Petronet LNG
Petronet LNG
Oil & Gas F&OKey Fundamentals
MidcapGas SupplierOil & GasTapetide Score
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Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 39.0%
Weaknesses
1- The company has delivered a poor sales growth of 10.8% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
Petronet LNG has a market capitalisation of about Rs 42,585 crore. It trades at a P/E of 10.2x and a P/B of 1.92x, with a dividend yield of 3.49%, and its return on equity (ROE) has been 18-23% over the last 1 to 10 years. Profit grew 13% over the trailing twelve months even though sales fell 25%, which suggests earnings depend more on regasification volumes and tariffs than on reported revenue. Weak sales growth over 3 years (-10% CAGR), a stock CAGR of only 4-6% over 3-5 years, and a planned capital-heavy move into petrochemicals are the main points of debate.
- The P/E of 10.2x is low for a business that has earned an ROE of 20-23% over 3, 5 and 10 years. Market cap of Rs 42,585 crore at 10.2x implies annual earnings of roughly Rs 4,170 crore.
- The dividend yield of 3.49% comes with a payout ratio of about 39%. That leaves most profit for reinvestment while still returning cash steadily.
- TTM profit grew 13% while TTM sales fell 25%. This shows the regasification model partly insulates earnings from LNG price swings, which move revenue up and down as a pass-through.
- Profit has compounded at 16% a year over 10 years, well above the 5% sales CAGR over the same period. Margins and operating leverage have improved over time.
- ROE has stayed between 18% (last year) and 23% (10-year average), a narrow band. That points to durable returns from a regulated, infrastructure-like terminal business.
- The P/B of 1.92x is modest against an ROE of about 18-20%. The market is not paying a large premium to book value for these returns.
- 5-year sales CAGR of 11% shows LNG import volumes and realisations can grow over a full cycle. This is relevant as India aims to lift the share of gas in its energy mix.
- Sales fell at a 10% CAGR over 3 years and 25% over the TTM. The top line is volatile and depends heavily on global LNG prices and on demand from price-sensitive Indian buyers.
- Stock CAGR has been only 4% over 5 years, 6% over 3 years and 5% over 10 years. Shareholders have gained far less than the 16% 10-year profit CAGR, suggesting the market keeps assigning a low multiple.
- ROE fell to 18% last year from a 5-year average of 22% and a 10-year average of 23%. Returns may be slipping as capital goes into new projects such as the planned petrochemical complex and additional terminals.
- Profit grew only 5% a year over 3 years, well below the 16% 10-year CAGR. Earnings growth has slowed noticeably in recent years.
- The 5-year sales CAGR of about 10.8-11% has been flagged as weak. Growth mostly depends on terminal capacity additions and utilisation, not pricing power.
- Diversifying into petrochemicals and new terminals takes large investment. This could weigh on the ~18% ROE and could limit future increases to the 39% dividend payout if returns on new projects start slowly.
- The low P/E of 10.2x may reflect structural risks rather than mispricing. These include customer concentration in state-run oil and gas firms, tariff renegotiation, and competition from new LNG terminals in India.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Qatar force majeure, costly spot LNG Sep 28
Qatar Energy's force majeure declaration and spot LNG prices averaging ~USD19-20/mmbtu in 1HFY27 pushed the stock down ~11% over the last seven months.
- Q1 FY27 profit, revenue slide Sep 17
June-quarter net profit fell 15.4% QoQ to ₹1,113 crore from ₹1,338 crore. Revenue dropped 41.2% to ₹5,554.1 crore and EBITDA fell 17.7% to ₹1,532 crore.
- Dahej third jetty behind schedule Sep 28
The third Dahej jetty was 71% complete as of August 2026 against an 81% target because of a long monsoon and technical issues. Commissioning has slipped to FY28, and the 750ktpa PDH/500ktpa PP project is targeted for mid-FY29.
- Expected Dahej tariff cut Sep 28
Motilal Oswal's valuation assumes a 5% Dahej tariff cut in FY28 before a 4% rise at both terminals. The planned 6.84 mmscmd Kochi-Tuticorin pipeline could take two to three years because of land acquisition.
- SEBI LODR non-compliance penalty Sep 9
The company paid ₹76,700 each to NSE and BSE for breaching SEBI LODR Regulation 17(1) in the June 2026 quarter. The board reviewed the exchange notice on Sep 17.
- Motilal Oswal Buy, ₹362 target Sep 28
Motilal Oswal rated the stock Buy with a DCF-based ₹362 target, about 26% above the ₹287.55 price on Sep 28. Management said the new tariff for the 7.5mmtpa Qatar contract will not be below current levels.
- Kochi turnaround: GUCD, KMBPL pipeline Sep 28
Gassing-up/cooling-down (GUCD) services at Kochi could bring in ₹1 billion a year after turnaround time fell to 1.5 days from 4. The KMBPL pipeline is due by March 2027, and management expects Kochi utilisation to reach ~40% within 2-3 years.
- EBITDA margin up to 27.6% Sep 17
Q1 FY27 EBITDA margin rose 7.9 percentage points QoQ to 27.6% from 19.7%, even though absolute profit fell.
