Petronet LNG Ltd Q1 FY27 Results Analysis: Revenue Collapses 53%, PAT Grows 34%

Petronet LNG Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 5,557.84 Cr (-53.20% YoY) and PAT growth of +34.43% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Petronet LNG's Q1 FY27 revenue collapsed 53% YoY due to the ongoing Force Majeure on its Qatar LNG supply, with zero cargoes loaded. Yet PAT grew 34% and EBITDA margins surged 1,781 bps to 27.6% as material costs fell faster than revenue, demonstrating cost pass-through flexibility. The core business faces severe volume disruption, and vessel claims have ballooned, making the near-term outlook uncertain until the geopolitical situation resolves.

Key Investment Insights

Key Positives

• PAT grew 34.4% YoY to Rs.1,108.27 crore despite 53.2% revenue decline.
• EBITDA margin expanded 1,781 bps YoY to 27.57%.
• Total expenses fell 61.1% YoY, 790 bps faster than revenue, showing cost flexibility.
• Net worth stands at Rs.22,284.82 crore with CRISIL AAA rating.
• Dividend of Rs.3/share paid for FY26, reflecting strong cash position.

Risk Factors

• Revenue declined 53.2% YoY to Rs.5,557.84 crore due to Force Majeure on Qatar SPA.
• Force Majeure conditions continued throughout Q1 FY27 with no resolution timeline.
• Vessel claims increased from Rs.89.30 crore to Rs.348.13 crore; arbitration pending.
• Use-or-Pay net exposure is Rs.312.17 crore after provisions of Rs.348.86 crore.
• Impairment loss of Rs.100.86 crore recorded in Q1 (versus reversal in Q4 FY26).