Adani Total Gas Q1: revenue up 27% YoY but consolidated PAT falls 14% as gas costs squeeze margins
PAT -14.23% YoY · revenue +27.26% · margins compressing
₹1,906.79 Cr
+27.26% YoY
₹141.72 Cr
-14.23% YoY
7.38%
-3.6pp YoY
₹1.29
Adani Total Gas reported a Q1 FY27 (quarter ended June 30, 2026) where the topline and bottom line moved in opposite directions. Consolidated revenue from operations rose to ₹1,906.79 Cr, up 27.3% YoY (₹1,498.32 Cr) and 12.5% QoQ, but consolidated PAT fell to ₹141.72 Cr, down 14.2% YoY (₹165.24 Cr) and 15.8% QoQ. EPS eased to ₹1.29 from ₹1.50 a year ago. The quarter is a margin-compression story, not a growth story.
Q1 FY-2027 vs prior quarters
The squeeze sits on the gas-cost line: cost of natural gas and traded items jumped ~40% YoY to ₹1,302.51 Cr, outpacing the 27% revenue rise, as lower APM (administered-price) gas allocation to CNG was backfilled with costlier alternate/new-well gas. Excise duty (₹153.26 Cr), finance costs (₹39.10 Cr, +42% YoY) and depreciation (₹66.66 Cr, +20% YoY) — the latter two reflecting continued CNG/PNG network build-out — added further drag. Net margin compressed to 7.4% from 11.0% a year ago (Q4 FY26: 9.9%), and EBITDA margin fell to ~14% from ~19.6% YoY. A larger JV contribution (share of profit ₹9.57 Cr vs ₹4.21 Cr YoY, chiefly Indian Oil–Adani Gas) cushioned the consolidated line; standalone PAT of ₹133.03 Cr fell a steeper 18% YoY, a ~3.7pp wider decline than consolidated — readers comparing the two numbers should note the JV uplift explains the gap.
The stock went into the print at ₹693.45, down 4.7% over the past month of trading.
For context: revenue is at a 6-quarter high.
Management projects robust growth for FY27, expecting revenue growth similar to the 18% achieved in FY26 and targeting an EBITDA of approximately INR 1,500 crores, a significant increase from FY26. The company will continue its aggressive infrastructure expansion for both its CNG and PNG networks, prioritizing long-ter
— This quarter: missed
Against management's April-2026 concall guidance (~18% FY27 revenue growth and ~₹1,500 Cr FY27 EBITDA, with an explicit strategy to prioritise network penetration over full short-term cost pass-through), revenue growth beat the guide, and the margin behaviour is consistent with the stated penetration-first approach — but Q1 EBITDA of roughly ₹270 Cr annualises well short of the ₹1,500 Cr target, so profitability is tracking behind pace. No brokerage consensus specific to this quarter surfaced in search. Concurrent corporate developments — the CEO transition (Manglani redesignated, Pandita appointed CEO in May 2026) and successive ESG upgrades (Crisil ESG 66, score revised to 84) — are governance/ESG positives but not P&L-moving; the US DOJ/SEC proceedings against a non-executive director carry no financial impact on the Group per the filing.
What to watch
W1
Gas-cost mix: natural gas cost ₹1,302.51 Cr (+40% YoY) against 7.4% NPM — watch Q2 for margin recovery vs continued penetration-first absorption.
W2
EBITDA trajectory vs the ₹1,500 Cr FY27 target: Q1's ~₹270 Cr implies ~₹410 Cr/qtr needed for the rest of the year.
W3
CNG/PNG network expansion and volume ramp sustaining the 27% topline as finance and depreciation costs rise.
Clean digital PDF, headers unambiguous. Consolidated PBT includes JV share of profit ₹9.57 Cr (added after total expenses); PAT = PBT − tax checks on both statements. No exceptional/one-off items — raw growth = adjusted. Non-executive director US DOJ/SEC matter carries no Group financial impact per notes.
Informational and educational content only. Not investment advice.