Petronet LNG , India's largest liquefied natural gas importer, reported mixed results for the first quarter of fiscal year 2026, with increased volumes processed but lower profits compared to the previous year. The company also announced significant expansion plans, including an enhanced investment for a new LNG terminal in Odisha.

Q1 FY26 Financial Highlights

Petronet LNG processed 220 TBTU (trillion British thermal units) of LNG volumes in Q1 FY26, registering a 7% growth compared to 205 TBTU in the previous quarter. However, the company's profitability declined:

Despite the profit decline, the company's net worth crossed a significant milestone, reaching ₹20,233.00 crores as of June 30, 2025, up from ₹19,382.00 crores on March 31, 2025.

Operational Performance

The company's flagship Dahej terminal processed 207 TBTU, showing a robust 10% quarterly growth. This improvement in throughput was attributed to stable LNG prices, efficient operations, and higher capacity utilization.

Gopalpur Terminal Expansion

In a significant development, Petronet LNG's Board of Directors approved an enhanced investment of ₹6,355.00 crores for setting up a 5 MMTPA (million metric tonnes per annum) land-based LNG terminal at Gopalpur Port, Odisha. This marks the company's first greenfield LNG project on India's East Coast, transitioning from the earlier 4 MMTPA FSRU-based plan. The project is expected to be completed in approximately 3 years.

Financial Strategy

To support its expansion plans, Petronet LNG has issued a request for proposal (RFP) for financing a rupee term loan of ₹12,000.00 crores. This move is aimed at funding the company's ambitious capex program, which includes the Gopalpur terminal and other strategic projects.

Market Outlook

The company remains optimistic about the future of India's LNG market. Gyanendra Kumar Sharma, GGM and President of Marketing at Petronet LNG, stated, "India's LNG consumption is expected to more than double by 2028 to 2030. It's crucial for India to keep pace with infrastructure development to capitalize on the anticipated affordable LNG prices due to increased global supply."

New Supply Agreement

Petronet LNG also announced a new agreement with Deepak Fertilisers for a minimum of 0.5 million tons of LNG supply, starting between May to July 2026. This agreement has the potential to increase up to 0.65 million tons, demonstrating the company's commitment to securing long-term supply contracts.

Despite facing challenges in the short term, Petronet LNG's strategic investments and expansion plans position it to capitalize on the expected growth in India's LNG demand. The company's focus on enhancing infrastructure and securing long-term supply agreements reflects its confidence in the sector's long-term prospects.

Petronet LNG Limited , a key player in India's liquefied natural gas (LNG) sector, has announced a final dividend of Rs 3.00 per share for the financial year 2024-25. The dividend, which is subject to shareholder approval at the upcoming 27th Annual General Meeting, comes with comprehensive guidelines on tax deduction at source (TDS).

Dividend Details

The Board of Directors of Petronet LNG recommended the final dividend on May 19, 2025. Shareholders on record as of July 4, 2025, will be eligible to receive the dividend, which will be paid within 30 days of its declaration at the Annual General Meeting.

Tax Deduction Guidelines

Petronet LNG has issued detailed instructions regarding TDS on dividend payments, adhering to the provisions of the Income Tax Act, 1961. The TDS rates vary based on the category of shareholders:

1. Resident Individuals:

   • 10% TDS for dividends exceeding Rs 10,000.00 annually
   • No TDS for dividends under Rs 10,000.00 per financial year

2. Non-Resident Shareholders:

   • 20% TDS or as per applicable tax treaty rates, whichever is lower

3. Institutional Investors:

   • Specific exemptions for insurance companies, mutual funds, and other qualifying institutional investors

Important Dates and Documentation

Shareholders must submit the required documentation by August 23, 2025, to avail of applicable exemptions or reduced TDS rates. The company has emphasized the importance of linking PAN with Aadhaar, as failure to do so may result in a higher TDS rate of 20%.

Shareholder Action Required

To ensure smooth processing of dividends and appropriate tax deduction:

1. Resident shareholders should verify their PAN details and Aadhaar linkage status.
2. Non-resident shareholders should provide necessary documentation for availing treaty benefits.
3. Institutional investors must submit relevant exemption certificates.

Petronet LNG has urged shareholders to carefully review the detailed circular available on the company's website for category-specific requirements and exemption procedures.

This dividend announcement, coupled with the comprehensive TDS guidelines, demonstrates Petronet LNG's commitment to shareholder value and regulatory compliance. Investors are advised to take necessary actions within the stipulated timeframe to ensure proper dividend credit and tax treatment.