Petronet LNG Limited showcased strong operational and financial performance in the third quarter of FY26, demonstrating improved capacity utilization and operational efficiencies across its terminals. The company's earnings conference call held on February 13, 2026, revealed significant progress in both volume throughput and financial metrics.

Financial Performance Highlights

The company delivered robust financial results for the quarter ended December 31, 2025. Key performance indicators showed consistent growth across multiple parameters.

For the nine-month period ended December 31, 2025, the company reported PBT of INR3,363 crores compared to INR3,829 crores in the corresponding period. Profit after tax for the nine months stood at INR2,505 crores against INR2,856 crores in the previous year.

Operational Performance and Volume Growth

Petronet LNG processed 233 TBTU of LNG volumes during Q3 FY26, reflecting 2% growth over both the previous quarter and corresponding quarter, where volumes stood at 228 TBTU each. The company's terminal operations showed marked improvement in capacity utilization.

Dahej Terminal Performance

Dahej terminal demonstrated strong operational metrics with volume throughput reaching 214 TBTU during the current quarter, compared to 211 TBTU in the previous quarter and 213 TBTU in the corresponding quarter. Capacity utilization at Dahej improved to 94%, up from 92% in the previous quarter and 93% in the corresponding quarter.

Kochi Terminal Achievement

Kochi Terminal achieved its highest ever capacity utilization of 29% during the current quarter, primarily driven by incremental offtake from existing customers including MRPL, OMPL, and Kochi refinery as LNG prices softened.

Expansion Plans and Infrastructure Development

The company is advancing its capacity expansion initiatives with multiple projects in various stages of development. Management confirmed that the 5 MMTPA additional capacity at Dahej terminal is on track for mechanical completion by March 2026.

Capital Expenditure and Investment Plans

Petronet LNG outlined substantial capital expenditure plans for the coming years. The company expects to spend approximately INR3,000 crores in FY26, with a significant increase to INR9,000 crores planned for FY27.

Petrochemical Project Progress

The petrochemical project represents the largest component of the company's capex program. Till March 2026, total petrochemical outflow is expected to be approximately INR2,300 crores. For FY27, the company anticipates spending around INR7,500 crores on petrochemical projects out of the total INR9,000 crores budget.

Strategic Agreements and Market Position

The company recently signed a master regasification agreement with ONGC, establishing a framework for potential long-term capacity arrangements. This agreement covers terms and conditions including storage period, regasification charges, and operational provisions.

Management highlighted Dahej terminal's competitive advantages, including evacuation capacity of 35 million metric tons against current capacity of 17.5 MMTPA, competitive pricing, and substantial storage facilities with 8 tanks providing operational flexibility to customers.

Pipeline Connectivity and Future Outlook

Kochi terminal is expected to benefit from improved pipeline connectivity, with GAIL maintaining March 2026 timeline for the Kochi-Kuttanad-Bangalore-Mangalore pipeline connection, though management expects completion by June 2026. This connectivity will enhance the terminal's access to broader markets and support increased utilization.

The company maintains its commitment to operational efficiency and disciplined financial management while pursuing long-term value creation for stakeholders through strategic capacity expansions and infrastructure development.

Petronet LNG Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results at their meeting held on February 12, 2026, which commenced at 2:30 PM and concluded at 4:35 PM.

Q3FY26 Financial Performance

The company reported mixed performance for the third quarter with revenue declining year-over-year while maintaining healthy profitability levels.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company showed a decline in both revenue and profitability compared to the corresponding period in the previous year.

Use or Pay Dues and Recovery Mechanism

Trade receivables as at December 31, 2025 include Use or Pay (UoP) dues amounting to ₹1,313.89 crore gross, with a net amount of ₹498.31 crore after making a provision of ₹815.58 crore. These dues have arisen due to lower capacity utilisation by customers under long-term regasification agreements.

The Board has approved a recovery mechanism for UoP dues relating to CY 2022 and CY 2023. The company has obtained bank guarantees from customers to secure recovery of UoP dues for CY 2022 and is implementing this mechanism with all customers for CY 2023.

Regulatory and Operational Updates

The Government of India notified four Labour Codes effective from November 21, 2025, consolidating 29 existing labour laws. Accordingly, the company has recognised an estimated incremental impact of ₹25.44 crore on account of past service cost under Employee Benefit Expense during the quarter and nine months ended December 31, 2025.

The company waived off UoP dues amounting to ₹78.79 crore and ₹107.67 crore for the quarter and nine months ended December 31, 2025 respectively, as per the Settlement Agreement terms under the recovery mechanism.

Consolidated Results

On a consolidated basis, the company reported net profit of ₹869.61 crore for Q3FY26 compared to ₹901.70 crore in Q3FY25. For nine months, consolidated net profit stood at ₹2,541.79 crore against ₹2,877.78 crore in the previous year.