Petronet LNG Q2 FY27: consol. PAT +51% YoY to ₹1,256 Cr on margin recovery, eases QoQ

Petronet LNG's consolidated profit after tax (post JV share) came in at ₹1,256.43 Cr for Q2 FY27 (quarter ended 30 September 2026), up 51.3% year-on-year from ₹830.30 Cr in Q2 FY26, even as consolidated revenue from operations fell 34.6% YoY to ₹7,202.22 Cr from ₹11,009.13 Cr. Standalone PAT of ₹1,235.40 Cr tracks closely, so both bases tell the same story. Sequentially, PAT rose 10.5% over Q1 FY27's ₹1,137.14 Cr on a 29.6% jump in revenue, continuing the recovery that began last quarter. The YoY swing is a margin story, not a volume one: net profit margin (PAT/total income) nearly doubled to 16.90% from 7.39%, and operating margin (EBITDA/revenue) rose to 23.07% from 10.14% a year ago, when a ₹157.17 Cr impairment charge and a weak cost-pass-through quarter had compressed profitability. This quarter still carried a ₹134.66 Cr net impairment/provision tied to Use-or-Pay (UoP) receivables, against which the company waived ₹252.80 Cr of UoP dues during the quarter under its Settlement Agreement with customers, recognising revenue at the prevailing regasification rate. Sequentially, though, margins eased — NPM down from 19.72% in Q1 and OPM from 27.62% — as cost of materials rose to 71.4% of revenue from 66.6% in Q1, a sequential slowdown worth flagging even as the YoY recovery holds. No verified Street consensus for this specific quarter was found in the public domain as of this filing, so vsStreet is marked unknown rather than inferred. On guidance, the filing carries no update on the FY27 capex plan (₹9,064 Cr budgeted per the Q1 FY27 call), petrochemical project progress, or Kochi pipeline completion flagged in the prior concall — management gives no fresh outlook in this result, so vsGuidance stands as unknown pending the post-results call. The quarter's other board actions tie into the numbers: a ₹7/share interim dividend was declared alongside results, the company filed a writ petition against a GST show-cause notice (30 Oct) adding to its litigation docket, and it signed a JV term sheet with Gruner Renewable Energy (22 Oct) for a renewables foray outside the core LNG franchise. Separately, and not yet reflected in the P&L, claims by the owners of Petronet's three suspended dedicated LNG vessels have grown to ₹625.42 Cr plus taxes as of 30 September, up sharply from ₹89.30 Cr at 31 March 2026, as arbitration over the Middle East force-majeure disruption continues unprovided for. Going into Q3 FY27, the read-through is a business recovering margin off a depressed year-ago base but still carrying two open tails — UoP receivable recoverability and the vessel-claim arbitration — that could swing results depending on resolution timing.