Adani Total Gas Reports Strong Revenue Growth but Profitability Pressures Mount
The gas distributor posted a 27% jump in quarterly revenue, but profit fell 14% year-on-year as net margins compressed.
Adani Total Gas delivered a mixed Q1 FY27. While revenue growth remained robust, profit declined both sequentially and annually, indicating significant margin pressure.
Adani Total Gas reported a quarter of contrasting fortunes. The company's revenue surged on strong demand, but a sharp drop in profitability highlighted growing cost pressures.
The first quarter of FY27 saw revenue rise to ₹1,906.79 crore, a 27.3% increase from the same period last year and 12.5% higher than the previous quarter. However, profit after tax (PAT) fell to ₹141.72 crore, down 14.2% year-on-year and 15.8% quarter-on-quarter. This divergence squeezed the net profit margin down to 7.4%, a significant drop from 11.0% in Q1 FY26 and 9.9% in Q4 FY26.
A look at the last five quarters shows revenue on a consistent upward trajectory, while profit has been more volatile, with the latest quarter marking a notable low.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,906.79YoY +27% | 1,694.61 | 1,498.32 |
| Profit (₹ Cr) | 141.72YoY -14% | 168.34 | 165.24 |
| Net Profit Margin | 7.4%YoY -33% | 9.9% | 11.0% |
Key Points
- The trailing twelve-month (TTM) revenue stands at ₹6,817 crore with a TTM net profit margin of 9.3%.
- The stock has delivered a 7.7% return over the past year, closing at ₹654.05 on the results date.
- The company maintains a solid return on equity (ROE) of 14.5% and a moderate debt-to-equity ratio of 0.45.
The immediate challenge for management is to translate its impressive top-line momentum back into bottom-line growth in the coming quarters.
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