Adani Total Gas quarterly profits decline amid rising gas imports, low govt supply

Adani Total Gas reported a decline in second-quarter profits, attributed to rising operational costs driven by costlier gas imports. The reduction in affordable government gas allocations compelled the Adani Group-TotalEnergies joint venture to rely on pricier imports, resulting in a 12% year-on-year drop in consolidated net profit to ₹1.63 billion ($18.5 million) for the September quarter.

In April, India slashed cheaper domestic gas supplies to distributors, forcing city gas companies like Adani Total Gas to procure expensive imported gas. Natural gas expenses surged 29%, contributing to a 26% overall rise in total expenses, which reached ₹13.69 billion.

Compounding these challenges, India’s natural gas production fell by 3.8% year-on-year in September—marking the third consecutive monthly decline. CEO Suresh P Manglani stated the company is actively managing the supply constraints. Despite profit pressures, operational revenue grew 19.6% to ₹15.76 billion, supported by an 18% increase in compressed natural gas (CNG) sales, which accounted for over half of total volumes. Shares edged up 0.3% ahead of the earnings announcement.

Looking ahead, Adani Total Gas aims to optimize operations amid evolving market dynamics and policy shifts. The company intends to streamline costs and enhance resilience while leveraging strategic alliances to capture growth opportunities in India’s energy sector. Despite mounting challenges—including volatile gas prices and constrained local supplies—the firm remains focused on sustainable growth and long-term value creation.

By prioritizing operational efficiency and customer-centric innovations, Adani Total Gas reaffirms its commitment to maintaining leadership in the competitive natural gas distribution market.