Ladies and gentlemen, thank you and welcome to Adani Total Gas Ltd Q1 FY 2026 Earnings Conference call. We have with us today Mr. Suresh Manglani, ED and CEO, Mr. Parag Parikh , CFO, and Mr. Priyansh Shah , Head of Investor Relations. 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 this conference call, please email an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suresh Manglani. Thank you, and over to you, sir.
Thank you. Good morning all. Thank you for participating in this conference call. Let me extend a hearty welcome to all our investors, analysts, and funds taking out their time and participating in today's call, which is for announcing the result of Adani Total Gas Q1 FY 2025-2026. I'm happy to share the operational and financial numbers of Adani Total Gas Ltd for the quarter ending June 30th, 2025. Let me begin sharing details on our network expansion during the quarter. Our CNG station network has increased to 650 stations. Out of these 650 stations, 124 CNG stations are either on CODO, Company Owned Dealer Operated, or DODO, Dealer Owned Dealer Operated format. As we build more CNG stations, we are looking to add more CODO and DODO outlets as part of our expansion strategy. Our steel piping infrastructure has now increased to 14,197 in-km.
This is the backbone of our CGD infrastructure, which will help reach large masses across overall geographical areas to supply PNG and CNG. With the addition of close to 27,000 new homes from PNG supplies during this quarter, we are now serving almost 1 million domestic connections. In the industrial and commercial segment, which are our E2B users, we have added 157 new INC consumers during this quarter, which has taken our base increase to 9,456. This covers diversified industries and commercial establishments. On our T-mobility business, I'm happy to inform you all that our footprint is now continuously increasing. As on 30th June , 2025, we had installed 3,801 EV charge points across 26 states and union territories. We installed a capacity of 39 MW.
Similarly, on the bio-business side, we had already commissioned our Barsana plant, and now we have set up the first DODO CBG station in Hodal, Haryana. Our 50/50 JV with Indian Oil Corporation, namely Indian Oil- Adani Gas Pvt Ltd , our consolidated nationwide city network today stands at 1,078 CNG stations, 1.17 million homes on PNG supplies, 10,640 commercial and industrial consumers getting supply of PNG, and our backbone infrastructure of a steel pipeline together has increased to 25,829 in-km. Collectively, as you are all aware, we are serving 53 geographical areas, 125 districts, out of which 54 geographical areas in 95 districts are being served by Adani Total Gas , and 19 geographical areas, which translates into 30 districts, are being served by our JV company, IOAGPL.
On the operational side, Adani Total Gas has achieved, during this quarter, robust year-on-year volume growth of 16% to 267 MMSCM, which was largely driven by an increase in the CNG volume by 21% to 1.5 billion metric standard cubic meter MMSCM, and achieved 52 MMSCM of a PNG volume, which grew by 6%. This increase in the volume was achieved despite our higher gas cost because we passed through very calibratedly to the end consumers. This higher gas cost was on account of, as you are all aware, lower allocation of APM gas, which got replaced or offsetted with higher-priced new oil gas and high-pressure, high-temperature gas. We also added some portion of domestic or RLNG gas, which was on a market price purchased.
As a result of our continued efforts to build a robust gas sourcing portfolio, enhanced operational efficiency, and a very highly focused area of digitalization, automation, and robotization of our processes, we have ensured 100% reliability of supply of PNG, brilliant pricing, affordable to both PNG and CNG consumers. On the financial performance side, during the quarter, Adani Total Gas revenue grew by 21% to INR 1,491 crore on account of, as I stated, higher volume, primarily which was driven by CNG segment. Despite increasing the gas cost, we maintained a prudent pricing strategy, which calibrated price adjustment to ensure volume grows on a sustainable basis. As a result of all these efforts, the team ATGL has delivered an EBITDA of INR 301 crore for the quarter April to June 2025-2026.
