Adani Total Gas profit growth trails revenue as costs and interest climb
Operating margin fell for a third straight quarter to 19.32%; the stock rose 2.87% following the after-close filing.
Filed 27 Apr 2026, 18:46 IST · after market close · Adani Total Gas Ltd (ATGL)
Key takeaways
- Standalone revenue grew +15.92% YoY, but expenses rose +16.69%, leaving operating margin down 0.53 percentage points to 19.32%.
- Net profit rose only +4.32% YoY as interest expense jumped +47.38% and the tax rate increased 2.59 percentage points.
- The stock gained +2.87% in the first session after filing, above its 1.18% median absolute move after the past eight results.
Price around the results
Revenue growth did not translate into equivalent profit growth
Standalone revenue rose +15.92% YoY to Rs 1,548.58 cr, but net profit increased only +4.32% to Rs 155.84 cr. Sequentially, revenue grew +3.29%, while operating profit fell -1.35% and net profit declined -0.86%, showing weaker conversion of incremental sales. At 19.32%, operating margin was 4.73 percentage points above the 14.59% median for the 15 Energy peers that have reported.
Faster cost growth and higher financing expense squeezed earnings
Expenses grew +16.69% YoY against +15.92% revenue growth, narrowing operating margin by 0.53 percentage points; sequentially, the margin fell 0.91 percentage points as expenses rose +4.46% against revenue growth of +3.29%. Interest expense rose +47.38% YoY, although it declined -14.11% sequentially. The tax rate increased 2.59 percentage points YoY and 1.36 percentage points sequentially, while other income contributed 4.86% of pre-tax profit.
Operating margin has declined for three consecutive quarters
Margin fell from 21.30% in Q1FY26 to 20.31% in Q2FY26, 20.23% in Q3FY26 and 19.32% in Q4FY26. The current quarter therefore extends a sustained sequential decline, even though the business remains above the reported peer median.
Initial share-price reaction was positive but not unusual for the stock
The results were filed after market close, and the stock rose +2.87% in the first session, with a +0.53% opening gap. The move was larger than the 1.18% median absolute reaction across the past eight results, when four sessions were positive and four were negative. The gain was +2.42% after five sessions, before the stock was down -3.93% after 15 sessions.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,549 cr | ₹1,499 cr | +3.29% | +15.92% |
| Other income | ₹10 cr | ₹9 cr | +11.68% | +20.74% |
| Expenses | ₹1,249 cr | ₹1,196 cr | +4.46% | +16.69% |
| Operating profit | ₹299 cr | ₹303 cr | -1.35% | +12.85% |
| Operating margin (%) | 19.32% | 20.23% | — | — |
| Interest | ₹35 cr | ₹41 cr | -14.11% | +47.38% |
| Depreciation | ₹60 cr | ₹60 cr | +0.97% | +16.84% |
| Profit before tax | ₹214 cr | ₹212 cr | +1.00% | +8.04% |
| Tax | ₹59 cr | ₹55 cr | +6.32% | +19.36% |
| Net profit | ₹156 cr | ₹157 cr | -0.86% | +4.32% |
| EPS (₹) | ₹1.42 | ₹1.43 | -0.70% | +4.41% |
Operating margin of 19.32% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.87% | +3.27% |
| Next session | +3.36% | — |
| 5 sessions | +2.42% | +1.43% |
| 15 sessions | -3.93% | — |
| 30 sessions | +12.67% | — |
Volume on the results session was 3.76× its 20-day average.
What to watch
- Whether operating margin holds above 19.32% after three consecutive quarterly declines.
- Whether expense growth falls below the +15.92% YoY revenue growth rate after reaching +16.69%.
- Whether interest expense growth moderates from +47.38% YoY.