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Informist, Thursday, Oct. 30, 2025

 

By Pallavi Singhal

 

NEW DELHI – Petronet LNG Ltd., India's largest liquefied natural gas importer, is expected to report a year-on-year rise in net profit for the September quarter despite a decline in revenue. Analysts expect the company's earnings growth to be supported by higher regasification tariffs and steady operating margins, even as total throughput declined due to weaker LNG demand and elevated spot prices.

 

The company's net profit for the September quarter is seen rising 5% on year to INR 8.9 billion, according to the average of estimates by 10 brokerages. The company's revenue is estimated to fall 8% to INR 119.7 billion due to lower volumes, according to analysts. The company had reported a net profit of INR 8.5 billion on revenues of INR 130.2 billion in the year-ago quarter.

 

Sequentially, the company's net profit is expected to rise 4% while revenue is expected to increase marginally, by about 1%. The highest estimate for Petronet LNG's September quarter net profit is INR 11.4 billion by Prabhudas Lilladher Pvt. Ltd and the lowest estimate is INR 7.8 billion by Motilal Oswal Financial Services Ltd.

 

The highest estimate for the company's September quarter revenue is INR 136.2 billion by Nuvama Wealth Management Ltd., while the lowest estimate is INR 103 billion by Systematix Shares and Stocks (India) Ltd. In the June quarter, the company had reported a net profit of INR 8.5 billion on revenue of INR 118.8 billion.

 

The company's profit after tax is expected to rise on the back of a 5% annual hike in tariff for regasification. As a leading liquefied natural gas importer, Petronet provides a critical regasification service, converting imported liquefied gas back into its gaseous state. The company then supplies this gas to domestic companies such as GAIL India Ltd., Indian Oil Corp. Ltd., and Bharat Petroleum Corp. Ltd. for distribution to end users.

 

However, high spot prices of liquefied natural gas, which are up 9% year-over-year to $11.9 per million British thermal units, are expected to affect volumes. Petronet LNG's volumes, are projected to decline 5-9% to 218-235 trillion British thermal units in the September quarter, according to brokerages. The company's Dahej terminal is expected to operate at 92% utilisation, while the Kochi terminal is expected to run at 22%, according to ICICI Securities. Currently, the Kochi terminal's utilisation is only 22% due to infrastructure limitations. The pipelines that would connect the terminal to major demand centres such as Bangalore and northern Kerala are not yet complete.

 

Petronet LNG controls nearly 50% of the domestic regasified LNG capacity, which includes its flagship terminal at Dahej, with a capacity of 17.5 million tonnes per annum, and a 5 million tonne per annum terminal at Kochi.

 

Petronet LNG is expected to post earnings before interest, tax, depreciation, and amortisation of INR 12.6 billion for the September quarter, according to the average of estimates from 10 brokerages. The estimates for EBITDA range from a low of INR 11.2 billion by Nuvama to a high of INR 16.3 billion by Prabhudas Lilladher.

 

At 0952 IST, shares of Petronet LNG were trading at INR 281.95 on the National Stock Exchange, down 0.6%. Shares of Petronet LNG have fallen about 6.6% from Jul. 25, the day it announced its June quarter earnings.

 

Of the 16 brokerage reports on the company available with Informist, nine have a 'buy' rating on Petronet LNG, four have a 'hold' rating, and three have a 'sell' recommendation. The average target price of the buy recommendations is INR 387 and that of the sell calls is INR 295. The company will detail its financial results on Nov. 7.

 

Following are the Jul-Sept earnings estimates for Petronet LNG from 10 brokerages in descending order of the estimate of net profit in INR million:

 

Brokerage	Net sales	Net profit	EBITDA
Prabhudas Lilladher Pvt Ltd	118,900	11,400	16,300
Nomura Equity Research	122,300	9,800	13,300
Kotak Institutional Equities	111,299	9,532	14,670
JM Financial Institutional Securities Pvt Ltd	128,430	9,195	12,682
Emkay Global Financial Services Ltd	118,879	8,326	11,837
ICICI Securities Ltd	124,400	8,300	11,600
Systematix Shares and Stocks (India) Ltd	103,022	8,157	11,265
YES Securities (India) Ltd	120,376	8,104	11,487
Nuvama Wealth Management Ltd	136,198	8,083	11,231
Motilal Oswal Financial Services Ltd	113,592	7,850	11,600
Average	119,739.6	8,874.7	12,597.2

 

End

 

US$1 = INR 88.41

 

Edited by Avishek Dutta

 

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