1. At a Glance
Petronet LNG reported a solid ₹851 Cr PAT on ₹11,880 Cr revenue—but not without drama. A ₹607 Cr provision on Use-or-Pay (UoP) dues crashed the margin party. Oh, and they’ve greenlit a ₹6,355 Cr land-based LNG terminal in Gopalpur, Odisha. Gas is flowing. Cash? Not so much.
2. Introduction with Hook
Running Petronet right now is like steering a massive LNG tanker through a toll booth. You’ll get through, but not without a few scrapes (or in this case, a ₹607 Cr provision).
Stats that scream:
- Q1 FY26 PAT: ₹851 Cr (YoY drop from ₹1,105 Cr)
- ₹6,355 Cr greenlit for a new terminal at Gopalpur
It’s the corporate version of: “We made money. But we also owe a scary amount of back rent.”
3. Business Model (WTF Do They Even Do?)
Petronet isn’t digging for gas. They import it, store it, regasify it, and then pass it along like a high-stakes game of hot potato. Their Dahej and Kochi terminals are the lungs of India’s gas ecosystem.
To dumb it down:
- Buy cold gas (LNG)
- Warm it up (regasify)
- Send it off (pipeline)
- Collect margins (hopefully)
They don’t drill—they chill. They’re like Swiggy for natural gas, just with billion-dollar infrastructure.
4. Financials Overview
Here’s how Q1 FY26 unfolded:
| Metric | Q1 FY26 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Revenue | ₹11,880 Cr | ₹12,316 Cr | -3.5% |
| PAT | ₹851 Cr | ₹1,095 Cr | -22% |
| OPM | 10% | 12% | Compressed by provision |
| Provision (UoP Dues) | ₹607 Cr | — | Welcome to the party |
| Other Income | ₹217 Cr | ₹197 Cr | Helping cushion the blow |
Comment:
“Operating profit looks great until the UoP hits like an overconfident cricket sledger.”
5. Valuation
At ₹302/share, Petronet is not pricey.
- PE: 12.2x TTM
- Dividend Yield: 3.3%
- Fair Value Range:
- P/E Method (15x): ₹360–₹395
- EV/EBITDA Method: Conservative range ₹350–₹400
Verdict:
“Not flashy. Not overvalued. Like the uncle who shows up with cash in hand and no drama… well, except for the UoP.”
6. What’s Cooking – News, Triggers, Drama
- ₹6,355 Cr Gopalpur Terminal: Approved for 5 MMTPA (land-based). Bye FSRU, hello capex!
- ₹607 Cr Provision: On Use-or-Pay dues. A massive swing item.
- ODI Project = Margin Accretive? Depends on timelines and demand.
- Shareholding Stable: Promoters (PSUs) hold steady, FII inching up.
- Q1 Missed Analyst Estimates: Blame it on the provision. Again.
This quarter had more plot twists than an OTT thriller.
7. Balance Sheet
| Item | Mar 2025 |
|---|---|
| Equity Capital | ₹1,500 Cr |
| Reserves | ₹18,378 Cr |
| Borrowings | ₹2,657 Cr |
| Total Assets | ₹27,297 Cr |
Leverage? Manageable. Reserves? Healthy.
Note: They’re funding growth without going full debt-mode. Respect.
8. Cash Flow – Sab Number Game Hai
| FY | Ops CF | Inv CF | Fin CF | Net CF |
|---|---|---|---|---|
| FY23 | ₹2,519 Cr | ₹-1,142 Cr | ₹-2,368 Cr | ₹-991 Cr |
| FY24 | ₹4,871 Cr | ₹-1,056 Cr | ₹-2,154 Cr | ₹1,661 Cr |
| FY25 | ₹4,398 Cr | ₹-3,189 Cr | ₹-2,152 Cr | ₹-942 Cr |
Cash Flow Commentary:
“Ops cash is flowing like river Ganga during monsoon. But investments drank half of it and financing drank the rest.”
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 21.3% |
| ROCE | 25.6% |
| OPM | 10% |
| PE | 12.2x |
| Dividend Payout | 38% |
These numbers don’t scream “rocket ship”… but they whisper “solid annuity.”
Also: That ROCE is hotter than your last vacation.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹59,899 Cr | ₹4,854 Cr | ₹3,326 Cr |
| FY24 | ₹52,729 Cr | ₹5,209 Cr | ₹3,652 Cr |
| FY25 | ₹50,982 Cr | ₹5,524 Cr | ₹3,973 Cr |
Despite topline drops, margins held their ground. PAT has grown 6.4% YoY. Reliable, if unsexy.
11. Peer Comparison
| Company | CMP | P/E | ROCE | PAT (TTM) |
|---|---|---|---|---|
| Adani Total | ₹624 | 104.8 | 17.5% | ₹655 Cr |
| Petronet LNG | ₹302 | 12.2 | 25.6% | ₹3,709 Cr |
| IGL | ₹201 | 16.4 | 21.4% | ₹1,713 Cr |
| MGL | ₹1,380 | 12.6 | 24.5% | ₹1,085 Cr |
Comment:
“Petronet is the grown-up in a room full of high-P/E, low-yield Gen Z gas stocks.”
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Jun 2025 |
|---|---|
| Promoters (PSUs) | 50.00% |
| FIIs | 29.04% (up from 26% last year) |
| DIIs | 10.86% |
| Public | 10.10% |
Steady hands all around. FII interest is warming up.
Because, let’s face it—this is one of the most predictable cash flow machines in India.
13. EduInvesting Verdict™
Petronet LNG is what you get when you combine boring cash flows with underappreciated efficiency. It’s not a multibagger, but it’s the financial equivalent of dal-chawal—solid, stable, and dependable.
Final POV:
“A cash cow with a gas tank. May not fly, but it’ll cruise… comfortably.”
Written by EduInvesting Team | 25 July 2025
Tags: Petronet LNG, LNG Terminals, Gopalpur Project, Q1 FY26 Results, EduInvesting Premium, PSU Gas Stocks
