Adani Total Gas profit falls 17.97% as costs outpace revenue
Standalone operating margin fell to 15.34%, its fourth straight quarterly decline, while interest costs rose 41.80% year on year.
Filed 21 Jul 2026, 15:25 IST · Adani Total Gas Ltd (ATGL)
Key takeaways
- Standalone net profit fell 17.97% year on year to Rs 133.03 cr despite revenue growth of 27.10%.
- Operating margin narrowed 5.96 percentage points to 15.34% as expenses grew 36.72%, faster than revenue.
- The stock fell 9.34% five sessions after the results, versus a 2.13% median absolute move after its last eight results.
Price around the results
Revenue grew, but profit declined
Adani Total Gas reported standalone revenue growth of 27.10% year on year and 12.59% quarter on quarter, but operating profit fell 8.43% and 10.59%, respectively. Net profit declined 17.97% year on year to Rs 133.03 cr and 14.64% quarter on quarter. The result was weaker below the revenue line as interest rose 41.80% year on year and 12.07% sequentially.
Costs drove the margin squeeze
Expenses grew 36.72% year on year and 18.13% quarter on quarter, faster than revenue in both comparisons. That reduced operating margin by 5.96 percentage points year on year and 3.98 percentage points sequentially, to 15.34%. The tax rate fell 0.67 percentage points year on year and 1.97 percentage points quarter on quarter, partly cushioning the decline in profit; other income contributed 7.54% of pre-tax profit.
Margin has fallen every quarter since Q1FY26
Operating margin has declined for four consecutive quarters, from 21.30% in Q1FY26 to 20.31%, 20.23%, 19.32% and now 15.34%. Despite the deterioration, the margin remained 4.82 percentage points above the 10.52% median among eight Energy peers that had reported the quarter.
The initial market reaction was worse than usual
The stock fell 1.75% on the results date and was down 9.34% five sessions later. The first-day move was within the stock's recent range, compared with a 2.13% median absolute move after its last eight results, but the five-session decline was materially larger than that typical reaction.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,743 cr | ₹1,549 cr | +12.59% | +27.10% |
| Other income | ₹13 cr | ₹10 cr | +28.89% | +57.63% |
| Expenses | ₹1,476 cr | ₹1,249 cr | +18.13% | +36.72% |
| Operating profit | ₹268 cr | ₹299 cr | -10.59% | -8.43% |
| Operating margin (%) | 15.34% | 19.32% | — | — |
| Interest | ₹39 cr | ₹35 cr | +12.07% | +41.80% |
| Depreciation | ₹64 cr | ₹60 cr | +5.55% | +18.18% |
| Profit before tax | ₹178 cr | ₹214 cr | -16.89% | -18.71% |
| Tax | ₹45 cr | ₹59 cr | -22.87% | -20.81% |
| Net profit | ₹133 cr | ₹156 cr | -14.64% | -17.97% |
| EPS (₹) | ₹1.21 | ₹1.42 | -14.79% | -17.69% |
Operating margin of 15.34% compares with a Energy sector median of 10.52% across 8 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.75% | -1.54% |
| Next session | -4.39% | — |
| 5 sessions | -9.34% | -8.30% |
Volume on the results session was 0.90× its 20-day average.
What to watch
- Whether operating margin recovers from 15.34% after four consecutive quarterly declines.
- Whether expense growth moderates from 36.72% year on year.
- Whether interest expense moves below Rs 39.01 cr after its 41.80% year-on-year increase.