Summary
Adani Total Gas Limited - Q3 FY 2026 Earnings Call Summary Friday, January 23, 2026, 11:00 AM IST
Event Participants
Executives 4 Adish Vakharia (Investor Relations), Preyash Jhaveri (Interim CFO), Ravindra Desai (Head of Gas Sourcing), Suresh P. Manglani (Executive Director & CEO)
Analysts 3 Kirtan Mehta (Baroda BNP Paribas MF), Varatharajan (Antique Stock Broking), Yogesh Patil (Dolat Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| CNG Volume | +17% YoY | Growth driven by 18% 9M volume rise and network expansion. |
| PNG Volume | +3% YoY | Moderate growth (+7% 9M) reflecting deeper penetration in industrial/domestic segments. |
| Revenue | ₹1,631 crores | +17% YoY; driven by overall volume growth across 34 Geographical Areas (GAs). |
| EBITDA | ₹313 crores | +15% YoY; achieved despite impacts from new labour codes and higher gas costs. |
| PAT | ₹157 crores | +10% YoY; 9M PAT marginally lower by 3% due to specific cost factors. |
| CNG Stations | 680 count | Added 18 new stations in Q3; 136 are high-branded CODO/DODO formats. |
| PNG Connections | 1.05 million | Added ~35,000 new domestic connections in Q3; nearing 10k I&C customers. |
| EV Charge Points | ~5,000 count | 51 MW capacity across 226 cities; on track for 10,000 point target. |
| Steel Pipeline | 14,862 inch-km | Continued backbone infrastructure expansion to support 34 direct GAs. |
Geographic & Segment Commentary
- CNG Segment: Significant 17% YoY growth supported by 45,000 vehicle additions in ATGL GAs this quarter. Gujarat remains a stronghold with 30,000 additions, though newer GAs are seeing throughput rise from 500kg to 2,500kg per day as they mature.
- Industrial & Commercial (I&C): Added 148 new customers, reaching 9,750 total. Segment faced competitive pressure from cheaper alternate fuels like LPG and propane during the quarter.
- E-Mobility & Biomass: Operating through subsidiaries ATEL and Adani Total Biomass. EV network covers 26 states; Biomass strategy includes sourcing from Barsana and Varanasi plants to meet blending mandates.
Company-Specific & Strategic Commentary
- Transmission Reform: PNGRB’s move to a 2-zone tariff (₹54/MMBtu for Zone 1) benefits 70% of ATGL’s volumes, particularly for domestic and transport segments.
- Customer Acquisition Incentives: Launched aggressive cashback schemes (₹10k to ₹1.5 lakh) for CNG retrofits and new purchases to widen the consumer base.
- Sustainability Leadership: S&P Dow Jones Sustainability score rose to 72 (Global Rank 9 in Gas Utilities); CDP rating upgraded to ‘A’ (Leadership Category).
- Digital Integration: Management emphasized digital integration as part of the corporate DNA to improve customer experience and operational efficiency.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EV Infrastructure | 10,000 charge points | Target to be realized “very soon” based on current expansion pace (CEO). |
| CNG Network | “Healthy growth” | Expansion to continue via DODO/CODO models to leverage future value (CEO). |
| MSME Policy | Outlook: Positive | Industry is advocating for PNG connection incentives for MSMEs to drive volume (CEO). |
Risks & Constraints
| Risk | Context |
|---|---|
| Alternate Fuel Pricing | Low LPG and Propane prices during the quarter put pressure on I&C segment volumes and margins. |
| Gas Sourcing Volatility | While APM allocation is currently stable, periodic revisions in New Well Gas and HPHT quotas remain a variable. |
| Regulatory Compliance | Management noted challenges in NCR where some industrial users find “ways around” clean fuel mandates. |
Q&A Highlights
Transmission Tariffs & Pricing
- Question: What is the impact of the 2-zone transmission tariff on gas costs? (Yogesh Patil)
- Answer: While it brought savings for most GAs, 2-3 GAs in Gujarat saw tariffs rise from ₹42 to ₹54. However, ATGL reduced consumer prices in a calibrated manner across all areas to maintain affordability (Suresh Manglani).
Vehicle Additions & Throughput
- Question: Can you provide the breakup of vehicle additions and station throughput? (Kirtan Mehta/Varatharajan)
- Answer: 45,000 vehicles added QoQ in ATGL GAs. Mature stations like Ahmedabad see 5k-6k kg/day, while new ones start at 500kg. Roughly 2/3 of new vehicles are OEM-fitted, 1/3 retrofitted (Ravindra Desai/Suresh Manglani).
Gas Sourcing Mix
- Question: How is the New Well Gas supply progressing and what is the current mix? (Varatharajan)
- Answer: Domestic gas (APM, New Well, HPHT) comprises 65-70% of the portfolio; balance is R-LNG. APM allocation has recently been stable, which is positive for the industry (Ravindra Desai).
Key Takeaway
Adani Total Gas delivered a resilient Q3 FY26, characterized by 17% revenue growth and 15% EBITDA growth, underpinned by strong CNG volume expansion (+17% YoY). The company successfully navigated a competitive environment where cheaper alternate fuels like Propane challenged the industrial segment. Strategically, ATGL is capitalizing on PNGRB’s transmission tariff reforms by passing on benefits to consumers to widen its base, now exceeding 1.05 million PNG homes and 680 CNG stations. With an EV charging network nearing 5,000 points and a top-tier ESG rating (CDP ‘A’), the company is pivoting toward a multi-fuel energy transition platform. While industrial margins remain sensitive to global fuel pricing, the management’s focus on aggressive customer incentives and infrastructure rollout positions ATGL for sustained volume-led growth in the coming quarters.
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