Our profit before tax for the same quarter was INR 219 crore, and the profit after tax was INR 162 crore. Further, to enhance customer experience and offerings, you are aware that during this quarter, we have entered into an agreement with GOBP, which sells M/S petrol, HST, and diesel, to leverage each other's infrastructure to provide a complete range of high-quality fuels to the consumers. This tie-up will help us accelerating the addition of DODO and CODO CNG station with GOBP fuel across all our 34 geographical areas. In addition, we would also get the benefit of our E-mobility business by setting up EV charging station at a strategic location. Now, let me touch on our ESG front, environment, social, and governance. I'm happy to report that with the dedicated focus on sustainability and ESG, our ESG rating has been improved by CRISIL from 88 to strong.
We have been rated at CRISIL ESG 61. In closing, I would like to say that we remain optimistic about our growth that shapes us, shaped India's energy transition journey, and ATGL is committed to play a leading role by providing affordable and reliable low-carbon energy solutions for homes, industrial, and commercial segments, as well as for transport mobility segment. I would like to acknowledge and be thankful to our shareholders, analysts, fund houses, consumers, dealers, suppliers, business partners, and at the first priority, our employees for providing trust and continued support and doing extraordinary hard work. Thank you.
Shall we open the floor for questions?
Yes, please.
Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question may prepare one on their cell phone or telephone. If you wish to remove yourself from the question queue, you must prepare 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. Participants, you may prepare one to ask a question. First question is from the line of Father Rajan. Give us something from 90 km. Please go ahead.
Yeah, hi. May I recall?
Yes, sir. Go ahead.
Sorry. I have two questions. One, with regard to the visibility of this APM deallocation, there is a fixed to give a six-month kind of a visibility. Is that system in place? Are we getting some kind of a signal that they're going to give us sufficient notice to cover our requirements in case of deallocation?
Yes, I think our gas sourcing head, [Ravindra], will take this question. [Ravindra], please.
Yeah, they've agreed upon giving enough notice so that everybody can plan their purchase and the shortfall demand they see. It is under process, and definitely, it will be in place in due course. The timeline is given. Earlier, it was very short notice that has been extended, and they are trying to extend it further. Enough timeline is given to resolve requirements of CGVs.
Next question, Rajan.
Yeah, lately we have seen some external terms. Price of CNG vehicles vis-à-vis their petrol company prices has actually gone up a wee bit. Are we seeing any impact of that in the conversions or adoption of CNG vehicles in your GAs?
No, I think, Mr. Rajan, on the contrary, I think our belief is this is not the price of a lone CNG vehicle. This is a normal increase which takes place by OEMs due to various factors that have a slight implication on CNG vehicle. Otherwise, the difference between petrol and diesel vehicles is being maintained as it used to be because there is a CNG kit, and there is a tax on the CNG kit as well. On the point of whether impact is there, if you see, as I stated also in my announcement of the results, there is actually a volume growth of 20%, 21%. This is across, if you see industry, good, healthy growth is coming. There is a good, healthy booking of CNG vehicles as well as the conversion. In fact, we are seeing a good fraction of a CNG vehicle coming on the roads.
Just to add to that, in terms of some data points of registration, the CNG registrations have been growing. If I were to look at from FY 2023 to FY 2025, registrations in FY 2023 grew by 12%. These are more from the overall numbers. In FY 2024, it grew by 15%. In FY 2027, it grew by 17%. On one hand, you are continuing to see registration, which is effectively a newer conversion of vehicles. As we just stated, even in terms of our own existing fuel mix, we are seeing CNG as a dominant fuel. 65%- 70% of our composition is coming from CNG fuel. That's primarily because of the growth that we are seeing in this segment.
Sorry, if I have one more question, I just want to ask you.
Please.
In the case of commercial vehicles rated lighter or medium-heavy commercial vehicles, when you look at the price arbitrage vis-à-vis diesel, what is the optimum level you have seen beyond which we see some amount of impact? I mean, is it more like 10%, 8%, 12% at the absolute price level?
