Adani Total Gas’ first-quarter profit drops 18% on high LNG costs amid West Asia crisis
Adani Total Gas reported an 18% drop in net profit for the first quarter of FY 2027 due to rising liquefied natural gas procurement costs. Despite the profit decline, the company saw a 27% increase in revenue and a 13% growth in overall sales volume.
Why it matters
The results highlight how geopolitical instability in West Asia is directly impacting the operational costs and profitability of energy distributors in India.
Adani Total Gas’ (ATGL) net profit fell 18% year-on-year (YoY) to ₹133 crore in the June-end quarter as costs of procuring liquefied natural gas (LNG) elevated due to the conflict in West Asia.
Although the cost of procuring natural gas increased 39% YoY to ₹1,454 crore, revenues of the privately-owned city gas distributor, a joint venture of Adani Group and TotalEnergies of France, rose 27% YoY to ₹1,910 crore.
“The first quarter of FY 2027 witnessed the impact of the West Asia crisis, with elevated crude prices driving higher Brent-linked gas costs across New Well Gas, RLNG (Regasified Liquefied Natural Gas), and spot LNG,” the company said.
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