1. At a Glance – Blink and You’ll Miss the Valuation
If monopoly vibes could be bottled and sold as PNG, Adani Total Gas Ltd (ATGL) would be charging you per inhalation. The stock is sitting at ₹548, with a market cap of ₹60,281 Cr, flexing a P/E of ~93.9× while the sector median chills near ~20×. In the last 3 months, the stock is down ~12%, yet the business quietly clocked Q3 FY26 revenue of ₹1,507 Cr (+16.4% YoY) and PAT of ₹158.65 Cr (+11.4% YoY).
ROCE stands at ~17.5%, ROE at ~16.8%, debt-to-equity ~0.45, and operating margins hover around ~20%. Volumes? Marching ahead. Infrastructure? Exploding. Valuation? Still sipping champagne. The question is simple: is this a utility masquerading as a growth tech stock, or is the market pricing in a decade of clean-energy dreams today? Stick around.
2. Introduction – The Gas Bill Nobody Escapes
City Gas Distribution (CGD) is the most boring business—until you realize it prints money once the pipes are laid. ATGL sits at the intersection of urbanization, clean fuel transition, and regulatory moats. You don’t choose your CGD player; the regulator chooses one for you. Congratulations, you’re married for 25 years.
Promoted 50:50 (effective control 74.8%) by the Adani Group and TotalEnergies, ATGL operates across 53 geographical areas, touching 125 districts and ~14% of India’s population. Once capex is sunk, customers are sticky, pricing is semi-pass-through, and volumes compound slowly but surely.
But here’s the drama: APM gas allocations keep getting cut, forcing a shift to higher-priced NWG/intervention gas. Margins wobble, analysts panic, and the stock sulks. Meanwhile, ATGL keeps adding CNG stations, PNG connections, EV chargers, and even biogas plants—because why stop at gas when you can sell electrons and manure
too?
Is this disciplined diversification or empire-building itch?
3. Business Model – WTF Do They Even Do?
Imagine running a toll road, but instead of cars, molecules pass through your pipes.
a) Gas Distribution (The Cash Cow)
ATGL supplies CNG and PNG to households, vehicles, commercial kitchens, and factories. In FY25, standalone volumes hit:
- CNG: 663 MMSCM (vs 459 in FY23)
- PNG: 330 MMSCM (vs 294 in FY23)
Infrastructure has gone berserk:
- CNG stations: 1,072
- Steel pipeline: ~24,906 inch-km
- PNG home connections: 11.4 lakh
Once connected, customers rarely leave. Switching costs are high, alternatives are messy, and regulators frown upon chaos.
b) E-Mobility (Because Gas Alone Is Too Mainstream)
Through Adani TotalEnergies E-Mobility Ltd, ATGL runs 3,401 charging points (2,338 active) across 226 cities. Airports, fleets, B2B clients—this is not roadside jugaad charging. It’s infrastructure-first, returns-later.
c) Biomass & CBG (From Waste to Watts… and Poop to Profit)
ATGL’s biomass arm commissioned India’s largest CBG plant at Barsana, supplied 730+ tons to GAIL in FY25, and launched organic manure “Harit Amrit.” Yes, gas today, fertilizer tomorrow.
d) Gas Metering (Vertical Integration Flex)
Mechanical + smart meters via JV. If you control the pipe and the meter, you control the
