Strengthening Energy Infrastructure for a New Bharat

Dear Shareholders,

The past year has emphatically shown that we are operating in a truly VUCA world – one defined by volatility, uncertainty, complexity, and ambiguity. FY 2025-26 brought significant global upheavals, shifting market dynamics, and currency volatility, thus creating significant headwinds for the energy industry and economies around the globe. For India, which is heavily dependent on imports for majority of its energy demand, the conflict in West Asia created an unprecedented energy supply shock, due to triple impact of supply shortage, higher commodity prices, and depreciating Rupee.

We are living through a truly VUCA world. It is only through our unwavering focus on accelerated project execution, capital prudency, gainful use of technology, consumer centricity and operational excellence, that we can navigate this complex environment.

Encouragingly, the Government’s timely actions during this period of global energy crisis, ensured supply continuity to critical demand segments of home cooking and transportation. At the same time, the strong business foundation which your Company has built over years by diversifying gas sourcing portfolio, maintaining consumer centricity, focusing on operational excellence, building digital infrastructure, and following capital prudence – enabled us to navigate through these challenging times, delivering highest ever EBITDA and record volume growth. The impact of the crisis, however, will continue to be felt far and wide for some time, before the global energy supply–demand landscape returns to a balance.

The crisis also underlined the need for energy supply diversification, and brought the emerging segments of e-mobility, biofuels, and renewable energy into the focus of policymakers and consumers alike. I am happy to say, that your Company’s early investments into e-mobility and compressed biogas segments, will mature well as these segments are poised to take-off amid push to decrease reliance on imported energy sources.

India’s energy sector continues to play a central role in supporting the country’s economic growth and development. Rapid urbanisation, development of data centres, expanding infrastructure, and rising industrial activity are steadily increasing the nation’s energy requirements. As the world’s third-largest energy consumer, India faces the formidable task of meeting rapidly growing energy needs with secure, affordable and environmentally responsible energy sources.

As the world’s third-largest energy consumer, India faces the formidable task of meeting rapidly growing energy needs with secure, affordable and environmentally responsible energy sources.

Policymaker’s focus is rightly placed in creating a more diversified and sustainable energy ecosystem, consisting of natural gas, renewable energy, bio-fuels, green Hydrogen, etc. which will make the energy mix gradually cleaner and more balanced. Within this evolving landscape, natural gas continues to play an important role as a transition fuel. Its lower emissions profile and operational flexibility make it well suited to support India’s industrial growth, urban energy requirements and cleaner mobility solutions.

However, it is important to create a level playing field among the various fuels in the energy basket, where policy incentives and fiscal interventions are made taking comprehensive view of our rich energy basket, and on basis of merit of each fuel type, considering – lifecycle emissions, air pollution, health impact, import dependence, etc.

Further, there is need to bring a conducive policy framework to ensure that Micro, Small, and Medium Enterprise (MSME) segment is justly able to participate in India’s Net Zero journey, by incentivising the use of cleaner transitionary fuels like natural gas. Ban on polluting but cheaper fuels in select regions is not sufficient to achieve national goal of decarbonisation and it also adversely affect the MSMEs in these areas by making them uncompetitive vis-a-vis their peers in other regions.

The Government’s vision of increasing the share of natural gas in India’s primary energy mix to 15% by 2030 continues to guide the expansion of the City Gas Distribution (CGD) ecosystem across the country. Several policy and regulatory interventions aligned with this vision, like simplifying natural gas pipeline transportation tariffs for priority segments of home PNG and CNG for transportation, applicability of CST on interstate movement of natural gas, central and state guidelines on permission fast-tracking will go a long way in creating natural gas ecosystem in the country. Your Company welcomed these policy initiatives and promptly passed on the resulting benefits to customers, thereby helping to accelerate the adoption of natural gas across our geographical areas.

Sustained Growth in Core Business

FY 2025-26 proved to be among the more demanding years in the recent history of India’s City Gas Distribution sector. Against the backdrop of the challenges described already, the LNG supply shock, rupee depreciation and increased reliance on imported and HPHT gas in our sourcing mix, these were not ordinary headwinds; they tested the operational agility and financial discipline of every player in the sector.

