Petronet LNG LimitedEnergyPETRONET
Q1 FY27 earnings callPetronet LNG Limited
The company delivered a 33% YoY growth in profits despite lower volumes due to trading and inventory gains, but future performance hinges on resolution of the Gulf conflict.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone PBT | INR 1,514 crores | 33% | |
| Standalone PAT | INR 1,133 crores | 33% | |
| Dahej LNG Volume Processed | 192 TBTU | — | |
| Overall LNG Volume Processed | 207 TBTU | — | |
| Dahej Capacity Utilization | 66% | — | |
| Company Capacity Utilization | 58% | — | |
| Regasification Revenue | INR 1,214 crores | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹12,226.86 Cr-17.1% YoY-6.1% QoQ | ₹901.70 Cr-25.7% YoY+3.6% QoQ | ₹6.01-25.7% YoY+3.6% QoQ |
| Q2 FY25 | ₹13,024.29 Cr+3.9% YoY-2.9% QoQ | ₹870.61 Cr+1.7% YoY-21.2% QoQ | ₹5.80+1.8% YoY-21.3% QoQ |
| Q1 FY25 | ₹13,415.13 Cr+15.1% YoY-2.7% QoQ | ₹1,105.47 Cr+34.9% YoY+44.6% QoQ | ₹7.37+35% YoY+44.5% QoQ |
| Q4 FY24 | ₹13,793.16 Cr-0.6% YoY-6.5% QoQ | ₹764.43 Cr+18.3% YoY-37% QoQ | ₹5.10+23.5% YoY-37% QoQ |
| Q3 FY24 | ₹14,747.21 Cr-6.5% YoY+17.7% QoQ | ₹1,212.98 Cr+1.4% YoY+41.7% QoQ | ₹8.09+1.4% YoY+41.9% QoQ |
TL;DR
- Standalone PBT grew 33% YoY to INR 1,514 Cr and PAT grew 33% YoY to INR 1,133 Cr.
- Overall LNG volume processed declined to 207 TBTU from 220 TBTU YoY.
- Dahej capacity utilization was 66% on expanded capacity, down from 92% YoY.
- Trading gains were INR 301 Cr and inventory gains were INR 193 Cr.
- Qatar long-term volumes are impacted by Strait of Hormuz closure; offtakers are bringing replacement volumes under tolling contracts.
- The petrochemical plant project is 40% complete physically.
Said on the call
“Despite lower volumes, we have achieved 33% year-on-year growth in both standalone PBT and PAT.”
From the Q&A
| Topic | What management said |
|---|---|
| Volume Mix and Gulf Conflict | The pattern of lower term volumes and higher third-party regas volumes continues from Q1. Management expects the Strait of Hormuz issues to resolve soon, allowing Qatar long-term volumes to restart. |
| Margin Improvement Drivers | Profit growth came from trading gains of INR 301 Cr and inventory gains of INR 193 Cr. Management explained this is an established business model when spot prices are high and there's a gap with long-term prices. |
| Capacity Utilization Outlook | Utilization is currently low due to expanded capacity and Gulf conflict. It will improve once the Strait of Hormuz opens, allowing Qatari volumes to return. In the interim, over two-thirds of missing volumes are being compensated by tolling volumes from other regions. |
| Petchem Project Progress | The project is on schedule and 40% complete physically. Capex for the quarter was around INR 470 Cr. |
| Use or Pay and Tolling Cargoes | Tolling cargoes can offset past 'use or pay' liabilities for offtakers, but only after fulfilling the current year's commitment. This could retire use-or-pay liabilities faster. |
| New Qatar Contract and Tariff Discussions | The new Qatar contract from 2028 is on a DES basis. Tariff discussions with offtakers are ongoing, with closure expected in the next 2-3 quarters. |
Guidance
- Capex for FY27 is budgeted at INR 9,064 Cr, with similar numbers expected for FY28.
- Petrochemical plant commercial contracts are yet to be finalized; the project has a generally assumed 25-year useful life.
- The Kochi terminal pipeline connectivity is expected to be mechanically completed by the end of the current quarter.
Source
Summary written from the transcript filed by Petronet LNG Limited for the call held on 13 Aug 2026; published 20 Aug 2026, 13:22 IST.