Petronet LNG (PLNG IN) – Q1FY27 Result Update – 3rd party volume offsets weakness in long-term volume – ACCUMULATE
Published on 13 Aug 2026
Reported EBITDA beat estimates at INR15.3bn (PLe: INR13.2bn; BBGe: INR12.2bn), up 32.1% YoY, led by INR3.0bn trading gain and INR1.9bn inventory gain. PAT stood at INR11.3bn (PLe: INR9.4bn; BBGe: INR8.7bn), down 15.3% QoQ but up 33.2% YoY. Total volumes declined 5.5%/6.0% QoQ/YoY to 207TBtu, with the mix skewed towards 3rd party volumes amid Qatar force majeure. As per PLNG, Dahej utilization stood at 65.6% on expanded capacity of 22.5mmtpa, while Kochi utilization was 23.3% in Q1FY27. Management expects the higher contribution from 3rd party volumes to continue in Q2FY27. Accordingly, we have increased FY27E 3rd party volume mix higher. Based on Q1FY27 performance, we have lowered FY27E utilization at Dahej/Kochi to 68%/24% (previous: 71%/30%), (Dahej utilization based on expanded capacity of 22.5mmtpa). We expect utilization to improve to 73%/30% in FY28E as volumes normalize. Maintain ‘Accumulate’ with a revised TP of INR297 (earlier: INR300), based on 10x FY28E EPS.