I would say, Rajan, I think there are multiple considerations which get into when people decide to go for a commercial vehicle on CNG. One is, of course, efficiency or price differential between CNG and the HST. It also is driven by several organizational objectives. If an organization has a commitment on, you know, emission norms to be followed for their exports, etc., they are taking commercial vehicles on CNG. I think there are multiple factors which are playing. On the efficiency side, of course, everyone is expecting a bit higher efficiency, and that's the reason if you see we have been stating that we are calibrating our prices. Though high, the APM allocation has come down to almost 36% for CNG, right? It has been replaced with new oil gas, HTSG, and we are buying additional gas to meet the consumer demand. Our pass-through has been very calibrated.
That's the reason there is a slight dip if you see on the net profit at the end. That is absolutely fine for us as long as we see growth traction is happening in conversion of vehicles across whether it is passenger or the commercial takes place. We are seeing good traction, and the consideration is always saving plus various corporate objectives on climate change or emission commitments.
Okay, sir, that's useful. Thank you a lot.
Thank you.
Thank you. You may prepare one. You ask the question. The question is from the line of Yogesh Patil from Dolat Capital. Please go ahead.
Thank you for taking my question. Am I audible?
Yes, Yogesh, you are loud and clear.
Yes, sir. Sir, considering a two-zone gas tariff structure, what would be the impact on your gas cost at the company level? If we break down the gas sourcing, could you please share the details how much portion of the gas comes in the zone one, zone two, and zone three if possible?
Yogesh, first, I think I must thank you for being a regular participant. Invariably, we see you coming. Also, more important, I see that you raised your hand first. You asked a question. I would encourage you to ask as many questions as you want to ask so that others also get the full benefit and keep asking such tough questions as you are asking now. I think on the zonal tariff side, the tariff clarity is yet to come. Currently, the existing regime is continuing. CNG has notified that August month will continue to have a similar arrangement as it is either two. They may come with a new tariff regulation they have passed. Now you are aware that from three zones, they have now come, the regulations have been modified to now put in place two zones. The third zone has gone away, zone one and zone two.
The good news is that they have also stated in the same notification that for CGD, for a home PNG, as well as CNG, which is the priority segment for which we get APM, there will be only zone one tariff irrespective of a distance. It means even if I take the gas now from Gujarat to, let's say, even our [Bhadrak Odisha] areas or any geographical area, which could be a distance of, let's say, 1,000+ km, the tariff will be zone one. This is good news for a CNG segment that PNG RV has taken this very noble cause besides MOPNG and the government supporting CGD growth. This would be a positive development for us. However, we are yet to see what is going to be the revised zone tariff, if at all they are going to revise.
Currently, you are aware the zone tariff is around INR 42. We need to see what tariff comes. Depending upon the tariff regime, we will and largely in our case, largely volumes are in zone two, which is I think around, what's the tariff in zone two? INR 80, roughly around INR 80. Now we need to see what tariff comes for a special zone one tariff for CGD. We are expecting a moderate increase from current INR 42. It will be a very good development for a CGD segment to grow. As we have stated, we are always looking forward to making CNG and PNG more and more affordable. Our focus, as everyone is aware, is dry volume and wider base, our consumer base.
Sir, as you mentioned, this would be a positive for us considering most of the volume is shifting into the zone one. Do you quantify any amount which you in-house estimate that would be a kind of a saving on the gas cost side because the gas cost will come down?
I think, Yogesh, as you understand that as a publicly listed company, it will not be right to hazard a guess. We don't know what is the revised tariff which is going to be coming. We also know for sure that 42 and 80 difference is quite wide. We are expecting, as we get engaged with all the stakeholders, there will be some moderate increase because ultimately, everybody's interest has to be taken care of. The volume from zone two will shift to the special zone. I think it's still a lot of working that is required to be done. PNG RV is working. I would urge you and all the participants to bear some patience with us. We would come back with correct implication, positive for us as we receive the numbers, finality of the numbers through the PNG RV notification. That would be the right way.
