Petronet LNG's Q2 Profit Declines 5.29% Sequentially; Declares ₹7 Interim Dividend

Petronet LNG Ltd, India's largest liquefied natural gas company, announced its financial results for the second quarter, reporting a net profit of ₹806 crore. This figure represents a 5.29% decrease compared to the ₹851 crore earned in the preceding quarter. The company's total revenue for the quarter also saw a decline of 7.3%, falling to ₹11,009 crore from ₹11,880 crore in the first quarter. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased by 3.7% to ₹1,117 crore. Despite these sequential drops, the operational efficiency of Petronet LNG showed improvement, as evidenced by an increase in its EBITDA margin to 10.15% from 9.76% in the previous quarter.

In addition to the financial results, the board of directors approved and declared an interim dividend of ₹7 per equity share for the financial year 2025-26. The specific record and payment dates for this dividend will be announced later.

Impact: While the headline figures for profit and revenue show a sequential decline, the improvement in the EBITDA margin is a positive indicator of the company's operational efficiency. The declaration of an interim dividend is a shareholder-friendly move that can support investor sentiment and potentially the stock price. Investors will be looking for clarity on the reasons behind the revenue dip and the company's outlook for future growth.

Impact Rating: 6/10

Difficult Terms Explained:

Net Profit: The profit remaining after all expenses, costs, and taxes have been deducted from a company's total revenue.

Revenue: The total income generated by a company from its primary business activities, such as sales of goods or services.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): A measure of a company's operating performance that excludes interest expenses, taxes, depreciation, and amortization. It's used to assess the profitability of core business operations.

EBITDA Margin: A profitability ratio calculated by dividing EBITDA by revenue. It shows how much profit a company generates from its operations for every unit of revenue earned.

Interim Dividend: A dividend paid to shareholders during the financial year, before the company's final accounts are prepared and the annual dividend is declared.