Adani Total Gas Ltd (ATGL) Q1 FY27 Results Analysis: PAT Falls 14%, Revenue Grows 27%

Adani Total Gas Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 1,906.79 Cr (+27.26% YoY) and PAT growth of -14.23% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 27% YoY, but severe margin compression (518 bps) drove PAT down 14%. Gas cost surge and rupee depreciation are structural headwinds. The FY27 EBITDA target of Rs.1,500 Cr appears difficult to achieve from current run-rate.

Key Investment Insights

Key Positives

• Revenue grew 27.3% YoY to Rs.1,906.79 Cr, accelerating from 13% YoY in Q4 FY26.
• JV share of profit rose 127% YoY to Rs.9.57 Cr, consistent with improving trajectory.
• Employee costs declined 1.6% YoY and 20.1% QoQ, indicating cost discipline.
• FY27 revenue guidance of ~18% growth is on track with Q1 standalone revenue growth of 27.2%.
• Capex of Rs.988 Cr in FY26 was within the guided Rs.900-1,000 Cr range.

Risk Factors

• EBITDA margin compressed 518 bps YoY to 14.67% (standalone 14.10%), driven by gas cost +40% YoY.
• PAT declined 14.23% YoY (consolidated) to Rs.141.72 Cr, and EPS declined 14% to Rs.1.29.
• Cost of gas as share of revenue rose 630 bps to 68.3%, indicating severe input cost pressure.
• EBITDA run-rate of Rs.267.51 Cr (standalone) is 29% below the annual guidance of Rs.1,500 Cr, making the target difficult.
• Finance costs rose 41.7% YoY to Rs.39.10 Cr, reflecting continued capex.