Adani Total Gas Limited

Utilities — Utilities - Regulated Gas · NSE

₹577.00+₹0.20 (+0.03%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Adani Total Gas Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Adani Total Gas Limited engages in the city gas distribution (CGD) business in India. It supplies piped natural gas and compressed natural gas to the domestic, commercial, industrial, and transportation sectors.

IndustryUtilities - Regulated Gas

SectorUtilities

Employees528

Annual revenue₹5,856 Cr

How does it make money?

Turns over ₹5,856 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 528 employees supports ₹11.09 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.8%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +35% while net margin moved -11% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+35%

Margin effect-11%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 100.3x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 112.6x
✗ P/B of 13.04x is a steep premium to book

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

100.3x

3Y Median

112.6x

40 monthly readings · mean 126.4x · range 85.7x–209.1x

Sector Median

20.6x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 3y median of 112.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 388% above the peer median of 20.6x.

vs. its own history

Fair

112.6x median over 40 months · -11%

vs. sector peers

Expensive

20.6x median of 4 peers · +388%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

57.8x

PEG

16.02

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.6% to 13.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.8% to 13.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 101% over 3 years, from ₹1,422 Cr to ₹2,853 Cr.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.64 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 388% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 18.6% to 13.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.4% CAGR
Latest reported year was 27.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹161 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 11%✓ 13.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹63,459 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

100.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

13.04x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.75

Profitable

Profitable on a per-share basis

ROE

13.5%

Moderate

Moderate capital efficiency

ROCE

13.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

27.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-14.0%

Falling

Profits are shrinking

Dividend Yield

0.04%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹161 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.6%

Average

Average margins

Net Margin

10.1%

Good

Strong bottom-line conversion

Current Ratio

0.64

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

594.3 / 616.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,351 Cr	₹4,446 Cr	₹4,970 Cr	₹5,856 Cr	+10.4%
EBITDA	₹899 Cr	₹1,142 Cr	₹1,166 Cr	₹1,143 Cr	+8.3%
EBITDA Margin	20.7%	25.7%	23.5%	19.5%	—
PAT (Net Profit)	₹546 Cr	₹668 Cr	₹654 Cr	₹656 Cr	+6.3%
EPS	₹4.97	₹6.07	₹5.95	₹5.96	+6.2%
ROE	18.6%	18.6%	15.6%	13.5%	—
ROCE	22.8%	20.8%	15.7%	13.6%	—
Total Debt	₹1,422 Cr	₹1,557 Cr	₹1,834 Cr	₹2,853 Cr	+26.1%
Free Cash Flow	-₹323 Cr	₹156 Cr	₹23 Cr	₹161 Cr	—

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 EBITDA has grown at 8.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.7% to 19.5% over 3 years (-1.1 pts).

🟢 PAT (Net Profit) has grown at 6.3% a year over 3 years.

🟢 EPS has grown at 6.2% a year over 3 years.

🔴 ROE has fallen from 18.6% to 13.5% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 22.8% to 13.6% over 3 years (-9.2 pts).

🔴 Total Debt has grown at 26.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹323 Cr to ₹161 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,549 Cr

Total Liabilities

₹4,684 Cr

Cash & Equivalents

₹253 Cr

Operating Cash Flow

₹1,149 Cr

Capex

-₹988 Cr

Shareholding (proxy)

Institutional Holding

7.4%

Insider Holding

79.8%

Corporate Actions

Next Earnings

22 Oct 2026

Dividend Rate

₹0.25

Ex-Dividend Date

12 Jun 2026

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

2 mixed4 general

Adani Group stocks Q2 results 2026 date this week: Adani Green, Adani Energy, Adani Gas, Adani Power schedule, returns

Livemint, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Adani Power, Adani Total Gas, AESL, To Adani Green Energy: Stocks Rally Up to 30% in 5 Days Amid Iran-US War

Goodreturns, 17 Oct

Adani Total Gas (ATGL.NS) Gains 1.64% to ₹581.6 as Stock Holds Above Key Support - Charm Flow

siam.in, 14 Oct

Top 10 Adani Shares List To Watch Out For In October 2026

Samco, 17 Oct

Adani Total Gas Share Price update: price action review

Univest, 09 Sept

Adani Total Gas Share Price Surges Over 6%. Here's Why

NDTV Profit, 19 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongRisk

MiddlingBusiness Quality · Financial Health · Growth · Profitability

WeakValuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