Petronet LNG (PETRONET) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw improved operational performance with higher throughput and capacity utilization, despite a year-over-year decline in profit, revenue, and volumes processed.

• Net worth surpassed INR 20,000 crore, and the Board approved a major investment for a new LNG terminal at Gopalpur Port, Odisha.

• Standalone revenue for Q1 FY26 was ₹11,879.86 crore, down from ₹13,415.13 crore year-over-year and ₹12,315.75 crore sequentially.

• Standalone net profit for the quarter was ₹850.58 crore, compared to ₹1,141.58 crore in Q1 FY25 and ₹1,070.18 crore in Q4 FY25.

• Strategic focus remains on capacity expansion, cost optimization, and market-aligned growth.

Financial highlights

• Profit before tax was INR 136 crore, down from INR 1,446 crore in the previous quarter and INR 1,520 crore year-over-year.

• PAT stood at INR 851 crore, compared to INR 1,070 crore sequentially and INR 1,142 crore year-over-year.

• Standalone EBITDA for Q1 FY26 was ₹1,445.83 crore, down from ₹1,519.88 crore year-over-year.

• Net worth increased to INR 20,233 crore as of June 30, up from INR 19,382 crore as of March 31.

• Inventory gain of INR 42 crore; no trading gains reported.

Outlook and guidance

• Expectation of continued demand growth, especially as new global LNG supply comes online by 2028-2030.

• Gopalpur terminal targeted for completion in three years, with phased ramp-up in utilization.

• Dahej terminal expansion to 22.5 MMTPA expected to be completed by end of calendar year, with stable operations by Q1 next year.

• CAPEX for FY26 targeted at INR 5,000 crore, with higher spending anticipated in FY27.

• Management remains confident in the recoverability of 'Use or Pay' (UoP) dues, supported by contractual obligations and bank guarantees.