Adani Total Gas Navigates Rising Costs with Strategic Pricing

Adani Total Gas Ltd, a joint venture with TotalEnergies, reported a 9% decline in Q2 net profit due to increased gas prices. Despite this, ATGL increased revenues by 19% through strategic pricing and a focus on digitalisation. The company's diversified gas sourcing helped mitigate costs and ensure customer interests.

Adani Total Gas Ltd, the city gas joint venture of the Indian Adani Group and French TotalEnergies, recorded a 9% drop in net profits for the September quarter as input gas prices surged. The company reported Rs 162 crore in net profit for the second quarter of the 2025-26 fiscal, compared to Rs 178 crore the previous year.

The cost of gas for conversion to CNG rose by 26% due to a shortfall in lower-cost APM gas, compelling ATGL to seek pricier alternatives. Despite these challenges, ATGL pursued a balanced strategy, raising consumer prices selectively to foster volume growth.

ATGL's revenue from operations grew by 19%, with notable increases in CNG and piped gas sales. CEO Suresh P Manglani highlighted their focus on digitalisation and a diversified sourcing strategy as key to maintaining customer-friendly pricing amidst fluctuating gas allocations.