Shares of Adani Total Gas (ATGL) declined sharply over two consecutive trading sessions, falling around 9%, after the company announced a reduction in the price of excess natural gas supplied to industrial customers.
The stock came under selling pressure after investors reacted to the company’s decision to significantly cut the price of gas sold to certain industrial users. The move raised concerns that the price revision could affect the company’s margins and revenue from the industrial gas segment.
The company reduced the price of excess natural gas to ₹82.95 per standard cubic metre (SCM). Earlier, the gas was sold at ₹119.90 per SCM, which means the price has been reduced by nearly 31%.
According to the company, the new pricing became effective from 6:00 AM on March 16, 2026.
Such a large reduction in gas prices triggered concerns among investors because industrial gas sales are an important revenue segment for city gas distribution companies. A lower selling price can potentially reduce profitability if the decline in selling prices is faster than the reduction in input costs.
The company explained that the price revision was mainly due to a decline in upstream gas prices. When the cost of natural gas sourced from producers falls, city gas distribution companies sometimes lower their selling prices for certain customers, especially industrial consumers.
While this helps maintain demand and competitiveness in the market, it can also affect revenue expectations in the short term.
Another factor behind the stock decline is profit booking after a strong rally in recent trading sessions. The shares of Adani Total Gas had surged earlier as investors reacted to concerns over global gas supply disruptions and rising energy demand in India.
After such a sharp rise, many investors likely chose to lock in profits, which accelerated the decline in the stock price.
The natural gas sector has also been experiencing high volatility due to global geopolitical developments. Energy markets have been influenced by supply disruptions linked to tensions in West Asia, which have affected global LNG supply routes and natural gas prices.
These geopolitical factors have created uncertainty in energy markets, leading to fluctuations in gas prices and increased volatility in stocks related to the energy sector.
City gas distribution companies like Adani Total Gas are particularly sensitive to such developments because their profitability depends on both input gas prices and the selling prices charged to customers across different segments such as residential, commercial, and industrial users.
In summary, the recent decline in Adani Total Gas shares was mainly driven by the sharp reduction in industrial gas prices, investor concerns about potential margin pressure, and profit booking after the stock’s earlier rally. Ongoing volatility in global energy markets has also added to investor caution around gas sector stocks.