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Informist, Wednesday, Jul. 22, 2026

 

By Sunil Raghu and Ashutosh Pati

 

AHMEDABAD/MUMBAI – Adani Total Gas Ltd.'s management Wednesday said it sees the company's volume growing in a similar manner going ahead as it was in the recent quarters. For the June quarter, the company's total sales volume rose 13% on year to 303 million standard cubic metres. Sales of compressed natural gas rose 18% on year to 218 million standard cubic metres and sales of piped natural gas rose 4% to 85 million standard cubic metres.

 

"...right now the challenge is only to bridge the gap about the spot volumes. And that is where we are working towards ensuring that we continually, we maintain the momentum," the company management told analysts in the post June quarter earnings call. Of the 303 mscmd natural gas sold in the June quarter, 62% was sourced from domestic fields allocated by the government and the remaining 38% in the form of liquefied natural gas from the global markets.

 

"However, not only the imported regassified LNG costs have gone up, but in addition to that, since the Brent crude moved up during the Middle East crisis to around more than $107 per barrel, the new well gas prices also went up, which has impacted overall gas cost," the management said. For the June quarter, the company saw the cost of natural gas and traded items increasing over 40% on year and over 22% on quarter to INR 13.02 billion. This was by far the biggest expenditure for the company.

 

Currently, the company is also buying 15% of total gas it sells from global spot LNG markets, the company management said. The prices of LNG markets globally have been volatile, tending towards higher side, in wake of the West Asia war and closure of the Strait of Hormuz.

 

The company reported a consolidated net profit of INR 1.42 billion for the June quarter, down 14% on year and almost 16% on quarter. Its revenue for the reporting period, excluding excise duty, was INR 17.53 billion, up over 26% on year and 13% on quarter. Including excise duty, the company's top line was INR 19.07 billion, up over 27% on year. The excise duty charge on Adani Total Gas for the June quarter stood at INR 1.53 billion, up almost 28% on year.

 

 

While the company has witnessed a double-digit growth in its volumes and revenues, high cost of natural gas and cut in allocation of relatively cheaper domestic gas by the government have seen its operational margins shrinking over last few quarters. On being asked what steps the company is thinking with operating margins falling from 25?ew quarters ago to around 15% currently, the management said it was expecting the supply of LNG from the US and Qatar region at "better" rates once the crisis in West Asia is over.

 

"So once this happens and the Middle East crisis is over, we'll see the margins improving to the last level, so better than that." The company is also looking to procure some volumes of natural gas on a mid-term basis to cut down gas costs. At 1356 IST, shares of the company traded at INR 689.65 on the National Stock Exchange, down 1.5%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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