- ₹1,200 cr CBG JV with Gruner Sep 17
The board approved a 50:50 JV with Gruner Renewable Energy to build 10 compressed biogas (CBG) plants of 18tpd each, 180tpd in total, for an estimated ₹1,200 crore. Shares closed 0.67% higher at ₹284.
- 19-year dividend record, 3.46% yield Sep 11
Petronet has paid a dividend every year from 2007 to 2025 and paid ₹10/share in each of 2023-2025, for a 3.46% trailing yield. PAT grew from ₹929 crore in FY16 to ₹3,843 crore in FY26 (~15.3% CAGR), and Dahej capacity reached 22.5 MMTPA in March 2026.
- AGM approves ₹3 final dividend Sep 28
At the 28th AGM on Sep 28, 2026, shareholders approved a ₹3/share final dividend for FY26 and adopted the financial statements. Remote e-voting had opened on Sep 24.
- Investor conferences, Sep 21-22 Sep 17
Petronet attended the J.P. Morgan India Conference on Sep 21 and the Anand Rathi Flagship Bharat conference on Sep 22 in Mumbai. The company said it would share no unpublished price-sensitive information.
- FY26 ESG report (BRSR) filed Sep 2
The company filed its FY26 Business Responsibility and Sustainability Report (BRSR), covering Scope 1 and 2 emissions, water usage and renewable energy initiatives.
TL;DR: Petronet is building new growth drivers: Kochi GUCD services and the KMBPL pipeline link, higher EBITDA margins, a ₹1,200 crore CBG JV, and a long dividend record backed by brokerage upgrades like Motilal Oswal's ₹362 target. The main risks are Qatar supply disruption, spot LNG at USD19-20/mmbtu, a 15.4% QoQ profit decline, the delayed Dahej jetty, a possible FY28 Dahej tariff cut and minor governance lapses. After an ~11% correction, sentiment looks to be bottoming out. A recovery depends on LNG prices normalising and KMBPL being commissioned by March 2027.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 11,656 | 12,533 | 14,747 | 13,793 | 13,415 | 13,024 | 12,227 | 12,316 | 11,880 | 11,009 | 11,164 | 9,442 | 5,558 |
| Expenses | 10,475 | 11,318 | 13,042 | 12,690 | 11,853 | 11,822 | 10,980 | 10,803 | 10,721 | 9,892 | 9,966 | 7,581 | 4,023 |
| Operating Profit | 1,182 | 1,215 | 1,705 | 1,104 | 1,562 | 1,202 | 1,247 | 1,512 | 1,159 | 1,117 | 1,198 | 1,861 | 1,535 |
| OPM % | 10% | 10% | 12% | 8% | 12% | 9% | 10% | 12% | 10% | 10% | 11% | 20% | 28% |
| Other Income | 145 | 194 | 157 | 154 | 178 | 202 | 196 | 197 | 217 | 234 | 214 | 200 | 208 |
| Interest | 75 | 75 | 70 | 71 | 67 | 65 | 65 | 61 | 59 | 61 | 56 | 62 | 51 |
| Depreciation | 192 | 195 | 195 | 194 | 195 | 196 | 210 | 206 | 207 | 211 | 215 | 205 | 201 |
| PBT | 1,060 | 1,140 | 1,597 | 992 | 1,479 | 1,142 | 1,169 | 1,443 | 1,110 | 1,079 | 1,141 | 1,794 | 1,491 |
| Tax % | 26% | 25% | 25% | 26% | 26% | 26% | 26% | 26% | 26% | 26% | 26% | 25% | 26% |
| Net Profit | 819 | 856 | 1,213 | 764 | 1,105 | 871 | 902 | 1,095 | 842 | 830 | 870 | 1,371 | 1,137 |
| EPS in Rs | 5.46 | 5.7 | 8.09 | 5.1 | 7.37 | 5.8 | 6.01 | 7.3 | 5.61 | 5.54 | 5.8 | 9.14 | 7.58 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 39,627 | 27,133 | 24,616 | 30,599 | 38,395 | 35,452 | 26,023 | 43,169 | 59,899 | 52,729 | 50,982 | 43,495 | 37,173 |
| Expenses | 38,109 | 25,547 | 22,024 | 27,285 | 35,101 | 31,462 | 21,323 | 37,918 | 55,045 | 47,520 | 45,457 | 38,157 | 31,462 |
| Operating Profit | 1,518 | 1,586 | 2,592 | 3,314 | 3,294 | 3,990 | 4,700 | 5,250 | 4,854 | 5,209 | 5,525 | 5,338 | 5,711 |
| OPM % | 3.8% | 6% | 11% | 11% | 9% | 11% | 18% | 12% | 8% | 10% | 11% | 12% | 15% |
| Other Income | 156 | 188 | 364 | 349 | 525 | 306 | 377 | 395 | 523 | 605 | 772 | 861 | 855 |
