Adani Total Gas Ltd. (ATGL) AI Stock Analysis

Adani Total Gas Ltd.

(NSE:ATGL)

Select Model

Rating:69Neutral

Price Target:INR 606.00▲(13.43% Upside)

Action:downgraded

Date:10/23/26

Strong financial performance is the primary support, led by growth, balance-sheet strength, and operating cash flow. This is offset by weak technical momentum, a high P/E valuation, and earnings-call concerns over gas costs and margin pressure.

Positive Factors

CGD network expansionOngoing 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 compressionThe 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.

Adani Total Gas Ltd. (ATGL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 672.70B
Dividend Yield: 0.05%
Average Volume (3M): 138.67K
Price to Earnings (P/E): 91.5
Beta (1Y): 0.96
Revenue Growth: 23.72%
EPS Growth: 2.60%
Country: India
Employees: 528
Sector: General
Sector Strength: 55
Industry: Regulated Gas

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, biof...

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 for h...

Adani Total Gas Ltd. Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q2-2027)|% Change Since:-4.46%|Next Earnings Date:Feb 01, 2027

Earnings Call SentimentPositive

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.

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

Strong revenue and equity growth, stable profitability, low leverage, and solid operating cash flow support a high score. Volatile free cash flow and recent capital intensity are notable weaknesses.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

65Positive

Financial statement breakdown
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	-19.60M	229.50M	1.56B	-3.23B	-2.15B
Operating Cash Flow	0	9.86B	9.64B	9.55B	8.53B	7.36B
Investing Cash Flow	0	-12.57B	-9.33B	-7.52B	-11.67B	-11.37B
Financing Cash Flow	0	3.00B	563.50M	-777.30M	2.95B	4.22B

Adani Total Gas Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price534.25

Price Trends

50DMA596.17Negative

100DMA645.73Negative

200DMA611.84Negative

Market Momentum

MACD-18.32Positive

RSI35.01Neutral

STOCH27.96Neutral

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 534.25 is below the 20-day moving average (MA) of 561.66, below the 50-day MA of 596.17, and below the 200-day MA of 611.84, indicating a bearish trend. The MACD of -18.32 indicates Positive momentum. The RSI at 35.01 is Neutral, neither overbought nor oversold. The STOCH value of 27.96 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ATGL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GAIL	72Outperform	INR 1.10T	8.74	―	3.26%	10.38%	15.68%
IN:GUJGASLTD	72Outperform	INR 195.34B	14.63	―	3.16%	43.18%	34.40%
IN:IGL	71Outperform	INR 194.81B	14.32	―	3.42%	14.62%	-37.35%
IN:MGL	71Outperform	INR 103.24B	14.48	―	2.87%	11.12%	-33.11%
IN:ATGL	69Neutral	INR 587.57B	91.52	―	0.05%	23.72%	2.60%
IN:GSPL	68Neutral	INR 151.74B	17.13	―	1.86%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:ATGL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ATGL	Adani Total Gas Ltd.	534.25	-92.08	-14.70%
IN:GAIL	GAIL (India) Limited	168.00	-9.15	-5.16%
IN:GSPL	Gujarat State Petronet Limited	268.95	-41.10	-13.26%
IN:GUJGASLTD	Gujarat Gas Ltd.	208.20	-130.42	-38.52%
IN:IGL	Indraprastha Gas Limited	139.15	-69.77	-33.39%
IN:MGL	Mahanagar Gas Ltd	1045.20	-197.83	-15.92%

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.

Date of analysis: Oct 23, 2026

Adani Total Gas Ltd. AI Stock Analysis