New Delhi, July 21: Adani Total Gas Limited (ATGL) reported a mixed set of financial results for the first quarter of FY27, with strong revenue growth offset by weaker profitability due to rising operating costs. The company posted a sharp increase in revenue, while EBITDA, profit before tax (PBT), and net profit (PAT) declined on both a year-on-year (YoY) and quarter-on-quarter (QoQ) basis as margins contracted.
Revenue Records Strong Double-Digit Growth
Adani Total Gas reported revenue from operations of ₹1,906.79 crore in Q1 FY27, compared with ₹1,498.32 crore in the same quarter last year, reflecting a 27.26% YoY growth. Revenue also increased 12.52% sequentially, indicating healthy demand across the company’s city gas distribution business.
EBITDA and Margins Decline
Despite higher revenue, operating profitability weakened. EBITDA fell to ₹270.11 crore from ₹293.18 crore a year ago, a decline of 7.87% YoY and 10.24% QoQ.
The EBITDA margin contracted sharply to 14.17%, compared with 19.57% in Q1 FY26 and 17.76% in the previous quarter, highlighting pressure from higher input and operating costs.
Profit Falls Across the Board
Profit before tax (PBT) stood at ₹177.33 crore, down 18.69% YoY and 17.41% QoQ.
Net profit (PAT) came in at ₹141.72 crore, compared with ₹165.24 crore in the corresponding quarter last year, registering a 14.23% YoY decline. On a sequential basis, PAT slipped 15.81%. The decline in earnings reflects rising costs despite healthy revenue growth.
Other Income Improves
The company’s other income increased to ₹12.98 crore, up from ₹8.11 crore in the year-ago quarter and ₹12.06 crore in the March quarter. However, the increase was not enough to offset the decline in operating profitability.
Key Highlights
– Revenue: ₹1,906.79 crore (+27.26% YoY, +12.52% QoQ)
– EBITDA: ₹270.11 crore (-7.87% YoY, -10.24% QoQ)
– EBITDA Margin: 14.17% (vs 19.57% YoY)
– PBT: ₹177.33 crore (-18.69% YoY)
– PAT: ₹141.72 crore (-14.23% YoY)
– Other Income: ₹12.98 crore
Adani Total Gas continues to witness robust revenue growth, supported by expanding gas distribution volumes and network growth. However, shrinking margins and lower profitability suggest that rising gas procurement and operating costs remain a key challenge. Investors will closely monitor margin recovery and cost management in the coming quarters to assess whether earnings growth can catch up with the company’s strong revenue momentum.
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