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Petronet LNG's Q4 profit pops 45%. But revenue dips

Improved margins do the heavy lifting as dividend sweetens the deal

Improved margins do the heavy lifting as dividend sweetens the dealAdobe Stock

Petronet LNG just dropped its Q4 numbers, and on the face of it, there's plenty to cheer. Net profit surged 45 per cent year-on-year to Rs 1,070 crore. That's the highest it's earned in a single quarter in recent memory.

And while revenue fell 11 per cent YoY, investors aren't losing sleep. Why? Because margins improved and the company topped it off with a Rs 3 per share final dividend.

Petronet LNG Q4 result scorecard

Here's a snapshot of Petronet LNG's key numbers:

Metric Q4 FY25 Q4 FY24 Change
Revenue from operations Rs 12,316 crore Rs 13,874 crore ▼ 11.2 per cent
EBITDA Rs 1,514 crore Rs 1,248 crore ▲ 21.3 per cent
EBITDA margin 12.3 per cent 10.2 per cent ▲ 210 bps
Net profit Rs 1,070 crore Rs 738 crore ▲ 45 per cent
Earnings per share (EPS) Rs 7.13 Rs 4.91 ▲ 45 per cent
Source: Company filings, BSE

What's driving the bottom line?

Even with lower topline, Petronet's Q4 profit jumped thanks to:

  • Better cost control : Operational tweaks and efficient throughput lifted profitability.
  • Strong margin game : Higher EBITDA margins meant more money per rupee earned.
  • Dividend boost : A Rs 3 per share dividend keeps shareholders smiling.

The company's earnings before tax also got a leg up from other income, adding further heft to the bottom line.

What does Petronet LNG do?

Petronet LNG is India's largest liquefied natural gas (LNG) importer, operating massive terminals in Dahej and Kochi. Backed by state-run majors like GAIL, ONGC, IOC, and BPCL, it's a crucial cog in India's energy infrastructure, handling roughly three-fourths of the country's LNG imports.

Below are the company's fundamental metrics:

Metric Value
Market cap Rs 48,113 cr
Revenue (TTM) Rs 52,459 cr
Net profit (TTM) Rs 3,642 cr
ROE 21.6 per cent
ROCE 30.2 per cent
P/E ratio 13.2
P/B ratio 2.4
Industry P/E 44.99
EV/EBITDA 6.5
Dividend yield 3.1 per cent
Debt to equity 0
EPS Rs 24.3

How's the stock looking?

Petronet LNG's stock has been relatively flat over the past year, but the latest results might change that. While revenue took a hit, profit growth and stable fundamentals could bring fresh interest, especially from dividend hunters.

According to Value Research Online:

  • Quality score : 10/10
  • Growth score : 6/10
  • Valuation score : 7/10
  • Momentum score : 6/10
  • Overall rating : ★★★★★

Final word

Petronet LNG might not be in the spotlight like high-flying tech stocks or defence plays, but it's quietly delivering. With strong margins, solid profitability, and a consistent dividend track record, it's the kind of stock long-term investors may want to keep in their core portfolio.

Just keep in mind: energy prices, global LNG demand, and policy shifts could still throw curveballs. For now, though, the company looks steady and profitable.

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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.

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