Quarterly Highlights
Petronet LNG a sharp earnings beat in Q4 FY25 with net profit jumping 23.4% sequentially to ₹1,070.2 crore, up from ₹867 crore last quarter. Revenue remained largely flat, inching up 0.7% to ₹12,315.8 crore, but the surprise came from a strong 21.3% rise in EBITDA to ₹1,513 crore, lifting margins to 12.3% from 10.2% QoQ. These numbers reflect both operating efficiency and improved utilization at its regasification terminals.
While global LNG markets faced volatility, Petronet managed to stabilize throughput and keep costs in check — a move that paid off handsomely in margin expansion and profit growth.
Also Read: Mold-Tek Q4 FY24 Results: Revenue Jumps 14.5%, Profit Slides on Margin Pressure
In a further boost to investors, the board announced a final dividend of ₹3 per share. With a dividend yield of 3.12% and a history of payout ratios above 45%, Petronet continues to stand out as a reliable income-generating stock in the energy space. The stock closed at ₹321, reflecting cautious optimism from the Street ahead of gas policy reforms and global price normalization.
Company Snapshot
Established in 1998 as a joint venture among GAIL, Indian Oil, Bharat Petroleum, and ONGC, Petronet LNG is India’s largest player in LNG regasification. It operates two strategically located terminals — Dahej and Kochi — with a combined capacity of 22.5 MMTPA, handling over 75% of the nation’s LNG imports. Its long-term take-or-pay contracts ensure stable cash flows and hedge against import volatility. You can learn more on the Petronet LNG official site.
On the fundamentals side, the company boasts a market cap of ₹48,105 crore, P/E of 13.4, and robust return ratios with ROCE at 26.4% and ROE at 22.2%. Debt remains minimal with a debt-to-equity ratio of just 0.15, while its free cash flow for FY25 crossed ₹4,000 crore — more than enough to support both dividends and capex plans.
Shareholding and Outlook
Promoters continue to hold 50% of the company, while FII and DII stakes stand at 28.77% and 11.18% respectively. The consistent shareholding structure underlines investor confidence despite sector-wide headwinds. Petronet’s performance stands tall in peer comparison, offering better margins and stronger cash generation than most gas distributors.
Going forward, India’s push toward cleaner fuels and industrial gas usage should support Petronet’s long-term demand visibility. With expansion plans and a near-monopoly status in LNG imports, the company remains a core holding for dividend-seeking investors.
Disclaimer
This article is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before acting on any investment decisions.
Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
