Petronet LNG Q2 FY27: consol. PAT +51% YoY to ₹1,256 Cr on margin recovery, eases QoQ
PAT +51.32% YoY · revenue -34.58% · margins expanding
₹7,202.22 Cr
-34.58% YoY
₹1,256.43 Cr
+51.32% YoY
16.9%
+9.5pp YoY
₹8.38
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.
Q2 FY-2027 vs prior quarters
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.
The stock went into the print at ₹300.95, up 5.8% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters.
What the summary numbers don't show
Consolidated basic EPS ₹8.38 for the quarter vs ₹7.58 in Q1 FY27 and ₹5.54 in Q2 FY26.
FY27 capex ₹9,064 Cr budgeted; petchem 40% complete, mechanical completion of Kochi pipeline by Q1 end targeted; contract renewal closure expected within 2–3 quarters; tariff discussions ongoing, no revision.
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.
W1
Outcome of arbitration on the ₹625.42 Cr vessel-owner claims (grown from ₹89.30 Cr since March 2026) — financial impact currently undetermined.
W2
Recovery of the remaining net UoP receivable (₹177.51 Cr, after a ₹230.72 Cr provision) from customers under the agreed recovery mechanism.
W3
Whether the QoQ step-down in operating margin (27.62% to 23.07%) reverses as the cost-of-materials-to-revenue ratio normalizes from 71.4%.
Third-Party Volumes Rising, Qatar Force Majeure Still the Wildcard
With Kochi pipeline completion expected by quarter-end and Qatari volumes offline, the Street looks for higher third-party volume absorption and sustainable margin recovery as Petronet LNG enters a transition period under new leadership.
Petronet LNG enters Q2 FY27 in a regime of constraint and opportunity. Qatar's force majeure — triggered by mid-2024 infrastructure damage — persists, meaning 7.5 million tonnes per annum of contracted capacity sits idle. Yet third-party volumes are rising as offtakers diversify suppliers away from Qatar. The Street's consensus: assume steady EBITDA in a range, watch the pace of third-party absorption and the timing of Kochi terminal completion by quarter-end. Leadership transition (new MD & CEO, Sanjay Kumar, appointed Oct 2) adds transition risk but no near-term operational signal.
What to Expect: The On-Plan Case
~55–60%
Guided by historical run-rate; third-party mix may compress slightly vs Q1's 50%+ EBITDA/revenue
~₹1,350–1,450 Cr
Implies revenue of ~₹2,250–2,600 Cr; Q1 saw ₹2,260 Cr on sharply lower utilization
~60–70%
Q1 FY27 saw lower utilization due to Qatar halt; third-party ramp should lift Q2
70–75% third-party
Qatar 7.5 MMTPA offline; RIL, Shell, TotalEnergies, others filling the gap
A strong Q2 would show EBITDA near ₹1,450 Cr with revenue above ₹2,500 Cr, signaling third-party volume acceleration and pricing in line with global spot markets. A weak Q2 would see EBITDA closer to ₹1,300 Cr with revenue below ₹2,300 Cr if spot LNG markets soften, third-party offtakers defer cargoes, or Kochi pipeline delays push completion into Q3.
On Track? The Full-Year Trajectory
Q1 FY27 delivered ₹1,137 Cr PAT (up 35% YoY), but revenue collapsed 53% YoY due to the Qatar force majeure and lower absolute LNG volumes. If Kochi completes on schedule and third-party volume growth sustains, Petronet can approach its historical EBITDA run-rate of ~₹5,500–5,800 Cr for full-year FY27, implying ~₹1,300–1,400 Cr per quarter as a floor even with Qatar offline. PAT in Q2 is expected to be stable to slightly higher than Q1, assuming no material forex loss (Q1 faced a headwind) and comparable tax rates. The Street's long-term thesis: Qatar force majeure is cyclical, contract renewals (tracked within 2–3 quarters) will lock in higher third-party volume commitments, and Kochi terminal capex completion unlocks further utilization.
What the Street Says
Since Last Quarter: The Filing Scan
Oct 23, 2026
Board Meeting: Q2 FY27 Results & Interim Dividend
Nov 2 board meet to approve unaudited financials and consider interim dividend
Oct 22, 2026
JV Term Sheet: Gruner Renewable Energy (CBG)
10 Compressed Bio-Gas plants planned; 50:50 JV; diversification into renewable gas
Oct 21, 2026
Analyst Meet: UBS Hong Kong (Nov 6)
Investor roadshow; post-result engagement opportunity
Oct 2, 2026
MD & CEO Appointment: Sanjay Kumar
Transition from Prabhat Singh; Kumar is ex-Director (Marketing); leadership continuity
Sep 17, 2026
CBG JV Approved (50:50 Gruner)
Strategic diversification; 10 plants target; supports long-term growth story
Sep 2, 2026
28th AGM (Sep 28, 2026)
Annual governance; BRSR submitted for FY26
Aug 12, 2026
Q1 FY27 Results: PAT ₹1,137 Cr (up 35% YoY)
Revenue down 53% YoY on Qatar force majeure; EBITDA ₹1,530 Cr (up 32% YoY)
No insider/promoter activity or pledges flagged in recent filings. FII ownership slipped 0.85pp QoQ to 26.27% in Q1 FY27 (promoter steady at 50%, DII +0.75pp). The CBG JV with Gruner is strategic, not immediate EPS accretive, but signals management's conviction in the long-cycle growth story. New MD appointment is routine succession planning; no red flags.
What to Watch on Result Day
1 · Third-Party Volume Traction
Has offtaker diversification (RIL, Shell, TotalEnergies, Exxon, others) begun to accelerate? Absolute cargo count and daily average throughput are the key signals. If Q2 shows volume growth QoQ, the Street will reprrice the force majeure as manageable.
2 · Kochi Terminal Completion & Ramp Timeline
Management guidance on pipeline connectivity completion date is critical. If delayed beyond Q2, the market will reset Q3 utilization expectations lower. Any timeline push will likely pressure near-term sentiment.
3 · EBITDA & Margin Sustainability
Watch for EBITDA guidance or commentary on margin trajectory as spot LNG prices have moved. If global LNG spot prices remain soft, third-party margins may compress; strong pricing would validate the bull case.
4 · Contract Renewal Commentary
Management commentary on contract renewals in progress with offtakers is a proxy for volume stickiness. Any indication of delays or renegotiation would be a negative.
5 · Interim Dividend Announcement
The Board will consider interim dividend on Nov 2. Dividend level is a signal of management's confidence in the earning run-rate and capital allocation priorities.
Petronet LNG's Q2 FY27 print will be judged on third-party volume momentum, not absolute EBITDA — the market prices in Qatar force majeure as temporary. Kochi terminal completion by quarter-end is the operational milestone that moves the needle. Street consensus is solidly Buy on long-term recovery, but near-term volatility is likely if third-party ramp is slower than expected or new management signals any deviation from the run-rate trajectory. The Nov 2 board meet brings Q2 results and dividend; Nov 6 UBS analyst meet in Hong Kong will be the next investor touchpoint.