Adani Total Gas Q1 FY27 Results (NSE: ATGL)
Signal: Margin pressure
The read
Revenue growth of 27% YoY is strong, but EBITDA margin contracted 525bps to 14.8% as natural gas input costs rose 40% YoY while company did not fully pass through prices. This is the 4th consecutive quarter of margin compression per the prior series (Q2-Q4FY26 OPM also contracted YoY). PAT fell 14% YoY; the only bright spots were higher JV profit and other income. The trajectory remains one of volume-driven top line offset by structurally squeezed margins.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,906.79 Cr | 27.3% | 12.5% |
| EBIT | ₹216.43 Cr | -11.9% | |
| Net profit | ₹141.72 Cr | -14.2% | |
| EPS | ₹1.29 | -14.0% | |
| EBIT margin | 11.4% |
P&L walk
Revenue grew 27.3% YoY but cost of natural gas surged 40.3%, compressing gross margin ~615bps; EBITDA margin fell 525bps YoY to 14.8% as operating expenses (ex-gas) were broadly stable; PAT declined 14.2% despite higher JV income.
Key positives
- Revenue grew 27.3% YoY to ₹1,906.79 Cr, aided by volume growth in CNG/PNG distribution.
- Share of profit from joint ventures more than doubled to ₹9.57 Cr (vs ₹4.21 Cr YoY), contributing ~7% of PAT.
- Other income rose 60% YoY to ₹12.98 Cr, partially cushioning operating profit decline.
Key concerns
- EBITDA margin contracted 525bps YoY to 14.8% — 4th consecutive quarter of YoY margin compression, indicating structural input cost pressure.
- Cost of natural gas / revenue surged 636bps to 68.3% — input costs grew 40% vs revenue +27%, showing incomplete pass-through.
- Net profit fell 14.2% YoY to ₹141.72 Cr, with EPS declining to ₹1.29.
- Finance cost increased 41.7% YoY to ₹39.10 Cr, reflecting higher borrowing levels.
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