Petronet LNG lifts margin despite a 23.33% revenue fall
Expenses fell faster than revenue, lifting operating margin 8.98 percentage points sequentially; net profit rose 57.63% from Q3FY26.
Filed 04 May 2026, 16:17 IST · after market close · Petronet LNG Ltd (PETRONET)
Key takeaways
- Petronet LNG's consolidated operating margin rose 7.43 percentage points year on year to 19.71% despite a 23.33% revenue decline.
- Consolidated net profit increased 25.19% year on year to Rs 1370.74 cr as expenses fell 29.83%, faster than revenue.
- Other income contributed 12.77% of consolidated pre-tax profit, while the tax rate fell 0.54 percentage points year on year to 25.00%.
Price around the results
Margin expanded as costs fell faster than revenue
Petronet LNG's consolidated revenue fell 23.33% year on year and 15.42% sequentially, but expenses declined faster, by 29.83% and 23.93%, respectively. That operating leverage lifted margin by 7.43 percentage points year on year and 8.98 percentage points sequentially. Net profit consequently rose 25.19% year on year and 57.63% from Q3FY26.
Three-quarter margin recovery reaches a four-quarter high
Operating margin has increased for three straight quarters, from 9.76% in Q1FY26 to 10.14% in Q2FY26, 10.73% in Q3FY26 and 19.71% in Q4FY26. The quarter's margin was 5.12 percentage points above the 14.59% median among 15 Energy peers that had reported. Interest expense rose 10.07% sequentially, but depreciation fell 4.41%, limiting the impact below operating profit.
Profit benefited from other income and a lower tax rate
Other income was 12.77% of consolidated pre-tax profit, so a meaningful part of earnings came from outside operations. The tax rate also fell by 0.54 percentage points year on year and 0.36 percentage points sequentially, providing an additional lift to net profit. Other income itself was broadly stable, rising 3.84% year on year and falling 1.81% sequentially.
The initial stock response was unusual in direction, not size
The stock rose 2.11% on the first session after the results, after opening 1.19% higher, with volume at 4.03 times its reference level. The move was close to the stock's 1.81% median absolute reaction after its last eight results, but the direction was unusual: only one of those eight reactions was positive. The results were filed after market close, and a corporate-action overlap was recorded.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹9,442 cr | ₹11,164 cr | -15.42% | -23.33% |
| Other income | ₹233 cr | ₹238 cr | -1.81% | +3.84% |
| Expenses | ₹7,581 cr | ₹9,966 cr | -23.93% | -29.83% |
| Operating profit | ₹1,861 cr | ₹1,198 cr | +55.32% | +23.07% |
| Operating margin (%) | 19.71% | 10.73% | — | — |
| Interest | ₹62 cr | ₹56 cr | +10.07% | +1.13% |
| Depreciation | ₹205 cr | ₹215 cr | -4.41% | -0.15% |
| Profit before tax | ₹1,828 cr | ₹1,165 cr | +56.86% | +24.29% |
| Tax | ₹457 cr | ₹296 cr | +54.59% | +21.64% |
| Net profit | ₹1,371 cr | ₹870 cr | +57.63% | +25.19% |
| EPS (₹) | ₹9.14 | ₹5.80 | +57.59% | +25.21% |
Operating margin of 19.71% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.11% | +2.47% |
| Next session | +2.39% | — |
| 5 sessions | -2.01% | +1.06% |
| 15 sessions | +1.26% | — |
| 30 sessions | +5.53% | — |
Volume on the results session was 4.03× its 20-day average.
What to watch
- Whether operating margin holds above 19.71% after three consecutive quarterly increases.
- Whether expenses continue to decline faster than revenue after the 29.83% year-on-year fall in Q4FY26.
- Whether other income remains below or around its 12.77% share of pre-tax profit.