Petronet margin jumps 17.86 pp despite 53.22% YoY revenue fall
Expenses fell 62.48% YoY, faster than revenue, while other income supplied 15.56% of pre-tax profit.
Filed 12 Aug 2026, 20:31 IST · after market close · Petronet LNG Ltd (PETRONET)
Key takeaways
- Petronet LNG’s consolidated operating margin expanded 17.86 percentage points YoY to 27.62% as expenses fell 62.48%, faster than the 53.22% revenue decline.
- Net profit rose 35.07% YoY to Rs 1,137.14 cr, but other income accounted for 15.56% of pre-tax profit.
- Operating margin improved for the fourth straight quarter, rising 7.91 percentage points QoQ despite a 41.14% sequential revenue decline.
Price around the results
Margin expansion offsets a 53.22% revenue decline
Petronet LNG reported consolidated revenue of Rs 5,557.84 cr in Q1FY27, down 53.22% YoY, while operating profit increased 32.44%. Expenses declined 62.48%, outpacing the revenue fall and lifting operating margin by 17.86 percentage points. Sequentially, revenue fell 41.14%, but the 46.94% drop in expenses drove a 7.91 percentage-point margin expansion.
Lower interest helped, but other income remains material
Interest expense fell 14.14% YoY and 17.7% QoQ, supporting pre-tax profit alongside the operating improvement. The tax rate was broadly stable, declining 0.15 percentage points YoY and rising 0.17 percentage points QoQ, so tax was not the main reason net profit increased. Other income of Rs 236.4 cr contributed 15.56% of pre-tax profit, making it a meaningful part of reported earnings.
Four consecutive quarterly margin gains put Petronet above peers
Operating margin has risen from 9.76% in Q1FY26 to 10.14%, 10.73%, 19.71% and now 27.62%, marking four consecutive sequential increases. Petronet’s margin was 12.24 percentage points above the 15.38% median for the 18 Energy companies that had reported the same quarter. The improvement came even as sequential net profit fell 17.04% after the unusually high Q4FY26 base.
Results were filed after market close; past reactions skew negative
The results were filed after market close, so there was no post-result stock reaction to assess. Across the eight most recent result reactions, the stock fell six times and rose twice, with a median absolute move of 2.11%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,558 cr | ₹9,442 cr | -41.14% | -53.22% |
| Other income | ₹236 cr | ₹233 cr | +1.30% | +1.01% |
| Expenses | ₹4,023 cr | ₹7,581 cr | -46.94% | -62.48% |
| Operating profit | ₹1,535 cr | ₹1,861 cr | -17.52% | +32.44% |
| Operating margin (%) | 27.62% | 19.71% | — | — |
| Interest | ₹51 cr | ₹62 cr | -17.70% | -14.14% |
| Depreciation | ₹201 cr | ₹205 cr | -2.06% | -2.76% |
| Profit before tax | ₹1,520 cr | ₹1,828 cr | -16.84% | +34.81% |
| Tax | ₹383 cr | ₹457 cr | -16.25% | +34.04% |
| Net profit | ₹1,137 cr | ₹1,371 cr | -17.04% | +35.07% |
| EPS (₹) | ₹7.58 | ₹9.14 | -17.07% | +35.12% |
Operating margin of 27.62% compares with a Energy sector median of 15.38% across 18 peers that have reported Q1FY27.
What to watch
- Whether operating margin remains above 27.62% after four consecutive quarterly increases.
- Whether expenses again decline faster than revenue, following a 62.48% YoY expense fall versus a 53.22% revenue decline.
- Whether other income remains a material contributor after accounting for 15.56% of pre-tax profit.