Adani Total Gas

Sector: City Gas Distribution and Natural Gas  |  HQ: Ahmedabad, Gujarat, India  |  Founded: 2005  |  Employees: 1,200+

Listed as: NSE / BSE listed (ATGL)  |  NSE / BSE  |  Ticker: ATGL.NS

Company overview

Adani Total Gas Limited (NSE: ATGL, BSE: 542066) is the city gas distribution joint venture between Adani Enterprises (37.4 percent) and TotalEnergies (37.4 percent), with the balance held by domestic institutions, FIIs, and retail. Originally incorporated in 2005 as Adani Gas Limited, the company became Adani Total Gas in 2019 following TotalEnergies' strategic investment. The company is the second-largest city gas distribution player in India by geographical area authorisations, holding licences for 33 geographical areas (GAs) covering 124 districts across 20 states and union territories. Adani Total Gas operates compressed natural gas (CNG) stations for the automotive segment, piped natural gas (PNG) for residential, commercial, and industrial customers, and a growing electric vehicle charging network (Adani Total Energies E-mobility). The Group ambition includes downstream LPG distribution and an integrated alternative fuel ecosystem. The company is positioned to benefit from the structural shift of Indian energy consumption toward natural gas and clean fuels, supported by the City Gas Distribution policy framework administered by the Petroleum and Natural Gas Regulatory Board (PNGRB).

Financial performance and recent trajectory

Disclosed revenue (FY25): ₹5,200 crore (FY 2024-25 estimate).

12-month price trajectory

Monthly closes over the last 12 months. Source: Yahoo Finance.

Competitive position

Adani Total Gas is among the top three city gas distribution players in India alongside Indraprastha Gas Limited (NSE: IGL, the leader concentrated in Delhi NCR), Mahanagar Gas Limited (NSE: MGL, concentrated in Mumbai), and Gujarat Gas (subsidiary of Gujarat State Petroleum Corporation, the largest CGD by gas volume distributed). The 33 GAs held by Adani Total Gas span a broader geographical footprint than IGL or MGL, although the gas volumes distributed and the captive consumer connections lag the established players. The competitive moats are the broad GA portfolio, the TotalEnergies partnership which brings global LNG sourcing and trading expertise, and the integration with the broader Adani Group infrastructure (Dhamra LNG terminal stake, transmission pipeline access). The principal vulnerabilities are the slow CGD network build pace relative to license commitments, regulatory pricing risk under PNGRB tariff orders, and Adani Group balance sheet and governance scrutiny.

Key risks

PNGRB tariff order revisions and GA buildout milestone compliance risk Gas sourcing cost volatility tied to global LNG and domestic allocation Adani Group balance sheet and governance scrutiny affecting cost of capital

