Thank you so much, and good morning to all our investors, analysts, fund representatives. A warm welcome to all of you to discuss the results of Adani Total Gas for the quarter ending 30th June 2026.

Let me take this opportunity to briefly share the current business operating environment. During the first quarter, geopolitical issues in West Asia continued to influence global energy markets, leading to elevated Brent-linked gas contract prices, further affected by US/INR currency depreciation.

However, government's timely interventions with additional gas allocation and extension on waiver of imbalances and system disciplinary charges helped to maintain uninterrupted gas supplies to our consumers. Navigating these fluctuations, ATGL ensured uninterrupted supplies of gas to its consumers.

This strategic approach has driven another quarter of resilient operational growth. During the quarter, gas sales volume reached 303 MMSCM, reflecting a robust growth of 13% year-on-year, led by 18% year-on-year growth in CNG segment and 4% year-on-year growth in PNG segment.

At the same time, our steel pipeline expanded to 15,987 inch-kilometers, further strengthening our distribution network to support future growth. During the quarter, we added 38,000 new households connection, taking our total customer base to 11.41 lakh households in domestic segment.

On CNG segment front, we added five new CNG stations, with our total network of 707 CNG stations currently. We added 392 commercial customers and 56 industrial customers, which is almost three times and two times increase, respectively, over the same period last year.

Our customer base now stands at 10,422 in industrial and commercial segment. On e-mobility business vertical, our EV charging network expanded to 5,306 charging points, with an installation capacity of 58 megawatts.

We sold 3.3 million electrons during the quarter and delivered robust growth of 100% year-on-year basis. This strong momentum reinforced our confidence in achieving our targets of 10,000 EV charging points with continued focus on improving network utilization and operational efficiency.

Our joint venture partner, IOAGPL, continues to expand in their 19 geographical areas meaningfully. Together, we operate across 53 geographical areas, which represents 14% Indian population spanning across 125 districts.

Combined customer base stands at 13.74 lakhs PNG households, 12,326 commercial and industrial customers, and our CNG network stands at 1,167 stations. These customers are served by robust steel pipeline network of 28,600 inch-kilometers.

Our strong operational execution was reflected in our financial performance with revenue growing at the rate of 27% year-on-year to INR 1,910 crores during the quarter, and EBITDA stands at INR 281 crores. On sustainability side, CARE Edge and CRISIL ESG ratings have increased to 84 and 66 out of 100, respectively, thus placing ATGL among the best-performing ESG companies in the peer group.

Dear shareholders, ATGL is accelerating its evolution from a city gas distribution company into one of the India's most trusted integrated clean energy platforms, serving homes, mobility, industries, and communities with affordable, reliable, and sustainable energy solutions. Thank you so much, and we now invite the questions to take it forward.

Good morning team. Congratulations for the high revenue.

My question is, over the last six to eight quarters, despite the consistent double-digit revenue growth, the operating margins have compressed from around 25% to 15% now, and operating profit and net profit have remained largely flat. Could management explain the key reasons for this sustained margin compression?

Is this primarily due to gas sourcing cost and APM allocation, or there are structural any factors as well? More importantly, when do you expect margins to recover?

Sreedhar, sorry to interrupt. Pardon, actually your voice is not clear.

Can you just speak from some distance, I think that would be... Is it fine now?

Yes, sir, a bit better, but if you can move a bit apart, then probably that would help better. Still better than the last one, but if you can move a bit far?

Sir. Just a minute.

My question is, over the last six to eight quarters, despite the consistent double-digit revenue growth, the operating margins have compressed from around 25% to 15%, and operating profit and net profit have remained largely flat. Could management explain the key reasons for this sustained margin compression?

Is this primarily due to gas sourcing cost and APM allocation, or there are any structural factors? More importantly, when do you expect margins to recover?

Primarily one of the major reasons in terms of these compressed margins is on the gas availability on a market-driven prices. Second is APM allocation, yes, it's going slowly down.

They are the major reasons. In terms of future perspective, while we have line of contracts coming up for the renewal and we are working on bringing back the margins as well as while focusing and maintaining our growth in terms of the volume part of it.

Just to add to that, we see that once this crisis in the Middle East is over, we see a lot of supply coming in from US and the Qatar region. That will help us to get better rates in the coming years and the coming months.

Once this happens and the Middle East crisis is over, we'll see the margins improving to the last levels or better than that.

Okay. One more point to add up to that, my previous question.

How much of the current margin pressure is purely cyclical, USD/INR and West Asia versus structural? If the external environment remains unchanged for another probably 9 to 12 months, what actions is management taking internally to protect margins?

See, there are multiple sources to take care of in the current crisis. In the interim, the current margins are being impacted because of the spot purchases.

