Analyst Concall
Petronet LNG eyes INR 50 bln capex FY26, sees 6% volume gain
This story was originally published at 13:23 IST on 20 May 2025
Register to read our real-time news.Informist, Tuesday, May 20, 2025
Please click here to read all liners published on this story
--Petronet: To commission expanded Dahej LNG terminal capacity in 2-3 months
--CONTEXT: Comments by Petronet LNG mgmt in post-earnings conference call
--Petronet LNG: To spend INR 45 bln-INR 50 bln as capex in FY26
--To spend INR 25 bln as capex for Dahej terminal in FY26
--Expect LNG volume growth to be 5-6% in FY26
--Dahej, Kochi LNG units processed 934 tBtu in FY25, up 2%
--Dahej, Kochi LNG units processed 3.9 tBtu in FY26 so far
--Gopalpur LNG terminal capex seen at INR 3 bln for FY26
--See Kochi terminal FY26 routine capex INR 800 mln-INR 1 bln
--To set up land-based LNG terminal at Gopalpur, not floating one
By Pallavi Singhal and Sunil Raghu
NEW DELHI – Petronet LNG Ltd. has planned to invest INR 45 billion-INR 50 billion as capital expenditure in 2025-26 (Apr-Mar), with allocations across various projects, including its Dahej terminal, Kochi terminal upgrades, new corporate offices, and the proposed Gopalpur LNG terminal, the company's management said in a post-earnings call with analysts on Tuesday.
The investment will be spread across multiple initiatives, with INR 25 billion earmarked for the Dahej terminal. Routine upgrades at the Kochi terminal will require INR 800 million-INR 1 billion, while INR 750 million-INR 800 million will be spent on expanding truck facilities at both Dahej and Kochi terminals. The company will also invest INR 700 million-INR 800 million in setting up a corporate office in Dwarka. The company will spend an additional INR 1 billion for another corporate office in Delhi, it said.
Additionally, Petronet LNG will allocate INR 1 billion towards compressed bio-gas projects and INR 3 billion towards the Gopalpur LNG terminal, where land acquisition is nearing completion. The company has decided to set up a land-based LNG terminal instead of a floating storage and regassification unit that was decided earlier. The board had earlier approved an investment of INR 23 billion to set up the floating project but the cost is likely to go up, now that the company has decided to build a land-based terminal instead.
Petronet LNG said it was optimistic about its growth prospects, expecting LNG volume growth of 5-6% in FY26. This projection follows a modest 2% year-over-year increase in LNG volumes processed at its Dahej and Kochi terminals to 934 trillion British thermal units in FY25, according to details shared by the company. The company has already processed 3.9 trillion British thermal units of LNG in the current financial year so far.
In the reporting quarter, the company's terminals saw a dip in LNG volumes, with the largest terminal processing 189 trillion British thermal units, down from 219 trillion British thermal units in the same quarter last year, and 213 trillion British thermal units in the December quarter of FY25. Overall, Jan-Mar volumes processed stood at 205 trillion British thermal units, lower than 234 trillion British thermal units in the last quarter of FY24. However, on a full-year basis, the company achieved record-high LNG processing volumes, according to the management, with its Dahej and Kochi terminals handling 934 trillion British termal units, up from 919 trillion British termal units in the previous financial year. The regasification capacity utilisation also improved, reaching 876 trillion British thermal units in FY25, compared to 865 trillion British thermal units in the prior year.
Petronet LNG reported a higher-than-expected net profit for the quarter-ended March despite a fall in revenue. While the profit rose on the back of higher margins as prices of spot liquefied natural gas increased a whopping 49% on year, revenues fell due to low sales volumes. The company's net profit was up more than 45% on year at INR 10.70 billion. It's consolidated revenue fell nearly 11% on year to INR 123.16 billion. Sequentially, the company's net profit rose just over 23%, while revenues grew barely a percent.
The bottom line for FY25 rose more than 11% to INR 39.26 billion, while the top line fell more than 3% to INR 509.80 billion.
At 1319 IST, Petronet LNG's shares traded at INR 316 on the National Stock Exchange, down 1.4% from their previous close. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
