Adani Total Gas Ltd (ATGL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to Adani Total Gas Limited Q2 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjeev Pandita, Chief Executive Officer from Adani Total Gas Limited. Thank you and over to you, sir.
Sanjeev Pandita (Adani Total Gas Limited): Thank you, ma'am. Good morning, everyone. Good afternoon. A warm welcome to all our investors, analysts, fund representatives joining us today to discuss the results of Adani Total Gas Limited for the quarter and half year ended 30th September 2026. Let me take this opportunity to briefly share the current business operating environment. ATGL closed second quarter and half year with strong operational performance with Q2 FY27 volumes growing 12% year-on-year to 315 MMSCM and EBITDA increasing 12% to INR340 crores. For half year ended 30th September 2026, volumes grew 13% to 618 MMSCM and EBITDA rose 3% to INR621 crores, reflecting a resilient execution despite a challenging global energy environment. Our growth continues to be supported by deeper market penetration and disciplined network expansion.
Sanjeev Pandita (Adani Total Gas Limited): In Q2 FY '27, CNG volume increased 17% year-on-year to 223 MMSCM, while PNG volumes grew 3% to 92 MMSCM. Volume mix of new geographical areas improved to 41% from 35% in Q2 FY '26 on year-on-year, YoY basis. We added 16 new CNG stations during the quarter, taking the network to 623 CNG stations. Connected 39,574 new household connections, taking PNG household connections to 11.81 lakhs. Expanded our steel pipeline network to 16,305-inch kilometers. We have seen a strong momentum in industrial and commercial connections. Added approximately 900 customers in H1 FY '27, taking that base to 10,864. That is approximately 1.4x the numbers added during the entire FY '26. Q2 FY '27 witnessed significant gas cost pressures, with natural gas costs increasing 43% year-on-year amid higher Brent, RLNG prices, currency depreciation and change in the domestic gas availability. Through portfolio diversification, agile sourcing and calibrated pricing, we navigated these pressures while delivering 12% year-on-year EBITDA growth. Our capital allocation remains disciplined and focused on strengthening the core CGD network while scaling adjacent clean energy businesses. During HY FY '27, we expanded the steel network by 732-inch kilometers, added 21 CNG stations and connected 77,817 new households. In e-mobility, we have installed 5,513 EV charging points across 26 states and union territories, covering 225 cities, with installed capacity of 63 megawatt. We continue balancing growth investments with financial discipline and long-term stakeholder value creation. Our performance demonstrates the resilience of our business model and strength of our execution. Q2 FY '27 revenue increased 34% year-on-year to INR 2,102 crores. EBITDA rose 12% year-on-year to INR 340 crores and PAT increased 3% year-on-year to INR 167 crores. For H1 FY '27, revenue grew 31% to INR 3,999 crores and EBITDA increased 3% to INR 621 crores. Our sustainability performance also improved, with NSE Sustainability and SES score reaching 75 out of 100, reinforcing our commitment to governance, transparency and responsible growth. Along with our joint venture partner, IOAGPL, our pan-India network reaches 1,185 CNG stations, 14.31 lakh PNG household connections, 12,925 industrial and commercial connections, which are connected with a strong pipeline network of 29,156-inch kilometers. We are complementing this scale through new clean energy business. The integrated approach positions us to support India's energy transition and create sustainable long-term values. ATGL's performance this quarter demonstrates the true resilience of our business model. Even as we navigate an incredibly challenging global energy landscape, where a 43% year-on-year surge in natural gas cost was driven by higher Brent crude, domestic gas availability shifts and withdrawal of pooled gas support, we did not just hold our ground, we accelerated. By leveraging diversified sourcing and flexible procurement, we achieved a stellar 12% year-on-year increase in quarterly volumes to 315 MMSCM and matching 12% increase in EBITDA to INR 340 crores. We are successfully pivoting from traditional city gas distribution company into an integrated energy platform with 5,513 EV charging points active across 225 cities and rapidly growing footprint in cleaner fuels. We are proving that financial discipline, aggressive infrastructure expansion and India's green energy transition can go hand-in-hand. We remain deeply committed to deliver affordable,
Sanjeev Pandita (Adani Total Gas Limited): sustainable energy while creating secure long-term value for our shareholders, customers and communities. Thank you so much.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vivekanand Subbaraman from Ambit Capital. Please go ahead.
Vivekanand Subbaraman (Ambit Capital): Hi, thank you for the opportunity. Two questions. Number one is on the pricing stance with respect to CNG. So, what we see is that you have taken regular price hikes in, in important markets like Ahmedabad, in June, July, August. Just to understand now from the perspective of pass-through of increased input cost to consumers, have you is that now taking care of your increased input costs such that you are back to the pre-war margin levels in markets where you have taken price hikes consistently till let's say August? Because here the magnitude seems to be like around Rs 11-12 per kg. That is question one. Secondly, can you talk a little bit more about the sourcing and the gas availability both domestic as well as your portfolio of contracts and what is the current status there? Thank you.
Sanjeev Pandita (Adani Total Gas Limited): Yeah sure. Thank you so much for your question. You know on this CNG price revisions, while, while we don't pass on the entire cost to customers, we do take calibrated approach whenever there is any pressure on the gas cost because of the current situation. Whether it is war situation, whether it is a fluctuation in the crude or Brent or LNG prices, we do evaluate from time to time. And, and these markets like Ahmedabad, Faridabad, they are very important markets for us and we do consider all the factors while passing on increase. Now, in terms of the gas supply, we did a long-term contract which has helped us to you know, manage and not pass on the entire cost to the consumers and we keep on exploring the gas supply scenarios you know, given the current situations vis-a-vis our long-term growth what we are projecting from time to time. Yeah.
Vivekanand Subbaraman (Ambit Capital): Okay. Can can, yeah thanks for the response. Can you quantify a little bit on what is the proportion of supply of APM this quarter versus previous quarter? Because you, you have given on the presentation you have given 25% APM. Is that, is that consistent across the quarter, towards the end of the quarter also? Is there any more change? Just trying to understand if, if there is a further change in the allocation. And, and secondly can you talk about the 75% other source, right? Can you elaborate a bit on how how that 75% is decomposed? Thank you.
Sanjeev Pandita (Adani Total Gas Limited): Yeah, there is slight reduction in the APM and there are other, you know, domestic gases also which keeps on fluctuating, like we have something called New Well Gas, we have something called, you know, HTHP gases, which keeps on fluctuating from time to time. Our Out of this 75 portfolio, close to around 40% of the portfolio is on spot basis. So, we keep on evaluating basis what is happening on the global scenario and in Indian context right now. That is how do we evaluate from time to time.
Vivekanand Subbaraman (Ambit Capital): Okay, thank you and all the best.
Moderator: Thank you. Ladies and gentlemen, to ask a question, please press star and one. Participants, to ask a question, please press star and one now. Anyone who wishes to ask a question, please press star and one.
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