- Petronet LNG's net profit rose 11.5% to Rs 1,235 crore in September quarter
- Revenue from operations increased 29.6% quarter-on-quarter to Rs 7,202 crore
- EBITDA grew 8.3% to Rs 1,662 crore compared to the previous quarter
Petronet LNG Ltd. reported an 11.5% quarter-on-quarter increase in consolidated net profit for the September quarter, even as its operating margin came under pressure. The company also announced an interim dividend of Rs 7 per equity share, offering shareholders a sweetener alongside its quarterly earnings.
The state-run LNG importer posted a consolidated net profit of Rs 1,235 crore in Q2 FY27, compared with Rs 1,108 crore in the preceding June quarter. Revenue from operations rose 29.6% sequentially to Rs 7,202 crore from Rs 5,558 crore.
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According to company statement, Operating performance, however, presented a mixed picture. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8.3% quarter-on-quarter to Rs 1,662 crore, against Rs 1,535 crore in the previous quarter.
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The slower growth in EBITDA compared with revenue weighed on profitability. EBITDA margin contracted to 23.1% in the September quarter from 27.6% in Q1 FY27, indicating pressure on operating profitability despite higher revenues.
The company's board, at its meeting on November 2, declared an interim dividend of Rs 7 per equity share with a face value of Rs 10 for FY27. The record date and payment date for the dividend will be communicated separately.
Petronet LNG's quarterly performance comes against the backdrop of continuing disruptions to LNG supplies and shipping operations in the Middle East.
In its financial statement, the company said force majeure conditions under its long-term liquefied natural gas supply agreement with QatarEnergy LNG continued throughout the September quarter. The disruptions, which began in March 2026 following the outbreak of hostilities in the Middle East on February 28, affected maritime navigation through the Strait of Hormuz and LNG loading operations in the region.
Petronet LNG has a long-term agreement with QatarEnergy LNG for the supply of 7.5 million tonnes per annum of LNG on a free-on-board basis. While deliveries remained disrupted, QatarEnergy managed to deliver a few LNG cargoes during the quarter through alternate voyage arrangements on a best-effort basis.
The company also disclosed that operations of its three dedicated LNG carriers, Disha, Raahi and Aseem, remained largely suspended from March 2, 2026. One vessel was deployed for approximately seven days in June.
The suspension of vessel operations has resulted in claims of Rs 625.42 crore, excluding applicable taxes, from the vessel owners and other associated costs as of September 30, 2026. This compares with Rs 89.30 crore as of March 31, 2026.
Petronet LNG said it has not made any provision against these claims, maintaining that they are not tenable under the respective time charter agreements. The vessel owners have initiated arbitration proceedings, which the company is contesting. The financial impact, if any, will depend on the outcome of the proceedings.
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Separately, the company's trade receivables include outstanding 'Use or Pay' dues of Rs 408.23 crore on a gross basis. After a provision of Rs 230.72 crore, the net outstanding amount stood at Rs 177.51 crore as of September 30.
These dues relate to lower capacity utilisation by customers under long-term regasification agreements. The company said it has put recovery mechanisms in place and remains confident of collecting the outstanding amounts.
During the September quarter, Petronet LNG waived Rs 252.80 crore in Use or Pay dues under its agreed settlement mechanism, recognising the corresponding LNG regasification revenue as customers brought in LNG quantities.
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