Petronet LNG margin slips sequentially despite 29.59% revenue growth
Costs grew faster than revenue QoQ, but lower expenses versus last year lifted operating margin and net profit.
Filed 02 Nov 2026, 15:55 IST · after market close · Petronet LNG Ltd (PETRONET)
Key takeaways
- Consolidated operating margin fell 4.55 percentage points QoQ to 23.07% as expenses grew 37.73%, faster than revenue at 29.59%.
- Year-on-year net profit rose 51.32% even as revenue fell 34.58%, because expenses fell 43.99% and operating margin expanded 12.93 percentage points.
- Other income contributed 15.17% of pre-tax profit, while the 25.21% tax rate was broadly unchanged from 25.00% a year earlier.
Price around the results
Revenue recovery lifted profit, but the comparison is mixed
Petronet LNG reported consolidated revenue of Rs 7,202.22 cr, up 29.59% QoQ but down 34.58% YoY. The year-on-year profit increase came from expenses falling faster than revenue, with operating profit rising 48.81% and net profit rising 51.32%. QoQ, operating profit grew a more modest 8.24% despite the revenue increase.
Sequential cost growth reversed the margin improvement
Operating margin narrowed 4.55 percentage points QoQ because expenses rose 37.73%, faster than revenue at 29.59%. Year-on-year, expenses fell 43.99%, which explains the 12.93-percentage-point margin expansion despite lower revenue. Interest expense also fell 18.44% YoY, while the tax-rate change was only 0.21 percentage points.
Margin remains above peers after four quarters of gains
The 23.07% operating margin was 7.87 percentage points above the 15.20% median for the 18 Energy peers that had reported the same quarter. However, this was the first sequential margin decline after four consecutive quarterly increases, from 9.76% in Q1FY26 to 27.62% in Q1FY27.
Other income is a meaningful part of pre-tax profit
Other income of Rs 254.81 cr accounted for 15.17% of pre-tax profit, so reported earnings were not entirely driven by operating performance. The tax rate was 25.21%, close to 25.00% a year earlier, indicating that the year-on-year net-profit growth was not materially flattered by a lower tax rate.
No immediate market reaction after the post-close filing
The results were filed after market close, so there is no post-results reaction yet. In the last eight result reactions, the stock fell seven times and rose once, with a median absolute move of 1.81%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,202 cr | ₹5,558 cr | +29.59% | -34.58% |
| Other income | ₹255 cr | ₹236 cr | +7.79% | -2.79% |
| Expenses | ₹5,541 cr | ₹4,023 cr | +37.73% | -43.99% |
| Operating profit | ₹1,662 cr | ₹1,535 cr | +8.24% | +48.81% |
| Operating margin (%) | 23.07% | 27.62% | — | — |
| Interest | ₹50 cr | ₹51 cr | -1.88% | -18.44% |
| Depreciation | ₹187 cr | ₹201 cr | -7.19% | -11.40% |
| Profit before tax | ₹1,680 cr | ₹1,520 cr | +10.55% | +51.76% |
| Tax | ₹424 cr | ₹383 cr | +10.73% | +53.05% |
| Net profit | ₹1,256 cr | ₹1,137 cr | +10.49% | +51.32% |
| EPS (₹) | ₹8.38 | ₹7.58 | +10.55% | +51.54% |
Operating margin of 23.07% compares with a Energy sector median of 15.20% across 18 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 23.07% after the 4.55-percentage-point QoQ decline.
- Whether expense growth remains below revenue growth after expenses rose 37.73% versus revenue growth of 29.59% QoQ.
- Whether other income remains below or exceeds its 15.17% share of pre-tax profit.