Petronet Lng Limited (PETRONET) AI Stock Analysis

• Market Cap: ₹463.73B
• Dividend Yield: 3.58%
• Average Volume (3M): 146.80K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.85
• Revenue Growth: -13.73%
• EPS Growth: -7.20%
• Country: IN
• Employees: 521
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 5.80
• Shares Outstanding: 1,500,000,100
• 10 Day Avg. Volume: 180,966
• 30 Day Avg. Volume: 146,796
• PEG Ratio: 1.28
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 15.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹200.00
• Price Target Upside: -30.59% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 24.75
• Revenue Forecast (FY): ₹466.65B

• Rating: 75 Outperform
• Price Target: ₹347.00 ▲(20.42% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Petronet Lng Limited's strong financial performance and attractive valuation are the primary drivers of its overall score. The company demonstrates robust profitability and cash flow management, with a low P/E ratio and high dividend yield enhancing its investment appeal. Technical indicators suggest moderate bullish momentum, though resistance levels are present.

Positive Factors

Consistent operating cash flow generation

Operating cash flows consistently exceed net income, producing robust free cash flow. This durable cash generation supports reinvestment in terminals, funds distributions, and buffers through LNG cycle swings, improving long-term financial flexibility and funding for capacity projects.

Prudent balance sheet and strong equity base

A solid equity base and moderate leverage provide financial resilience for capital-intensive terminal operations. Prudent debt levels and strong ROE mean the firm can fund expansions or withstand demand shocks without excessive refinancing risk, sustaining strategic optionality.

Business model anchored by contracted terminal services

Long-term capacity bookings and fixed terminal service fees create predictable, contract-backed cash flows that reduce exposure to spot LNG price swings. This structural revenue base supports stable margins and long-horizon planning for maintenance and capacity enhancements.

Negative Factors

Recent revenue contraction

An ~11.6% revenue decline signals demand or utilization weakness at terminals. If sustained, lower throughput can erode fixed-charge coverage and constrain reinvestment, pressuring long-term growth and forcing pricing or contract renegotiations to restore volumes.

Earnings per share deterioration

Negative EPS growth reflects margin or volume pressures beyond revenue swings. Continued EPS contraction can limit retained earnings available for capex or dividends, reduce flexibility for strategic investments, and signal cost or utilization challenges needing structural fixes.

Earnings sensitive to throughput mix and contract mix

Revenue dependance on the balance of long-term bookings and spot volumes leaves earnings exposed if contract renewals shift or spot demand falls. Structural shifts toward lower contracted utilization would reduce revenue visibility and elevate cash flow cyclicality.

Petronet Lng Limited Business Overview & Revenue Model

Company Description

Petronet LNG Limited engages in the import, regasification, and supply of liquefied natural gas (LNG) in India. The company owns and operates a LNG import and regasification terminal with name plate capacity of 17.5 MMTPA located in Dahej, Gujarat; and a LNG terminal with name plate capacity of 5 MMTPA located in Kochi, Kerala. Petronet LNG Limited was incorporated in 1998 and is based in New Delhi, India.

How the Company Makes Money

Petronet LNG Limited generates revenue primarily through the import and regasification of LNG. The company charges fees for regasifying LNG, which contributes significantly to its earnings. Additionally, PETRONET has long-term contracts with various suppliers and customers, providing a steady revenue stream. The company also benefits from strategic partnerships and collaborations with global LNG suppliers, which enhance its supply chain and operational efficiencies. The growing demand for natural gas in India, driven by the government's push for cleaner energy sources, further supports PETRONET's financial performance.

Petronet Lng Limited Financial Statement Overview

Summary

Petronet Lng Limited exhibits strong profitability with consistent gross and net profit margins. The company maintains a stable financial position with effective cost management and robust cash flow generation, despite recent revenue growth challenges.

Income Statement

Petronet Lng Limited has exhibited strong profitability with a consistent gross profit margin and a healthy net profit margin. The company has demonstrated resilience in revenue growth, though it faced a decline in the latest year. EBIT and EBITDA margins have remained robust, suggesting effective cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with a favorable equity ratio, indicating financial stability. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on Equity is impressive, showcasing strong shareholder returns. Overall, the company maintains a stable financial position with prudent leverage management.

Cash Flow

Petronet Lng Limited has consistently generated strong operating cash flows, exceeding net income, which is a positive indicator of financial health. The free cash flow has been robust, supporting growth and providing flexibility for investments. Despite some fluctuations, cash flow management remains a strong aspect of the company's financials.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	494.47B	509.82B	527.29B	598.99B	431.69B	260.23B
Gross Profit	61.84B	66.39B	62.26B	59.12B	60.57B	52.96B
EBITDA	49.89B	52.56B	49.16B	47.75B	50.07B	43.61B
Net Income	37.09B	39.73B	36.52B	33.26B	34.38B	29.39B
Balance Sheet
Total Assets	0.00	272.97B	255.23B	227.52B	213.62B	190.90B
Cash, Cash Equivalents and Short-Term Investments	101.46B	101.46B	73.29B	65.01B	51.57B	57.08B
Total Debt	0.00	26.57B	30.08B	33.45B	34.38B	36.53B
Total Liabilities	-198.78B	74.19B	81.13B	75.34B	76.94B	72.83B
Stockholders Equity	198.78B	198.78B	174.10B	152.65B	136.68B	118.07B
Cash Flow
Free Cash Flow	0.00	29.46B	40.30B	15.11B	33.96B	34.86B
Operating Cash Flow	0.00	43.98B	48.71B	25.69B	34.69B	35.59B
Investing Cash Flow	0.00	-31.89B	-10.56B	-11.92B	-10.53B	-9.27B
Financing Cash Flow	0.00	-21.52B	-21.54B	-23.68B	-22.11B	-27.59B

Petronet Lng Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 288.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PETRONET, the sentiment is Neutral. The current price of 288.15 is below the 20-day moving average (MA) of 302.22, below the 50-day MA of 291.98, and above the 200-day MA of 282.88, indicating a neutral trend. The MACD of 3.13 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 33.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PETRONET.

