Gas Price Surge Hits Adani Total Gas Profit Margins

Adani Total Gas Ltd reported a 17% drop in Q3 net profit due to expensive fuel replacing cheaper domestic gas supplies. Profit declined as government cut APM gas supplies for city gas, prompting costlier imports. Despite challenges, CNG and piped natural gas sales increased by 15%.

Adani Total Gas Ltd, an arm of the Adani Group, experienced a substantial drop in its third-quarter profits, attributed to the company substituting cheaper domestic gas with costlier alternatives. The net profit for October-December FY25 declined by 17% to Rs 143 crore compared to the same period last year.

The quarter saw limited supplies of APM gas for the CNG segment, covering only 47% of demand. This shortage forced the company to source higher-priced gas, impacting profitability. The Indian government's decision to cut APM gas allocation last year added to the challenge, though some supplies were restored recently.

Despite these hurdles, Adani Total Gas Ltd expanded its network, adding CNG stations and boosting piped natural gas connections. The company noted a 15% rise in CNG and piped gas sales, demonstrating resilience amidst rising gas costs and decreased state allocation.

(With inputs from agencies.)