| Interest | 308 | 239 | 210 | 163 | 99 | 403 | 336 | 317 | 331 | 290 | 258 | 237 | 229 |
| Depreciation | 329 | 322 | 369 | 412 | 411 | 776 | 784 | 768 | 764 | 777 | 806 | 838 | 832 |
| PBT | 1,037 | 1,214 | 2,378 | 3,088 | 3,309 | 3,116 | 3,958 | 4,559 | 4,282 | 4,748 | 5,233 | 5,124 | 5,505 |
| Tax % | 13% | 24% | 28% | 32% | 33% | 13% | 26% | 25% | 26% | 26% | 26% | 26% | — |
| Net Profit | 905 | 928 | 1,723 | 2,110 | 2,231 | 2,703 | 2,939 | 3,438 | 3,326 | 3,652 | 3,973 | 3,913 | 4,208 |
| EPS in Rs | 6.03 | 6.19 | 11.49 | 14.07 | 14.87 | 18.02 | 19.59 | 22.92 | 22.17 | 24.35 | 26.48 | 26.08 | 28.06 |
| Div. Payout % | 17% | 20% | 22% | 32% | 67% | 69% | 59% | 50% | 45% | 41% | 38% | 38% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 750 | 750 | 750 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 |
| Reserves | 4,972 | 5,912 | 7,428 | 8,311 | 8,731 | 9,621 | 10,307 | 12,168 | 13,765 | 15,910 | 18,378 | 20,785 |
| Borrowings | 2,812 | 2,615 | 2,218 | 1,453 | 733 | 3,690 | 3,653 | 3,438 | 3,345 | 3,008 | 2,657 | 2,341 |
| Other Liabilities | 2,830 | 3,198 | 3,517 | 4,480 | 4,285 | 4,056 | 3,630 | 4,258 | 4,210 | 5,131 | 4,790 | 2,845 |
| Total Liabilities | 11,364 | 12,475 | 13,914 | 15,745 | 15,249 | 18,867 | 19,090 | 21,365 | 22,820 | 25,549 | 27,324 | 27,472 |
| Fixed Assets | 7,217 | 6,811 | 8,423 | 8,030 | 7,665 | 11,188 | 10,313 | 9,557 | 8,790 | 8,147 | 8,836 | 9,048 |
| CWIP | 754 | 1,550 | 49 | 220 | 348 | 5 | 25 | 193 | 1,126 | 1,552 | 1,642 | 2,497 |
| Investments | 5 | 138 | 3,020 | 4,213 | 1,154 | 517 | 1,707 | 1,286 | 1,368 | 617 | 1,712 | 742 |
| Other Assets | 3,388 | 3,975 | 2,422 | 3,282 | 6,082 | 7,157 | 7,044 | 10,329 | 11,535 | 15,233 | 15,135 | 15,184 |
| Total Assets | 11,364 | 12,475 | 13,914 | 15,745 | 15,249 | 18,867 | 19,090 | 21,365 | 22,820 | 25,549 | 27,324 | 27,472 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 901 | 3,374 | 2,068 | 2,996 | 2,141 | 2,863 | 3,559 | 3,479 | 2,519 | 4,871 | 4,398 | 4,750 |
| Investing | -717 | -854 | -3,175 | -1,278 | -72 | 941 | -927 | -1,063 | -1,142 | -1,056 | -3,189 | -1,472 |
| Financing | -1,058 | -699 | -748 | -1,335 | -2,548 | -3,055 | -2,759 | -2,211 | -2,368 | -2,154 | -2,152 | -2,200 |
| Net Cash Flow | -874 | 1,821 | -1,856 | 383 | -478 | 749 | -127 | 205 | -991 | 1,661 | -942 | 1,078 |
| Free Cash Flow | 849 | 2,403 | 1,522 | 2,820 | 1,979 | 2,822 | 3,486 | 3,406 | 1,461 | 4,030 | 2,941 | 2,231 |
| CFO/OP | 74 | 225 | 94 | 111 | 90 | 96 | 97 | 90 | 77 | 117 | 104 | 112 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 13 | 13 | 18 | 19 | 13 | 16 | 26 | 23 | 23 | 25 | 23 | 9 |
| Inventory Days | 9 | 4 | 9 | 7 | 6 | 6 | 6 | 6 | 8 | 12 | 10 | 9 |
| Days Payable | 3 | 11 | 16 | 21 | 14 | 14 | 18 | 15 | 11 | 23 | 21 | 7 |
| Cash Conversion Cycle | 18 | 6 | 11 | 4 | 5 | 8 | 14 | 13 | 20 | 14 | 12 | 11 |
| Working Capital Days | 8 | -2 | -5 | -8 | -3 | 3 | 5 | 7 | 15 | 9 | 7 | 2 |
| ROCE % | — | 15% | 26% | 30% | 31% | 28% | 28% | 30% | 26% | 26% | 25% | 23% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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62 extracted metrics + investor summaries across FY10–FY27.
Documents
Frequently Asked Questions about Petronet LNG
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Company Information
Petronet LNG Ltd was formed to develop, design, construct, own and operate Liquefied Natural Gas (LNG) Import and regasification terminals in India.[1] It was incorporated in 1998 as a Joint Venture among GAIL, Indian Oil, Bharat Petroleum & ONGC holding 12.5% each.[2]
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