Adani Total Gas: Can EV Charging and Biomass Drive the Next Phase of Growth?
The article outlines the EV business and the expansion rationale of the company, which is a leading Indian city gas distribution (CGD) company and a joint venture between the Adani Group and TotalEnergies
With a market capitalization of Rs 58,182 crore, Adani Total Gas Ltd’s share closed at Rs 529 per share, down by 4.31 percent from its previous close. The stock of the company gave a return of 15 percent over the last year.
About the Company
Adani Total Gas Limited (ATGL) is a city gas distribution company jointly owned by the Adani Group and TotalEnergies, each holding a 37.4 percent stake. The company supplies CNG for vehicles and PNG to households and industries, while expanding into EV charging infrastructure and compressed biogas as part of its clean energy strategy.
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Financial Highlight: Revenue increased to Rs 2,102 crore in Q2 FY27 from Rs 1,569 crore in Q2 FY26, registering a 34 percent increase YoY. EBITDA rose to Rs 340 crore in Q2 FY27 from Rs 302 crore in Q2 FY26, up 12 percent YoY, while net profit increased to Rs 167 crore from Rs 162 crore, up 3 percent YoY
Core Gas Distribution Business Continues to Expand
The company’s combined CNG and PNG sales volume increased 12 percent year-on-year to 315 million standard cubic metres (MMSCM) in Q2 FY27. CNG volumes grew 17 percent to 223 MMSCM, while PNG volumes rose 3 percent to 92 MMSCM.
Network expansion supported this growth. Adani Total Gas added 16 CNG stations during the quarter, taking its total to 723. It also added 39,574 domestic PNG connections, bringing the total to approximately 11.81 lakh households. Its steel pipeline network reached 16,305 inch-kilometres.
The next challenge is to sustain volume growth while managing gas procurement costs. The company said its diversified sourcing portfolio and calibrated pricing helped maintain supply reliability and customer demand. Whether this approach can support stronger profit growth will remain important to its financial performance.
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EV Charging Expansion Adds a New Growth Avenue
Through its subsidiary, Adani TotalEnergies E-mobility Limited, the company expanded its EV charging footprint to 5,513 installed charging points across 26 states and Union Territories and 225 cities. Of these, 4,809 were operational, with installed capacity of approximately 63 MW.
This infrastructure gives the company a presence in the expanding EV charging market. However, the number of charging points and installed capacity alone do not establish how much revenue or profit the business generates. The company’s reported results do not separately disclose EV charging revenue, EBITDA or profitability.
For investors, the key indicators to watch will include the utilisation of operational chargers, growth in charging demand and the subsidiary’s eventual contribution to consolidated earnings.
Biomass Business Expands Beyond Natural Gas
Adani TotalEnergies Biomass Limited sold 460 tonnes of compressed biogas (CBG) in H1 FY27. Of this, 195 tonnes were sold through dedicated CBG stations, with the remainder supplied to third parties.
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The business also recorded organic manure sales of more than 6,865 tonnes during the first half, including over 1,757 tonnes under the Harit Amrit brand. The company said the brand continued its regional expansion through farmer awareness initiatives.
These activities broaden ATGL’s presence in alternative energy and related products. However, the supplied results do not provide separate revenue or profit figures for the biomass subsidiary, making it difficult to assess its current financial contribution.
What Could Drive the Next Phase of Growth?
Adani Total Gas has reported strong revenue and volume growth, but the slower increase in EBITDA and net profit shows that cost management remains central to its outlook. Continued CNG and PNG network expansion could support volumes, while EV charging and biomass provide opportunities to diversify beyond the core gas distribution business.
The key question is whether these newer businesses can develop into meaningful contributors to earnings. Until their financial performance is disclosed separately, their expansion should be viewed as a potential growth opportunity rather than evidence of improved profitability.
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Conclusion
Adani Total Gas delivered 34 percent revenue growth in Q2 FY27, while EBITDA rose 12 percent and net profit increased 3 percent. CNG demand and network expansion supported performance, but higher gas costs remained a constraint. EV charging and biomass broaden the company’s growth opportunities; stronger margins and evidence of financial contributions from these businesses will be important to watch.