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 INR 340 crores. For half year ended 30th September 2026, volumes grew 13% to 618 MMSCM and EBITDA rose 3% to INR 621 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. In Q2 FY27, 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 FY26 on year-on-year 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 the industrial and commercial connections, added approximately 900 book of customers in H1 FY27. Taking that base to 10,864. That is approximately 1.4 times the numbers added during the entire FY26. Q2 FY27, we faced significant gas cost pressures with natural gas costs increasing 43% year-on-year amid higher Brent LNG 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 H1 FY27, we expanded the steel network by 732 inch-kilometers, added 21 CNG stations and connected 77,870 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 FY27 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 FY27, 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 SCS 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-kilometer. 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 costs 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. A 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 going 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, reliable, and sustainable energy while creating secure long-term value for our shareholders, customers, and communities. Thank you so much.
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 the touchtone 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 Viveka nand Subbaraman from Ambit Capital. Please go ahead.
Hi. Thank you for the opportunity. Two questions. Number one is on the pricing stance with respect to CNG. What we see is that you have taken regular price hikes in important markets like Ahmedabad in the June, July, August. Just to understand now from the perspective of pass-through of increased input costs to consumers, 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 around 11, 12 rupees per kilogram. 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.
Yeah, sure. Thank you so much for your question. On this CNG price revisions, while we don't pass on the entire cost to customers, we do take a calibrated approach. Whenever there's any pressure on the gas cost because of the current situation, whether it is war situation, whether it is the fluctuation in the crude or Brent or LNG prices, we do evaluate from time to time. 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 manage and not pass on the entire cost to the consumers. We keep on exploring the gas supply scenarios, given the current situations, which awaits our long-term growth, what we are projecting from time to time. Yeah. Thank you.
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 on the presentation you have given 25% APM. Is that consistent across the quarter towards the end of the quarter also? Is there any more change? Just trying to understand if there is a further change in the allocation. Secondly, can you talk about the 75% other source, right? Can you elaborate a bit on how that 75% is decomposed? Thank you.
Yeah, there is slight reduction in the APM and there are other domestic gases also, which keeps on fluctuating. We have something called new well gas. We have something called HPHT gases, which keep on fluctuating from time to time. 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.
Okay. Thank you, and all the best.
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. The next question is from the line of Arya Patel from Emkay Global. Please go ahead.
Yeah. Thank you for the opportunity and congrats on a good set of numbers. Just continuing to the last question, can you give us a percentage breakdown on sourcing mix as to 25% was APM, and what percentage was NWG, HPHT, spot, and the long-term contract? Whether it was HH or Brent. That is my first question. I will continue with the second question as well. Second question was on, you have mentioned that after the pool gas mechanism was removed, the government has come up with some additional sourcing or supply of HPHT for CGD. Can you throw some further light on that? Thank you. Those are my two questions.
Out of this 70%, around 40% is linked to various markers like Henry Hub, like Brent-linked contracts, which includes spot also. That is an answer to your first. On HPHT, it keeps on varying. While government is supporting us in terms of offering that gas to CGD sector, that keeps on varying depending upon the production cycles for HPHT, because it is a high pressure, high temperature gas well, where production fluctuates from time to time. Based on that, they calibrate and accordingly allocate the gas volumes to all the CGD sectors. We also get that volume, and it keeps varying from month to month, fortnight to fortnight. Yeah. And variation is to the tune of 50% to 1%, in that range. Yes.
Yeah. Got it. Those are my questions. Thank you for this. That is it.
Thank you, Mr. Arya.
Thank you. The next question is from the line of Varatharajan Sivasankaran from Antique Limited. Please go ahead.
Thanks for the opportunity, sir. Two questions, one on the number of outlets you are adding and what is the visibility for the next two quarters, and probably if you can give some idea in FY 2028 as well, what is the kind of number you are looking at. Secondly, overall CapEx, what is the numbers in the current year and next year, and what is it going towards primarily? Is it pipelines or more like outlets or any kind of other infrastructure you are looking at? Thank you.
