Adani Total Gas Q3 FY25 Results: Profit Falls 19% to ₹142 Cr, Revenue Rises 13%

Adani Total Gas Q3 FY25 Results: Profit Falls 19% to ₹142 Cr, Revenue Rises 13%

Adani Total Gas Ltd: Overview 

Adani Total Gas Ltd. (ATGL) is a joint venture between the Adani Group and TotalEnergies, a global integrated energy player. Founded in 2004, the company is a key player in the Indian natural gas distribution sector, focusing on the development and operation of city gas distribution (CGD) networks for both industrial and residential sectors. Adani Total Gas is involved in the distribution of piped natural gas (PNG) and compressed natural gas (CNG) to both domestic and commercial customers, particularly in cities across India. With the backing of the Adani Group, one of the largest business conglomerates in India, and TotalEnergies, a global energy giant, ATGL has leveraged its expertise to become a major provider of natural gas solutions in the country. 

The industry outlook for Adani Total Gas is highly promising, with the Indian government’s push toward cleaner energy sources, urbanization, and infrastructure development fuelling the demand for natural gas. Natural gas is seen as a transition fuel to meet India’s environmental goals, particularly in terms of reducing emissions from coal and oil, making it an attractive energy alternative. The Indian government’s focus on expanding CGD networks across multiple cities, combined with the growing adoption of CNG for transportation and PNG for cooking and industrial use, is expected to drive growth for ATGL in the coming years. Moreover, India’s increasing focus on sustainable and cleaner energy sources presents an opportunity for the company to expand its footprint and contribute to India’s energy transition. The development of new gas-based infrastructure, rising demand for natural gas, and the company’s strong positioning in both the industrial and residential markets provide a solid foundation for long-term growth. Furthermore, global energy trends towards decarbonization and the rising adoption of CNG vehicles also offer significant growth opportunities for ATGL, both in domestic and international markets. 

Latest Stock News 

CNG station network has expanded to 605 stations, with 58 new stations added during the year, including 28 new stations in the quarter under review. Additionally, our steel pipeline infrastructure has grown to 13,082-inch kilometres. On the domestic piped natural gas (PNG) front, ATGL now serves over 922,000 households. In the nine-month period, we added over 100,000 new connections, and during the December quarter, 28,677 connections were added. For industrial and commercial consumers, we have expanded our base to 8,913, adding 582 connections during the nine months, and 167 connections in the third quarter. Regarding emerging businesses, our e-mobility efforts have seen significant progress, with 1,914 EV charging points commissioned across 22 states and 4 Union Territories, covering 226 cities. We aim to reach approximately 3,000 charging points by March-April this year. Our EV charging infrastructure has also expanded to nearly 20 airports across India, making us one of the largest airport EV charge point operators in the country. On the gas front, ATGL faced two reductions in APM gas allocation. The first reduction, from 63% to 51%, occurred on October 16, 2024, followed by a second reduction from 51% to 37% on November 16, 2024. These reductions, combined with the increase in gas prices, resulted in an EBITDA of INR 272 crores for the quarter, with a PBT of INR 193 crores and a PAT of INR 143 crores. However, effective from January 16, 2025, the APM allocation for CNG has been increased from 37% to 51%, which is expected to have a positive impact in the current quarter. CNG continues to constitute 25% of our entire portfolio. 

Business Segments 

• City Gas Distribution (CGD): The CGD segment forms the core of Adani Total Gas’s business. It involves the establishment and operation of pipelines that deliver natural gas to homes, businesses, and industries within designated urban areas. ATGL has expanded its CGD network across numerous cities in India, including major urban centers like Ahmedabad, Faridabad, and Khurja. With a commitment to sustainability and energy efficiency, the CGD segment is poised to remain a key revenue driver for ATGL. 

• Compressed Natural Gas (CNG): The CNG segment is another important area for Adani Total Gas, focusing on providing CNG for vehicles as an alternative to conventional fuels like petrol and diesel. The Indian government has been encouraging the use of CNG vehicles as part of its efforts to reduce air pollution and dependence on oil imports. ATGL operates CNG stations in key cities, providing customers with a cleaner and more cost-effective fuel option.  

• Piped Natural Gas (PNG): Adani Total Gas is also involved in the distribution of PNG to residential, commercial, and industrial customers. Piped natural gas offers significant convenience and cost advantages over traditional energy sources such as LPG and firewood. This segment is witnessing rapid growth as more urban households and businesses opt for natural gas for cooking, heating, and other industrial applications.  

• Renewable Energy and Sustainable Solutions: With the global shift towards renewable energy, Adani Total Gas has also been exploring opportunities in the renewable energy space. The company has begun investing in renewable energy projects such as solar energy and green hydrogen, with an aim to complement its natural gas operations and contribute to India’s sustainability goals. 

• Infrastructure Development and Management: The infrastructure development segment covers the planning, construction, and management of city gas distribution networks, as well as the development of fuelling stations for CNG vehicles. ATGL is actively involved in expanding the pipeline infrastructure, which is crucial for the transportation and distribution of natural gas. 

Subsidiary Information 

• Adani Gas Limited: Adani Gas Limited is a subsidiary of Adani Total Gas that focuses on the development of city gas distribution networks. It operates in multiple cities and is responsible for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) to vehicles. The subsidiary plays a critical role in expanding the natural gas distribution network across India, contributing significantly to ATGL’s growth in both urban and semi-urban markets. 

• Adani Green Energy Limited: Adani Green Energy Limited, a subsidiary within the Adani Group, is involved in the development of renewable energy projects, particularly in solar power. It focuses on generating clean energy through solar installations and contributes to Adani Total Gas’s strategic diversification into renewable energy.  

• Adani Gas Infrastructure Limited (AGIL): AGIL is responsible for building and managing the infrastructure required for natural gas transportation and distribution. This subsidiary is pivotal in the expansion of ATGL’s pipeline networks and the establishment of CNG refuelling stations. 

• Adani Transmission Limited: While primarily focused on the transmission of electricity, Adani Transmission is indirectly involved in the energy distribution network that complements Adani Total Gas’s operations. The synergy between both companies supports the broader Adani Group’s energy infrastructure goals, positioning ATGL to leverage integrated energy solutions as it expands its natural gas operations. 

• Adani Renewable Energy Park Limited: A subsidiary dedicated to renewable energy initiatives, Adani Renewable Energy Park plays a key role in the development of large-scale renewable energy projects. The integration of renewable energy projects into ATGL’s portfolio strengthens the company’s position as a leader in both natural gas and clean energy solutions. 

Q3 FY25 Earnings 

• Revenue of ₹1294 crore in Q3 FY25 up by 11.9% YoY from ₹1156 crore in Q3 FY24.  

• EBITDA of ₹265 crore in this quarter at a margin of 20% compared to 25% in Q3 FY24. 

• Profit of ₹142 crore in this quarter compared to a ₹177 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr	Q3 FY24	Q3 FY25	FY23	FY24
Revenue	1156	1294	4378	4475
Expenses	868	1030	3508	3371
EBITDA	288	265	870	1104
OPM	25%	20%	20%	25%
Other Income	18	8	54	62
Net Profit	177	142	546	668
NPM	15.3%	10.9%	12.5%	14.9%
EPS	1.6	1.3	4.9	6.1