Detailed Summary

Financial Performance Highlights

Standalone Results (Q1 FY27):

  • Profit Before Tax (PBT): ₹1,514 crores, representing 33% growth YoY (vs. ₹1,136 crores in Q1 FY26)
  • Profit After Tax (PAT): ₹1,133 crores, representing 33% growth YoY (vs. ₹851 crores in Q1 FY26)

Consolidated Results (Q1 FY27):

  • PBT: ₹1,491 crores (highest ever for any first quarter)
  • PAT: ₹1,137 crores (highest ever for any first quarter)

Key Revenue Components:

  • Regasification revenue: ₹1,214 crores
  • Trading gains: ₹301 crores
  • Inventory gains: ₹193 crores

Operational Performance

Volume Processing (Q1 FY27):

  • Dahej Terminal: 192 TBTU (vs. 207 TBTU in Q1 FY26; 201 TBTU in Q4 FY26)
  • Company-wide LNG volume: 207 TBTU (vs. 220 TBTU in Q1 FY26; 219 TBTU in Q4 FY26)

Capacity Utilization:

  • Dahej nameplate capacity increased from 17.5 MMTPA to 22.5 MMTPA effective 31st March 2026
  • Dahej utilization: 65.6% on expanded capacity (vs. 92% in Q1 FY26; 90% in Q4 FY26)
  • Kochi utilization: 23.27%
  • Overall company utilization: 58% (vs. 76% in both Q1 FY26 and Q4 FY26)

Strategic Updates and Project Developments

Petrochemical Plant Project:

  • Project is on schedule with 40% physical completion achieved
  • Q1 FY27 capex spend: Approximately ₹472 crores
  • Total project capex: ₹9,064 crores budgeted for FY27 with similar expected for FY28
  • Useful life assumption: 25 years for profitability calculations
  • Propane sourcing contracts expected to be finalized in 2027, with potential sources including Middle East (Saudi CP pricing) and USA

Kochi Terminal Connectivity:

  • Pipeline connectivity expected to be mechanically completed by end of current quarter (Q2 FY27)

Contract and Commercial Updates

New Contracts Commenced:

  • Deepak Fertilizers contract: Commenced in May 2026, 2 cargoes brought until date (0.5 MMTPA capacity)
  • ExxonMobil volumes at Kochi: Volumes have increased as expected

Qatar LNG Contract Situation:

  • Force majeure declared by Qatar Energy due to Strait of Hormuz closure
  • FM declared on month-on-month basis (currently declared until end of August 2026)
  • Company in constant touch with Qatar Energy awaiting Strait reopening
  • Replacement volumes being sourced through tolling arrangements (more than two-thirds of missing volumes compensated)

Tariff and Contract Renewals:

  • Current tariffs: Dahej ~₹69, Kochi ~₹98
  • No discussion on tariff revision currently
  • Contract renewal discussions with offtakers ongoing for new Qatar contract starting 2028
  • Expectations: Closure expected in next 2-3 quarters

Market Dynamics and Business Model

Trading Business Explanation:

  • Trading gains occur during market disparities when spot prices are significantly higher than long-term prices
  • Business model leverages operational efficiencies to generate gains even with lower volumes
  • Independent of Qatar contract situation, requires minimal capacity (6-10 TBTU)
  • Established pattern observed over last 5-6 years during market disruptions

Use or Pay Mechanism:

  • Tolling cargoes can offset past use or pay liabilities after current year commitments are met
  • Offset applicability depends on specific offtaker contracts (GAIL has no use or pay)
  • Current situation could accelerate retirement of use or pay obligations

Ind AS Impact (Q1 FY27)

  • Gross margin level: Positive ₹14 crores
  • Forex loss: ₹5 crores
  • Other expenses level: Positive ₹8 crores
  • Depreciation: ₹66 crores
  • Finance cost: ₹48 crores

Management Outlook and Guidance

Volume Outlook:

  • Current Q2 trends similar to May-June performance (improved from April)
  • Expect capacity utilization improvement upon Strait of Hormuz reopening
  • Replacement volumes continuing through tolling arrangements

Trading Margin Sustainability:

  • Dependent on continued market disparity between spot and long-term prices
  • Pattern could continue if current market conditions persist

Vessel Charter Arrangements

  • Time charter vessels operation suspended
  • Suspension enabled through contract clauses (not force majeure)
  • No charter payments being made during suspension

Participants in Conference Call

Management Representatives:

  • Mr. Saurav Mitra – Director Finance and Chief Financial Officer
  • Mr. Rakesh Chawla – Executive Director, Finance & Accounts
  • Mr. Gyanendra Kumar Sharma – Group General Manager and President, Marketing
  • Mr. Vivek Mittal – Group General Manager and President, Marketing
  • Mr. Debabrata Satpathy – CGM and Vice President, Finance and Accounts
  • Mr. Vikash Maheswari – General Manager, Finance and Accounts

Moderator: Mr. Yogesh Patil – Dolat Capital Market Private Limited

Analysts/Investors Participating:

  • Probal Sen (ICICI Securities), Simran Kumari (Narnolia Financial Services), Nitin Tiwari (PhillipCapital), Mayank Maheshwari (Morgan Stanley), Kishan (DAM Capital), Bineet Banka (Nomura), Vivekanand (Ambit Capital), Hardik Solanki (ICICI Securities), TK Nigam (Individual Investor), Jayesh Shah (Individual Investor)