Petronet LNG (PETRONET) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw strong operational performance with improved throughput and capacity utilization, but profit, revenue, and volumes declined year-over-year due to lower demand from key sectors and reduced capacity utilization.

• 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.

• Net worth surpassed INR 20,000 crore, reflecting continued financial strength.

• Board approved a major investment for a 5 MMTPA land-based LNG terminal at Gopalpur, Odisha, shifting from an FSRU-based plan.

• Consolidated net profit after share of joint ventures was ₹841.88 crore.

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 last quarter and INR 1,142 crore a year ago; standalone net profit for Q1 FY26 was ₹850.58 crore.

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

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

• Inventory gain of INR 42 crore; no trading gain this quarter.

Outlook and guidance

• Expectation of continued demand growth, especially as new global LNG supply comes online by 2026.

• Gopalpur terminal expected to be operational in about three years, with initial utilization at 20% ramping up to 80-90% by 2029.

• Dahej terminal expansion to 22.5 MMTPA targeted for completion by Q1 next calendar year; third jetty expected by 2027.

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