PETRONET
Large CapPetronet LNG Limited
Power
Petronet LNG Limited operates two LNG regasification terminals in India, Dahej (Gujarat) and Kochi (Kerala), facilitating the import, storage, and regasification of liquefied natural gas for distribution to various consuming sectors across the country.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100Rev -23% YoY · PAT +25% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9,442 Cr | -23.3% | -15.4% |
| EBITDA | ₹1,861 Cr | +23.1% | +55.3% |
| Operating margin | 20.0% | +800 bps | +900 bps |
| PAT | ₹1,371 Cr | +25.2% | +57.6% |
| PAT margin | 14.5% | +563 bps | +673 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 saw highest-ever quarterly PBT (INR 1,795 cr) and PAT (INR 1,338 cr), boosted by INR 630 cr Use of Pay dues. Dahej utilization was 90.1% (Q4), but March dropped to 53% due to Gulf crisis. FY26 PAT was INR 3,843 cr, slightly down YoY.
While Q4 FY26 financials were strong, aided by one-time UOP payments, operational performance is under stress due to the ongoing Gulf crisis impacting Qatar LNG supplies. Dahej utilization dropped significantly in March and remains low in April/May. Management is optimistic about a quick resolution and new contracts, but the near-term outlook is uncertain. The large capex for the petchem project and new terminals adds execution risk.
Increasing Indian Gas Demand
Indian gas demand continues to grow, with the power sector coming back, supporting increased terminal utilization.
New LNG Supply Contracts
New contract with ExxonMobil Asia Pacific Pte Ltd (0.5 MTPA) started in April. Equinor contract (part of Deepak Fertilizers group) first cargo scheduled for May 12. Total new volumes ~1 MTPA this year.
Kochi-Bangalore Pipeline Completion
GAIL has pushed the timeline to September 2026 (first half of FY27), expected to open new markets and connect to the national gas grid, increasing Kochi utilization.
Dahej Terminal Expansion
Capacity expanded from 17.5 to 22.5 MTPA. Entire expansion capacity, except one facility, commissioned and capitalized (INR 390 crore capitalized in Q4, balance INR 100 crore in Q1 FY27).
Petrochemical Plant Project
Project is on track, with major capital equipment imports from Japan, Korea, China, Europe, and US. FY27 capex target is ~INR 7,500 crore. FY26 capex was ~INR 1,650 crore.
Third Jetty Construction
Around INR 600 crore planned for the third jetty.
Gopalpur Terminal Development
Planning to start construction activities in current year, with ~INR 300-400 crore spend. Will construct two tanks.
Lowering Spot LNG Prices
Spot prices moving to $15-$17 from $25 immediately after the crisis, supporting increased utilization.
Diversification of Global LNG Supply
New supplies from US, Oman, Mozambique, Nigeria, Congo, Mauritania, and Senegal are adding up, supporting the market.
India's Long-Term LNG Deals
India has closed 10-12 million tons of long-term deals from various sources over the last 2-3 years, including portfolio players and US/Australia-based companies.
Gulf Region Crisis Impact
Ongoing crisis in the Gulf region led to a significant drop in Dahej utilization to 53% in March, and similar levels in April/May.
Uncertainty of Qatar LNG Supplies
Qatar Energy supplies were not coming in March, and resumption depends on the conflict ending, with a 3-4 week restart time.
Land Availability for Dahej Expansion
Land is an issue for putting up additional storage tanks at Dahej, though actively scouting for parcels.
Prolonged Gulf Conflict
If the conflict continues, it poses challenges to volumes, despite increasing third-party cargoes and new contracts.
Supply Chain Disruptions
Time charter vessels are specifically for Qatar cargo; their utilization is impacted by supply disruptions.
Project Execution Risk
Large capex for petchem and new terminals (Gopalpur, Kochi tank) introduces execution and commissioning risks.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison shows overall growth and annual performance, while QoQ is crucial to assess the immediate impact of the Gulf crisis on volumes and utilization, and sequential recovery momentum.
