Petronet LNG announced its audited financial results for the quarter and financial year ended 31 March 2026, reporting a consolidated profit after tax of Rs 3,809.41 crore for the year. The Board of Directors, at its meeting held on 4 May 2026, recommended a final dividend of Rs 3.00 per equity share (face value Rs 10 each) for FY26, subject to shareholder approval at the forthcoming Annual General Meeting. Following the announcement, the company scheduled a post-results conference call on 5 May 2026 to discuss the financial performance. The audio recording of this conference call has been made available in compliance with SEBI (LODR) Regulations.

Analyst Views

Leading brokerages JPMorgan and Investec issued positive ratings on the stock following the results. JPMorgan maintained an Overweight rating with a target price of ₹335, noting that the Q4 performance beat expectations on the back of stronger-than-anticipated volumes and recovery of past Use-or-Pay charges. Investec initiated coverage with a Buy rating and a target price of ₹400, highlighting the earnings beat driven by a provision reversal despite utilisation pressures from Middle East disruptions impacting Dahej operations.

Financial Performance Overview

For the year ended 31 March 2026, Petronet LNG reported standalone revenue from operations of Rs 43,494.91 crore, compared to Rs 50,979.56 crore in the previous year. The standalone profit after tax stood at Rs 3,842.67 crore for FY26, down from Rs 3,926.37 crore in FY25. On a consolidated basis, revenue from operations reached Rs 44,358.98 crore (vs Rs 50,982.03 crore in FY25), with profit after tax at Rs 3,809.41 crore (vs Rs 3,883.92 crore). Including the share of profit from joint ventures, consolidated profit after share of joint ventures stood at Rs 3,912.53 crore for FY26, compared to Rs 3,972.68 crore in FY25.

Quarterly Performance

For the quarter ended 31 March 2026, Petronet LNG delivered a notable sequential improvement in profitability. Standalone Q4 EBITDA rose to Rs 18.6 billion from Rs 11.99 billion in the previous quarter, with the EBITDA margin expanding to 19.70% from 10.74% QoQ. Standalone revenue from operations for the quarter came in at Rs 94.42 billion, compared to Rs 111.6 billion in the preceding quarter. Standalone profit after tax for Q4 stood at Rs 13.38 billion, up from Rs 8.5 billion QoQ. The quarter also saw an impairment reversal of Rs 495.79 crore, contributing to improved profitability.

Petronet LNG is currently in active discussions with QatarEnergy to address the supply of cargoes that have been disrupted due to force majeure declarations during the year. A company executive confirmed the ongoing negotiations, underscoring the significance of the Qatar supply relationship to India's LNG import framework.

Talks Underway to Resume Disrupted Supplies

The force majeure-affected cargoes have prompted Petronet LNG to engage directly with QatarEnergy in an effort to restore the affected supply volumes. Force majeure clauses are typically invoked when extraordinary circumstances prevent the fulfilment of contractual obligations, and the ongoing discussions reflect both parties' intent to resolve the disruption.

The key details surrounding the development are outlined below:

Supply Restart Contingent on Middle East Conditions

According to the company executive, QatarEnergy supplies are anticipated to restart in June, provided that conditions in the Middle East show improvement. The statement reflects the direct linkage between regional geopolitical developments and the operational continuity of LNG cargo deliveries under the existing supply arrangement. No further timeline or volume details were provided in the available information.