We are looking at various options like procuring some volumes from the mid-term basis. Not on the short-term because the prices are elevated for the shorter-term, but if you look at middle-term, then probably the prices will be more competitive.

That will help us to cater to the current exposure to the spot market. In addition to that, we are looking at the longer-term purchases also as the market stabilizes.

That will help to protect the margins in time to come.

Okay. Thank you.

Thank you.

Hi, sir. Thank you for the opportunity and congratulations on a rested in numbers.

Could you help us with the gas sourcing mix for the current quarter as to how much percentage was APM, NWG, or even the pooled gas? What we understand is going ahead, government has gone away with the pooled gas mechanism.

Can you throw some light on it as whether they have gone away and how do we look at our sourcing mix going ahead? Thank you.

That is my question.

If you look at the domestic for APM and NWG allocation, that is around 40 40%. Then on the longer-term contracts, we have 48%.

Okay? If you look at during the pool mechanism, volumes were available from the allocation and which has been withdrawn after the piece deal, because I would say the sudden decision by the government.

However, in view of the shortfall due to withdrawal of the pool mechanism, we are looking at mid-term purchases, which should help us to get the shortfall volumes. In the longer term, we are looking at a longer-term contract once the market stabilizes so that the security of supply is managed.

Got it. Thank you, sir.

That was my question.

Hi. Thank you, sir, for the opportunity.

Sir, just you mentioned that current margins are impacted due to spot purchases. Can you share how much of our current volumes are we taking from spot?

Spot volumes are around 15% of the total consumption after the curtailment.

Okay. We expect to close this gap, or are we planning to keep it like this for some time unless we have some stability?

If you look at the current crisis, it is very difficult to predict how the Middle East crisis would pan out in the times to come. However, the curtailment would not continue indefinitely.

The volumes which are curtailed, that would come up, so that would reduce the spot purchases, and that would help us to improve the margins. If you ask me to predict how long will it take, it would be very difficult.

Yes, we are closely observing the situation, and we are taking necessary steps, smaller steps, which would help us to get the shortfall volumes from the domestic market and also the imported volumes.

Sir. Thank you so much.

Sir, in terms of the gas sourcing mix, will you be able to sort of break up the long-term contracts according to the various linkages? Would you be also able to indicate what was sort of the average cost for each bucket during Q1?

I'm trying to understand what has driven sort of a ₹5 per SCM increase in the gas cost, which were the main contributors?

If you look at the breakup, nearly domestic volumes are around 62% of our portfolio, and the imported RLNG would be around 38%, which consists of both Henry Hub-linked contracts and the Brent-linked contracts. However, not only the imported RLNG costs have gone up, but in addition to that, since the Brent moved up during the Middle East crisis to around more than $107 per barrel, the NWG prices also went up, which has impacted overall the gas cost.

NWG price is it simply the 12% or is there any ceiling applied on that?

It is 12% of the Indian crude basket. It has significantly more than $5 per MMBtu levels during the last quarter.

Understood, sir. The second question was about the sort of the infrastructure push that we have seen from the government where there has been a drive to sort of enroll more domestic as well as the commercial consumers.

We see that we have added around 38,000 domestic consumers, it is more or less in line with sort of what we have seen during the last quarter. Are there any difficulties in enrolling more customers that we are facing?

No, not really. We are in path of achieving much more numbers as we progress forward.

While there are certain areas where permissions remains a challenge and the monsoon issues where there is a prolonged rain, that is where it may affect for some time, but otherwise, we are on track of achieving more numbers. Even if you see the growth in terms of commercial numbers, it's almost three times, and industrials also two times compared to last year same quarter.

We don't see any major issues in that sense. Moreover, government is also supporting in terms of navigating some major challenges in most of the states, including state as well as central government, yeah.

Would this lead, because of the government support to lay down the pipelines, some of the tasks will become easier, will we be increasing our capex budgets on the pipeline laying this year to sort of increase work at our end?

Yes, we have slightly higher budget compared to last year, but we are monitoring the situation in end-to-end basis, in terms of the gas supplies scenarios, in terms of the areas where the growth is very evident, but when it comes to PNG movement, that is domestic connections and all, we are giving a very dedicated task force who is working on bringing us more additional connections on domestic front.

Sure, sir. One last question on the CNG side.

We have seen sort of a CNG realization going up during the quarter. Are you seeing any impact on this price increase in terms of the future demand?

Are there any early signs on that?

If you see the arbitrage between petrol and CNG, there is a room, but at the same time, we have to be conscious of fact of bringing more customers on board, we will keep on evaluating that. Evaluating that from time to time, and as and when we see that, and it will vary from state to state, the price difference between alternate fuels, and we keep on evaluating that, we ensure.

