The company’s net profit for the July–September quarter of FY26 stood at ₹162 crore, compared to ₹178 crore in the corresponding period last fiscal, as per the company’s statement.
The cost of gas, which is converted into compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households, surged 26% during the quarter. The increase was driven by lower allocations of below-market priced Administered Pricing Mechanism (APM) gas, prompting the company to source higher-priced alternative gas.
A reduction in gas production from legacy fields operated by ONGC also contributed to the supply shortfall. This forced city gas distributors like ATGL to seek costlier alternatives, including liquefied natural gas (LNG) imports and fuel from high-priced fields.
Despite the pressure from rising input costs, revenue from operations grew 19% YoY to ₹1,569 crore. The company took a calibrated approach in passing on the cost burden to consumers, with only a portion of the price rise being transferred to end users.
During the quarter, ATGL sold 18% more CNG, amounting to 191 million standard cubic meters, and 11% more PNG at 89 mmscm. Overall, the company recorded a 16% YoY increase in volumes and 20% YoY growth in revenue.EBITDA stood at ₹603 crore for the quarter, even as the proportion of APM and new well gas in the overall supply mix declined to 59% in H1FY26 from 70% in H1FY25. The company also faced headwinds from currency movements, with the US dollar appreciating 4% against the Indian rupee during the period, further increasing gas procurement costs.Suresh P Manglani, CEO of ATGL, stated that the company delivered an “impressive set of numbers” despite these challenges, citing strong growth in volumes and revenue.
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