Petronet LNG reported a softer quarterly performance due to declining volumes and rising costs, but remains committed to expansion with a ₹6,355 crore LNG terminal in Odisha, signalling long-term growth ambitions despite near-term pressures.
Petronet LNG said on its Q1 FY27 earnings call that it had continued to manage a softer operating environment, with senior executives fielding questions on revenue, expenses and profit after the quarter ended 25 June 2026. GuruFocus said the discussion involved the finance team and marketing heads, underscoring how closely the company is tracking both financial and volume trends.
The June quarter was marked by weaker earnings. Business Standard reported that net profit fell 25% from a year earlier to ₹850.58 crore, while Livemint said total revenue slipped 3.54% from the previous quarter and net income came in at ₹841.88 crore. The company has linked the decline to lower imported volumes, as power demand softened and the monsoon arrived early, reducing gas offtake.
Petronet is also pursuing a major expansion plan. Business Standard said the company intends to invest ₹6,355 crore in a new LNG import terminal in Odisha, a move that would widen its infrastructure footprint even as near-term trading conditions remain uneven. The investment suggests management is still positioning for long-term demand growth in India’s gas market, where LNG remains central to supply security.
Near-term pressure may persist. Mint reported that higher LNG procurement costs and the disruption caused by tensions in West Asia are weighing on domestic gas companies, while Business Standard noted that Nomura cut its target price for Petronet after concerns about disruptions at Qatar’s Ras Laffan LNG facility, a key export hub. Together, those factors point to a more challenging backdrop for FY27 volumes and margins than the company faced a year earlier.
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