At the same time, we do have some areas where there is a competition with the existing CGD areas also. That's a outcome of the marketing strategies from time to time and from GA to GA.

We keep on evaluating on almost every day basis.

Sure. How are we seeing sort of the demand emerging from the sort of the light commercial vehicles, which actually were gas substitutes to the diesel?

Yes, it is picking up. If you see entire CNG segment, whether it is light commercial vehicles or passenger vehicles or taxi aggregators, growth is in double digits.

Entire value chain in terms of the infrastructure which is being planned all across country in terms of CNG stations added, it is in double digit. In terms of vehicle manufacturers, the OEMs like Maruti, Hyundai, Tata in terms of CNG, and also the Eicher Volvo, they are really growing at a very high percent.

Close to around CNG, which is growing at around 30% in terms of numbers. We are quite confident that this demand will continue for vehicle side, for infrastructure, as well as the volume side.

Sure. Thank you, sir, for this call.

Thank you.

Hi. Sir, just on the context of the PNG connections, we have read news that there is an impact due to shortage of technical personnel, which is impacting the scale-up of PNG connections.

On the ground, are you seeing any impact due to that, or due to any other reason?

Not an impact per se. Yes, what is happening is in terms of onboarding them, there are multiple limited CGDs with limited resources, but the way we are coming up as an industry is we are started training more and more people onboarded from the different fields like electricity, like water, like metering, and we are giving them the dedicated trainings to build on.

Initially, we had those hiccups, but probably as an industry, we're overcoming those challenges, and we are adding more and more contractors, more and more plumbers, more and more trainings to them in terms of enlightening them with the safety procedures on gas front side.

This is happening across India, the training? Yes,

this is happening across India. Even there is a support from government as a skill development.

They're introducing a course on the gas plumbing side specifically. Also, there's a tie-up with ITIs.

There's a tie-up with diploma engineering colleges, which are helping us to bring more and more manpower in this industry. Okay.

Sir, how many PNG connections do you think you can add going ahead because of this government push?

We would at least maintain the same rate at which we are right now doing it. That is how our aim is.

While we are also exploring multiple options or the business models which will help us to accelerate these numbers like reticulated system, like LPG system, which is already there as a reticulated, where we can convert the same infrastructure after taking the due diligence on the safety part. Those other new initiatives are happening in parallel.

Okay. Government had also come up with deemed approval sort of a mechanism where if the local government is not approving PNG layout for certain number of days, it will be deemed approved.

How is the ground execution of this moving exactly?

That has helped us a lot in terms of seeking the permissions wherever it was feasible. In few states, we do have in terms of coordination where we need to coordinate maximum in terms of making them understand what the regulations have been given to us, how we are going to forward.

It is more to do with the coordination on day-to-day basis in terms of understanding those deemed approvals. Majority of 90 99% of our states or district authorities are supporting and cooperating us to lay the lines.

Okay. How much incremental volume do you think this should add?

Currently we are at 0.21 MMSCMD from PNG.

If you see the per capita consumption of domestic is around 0.38 to 0.4 SCMD. Now, the number of customers which we are going to add will give me the additional volume accordingly.

Sir. Thank you so much.

Thank you.

Thank you, sir, for another opportunity. In terms of after pooled gas mechanism, as an industry, have we made representation for restarting this?

What's your interpretation of the situation in terms of when would it be considered by government?

Yes, representation at the industry level has been going on after the withdrawal. Probably there is some development also.

Probably government is looking at bringing it back again because definitely has an impact on the CGD industry as a whole and directly impacting the consumers also. We see that probably as we understand that probably some positive news should come shortly on that part if the Middle East tension is not getting over.

Probably government would be looking at supporting on the pooled gas mechanism, bringing back the same again.

Sure. Are there any tweaks being considered or it would be more or less in the similar form?

No, it should be in the similar form only, probably because generally the fertilizer demand should be going down in the times to come because most of the sowing has happened. The monsoon sowing has happened, so that should go down.

The volumes should be available more for the industry.

Right, sir. Thank you.

Thank you for again the opportunity, sir. Could you please give us the revenue guidance for the coming quarters or whatever the figures it is a benchmark or we can expect the similar revenue?

Would like to understand from your side, sir.

If you see our volume growth, that will continue to grow in the similar manner. Right now the challenge is only to bridge the gap about the spot volumes.

That is where we are working towards ensuring that we maintain the momentum. We don't see any major issue as far as volume growth is concerned because all the infrastructure in terms of CNG, PNG, industries, we continue to expand our network, yeah.

Okay. Thank you, sir.

Thanks, [Rian?] .

Thank you once again for all investor, fund, and analysts for taking time to join the quarter one earning call. If you have any further questions, please feel free to reach out to us.

Contact details are available on the website as well as on the press release. Thank you so much.