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Petronet LNG's Strong Fourth Quarter Performance
Petronet LNG has reported a robust fourth quarter for fiscal year 2026, significantly outperforming analyst forecasts. Revenue, EBITDA, and profit after tax (PAT) all surpassed estimates by 7%, 77%, and 64%, respectively. These strong results were driven by higher-than-anticipated volumes and favorable adjustments related to Use of Premises (UoP).
Volume Growth Powers Results, Dahej Terminal Shines
Volume performance was a key highlight, reaching 219 teratobutts (tbtu), which was 12% above projections. The Dahej terminal played a crucial role, operating at 91% capacity, while the Kochi terminal maintained expected performance levels. Excluding UoP provisioning and waivers, adjusted EBITDA and PAT would have shown even greater increases, up 30% and 19% above estimates, underscoring strong operational efficiency.
Attractive Valuations Seen by Analysts
Motilal Oswal analysts view Petronet LNG's current valuations as attractive. The stock is trading at 12 times its estimated FY27 earnings (P/E) and offers a dividend yield of approximately 3.3%. This pricing appears inexpensive when considering the company's growth prospects and market position.
Motilal Oswal Sets ₹360 Target Amid Growth Projections
The brokerage has set a discounted cash flow (DCF)-based price target of INR360 for Petronet LNG. This target includes a conservative assumption of a 5% tariff cut at the Dahej terminal in FY28, followed by a 4% increase for both terminals. Capital expenditure for the petchem plant has been fully accounted for, with its valuation conservatively set at 0.5 times its estimated FY29 P/B ratio, discounted back to FY27. Investors will monitor the company's navigation of regulatory changes and its execution of expansion plans.