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Adani Total Gas Ltd.
(ATGL)
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Rating:54Neutral
Price Target:
₹564.00
▼(-2.28% Downside)
Action:Reiterated
Date:10/23/26
The score is held up by generally solid underlying financial strength and a constructive earnings-call outlook for network expansion, but it is materially weighed down by weak technical trend signals, very expensive valuation (high P/E with low yield), and inconsistent free cash flow that raises reliance on external funding as expansion continues.
Positive Factors
CGD network expansion
Ongoing investment in CNG stations, PNG connections and pipelines expands ATGL’s authorized distribution footprint and customer base. This supports recurring volume growth, improves network utilization over time, and strengthens the company’s position in its city gas distribution markets.
Negative Factors
Margin compression
The decline in EBITDA margin shows that revenue growth is not translating proportionately into operating profit. If elevated costs or weaker spreads persist, lower margins could constrain earnings growth, reduce reinvestment capacity, and weaken the benefits of network expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
CGD network expansion
Ongoing investment in CNG stations, PNG connections and pipelines expands ATGL’s authorized distribution footprint and customer base. This supports recurring volume growth, improves network utilization over time, and strengthens the company’s position in its city gas distribution markets.
Read all positive factors
Adani Total Gas Ltd. (ATGL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹585.59B
Dividend Yield0.05%
Average Volume (3M)126.01K
Price to Earnings (P/E)91.4
Beta (1Y)0.96
Revenue Growth23.72%
EPS Growth2.60%
CountryIN
Employees528
SectorGeneral
Sector StrengthN/A
IndustryRegulated Gas
Share Statistics
EPS (TTM)5.84
Shares Outstanding1,099,810,000
10 Day Avg. Volume50,466
30 Day Avg. Volume126,007
Financial Highlights & Ratios
PEG Ratio509.09
Price to Book (P/B)11.53
Price to Sales (P/S)9.52
P/FCF Ratio-28.62K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)20.6
Revenue Forecast (FY)₹95.01B
Adani Total Gas Ltd. Business Overview & Revenue Model
Company Description
Adani Total Gas Limited engages in the city gas distribution (CGD) business in India. The company supplies piped natural gas and compressed natural gas to the domestic, commercial, industrial, and transportation sectors. It also provides biogas, b...
How the Company Makes Money
ATGL primarily makes money by distributing natural gas within its authorized city gas distribution (CGD) areas and charging for the fuel it sells and the services it provides across two major end-use categories: (1) CNG for vehicles and (2) PNG fo...
Adani Total Gas Ltd. Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 02, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by double-digit Q2 volume and EBITDA growth, strong CNG, PNG and pipeline expansion, continued clean-energy investments, and progress in CBG and EV charging. However, management acknowledged significant gas cost inflation, lower EBITDA margins than historical levels, slower PAT growth than revenue growth, fluctuating domestic gas allocations and ongoing EV utilization and CBG execution challenges.Positive Updates
Strong Q2 Operational Performance
Q2 FY27 volumes grew 12% year-on-year to 315 MMSCM, while EBITDA increased 12% to INR 340 crores, reflecting resilient execution despite a challenging global energy environment.
Negative Updates
Significant Natural Gas Cost Inflation
Q2 FY27 faced significant gas cost pressure, with natural gas costs increasing 43% year-on-year due to higher Brent and LNG prices, currency depreciation, changes in domestic gas availability and withdrawal of pooled gas support.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Q2 Operational Performance
Q2 FY27 volumes grew 12% year-on-year to 315 MMSCM, while EBITDA increased 12% to INR 340 crores, reflecting resilient execution despite a challenging global energy environment.
Read all positive updates
Company Guidance
Management is targeting close to 80 to 90 CNG stations this year, with similar kind of numbers for 2028 and, more or less, a similar or more aggressive manner, which is under discussion stage for next year planning; around 70 CNG stations are under construction in advanced stage, and next year is expected to have similar kind of growth prospects for infrastructure expansion. The company is aiming at closing more than 2 lakh PNG household connections this year, with each new connection offering close to around 0.4 SCMD of gas volume addition. Its CBG plant is currently producing around 5 to 6 tons, which it plans to take to double in next five to six months, while a few more projects are in pipeline but are being evaluated with slightly lower steps in terms of the growth perspective.Adani Total Gas Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 67.62B | 58.94B | 50.00B | 44.75B | 43.78B | 30.38B |
| Gross Profit | 16.14B | 15.67B | 16.42B | 15.53B | 12.31B | 10.60B |
| EBITDA | 12.18B | 12.54B | 11.38B | 11.04B | 8.70B | 7.74B |
| Net Income | 6.42B | 6.56B | 6.54B | 6.67B | 5.46B | 5.09B |
Balance Sheet | ||||||
| Total Assets | 100.57B | 95.49B | 76.65B | 65.92B | 56.45B | 44.15B |
| Cash, Cash Equivalents and Short-Term Investments | 6.27B | 7.97B | 3.22B | 1.41B | 521.80M | 312.70M |
| Total Debt | 24.27B | 28.53B | 18.34B | 15.57B | 14.22B | 10.35B |
| Total Liabilities | 48.80B | 46.84B | 34.58B | 30.12B | 27.04B | 19.99B |
| Stockholders Equity | 51.77B | 48.65B | 42.07B | 35.80B | 29.41B | 24.16B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -19.60M | 229.50M | 1.56B | -3.23B | -2.15B |
| Operating Cash Flow | 0.00 | 9.86B | 9.64B | 9.55B | 8.53B | 7.36B |
| Investing Cash Flow | 0.00 | -12.57B | -9.33B | -7.52B | -11.67B | -11.37B |
| Financing Cash Flow | 0.00 | 3.00B | 563.50M | -777.30M | 2.95B | 4.22B |
Adani Total Gas Ltd. Technical Analysis
Negative
577.15
Price Trends
600.44
Negative
649.88
Negative
612.17
Negative
Market Momentum
-19.13
Positive
30.65
Neutral
21.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ATGL, the sentiment is Negative. The current price of 577.15 is above the 20-day moving average (MA) of 566.67, below the 50-day MA of 600.44, and below the 200-day MA of 612.17, indicating a bearish trend. The MACD of -19.13 indicates Positive momentum. The RSI at 30.65 is Neutral, neither overbought nor oversold. The STOCH value of 21.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ATGL.
Adani Total Gas Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹196.98B | 14.47 | ― | 3.38% | 9.92% | -18.29% | |
71 Outperform | ₹104.01B | 14.54 | ― | 2.85% | 11.12% | -33.11% | |
70 Outperform | ₹199.19B | 14.63 | ― | 3.10% | 43.18% | 34.40% | |
68 Neutral | ₹151.74B | 17.13 | ― | 1.86% | ― | ― | |
65 Neutral | ₹1.08T | 10.96 | ― | 3.32% | 3.52% | -15.10% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹585.59B | 91.35 | ― | 0.05% | 23.72% | 2.60% |
* General Sector Average
IN:ATGL
Adani Total Gas Ltd.
532.45
-101.83
-16.05%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.