Petronet LNG Q2 FY27 Results Analysis: PAT Jumps 45%, Margin More Than Doubles
Petronet LNG Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 7,200.35 Cr (-34.60% YoY) and PAT growth of +53.32% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 02, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,200.35 Cr (-34.60% YoY) |
| PAT (Q2) | Rs. 1,235.40 Cr (+53.32% YoY) |
| EBITDA margin | 23.10% (+1295 bps YoY) |
| EPS (Q2) | Rs. 8.24 (+53.41% YoY) |
Quarter Snapshot
Q2 FY27 was a margin story on a collapsed pass-through base: revenue fell 34.60% YoY but EBITDA grew 48.87% to Rs.1,663.28 Cr (23.10% margin vs 10.15%) and normalized PAT grew 44.75% YoY, with CFO at 1.27x PAT and a debt-free balance sheet. The dividend commitment was delivered and the petrochemical capex build is advancing (CWIP +41.10% since March). Offsetting concerns are the vessel-owner claim that has grown 6x to Rs.625.42 Cr with no provision, the persisting Qatar force majeure, and the Rs.252.80 Cr UoP waiver charged to the P&L.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "revenue behind YoY, with the mix skewed further toward third-party/tolling volumes" | −34.60% YoY (standalone) | Played out |
| Trading/inventory gains persist as spot climbed from ~$17 to ~$26+ | "whether the Q1 FY27 combined Rs.494 Cr persisted through Jul–Sep" | EBITDA margin 23.10% vs 10.15% YoY; Q2 quantum not disclosed — direction consistent; quantum not observable | Partially |
| Petchem mechanical completion | "no external evidence of slippage or completion either way" | silent in filing — open for the call | Not observable |
| Kochi pipeline slip to Dec 2026 | "appears to have slipped" (28 Sep broker note, web-sourced) | silent in filing — remains open | Not observable |
| Qatar FOB resumption not met in window | "force majeure was still in force at quarter-end and into November" | filing: FM continued through the quarter | Played out |
| Interim dividend maintained | "board considers an interim dividend on 2 Nov 2026" | Rs.7/share declared | Played out |
| UoP receivables | gross Rs.661.03 Cr per Q1 FY27 note | Rs.408.23 Cr gross; Rs.252.80 Cr waived in Q2 — exposure shrinking | Played out |
| Vessel claims | cited Rs.348.13 Cr (Q1 FY27 note) | Rs.625.42 Cr, no provision | Escalated beyond the pre-call level |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Interim dividend — "maintain the same level of dividend" in absolute terms | open-ended commitment from prior earnings calls | Rs.7/share declared 2 Nov 2026 (= FY26 interim) | Met |
| FY27 capex Rs.9,064 Cr (petchem ~Rs.7,500 Cr) | guided on the Q1 FY27 earnings call (13 Aug 2026) | H1 cash capex Rs.1,689.08 Cr = 18.6% of budget — early; H2-weighted | On Track |
| Petrochemical mechanical completion by end of Q2 FY27 | guided on the Q1 FY27 earnings call (13 Aug 2026) | not addressed in the filing — for the 3 Nov call | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Dahej utilisation | — (211 TBTU) | 93.8% | 90.1% | 65.6% (on 22.5 MMTPA) | not disclosed in filing |
| Kochi utilisation | 27% | ~30% | 20% (Mar) | 23.27% | not disclosed |
| Company volume (TBTU) | 116 | — | 219 | 207 | not disclosed |
| Trading + inventory gains (Rs. Cr) | 41 | 27 | 213 | 494 | not disclosed |
Key Investment Insights
Key Positives
- Standalone PAT grew 53.32% YoY to Rs.1,235.40 Cr despite revenue declining 34.60% YoY
- EBITDA grew 48.87% YoY to Rs.1,663.28 Cr with margin at 23.10% vs 10.15% a year ago (+1,295 bps)
- Normalized PAT (stripping the net impairment line) grew 44.75% YoY to Rs.1,335.67 Cr
- H1 CFO of Rs.2,983.52 Cr was 1.27x PAT, up 64.52% YoY; H1 FCF was Rs.1,294.44 Cr
- Company is debt-free with Rs.11,655.84 Cr of cash and bank balances; net worth rose 8.72% in six months
- Gross UoP receivable exposure fell 38.24% QoQ to Rs.408.23 Cr via the CY2023 settlement mechanism
- Interim dividend of Rs.7/share declared, matching the FY26 interim level per the stated commitment
- Revenue rebounded 29.64% QoQ from Q1 FY27's Rs.5,554.14 Cr
Risk Factors
- Vessel-owner claims escalated to Rs.625.42 Cr plus taxes (from Rs.89.30 Cr at Mar-26), with no provision recognized and arbitration ongoing
- Qatar force majeure continued through the quarter with term pass-through volumes absent and all three time-charter vessels suspended
- UoP dues of Rs.252.80 Cr were waived in Q2 (Rs.311.61 Cr in H1), charged to the P&L via the net impairment line of Rs.134.66 Cr
- Revenue declined 34.60% YoY on the force-macture-affected base
- Effective tax rate of 25.54% tracked PBT; tax expense rose 53.01% YoY in line with profit
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.