Adani Total Gas Q2 profit rises 6% as West Asia crisis lifts costs

what happened

Adani Total Gas (ATGL) said in a regulatory filing that its consolidated net profit for the second quarter of FY27 reached 173.27 crore rupees, up 5.9% from 163.49 crore a year earlier. Revenue from operations climbed 33.8%, to 2,109.65 crore from 1,576.38 crore. Moody's reported the figures.

CEO Sanjay Pandita said the company worked in a difficult operating environment, marked by the ongoing West Asia crisis, elevated Brent crude and spot gas prices, a weaker rupee and a cut in its allocation under the administered pricing mechanism (APM). He said a diversified sourcing mix of long-term contracts and flexible market purchases, along with calibrated pricing, helped contain cost pressures and keep supply reliable. EBITDA rose 12% to 340 crore.

Combined CNG and PNG volumes reached 315 million standard cubic metres, up 12% year on year. The company added 16 CNG stations in the quarter, taking its network to 723.

why it matters

Revenue growing much faster than profit suggests that expensive gas and oil are squeezing margins, even as the company passes some costs on to customers. For markets, it is a reminder of how sensitive Indian gas distributors are to spot prices and the rupee.

market impact

Gas and Brent: high spot gas and oil prices pressure margins of distributors such as ATGL

tags

instruments