Petronet LNG (PLNG IN) – Q4FY26 Result Update – Focus on supply diversification – ACCUMULATE
Published on 05 May 2026
Reported total volume grew 6.8% YoY, driven by higher 3rd party volumes, partly offset by a 24.6% YoY decline in long-term volumes. However, total volumes declined 6.0% QoQ. Adj. EBITDA (ex-impairment reversals/losses) remained flat QoQ and increased 6.8% YoY to INR13.7bn, supported by higher gross margins of INR16.9bn, which included inventory and trading gains of INR1.0/1.2bn, respectively. Adj. PAT stood at INR8.4bn, declining 16.3% QoQ and remaining flat YoY. For FY26, Adj. EBITDA and PAT were INR53.0bn and INR38.0bn, declining 9.0% and 10.0% YoY, respectively. Following the commissioning of 5mmtpa expansion at Dahej, total capacity now stands at 22.5mmtpa. Capex plans remain on track, with FY27 capex guided at INR90bn (including INR75bn for the petchem project). Supply diversification and expansion of LNG storage capacity remain key monitorable. New contract with Exxon commenced in Apr’26, while the contract with Equinor is expected to commence in May’26. We expect volumes of 16.1mmtpa in FY27E (vs 17.6mmtpa in FY26), driven by lower utilization at Dahej in Q1FY27. Volumes are projected to recover to 18.6mmtpa in FY28E, as cargo normalization takes place. Maintain ‘Accumulate’ rating with a revised TP of INR310 (earlier INR269), based on 10x (earlier: 9x) FY28E EPS.