Our CNG stations, last year we added some 68 CNG stations. This time we are targeting close to 80 to 90 CNG stations. We are very much into our execution plan in terms of investment and in terms of all the procurement activities. That is very well on target side. For 2028, we are looking for similar kind of numbers with a calibrated approach in terms of which are the volume-driven growth areas, which are the new virgin areas where we need to focus and which are under conventional GAs. We do evaluate that, and based on that, we will take a decision for 2028. But more or less, it will be in the similar or more aggressive manner, which is under discussion stage for next year planning. On CapEx part, we are aggressively focused on CapEx or the expansion part of it.
As you must have seen our Q2 performance in terms of number of households, we are almost 70,000 households have been connected in H1. Our industrial connections and commercial connections has also almost doubled. Our CNG stations, almost 21 CNG stations added. We are aggressively working on our growth infrastructure development also across all our GAs. Yes.
Any number in terms of retail growth, sir? What is the current outlay and next year outlay?
This year we are talking about close to around 70,000 households have been connected in H1, 900 new commercial and industries have been connected, and 21 CNG stations have been added in H1. There is a construction of around 70 CNG stations right now, which is under advanced stage, where the equipment procurement has already been started. Pipeline laying work is already going on. For next year, we are looking for similar kind of growth prospects for infrastructure expansion.
Wonderful. Thanks.
Okay. Thank you.
Thank you. The next question is from the line of Sridhar Chandran from Percept Capital. Please go ahead.
Good morning, Manglani. Congratulations, sir, for the solid numbers. I have two questions. The first question on EBITDA margin recovery and the gas allocation. If you take three, four years back, EBITDA margin was above 23%. Whereas Q2 FY 2027 is approximately around 16.2%. Even the revenue grew over 34% this quarter. But EBITDA simply is only up to 12% and PAT is just 3%. If geopolitical disruption ease and domestic gas allocation improves, can ATGL realistically return to its historical margin levels? What specific measures within management control, and what timeline would be required to achieve this recovery? This is my first question. The second question on E-mobility charging expansion. If I could remember, in 2023, the Chairman announced the target to install 73,000 EV charging stations by 2030.
Based on the presentations, I could see only until now 5,513 charging points were installed and operational around 4,809. What utilization levels are currently being achieved, and how much additional capital investment is required to reach that target? When does management expect E-mobility charging to make a meaningful contribution to return on the returns? These are my two questions.
Sure, sir. On your first question, on the EBITDA margin pressure. If you see our sales growth, which is very much within our control in terms of the expansion which we are doing versus how we are getting the returns by adding the new stations and adding new volumes. CNG volumes, industrial volumes, all the volumes are growing, and most of them are in double digits. We are very much what is happening in industry. Industry is growing at around 20%. We are very close to growing at 17%-18% in CNG. That is within our control. These temporary issues, whether it is West Asia crisis, whether it is volatility in the Brent or all other markers, these are temporary in nature.
So that is why we are engaging into getting into long-term contracts wherever we see it makes sense for us to have better EBITDA margins. We try to calibrate it from time to time in terms of managing our OpEx, CapEx, then other such issues which can help us to maintain or achieve higher EBITDA margins. So that is how we work on EBITDA as well as volume growth. That is question number one. On question number two on the EV growth. One of the major, as an industry, concern is in terms of the utilization of the EV chargers. So our key focus right now is to increase our penetration on B2B charging infrastructure and increase the utilization level.
So we have tied up multiple B2B customers, including our group captive like Adani Cement, like Adani Ports, Adani Logistics, where we will be building the infrastructure for charging for these trucks, which will be plying on certain routes. So that will give us more revenue and higher utilization compared to what is happening in the B2C. So that is how we are evaluating that on the EV side. Thank you so much.
Okay. Thank you.