Today, if I give you some number, it will be preempting what PNG RV is going to be doing as per our assessment, which may bias the entire thing.
Okay. Sir, next question, is your PNG sales volume only 6% as grown in compared to the last year. Are we facing a volume growth challenges on the PNG industrial due to propane? If we did the PNG industrial and the PNG domestic volume breakdown, that would be really helpful.
Yogesh, it's a very good question you asked. I will hand over this to Parag and [Ravindra]. Prior to that, I'll tell you, you know, CGD, being a last-mile connectivity to several types of customers—domestic, commercial, industry—there also is a seasonality which plays. The past six months or the past quarter was a bit of a winter month where we have a lot of consumers using water heating through a gas heater. That enhances the consumption. That had some implication in this quarter. Seasonally, if you see, there's a good growth. Quarter on quarter, you will see there will be some sort of an attraction, which is not supported because of this seasonality part. On industries, you are absolutely right. The alternate fuels are certainly playing its role. We are also continuously working to bring several marketing interventions, including developing our robust gas sourcing so that we continue to work.
We definitely feel optimistic that given what we are doing now on the gas sourcing side, we would be better competitive, as we have always been. We will be able to give a good value offering to our industrial consumers as well. Yes, many of our consumers who resort to use coal or solid fuels, it will be difficult to compete with the solid fuel. If the customers are deciding to use more cleaner fuel, ATG will be the choice for them in our geographical area because our supply is, our top 10 infrastructure is now very well laid across all geographical areas. I will actually give it to Parag and [Ravindra] to add and give you a breakup.
Thank you, Yogesh. As was explained, we continue to see YoY growth as far as even the Piped Natural Gas (PNG) segment is concerned. Whilst, of course, winters tend to get a little higher consumption, the immediate quarter preceding analysis may not give the complete correct picture due to seasonality correction. Overall, the PNG segment has grown, and ind ustrial more specifically has grown by a little over 5%. That's the growth rate that we've seen even on a YoY basis on the industrial segment. Similarly, commercial and domestic segments have also been growing. That's where we see this structure coming in. Yes, as I said, seasonality plus a little bit of an alternative fuel. We continue to keep engaging with the customers to see how this can be accelerated.
Sir, can you get the absolute, sorry?
Yeah, yeah, Yogesh.
Sir, sorry, but can we get the absolute number from the PNG industrial, PNG domestic, and PNG commercial? If we get it, that would be helpful for the quarter Q1 FY 2022.
For Q1, close to about 69% is PNG. The balance 31% is within the PNG segment. 70% of this is actually dominated by industrial segment only, whilst about 24% is domestic and 6% is commercial.
Okay. The last question, to clarify on that zonal structure, 80%- 85% of our volume lands into the zone two. Is that a correct understanding?
I would say not 80%- 85%, but roughly around 60%.
Thanks. Thanks a lot, sir. This was really helpful.
Thank you, Yogesh. Thank you.
Thank you. Participants, you may prepare to ask the question. Next question is from the line of Kirtan Mehta from Baroda BNP Pariba s. Please go ahead.
Thank you, sir. Thank you. We have registered a very strong 21% growth in CNG.
[Kirtan], could you please speak to the handset?
Am I audible now?
Yes, yes, yes, your honor.
Yeah, my question was regarding the 21% CNG growth that we have seen this time. It's a very strong growth. Is it possible to give us some more color in terms of how the growth we are seeing in the matured GAs? How is it different in the new GAs? Is it possible to break down the two things across different categories of GAs? That was one part. Second, is it also possible to break down the growth across different geographies in terms of how you are seeing the traction developing?
I think, Kirtan, very, very insightful question. Overall, if you actually look at the volume of ATGL , and as we have mentioned, as the infrastructure of the newer geographies is being built, the volume contribution from the newer geographies is also beginning to fluctuate. Today, our composition is close to about 65% from the existing geographies, while about 35% is from the newer geographies. That's the overall contribution. Coming more specifically in terms of the CNG growth rate that we've seen, we continue to see double-digit growth rates even now as far as the existing geographies are concerned. Adoption continues to be there as far as the existing geographies are concerned. As far as newer geographies are concerned, the growth rates are far more significantly higher because of simply the addition of newer networks, newer stations which are getting operationalized.