Your Company responded with the resilience that has come to define ATGL. Through a calibrated and diversified gas sourcing strategy, we addressed the cost pressure while maintaining supply continuity across all customer segments even in the time of supply stress. Industrial volumes were managed transparently, and a threefold surge in enquiries for home PNG connections, triggered by the geopolitical situation was handled through proactive outreach, enhanced front-office capacity and leveraging carefully built digital infrastructure, turning a moment of stress into a demonstration of operational maturity.

FY 2025-26 sales volume grew 14% Y-o-Y to 1,133 MMSCM, driven primarily by strong momentum in the CNG segment, where volumes rose 18% to 782 MMSCM on the back of continued network expansion and customer focused initiatives across multiple geographical areas. PNG volumes grew nearly 6% to 351 MMSCM, supported by steady expansion of last mile connectivity in our existing and newer geographical areas. Across new geographical areas, volumes grew 32% year-on-year, with the newer GA volume mix improving to 38% from 32% in FY 2024-25, underscoring the growing maturity and acceptance of our expanding network.

Across new geographical areas, volumes grew 32% year-on-year, with the newer GA volume mix improving to 38% from 32% in FY 2024-25, underscoring the growing maturity and acceptance of our expanding network.

FY 2025-26 also marked continued infrastructure expansion at scale. Your Company added nearly 1.4 lakh new PNG connections and 58 CNG stations during the year, bringing total to 10.99 lakh home PNG and 705 CNG stations. Steel pipeline infrastructure expanded by 1,800 inch-km to reach 15,572 inch-km and laid 499 Km of PE network bringing total to 8,306 km. In this financial year, we completed 9 new City Gate Stations and 1 new LCNG station, thereby connecting our newer geographical areas with national gas grid. This back-bone infrastructure is key to expanding natural gas ecosystem in India’s hinterlands and will continue to serve reliably for decades to come.

Revenue from operations rose 18% to ₹ 6,415 crore, while EBITDA grew 5% to ₹ 1,225 crore, reflecting the strength of diversified gas sourcing and cost management discipline. Profit After Tax stood at ₹ 637 crore. While gas cost pressures, up approximately 23% year-on-year, meant that PBT and PAT saw a marginal moderation of 1% and 2% respectively, your Company’s ability to sustain and grow volume and EBITDA during one of the most volatile input cost environments is a meaningful demonstration of operational resilience and capital prudency. The cash profit for the year stood at ₹ 924 crore, up 3% year-on-year. The balance sheet continues to reflect financial prudence alongside growth ambition. Net Fixed Assets expanded by ₹ 703 crore to ₹ 5,969 crore, even as gross debt increased by a contained ₹ 422 crore to ₹ 2,168 crore. Net Debt to EBITDA remained at a healthy 1.11x.

Our joint venture Indian Oil-Adani Gas Private Limited, in partnership with Indian Oil Corporation Limited, also achieved important progress during the year. The venture crossed 2.16 lakh DPNG connections, delivered more than 1.87 million SCMD of daily gas volumes, and expanded its network to 464 CNG stations.

Our smart metering joint venture, Smart Meter Technologies Private Limited, in partnership with GSEC, also achieved expansion and sold 1.84 lakh gas meters in the financial year.

Expanding the Clean Energy Ecosystem

While the City Gas Distribution business remains our core foundation, we have steadily expanded our presence across emerging clean energy solutions that will shape the future of India’s energy landscape.

Through Adani TotalEnergies E-Mobility Limited, we are building a comprehensive EV charging ecosystem across urban centres, highways and key transit hubs. Our charging network now spans more than 225 cities, including installations across 22 airports, making us one of the largest charge point operators within India’s airport ecosystem. In FY 2025-26, we added 1,699 charge points (CP), thus growing our EV charging network to 5,100 CP (installed), with 4,265 CP energised and operational across the country.

At our Barsana biogas plant, CBG production doubled during the year, achieving a peak of 7.5 metric tonnes per day, with 1,654 MT of CBG sold in the financial year. The project not only contributes to cleaner energy generation but also supports rural livelihoods by creating value from agricultural residue and organic waste streams.

These platforms are at early-stage today, but they represent the energy solutions that will define the decades ahead. Together, these initiatives reflect our long-term vision of building a diversified clean energy platform that supports India’s energy transition while complementing our core CGD business.

Strategic Priorities Guiding Our Growth

As I highlighted in my previous communications, the transformation of the energy sector requires organisations to remain agile and forward-looking. At ATGL, our long-term strategy continues to be guided by a set of clearly defined priorities. These five strategic pillars allow us to build a resilient organisation capable of navigating market cycles while capturing emerging opportunities:

I. Expanding Infrastructure and Reach

We remain committed to strengthening our gas distribution network across our authorised geographical areas. Expanding pipeline infrastructure and increasing customer connectivity remain central to our growth plans.