Petronet Lng Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIL	77 Outperform	₹1.09T	16.11	―	4.39%	5.91%	-5.42%
BPCL	76 Outperform	₹1.55T	5.71	―	4.73%	-1.35%	61.80%
PETRONET	75 Outperform	₹463.73B	12.25	―	3.58%	-13.73%	-7.20%
OIL	74 Outperform	₹794.84B	14.43	―	2.94%	-1.94%	-28.79%
ONGC	72 Outperform	₹3.55T	7.55	―	5.21%	0.10%	-10.18%
IOC	68 Neutral	₹2.53T	4.41	―	4.90%	-0.93%	42.85%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Petronet Lng Limited Corporate Events

Petronet LNG Declares Force Majeure as Middle East Conflict Disrupts Shipments

Petronet LNG has reported a disruption in operations after hostilities in the Middle East between Iran and Israel made it unsafe for LNG vessels to transit the Strait of Hormuz en route to Ras Laffan, QatarEnergy’s loading port. In response, the company has declared force majeure on its LNG tankers Disha, Raahi, and Aseem, following a similar notice from its supplier QatarEnergy.

The company has passed on corresponding force majeure notices to key off-takers GAIL, Indian Oil, and Bharat Petroleum under their gas sale agreements, signaling potential interruptions in contracted LNG supplies. Petronet notes that acts of war are excluded from its business interruption insurance and says the financial and operational impact of this ongoing event cannot yet be estimated, though it will continue to monitor the situation and update markets as material developments arise.

Petronet LNG Releases Q3 FY26 Earnings Call Transcript

Petronet LNG Limited has released the official transcript of its Q3 FY 2026 earnings conference call, held on 13 February 2026, where management discussed the unaudited financial results for the quarter and nine months ended 31 December 2025. The disclosure, made under SEBI’s listing regulations, provides investors and other stakeholders with a detailed record of management commentary and Q&A, enhancing transparency around the company’s financial performance and outlook.

Petronet LNG Deepens Gas Market Role With ONGC, Mahanagar Gas Pacts

Petronet LNG Limited has signed a five-year Master Regasification Agreement with Oil and Natural Gas Corporation under which it will provide receipt, storage and regasification services for ONGC’s imported LNG at its Dahej terminal, supporting ONGC’s strategic push into gas marketing and its plan to supplement domestic gas production with LNG to meet growing demand across sectors. In a parallel move, Petronet has also executed a one-year Master Agreement with Mahanagar Gas Limited for the sale of regasified LNG, further strengthening its role as a critical midstream player in India’s expanding natural gas ecosystem and deepening ties with key downstream utilities as pipeline networks, city gas distribution and regasification capacity continue to grow.

Petronet LNG bolsters board with senior government energy officials

Petronet LNG has strengthened its board by appointing Dr. Neeraj Mittal, Secretary, Ministry of Petroleum and Natural Gas, as Additional Director and Chairman with effect from 16 January 2026, bringing in a senior civil servant with extensive experience in energy policy, digital governance and large public-sector programs. The company has also inducted Ms. Avantika Singh Aulakh, Managing Director of Gujarat State Petroleum Corporation, as an Additional Nominee Director representing Gujarat Maritime Board/Government of Gujarat, adding a profile with deep administrative expertise in Gujarat’s energy, infrastructure and maritime sectors, which is likely to reinforce alignment with key government stakeholders and support future strategic initiatives around LNG and related infrastructure.

Petronet LNG Board Sees Government-Nominated Director Change

Petronet LNG Limited announced a change in its board composition following a nomination from India’s Ministry of Petroleum and Natural Gas, which has appointed Neeraj Mittal, IAS, Secretary of the ministry, to the company’s board in place of Pankaj Jain, IAS. The move underscores the continuing alignment of Petronet LNG’s governance with government oversight of the strategic LNG sector, and signals ongoing policy-linked influence on the company’s strategic direction and stakeholder interests, with further details on Mittal to be provided after his formal appointment in line with Indian company law requirements.

Petronet LNG Sees Board Change with New GSPC Nominee Director

Petronet LNG Limited has announced a change in its board composition following a communication from Gujarat State Petroleum Corporation Limited (GSPC). GSPC has withdrawn the nomination of Shri Milind Torawane, IAS, who ceased to be a director of Petronet LNG with effect from 24 December 2025, and has nominated Ms. Avantika Singh Aulakh, IAS, Managing Director of GSPC, as its new nominee director on Petronet LNG’s board in his place. The details of Ms. Aulakh will be provided after her formal appointment, and the move reflects the ongoing refresh of representation by key state stakeholders in the governance of India’s LNG infrastructure operator.

Petronet LNG Limited Announces Change in Registered Office Location

Petronet LNG Limited has announced a change in the location of its registered office, as published in major newspapers. This move is part of the company’s compliance with regulatory requirements and may impact its administrative operations, potentially influencing its strategic positioning in the energy market.