  
• Volume Growth: Steady expansion of CNG stations and new PNG connections is likely to support solid growth in distribution volumes. As of Q3 FY25, ATGL had 9 lakh home PNG connections, a figure projected to rise further this quarter.
  
• Green Initiatives: The Barsana facility recorded a biogas output of 6.9 tonnes per day during the fourth quarter. More such investments in compressed biogas and EV infrastructure are expected in FY26, contributing to long-term sustainability goals.

Strategic Outlook and Competitive Edge

Adani Total Gas is not only expanding geographically but also broadening its energy portfolio. From CGD and biogas to EV charging infrastructure, the firm is building an integrated clean energy platform. Its focus on Tier II and Tier III cities gives it an early-mover advantage where CGD penetration is still low.

In Q1 FY26, the impact of improved gas allocation, scaling infrastructure, and policy stability should reflect positively in financials.

Conclusion

Adani Total Gas begins Q1 FY26 with steady progress and a clear roadmap for growth. With volume tailwinds and cost rationalisation, it appears poised for sequential improvement. Investors will closely monitor EBITDA margin trends, volume growth in newer GAs (Geographical Areas), and diversification in its energy offerings.

If the company sustains current execution levels and benefits from policy tailwinds, FY26 could mark a pivotal year in its CGD dominance.