Q4 FY26 Overall LNG Volume Processed
219 TBTU (vs 233 TBTU QoQ, 205 TBTU YoY)
Q4 FY26 Dahej LNG Throughput
201 TBTU (vs 214 TBTU QoQ, 189 TBTU YoY)
Q4 FY26 Dahej Capacity Utilization
90.1% (vs 93.8% QoQ, 85.2% YoY)
March 2026 Dahej Capacity Utilization
Around 53%
Optimistic on Qatar Supply Resumption
Management is hopeful that the Gulf conflict will end soon, and Qatar Energy can resume supplies within 3-4 weeks, potentially from early June.
Aim to Recover Lost Volumes
Talking to Qatar to make good whatever volumes were lost during the current year.
Strategic Storage Expansion
Thinking about developing more tanks for strategic storage across India and at Petronet terminals to mitigate crisis impacts.
Maintain Dividend Levels
Endeavor is to maintain the same level of dividend in absolute terms, despite expansion plans.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Dahej Terminal Utilization | 53% in March, similar in April/May | Recovery towards pre-crisis levels (90%+) and sustained improvement from third-party cargoes. |
| Qatar LNG Supply Resumption | Disrupted due to Gulf crisis | Official announcement of conflict resolution and restart of supplies from Qatar Energy. |
| Petrochemical Project Progress & Capex | On track, FY27 capex target ~INR 7,500 crore | Adherence to capex targets and commissioning timelines, avoiding cost overruns. |
| Kochi-Bangalore Pipeline Commissioning | GAIL timeline pushed to September 2026 | Timely completion and subsequent ramp-up in Kochi terminal utilization. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Total capex for FY '26 will be around INR5,000 crores, with petrochemicals being the major share.
"total capex will be around INR5,000 crores"
Petronet LNG will add 5 MMTPA capacity to the Dahej terminal.
"we'll be adding 5 MMTPA capacity by March 2026"
The final leg of the Kochi-Bangalore pipeline is hoped to be connected to the natural gas grid.
"we are hoping that within this financial year that the pipeline should get connected"
The ExxonMobil contract for Kochi terminal will start implementation from the next financial year.
"contract with ExxonMobil, which we are going to start implementing from next financial year"
Trend score and candlestick chart
42NeutralSMA20 -3.8% / mo
Technical chart
PETRONETdaily · 6M-0.4%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 45.
- SMA20 falling (~2.3% over last month) — short-term momentum negative.
- RSI(14) at 45 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 18% off 52W high · 14% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.9%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 35.8%.
Main drags
- Growth is weaker at 8/25; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
- Quality is weaker at 13/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 73rd percentile of the scored universe and 74th percentile within Power. Main check: results consistency is weak at 29/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 0/4 latest quarters had positive YoY revenue growth.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Power: 74th pctile, median 67 · Large: 50th pctile, median 74
48 documents indexed, but claim history is not strong enough yet.
4 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3.9%.
- ▸10 years of positive FCF.
- ▸ROCE is 22.7%.
Trust risks
- ▸0/4 latest quarters had positive YoY revenue growth.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 10.20
- P/B
- 1.79
- EV/EBITDA
- 6.88
- Market Cap
- 40102.00Cr
Profitability
- ROE
- 18.60%
- ROCE
- 22.70%
- ROA
- 14.26%
- Dividend Y
- 3.74%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 6.00%
- Revenue 3Y
- -10.00%
- EPS 3Y
- 6.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- 22.51×
- Altman Z
- 8.25
- Book Value
- 149.00
Cash Flow
- FCF Yield
- 3.89%
- FCF Positive Y
- 10/5
- OCF
- 4750.00 Cr
- EPS TTM
- 26.08
Shareholding
- Promoter Hold
- 50.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 35%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Power — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.