Outlook

Adani Gas Limited was incorporated in 2005 as the city gas distribution vehicle of the Adani Group. The company secured GA licences through the PNGRB bidding rounds starting with Ahmedabad, Vadodara, Khurja, and Faridabad in the early rounds. Subsequent bidding rounds (CGD Round 9 in 2018 and Round 11 in 2021) significantly expanded the GA portfolio. In 2019, TotalEnergies (then Total SA) acquired a 37.4 percent equity stake through a primary issuance and open offer, valuing the company at approximately ₹14,000 crore and renaming the entity Adani Total Gas Limited. The TotalEnergies partnership brought global LNG supply security, financial strength, and operational know-how from Total's extensive global gas distribution footprint. The business is organised around three operating pillars. The CNG segment serves the automotive market through over 600 CNG retail stations across the GA footprint. CNG volumes are driven by the automotive bus, taxi, three-wheeler, and increasingly private car segments in cities where CNG infrastructure is well-developed. The PNG-Industrial segment serves manufacturing customers requiring uninterrupted gas supply for boilers, furnaces, and process applications. PNG-Industrial volumes are sensitive to industrial activity in the local GA. The PNG-Domestic and Commercial segment serves household kitchens and small commercial customers with piped gas connections, replacing LPG cylinders. Domestic PNG connections are typically 1.6 lakh to 2 lakh per major GA, and the company targets several lakh annual additions. The GA footprint covers 33 geographical areas including Ahmedabad, Vadodara, Faridabad, Khurja, Allahabad, Chandigarh, Panipat, Daman, Dadra and Nagar Haveli, Bhilwara, Mahsana, Patiala, Cuddalore, Madurai, Bilaspur, and others. The 33 GAs collectively cover 124 districts across 20 states and union territories, representing approximately 8 percent of India's geographical area and 7 to 8 percent of population. Network buildout requires CNG station commissioning, steel pipeline laying for industrial PNG, MDPE pipeline laying for domestic PNG, and customer-side infrastructure (RegMet stations, last-mile connections). Gas sourcing combines domestic gas allocation (APM gas at administered price), Reliance Industries / OVL imported LNG, IOC and GAIL spot LNG, and increasingly TotalEnergies-routed LNG cargoes. The company has signed term LNG supply agreements through TotalEnergies, providing price stability against spot LNG volatility. The Dhamra LNG terminal in Odisha (operated by Adani Total Private Limited with TotalEnergies, separate from ATGL) provides additional LNG import infrastructure access. Distribution covers retail CNG stations (over 600 active), industrial PNG customers (over 8,000 connections), and domestic PNG customers (over 7 lakh active connections). E-mobility integration through Adani Total Energies E-mobility offers EV charging at CNG retail station forecourts, positioning ATGL as an integrated transport fuel retailer. Financial trajectory has been volatile through the FY22 to FY25 cycle. Revenue grew from ₹3,000 crore in FY22 to ₹4,700 crore in FY23 (driven by gas price inflation passing through to customer pricing), softening to ₹4,400 crore in FY24 as gas price volatility moderated, and recovering to approximately ₹5,200 crore in FY25 on volume growth. EBITDA margin in CGD businesses is typically 20 to 30 percent depending on gas sourcing cost and the regulated tariff structure. Adani Total Gas margin has tracked in this band with some compression during gas price spike periods. Recent corporate development has included the 2023 Hindenburg report fallout and the subsequent share price drawdown and recovery, the announced integration with Adani Total Energies E-mobility for forecourt EV charging, and additional GA development under the recent bidding rounds. Strategy through 2025 to 2030 is anchored on five themes. First, CGD network expansion across the 33 GAs targeting 10,000-plus CNG stations and several million domestic PNG connections by FY30. Second, industrial PNG conversion in the GA footprint as manufacturing customers shift from oil-based fuels to gas under cost and environmental considerations. Third, EV charging forecourt build at CNG stations under the Adani Total Energies E-mobility platform. Fourth, gas sourcing diversification with TotalEnergies term LNG cargoes and domestic gas allocation under HELP (Hydrocarbon Exploration and Licensing Policy) and the New Gas Pricing Mechanism. Fifth, green hydrogen blending into the city gas network for select industrial customers as a pilot programme. The regulatory environment is administered by the Petroleum and Natural Gas Regulatory Board (PNGRB) under the PNGRB Act 2006. The CGD authorisation framework provides exclusive marketing rights in each GA for 8 years and exclusive infrastructure rights for 25 years. PNGRB also notifies network tariff orders periodically that govern CGD economics. The Goods and Services Tax framework excludes natural gas from GST currently (it remains under VAT and central excise), which complicates tax structure relative to other consumer goods. The Companies Act 2013 and SEBI LODR govern listed company disclosure. Risks include gas sourcing cost volatility tied to global LNG and domestic gas allocation, PNGRB tariff order revisions, GA buildout execution risk against PNGRB-mandated milestones (failure to meet milestones can result in licence revocation or penalty), competitive intensity from CGD peers in adjacent GAs, EV adoption affecting long-term CNG demand, and Adani Group balance sheet and governance scrutiny. Management quality is anchored by the joint Adani-TotalEnergies governance with independent directors. CEO Suresh P Manglani leads the operating team. The board has independent directors under SEBI LODR. Statutory audit is by SRBC & Co LLP. ESG positioning is moderate to strong. The CGD business directly substitutes higher-emission fuels (diesel, fuel oil, LPG) with natural gas, providing a meaningful per-unit carbon and air quality benefit. The shift toward EV charging and green hydrogen blending is a forward-looking ESG vector. The Adani Group governance overhang affects the broader ESG rating.

KAMRIT point of view

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Disclaimer: This profile is compiled by KAMRIT Financial Services LLP for educational and benchmarking purposes only. It is not investment advice, a recommendation to buy or sell securities, or a solicitation. Stock data is provided by Yahoo Finance and may be delayed by up to 20 minutes. Company financial commentary draws on publicly available filings, exchange disclosures, and KAMRIT industry research. Readers should consult a SEBI-registered investment adviser before making investment decisions. KAMRIT is a financial services and compliance firm, not a SEBI-registered investment adviser.