Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
Adani Total Gas Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤22nd Jan 26

Summary : Adani Total Gas Limited reported increased revenue and profit for Q3 and 9M FY26, while navigating ongoing regulatory challenges and recognizing new labor code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Cost of natural gas and traded items: Q3 FY26 ₹1,029.38 Cr, 9M FY26 ₹2,955.59 Cr.
  2. Consolidated Excise duty: Q3 FY26 ₹131.87 Cr, 9M FY26 ₹376.73 Cr.
  3. Consolidated Employee benefits expense: Q3 FY26 ₹14.86 Cr, 9M FY26 ₹40.59 Cr.
  4. Consolidated Finance costs: Q3 FY26 ₹40.63 Cr, 9M FY26 ₹94.52 Cr.
  5. Consolidated Depreciation and amortisation expense: Q3 FY26 ₹62.44 Cr, 9M FY26 ₹179.76 Cr.
  6. Consolidated Other expenses: Q3 FY26 ₹152.56 Cr, 9M FY26 ₹439.82 Cr.
  7. Consolidated Revenue from operations: Q3 FY26 ₹1,639.22 Cr, 9M FY26 ₹4,713.92 Cr.
  8. Standalone Revenue from operations: Q3 FY26 ₹1,631.19 Cr, 9M FY26 ₹4,691.66 Cr.
  9. Legal and regulatory appeals could imply contingent liabilities.
  10. Consolidated Other equity (March 31, 2025): ₹4,097.07 Cr.
  11. Standalone Other equity (March 31, 2025): ₹4,075.14 Cr.
  12. Paid-up equity share capital: ₹109.98 Cr.
  13. Both standalone and consolidated financial results are presented.
  14. Consolidated results include two subsidiaries and two joint ventures.
  15. Differences exist in revenue, profit, and other comprehensive income figures.

Corporate Overview

  1. Acquisition plans for Ludhiana, Jalandhar, Kutch (East).
  2. Gas distribution network in Sanand, Bavla, Dholka (Outer Ahmedabad City).
  3. City Gas Distribution Network in Noida District (including Greater Noida).
  4. Faridabad GA (F1 and F2).
  5. Legal and regulatory issues regarding gas distribution authorizations.
  6. Indictment against a non-executive director by US DOJ and US SEC.
  7. Impact of new consolidated Labour Codes.
  8. Selling and distribution of natural gas.
  9. Factual and compliant, reporting financial results and regulatory updates.
  10. Single operating segment: selling and distribution of natural gas.
  11. Acquisition of 3 Geographical Areas (Ludhiana, Jalandhar, Kutch East).
  12. Laying, building, operating, and expanding City Gas Distribution Network in Noida and Faridabad.

Risk Factors

  1. Ongoing regulatory authorization challenges persist.
  2. Non-executive director faces legal indictment.
  3. New labor codes have financial implications.
  4. Acquisition of GAs yet to complete.

Key Drivers

  1. Revenue from operations increased significantly.
  2. Profit before tax shows strong growth.
  3. Expansion into new geographical areas.
  4. Resolution of pending regulatory approvals.

Auditor’s Report

  1. Limited Review Report, not an audit opinion.
  2. Reliance on review reports of other auditors for two subsidiaries and two joint ventures.

Board Commentary

  1. Legal and regulatory challenges regarding gas distribution authorizations.
  2. Indictment against a non-executive director.
  3. Impact of new Labour Codes.
  4. Appeal regarding deemed authorization for Sanand, Bavla, Dholka gas distribution network.
  5. Appeal challenging rejection of authorization for Noida District and bifurcation of Faridabad GA.
  6. Indictment against a non-executive director by US DOJ and US SEC.
  7. Financial implications from new Labour Codes recognized (₹6.97 crore).
  8. Definitive Agreement for acquisition of 3 Geographical Areas (Ludhiana, Jalandhar, Kutch East).

Corporate Governance

  1. Audit Committee reviewed results, Board of Directors approved.
  2. Indictment against a non-executive director for alleged fraud.

Management Discussion & Analysis

Future Strategy

  1. Pursuing acquisition of new Geographical Areas.
  2. Expanding City Gas Distribution Network.

Operational Focus Areas

  1. Compliance with SEBI Listing Regulations.
  2. Addressing legal and regulatory challenges.

Performance Drivers

  1. Increased revenue from operations.
  2. Growth in profit before tax.

Risk Control Measures

  1. Company is not named in the director's indictment, no financial impact.
  2. Financial implications of new Labour Codes recognized in current quarter.
  3. Seeking suitable directions and filing appeals for regulatory matters.

Critical Risks

  1. Unresolved legal appeals regarding gas distribution authorizations.
  2. Indictment of a non-executive director.
  3. Financial implications from new Labour Codes.
  4. Consummation risk for Geographical Area acquisitions.
Adani Total Gas Ltd (ATGL) Quarterly Report Analysis & Insights | Dhanarthi