📌 At a Glance
From piping gas into kitchens to inflating investor hopes, Adani Total Gas Ltd (ATGL) has had a blockbuster 5-year run—fueled by India’s clean energy push and its own flair for premium valuations. Backed by the Adani Group and France’s TotalEnergies, the company expanded across India’s cities, built an enviable CGD network, and posted consistent revenue growth. But here’s the twist: while profits rose, so did the P/E—like it was on helium.
🏢 About the Company
Adani Total Gas Ltd is a 50:50 JV between:
- 🇮🇳 Adani Group (the behemoth running everything from ports to airports), and
- 🇫🇷 TotalEnergies (global energy giant with fingers in every clean-tech pie).
It operates in the City Gas Distribution (CGD) space, delivering:
- Piped Natural Gas (PNG) to households, hotels, factories
- Compressed Natural Gas (CNG) for vehicles
- And now, EV Charging & Green Hydrogen just to keep analysts busy with buzzwords.
Currently present in 33+ geographical areas, ATGL is spreading faster than startup layoffs during a funding winter.
🧑💼 Key Managerial Personnel (KMPs)
| Name | Role |
|---|---|
| Suresh P Manglani | Executive Director & CEO |
| Rajesh S Adani | Chairman |
| Vneet Jaain | Non-Executive Director (Adani) |
| Stéphane Michel | Non-Executive Director (Total) |
| Kaushik Chokshi | CFO |
These are the folks piping gas into Indian homes and dreams into investor portfolios.
📅 5-Year Financial Recap (FY21–FY25)
💸 Annual Performance
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | ROCE (%) | ROE (%) |
|---|---|---|---|---|---|---|
| 2021 | 1,801 | 648 | 435 | 36.0 | 21.3 | 21.5 |
| 2022 | 3,038 | 773 | 509 | 25.4 | 18.1 | 18.7 |
| 2023 | 4,378 | 870 | 546 | 19.9 | 16.5 | 16.2 |
| 2024 | 4,475 | 1,104 | 668 | 24.7 | 17.0 | 17.5 |
| 2025 | 5,000 | 1,137 | 654 | 22.7 | 17.5 | 16.8 |
👀 Quick Takeaways:
- Revenue grew 2.7× in 5 years.
- Profit growth was steady but slower than stock price hype.
- OPM cooled off post-2021, thanks to rising input gas prices.
- Still one of the most profitable CGD companies on ROCE.
💹 Market Metrics (As of June 2025)
| Metric | Value |
|---|---|
| CMP | ₹680 |
| Market Cap | ₹74,782 Cr |
| P/E Ratio | 114.2 |
| Book Value | ₹38.2 |
| Dividend Yield | 0.04% |
| 5Y Price CAGR | ~29% |
A utility stock with a SaaS-level P/E. Investors are paying premium for gas like it’s French perfume.
📈 5-Year Stock Chart Summary
- 2019–2020: Steady post-listing rise; nobody noticed.
- 2020–2021: COVID spike in home gas usage + Adani hype = 🚀
- 2022–2023: Slight plateau during gas price spikes.
- 2024–2025: Stabilizing revenue, but valuations remain 🚀 thanks to green energy narrative.
🔍 Balance Sheet Check (FY25)
| Item | Amount (₹ Cr) |
|---|---|
| Equity Share Capital | 109 |
| Net Worth | 4,177 |
| Total Debt | 1,050 |
| Debt-to-Equity | 0.25x |
| Cash & Cash Equivalents | 320 |
| CapEx in FY25 | ₹420 Cr |
🔧 Capex remains high due to constant CNG station additions and pipeline expansion. But balance sheet is healthy.
🧪 Segment Mix & Expansion Plans
| Segment | FY25 Contribution | Outlook |
|---|---|---|
| PNG – Domestic | 28% | Slow but steady urban spread |
| PNG – Commercial | 15% | Restaurant & hotel demand rising |
| PNG – Industrial | 30% | Factories still key revenue driver |
| CNG | 27% | Fastest growing; city autos love it |
📍 New Focus Areas:
- EV Charging
- Bio-CNG Projects
- Hydrogen Pilots
- Smart Gas Meters
Basically, if there’s buzzword potential, ATGL is installing it.
⚔️ Peer Comparison
| Company | CMP (₹) | P/E | ROCE (%) | 5Y CAGR (%) |
|---|---|---|---|---|
| Adani Total Gas | 680 | 114.2 | 17.5 | 29% |
| Gujarat Gas | 480 | 28.8 | 19.2 | 10% |
| Mahanagar Gas | 1,330 | 12.6 | 24.5 | 7% |
| IGL (Indraprastha) | 211 | 17.2 | 21.4 | 9% |
ATGL has the highest valuation, not the highest growth. But hey, it’s the Adani aura.
🔋 Forward-Looking Fair Value Estimate (2026–27)
Industry Assumptions:
- Natural Gas demand growing at ~10% CAGR
- EV + Bio-CNG adoption could eat into CNG margins
- Regulatory revisions in gas pricing likely
- Valuation multiple compression possible
EduInvesting FV Range:
💰 ₹500 – ₹620 per share over FY26–27
Translation: Unless they pull off a green hydrogen miracle or list the EV arm, the current price is already… inflated.
🧠 EduInvesting Take
If gas is the new gold, ATGL is the jewellery store.
- Yes, they’ve built a strong network.
- Yes, they’ve posted consistent profits.
- But P/E 114 is what you pay for a moonshot startup—not a gas distributor.
Still, the Adani–TotalEnergies combo gives it long-term firepower.
This is not a scammy stock. It’s a solid company with an overenthusiastic valuation.
Unless future hydrogen ambitions materialize, ATGL may just keep going sideways while continuing to pump gas (literally and metaphorically) to the market.
🚩 Risks & Red Flags
- 🧯 High Valuation Risk: Any earnings miss = stock burner
- 🔌 EV Transition: CNG demand may stall post-2030
- 📉 Gas Price Volatility: LNG input costs are global and ruthless
- 🧾 Regulatory Pressure: PNGRB tariff revisions could hurt margins
- 📊 CapEx Drag: High investments mean returns could lag
📅 Tags:
Adani Total Gas, ATGL, Adani gas stock, PNG India, CNG companies India, CGD, clean energy, Adani TotalEnergies JV, City Gas Distribution, EV charging gas, Bio-CNG India, Adani Total FY25, Adani gas valuation, Adani utilities, Adani group stock, CGD company comparison, hydrogen India, green energy India, ATGL profit growth, ATGL 5 year history
🧾 Author: Prashant Marathe
📆 Published: June 7, 2025
🏷️ Tags: Adani Total Gas, clean energy, CNG, PNG, utilities, ATGL financials, EduInvesting 5-Year Recap Series