Thank you. Participants who wishes to ask a question, please press star and one. The next question is from the line of Vivekanand Subbaraman from Ambit Capital. Please go ahead.
Yeah. Thanks for the follow-up opportunity. I want you to discuss a bit more on the CBG business and your plans in that, and how the recently announced GOBARdhan scheme will have a play there. One in terms of the expansion that you're planning there and also in terms of the economics, as much as you can talk about it, that will be very helpful. Thank you.
Yeah, sure. If you see CBG as a country perspective, it is one of the best schemes which government has come. If you see we as a country, one was to show and demonstrate the resilience during that crisis or the war times, which India and as an industry has demonstrated that. Now we are at a stage where we need to be self-sufficient. That is so-called Atmanirbhar Bharat. We need to focus on developing or generating our own energy. Biogas is one of such initiatives from the government. Now with respect to ATGL, few of the challenges are with respect to feedstock availability or right kind of feedstock availability and then the technology. We have developed one CBG plant. We are into expansion of that existing CBG plant.
Currently, we are producing around 5 to 6 tons, which we are taking it to double in next five to six months. Investment is already been committed, and even the technology type is already been taken care. We are working towards that. In addition to that, we have few more projects in pipeline, but we are evaluating that and taking slightly lower steps in terms of the growth perspective. As soon as we have a visibility and very confidence on the technology and the feedstock, we will certainly be keen to move forward and develop that vertical as a whole in a business perspective. That's how we are working towards CBG path. Thank you.
Okay. Sir, can you elaborate a bit on these two aspects, the technology tie-ups. What are the major feedstock areas that you're looking at in specific geographies of focus? I believe you have the big operational facility for you, I think is in U.P. Barsana. So where are you expanding this business and who are the technical partners here? What are the challenges? Secondly, what are the feedstocks that you're working on? If you can elaborate on this, it'll be great. Thank you.
Currently, it is cow dung. It is a mix of cow dung and paddy straw in Barsana, and our partner over there is Thermax.
Okay.
With respect to other feedstocks, we keep on evaluating. It is like starting from energy plantation, that is energy plantation and then the mix of multiple fuels. It can be municipal waste, it can be paddy straw, it can be agricultural waste or chicken litter. It is different parts different, and overall value chain. Availability of land, availability of feedstock, availability of selling this product, whether it is bio-manure and biogas. So you have to evaluate all the things in parallel because huge requirement of land, huge requirement of feedstock, huge requirement of setting the plant. All the line items have to tick mark in terms of making a sensible decision for that part. So that is where we keep on evaluating that.
Yeah, thank you. Thank you very much and all the very best.
Thank you. The next question is from the line of Sridhar Chandran from Percept Capital. Please go ahead.
Yes. Thank you again for the opportunity, sir. The last question on the PNG household connection growth and the distribution. Despite government support and the expansion of the city gas infrastructure, I could see ATGL has added approximately 40,000 domestic PNG household connections in this quarter. I would like to understand what is preventing faster conversion of the existing network into active household connections. Can management commit to specific connection targets for the next 12 to 24 months with the milestones to demonstrate how this expansion will translate into incremental revenue and EBITDA growth?
We are very much focused on increasing the domestic penetration. We are aiming at closing more than 2 lakh connections this year. That is very sizable number if you see. In terms of volume growth, per capita on an average is around 0.4 SCMD of the volume. Any new connection which is added will offer us close to around 0.4 SCMD of gas volume addition. That is the growth potential. We are very much keen and we are very much focused in terms of development of PNG for households and our key areas as well as our new GAs. That is the basic priority all across in terms of adding more and more households. Thank you.
Thank you.
Thank you. Participants who wishes to ask a question, please press star and one. Anyone who wishes to ask a question may press star and one now. Ladies and gentlemen, you may please press star and one to ask a question now. As there are no questions from participants, with that, we conclude today's conference call. Ladies and gentlemen, on behalf of Adani Total Gas Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.