If I were to see from a YoY, 30%+ is actually in terms of newer CNG growth rate, while 12% is from the existing geographies in terms of CNG growth. As far as the geographies and a little more insight on that is concerned, amongst the newer geographies that are contributing now, as I mentioned to you, around 35%, primarily the 9th round, 10th round geographies are beginning to add to this contribution. 11th round, as you're aware, we are still under the CapEx phase. In some of the cases, we are yet awaiting the national connectivity as we continue to execute work. Within the 9th, 10th round geographies, the contribution, or I would say the ones which are the larger contributors, are Kerala, Udaipur, Surendranagar, as well as Bhiwani. These are the three core geographies which are contributing from the newer geographies to the overall volume.
Thank you, sir, for this great question. The second question was about when you look at the planning the CNG infrastructure for the next three to five years, what kind of a growth you are assuming to develop your CapEx estimate? What is it that your current plan entails in this investment, or particularly on the CNG side for the next three to five years?
Kirtan, like we have said, whether it is in terms of volume or for that matter in terms of CapEx, we actually incur in terms of a calibrated manner as far as our CapEx program is concerned. This year, we are likely to incur a CapEx of somewhere in the range of about INR 900-INR 1,000 crore. That's the CapEx that we are intending to do for this year. As far as the next two to three years are concerned, we will end up doing a CapEx of INR 3,500-INR 3,700 crore. That's the kind of CapEx that you will see over the next three years. Primarily, this CapEx is aimed towards the network creation, especially of the 11th round geography. We've always preceded the CNG stations over the PNG and the domestic connections in terms of incurrence of CapEx.
The significant part of this CapEx will be core network of steels and to add to that on the sealing station.
Great. Just one more follow-up around this. In terms of our earlier discussion, you had mentioned that we'll probably look at maturing the CNG infrastructure to the next 20% penetration levels in each of the geographies being considered due to the potential EV competition that can arise. Does that dimension still remain around 20% penetration level to target, or are we looking for a different number? I think this is the last question from my side.
Actually, again, I'm glad that you asked this question. You know, it's 20% or higher. The key for us is to expand CNG volume in each of the geographical areas, contact the potential of currently used vehicles which are being used, also promote, along with OEMs, new vehicles which are being purchased. That is what the very calibrated strategy, if you see, in an odd geographical area, we have tied up with Maruti giving several marketing interventions and incentives to consumers to buy CNG vehicles. Similarly, we are working with retrofitters. We are working with trucker associations, bus operators, fleet operators, tourist operators. I think our efforts is to make sure that whatever is the potential which is available, we build infrastructure to better and give a good message of chicken and egg that we will take first step. This is a supply-driven market.
We will, to some extent, do a supply-driven. Once supply-driven is put in place, we will expect demand comes up and demand-driven development takes place. I think it's our robust strategy which is in place and which is being seen by you all through our results. As Parag also stated, our optimism is that we will maintain a double-digit growth in the CNG side. We are also seeing the traction through OEMs' interaction, CRM interaction, where people are opting for CNG. Rest assured, if it's 20% or more, we would be definitely investing and putting our capital in all our geographical area for CNG wider basing of the consumers. Hope you are happy with the answer, Kirtan.
Thank you, sir. Thank you, sir, for the dedicated responses.
Thank you.
Thank you very much. A reminder to all the participants, you may prepare and want to answer questions. If there are no further questions, I will now hand the conference to Mr. Priyansh Shah for closing comments.
Thank you all the participants and to management for sharing their insights. In case of any further questions, you may please write to us. Thank you. Have a good day.
Thank you very much. On behalf of Adani Total Gas Ltd, we conclude this conference. Thank you for joining us, and you may now disconnect your nets. Thank you.