II. Diversification and Innovation

Our investments in EV charging infrastructure, compressed biogas facilities and LNG for transport represent important steps toward building a multi-energy ecosystem.

III. Customer Delight

Delivering reliable and affordable energy to our customers remains our highest priority. We continue to enhance service accessibility, responsiveness and convenience through both operational improvements and digital platforms.

IV. Digitalisation and Automation

Technology continues to transform the way we manage our infrastructure and interact with customers. Our early adoption of digital infrastructure has enabled our rapid expansion and providing convenience to our customers.

V. People and Sustainability

Our employees remain the driving force behind our progress. We continue to invest in talent development, safety practices and sustainability initiatives that support responsible growth. Our safety performance speaks for itself, maintaining Total Recordable Injury Frequency Rate below 0.5 over 12.4 million man hour of operations during FY 2025-26.

Digitalisation and Customer Delight

Our industry-leading state-of-the-art SOUL platform, which has long been the backbone of our digital infrastructure, is now going to be transformed into Integrated Business Platform (IBC), which will become an overarching digital platform enabling 24x7 business operations in key functions like safety, security, emergency response, sales and assets operations, asset integrity management, logistics, analytics, gas sourcing, customer billing and customer delight.

Our primary CGD network digitalisation platform SOUL is now 100% SCADA connected, 100% GIS mapped, and 100% CCTV covered. Further, initiatives like Third Eye (analytics dashboard), Harmony (automated vendor payment platform), computer vision based automated isometrics for home PNG customers, ATGL world (integrated GIS), and PARAM (end-to-end EV digital platform) makes your Company a distinct digital utility one which provides customers delight with human face.

In FY 2025-26 we continued with our customer-centric approach via several new initiatives, like setting up Adani Gas Mitra digital kiosk at prominent pharmacies, implementing new QR based feedback system at our dealer operated CNG stations, agentic AI based automatic response, to name a few. Various schemes for PNG and CNG consumers, have accelerated natural gas adoption in our geographical areas. Our enthusiastic support to Petroleum and Natural Gas Regulatory Board (PNGRB) led PNG and CNG Drive has been recognised across the industry, and will go long way in creating natural gas ecosystem in the country.

Recognition of Our Performance

Our progress during the year has been recognised by the industry.

The Company’s strong operational performance and disciplined financial management resulted in a credit rating upgrade from AA to AA+ with a Stable outlook by ICRA and CRISIL, while CARE Ratings assigned a fresh AA+ Stable rating. These upgrades reflect the continued confidence of the financial community in our long-term growth strategy and balance sheet strength.

Our sustainability initiatives also received encouraging recognition. Our DJSI ESG score improved from 62 to 72, placing the Company among the top ten globally in the gas utility segment. Our CDP rating improved from B to A, placing us in the Leadership Category, while CRISIL ESG scores improved from 59 to 61, reinforcing our commitment to responsible business practices.

In addition, the Company received the PNGRB Excellence Award from the Petroleum and Natural Gas Regulatory Board under the Ministry of Petroleum and Natural Gas. We were honoured across three categories, Safety, Integrity and Technical Excellence; Customer Care and Service Delivery; and Sustainability and Green Initiatives.

These recognitions reflect the dedication of our teams and the strong governance framework that underpins our operations.

Looking Ahead

ATGL remains well positioned to support the next phase of growth. With planned investments of ₹ 10,000 crore to ₹ 15,000 crore over the next five to eight years, we will continue to expand our infrastructure footprint, deepen our clean energy ecosystem and accelerate the adoption of natural gas across our geographical areas.

Before I conclude, I would like to express my sincere gratitude to our shareholders for their continued trust and confidence in the Company. I also extend my appreciation to our promoters, Adani Group and TotalEnergies, whose strategic guidance and long-term commitment continue to support our growth journey. Finally, I would like to acknowledge the efforts and dedication of my ATGL family who continue to drive our progress and enable us to serve millions of customers while contributing meaningfully to India’s energy transition.

We enter FY 2026-27 with a stronger network, a more diversified energy platform, and an unwavering commitment to delivering reliable, affordable and clean fuel to every customer we serve.