Financial Performance Highlights

PLL reported its best-ever second quarter and first half financial performance.

  • Q2 FY27 PBT: ₹1,659 crores, a 10% sequential growth from Q1 FY27 (₹1,514 crores) and a 53% year-on-year (YoY) growth from Q2 FY26 (₹1,083 crores).
  • Q2 FY27 PAT: ₹1,235 crores, a 9% sequential growth from Q1 FY27 (₹1,133 crores) and a 53% YoY growth from Q2 FY26 (₹806 crores).
  • H1 FY27 PBT: ₹3,174 crores, representing 43% growth over H1 FY26.
  • H1 FY27 PAT: ₹2,368 crores, representing 43% growth over H1 FY26.
  • Gain from Operational & Commercial Efficiencies: A new consolidated metric of ₹658 crores was reported for Q2 FY27. For comparison, this figure was ₹494 crores in Q1 FY27 and ₹41 crores in Q2 FY26.
  • Interim Dividend: The Board approved an interim dividend of ₹7 per share.

Operational Performance

  • Total LNG Processed (Q2 FY27): 231 TBTU, up 12% from the previous quarter (207 TBTU) and up 1% YoY (228 TBTU).
  • Dahej Terminal Throughput (Q2 FY27): 216 TBTU, up from 192 TBTU in Q1 FY27 and 211 TBTU in Q2 FY26.
  • Capacity Utilization: Dahej terminal operated at 73% utilization based on its expanded capacity of 22.5 MTPA. This compares to 66% in Q1 FY27 and 92% in Q2 FY26 (based on the previous 17.5 MTPA capacity). Overall plant utilization was 64% for the quarter.
  • Gorgon Volumes: Year-to-date volume was 12 TBTU, with 10 TBTU in Q1 and 2 TBTU in Q2.
  • Regasification Revenue: Service revenue for the quarter was ₹1,272 crores.

Capital Expenditure (Capex) and Projects

  • H1 FY27 Capex: ₹1,626 crores was incurred.
  • H2 FY27 Capex Outlook: Management expects an uptick in capex in the second half as major orders have been placed and physical progress on projects is on schedule.
  • Petchem Project (PDH-PP): Total capex incurred on the project till September 30, 2026, is approximately ₹3,300 crores. The project has a stated useful life of 25 years. Management declined to provide operational expenditure guidance, stating it was premature.
  • Dahej Expansion: The 5 MTPA expansion at Dahej has not yet seen any committed offtake agreements signed.

Market and Demand Commentary

Management provided analysis on Indian LNG demand resilience despite high prices and the force majeure situation.

  • Demand Resilience: Indian LNG imports for the first 9 months of calendar year 2026 were 20.15 million tons, which is higher than the pro-rata rate of 19 million tons based on the 2025 total of 25.3 million tons.
  • Supply Shift: The decline in volumes from Qatar and UAE has been compensated by increased imports from the US, Oman, Nigeria, Angola, Trinidad, and Australia.
  • Key Demand Sectors: The City Gas Distribution (CGD) sector is now the top consumer, closely followed by fertilizer and power (the latter supported by coal supply issues).
  • Kochi-Mangalore Pipeline: Management expects the pipeline to be connected to the national grid within FY27, with GAIL targeting a December 2026 connection.

Contract and Force Majeure Updates

  • Qatar Volumes: The force majeure related to the Strait of Hormuz issue remains in effect. In Q2, 6 equivalent standard cargoes (delivered via Q-Flex vessels) were received from Qatar against a contractual schedule of 28 cargoes for the July-September period.
  • Contract Renewals (2028): Discussions with existing off-takers (GAIL, IOC, BPCL) for contract renewals post-April 2028 are ongoing, and management is "very hopeful" they will be finalized before the contract start date.
  • Vessel Charter Dispute: A note in the financials references claims of ₹625 crores from LNG charter companies related to three vessels. This figure includes charter charges and associated costs like fuel. Petronet has counterclaims. The time charter agreements for these three vessels are currently suspended, meaning the lessors are free to deploy them elsewhere until the force majeure is lifted.

Other Financial Items

  • Forex Impact: The company reported a forex loss of ₹27 crores for the quarter related to lease accounting.
  • Depreciation: Volatility in the depreciation line item was noted due to modifications in the right-of-use asset accounting stemming from the force majeure. The Q2 rate can be considered a run-rate for as long as the force majeure continues.

Management Outlook and Strategy

Management emphasized the company's resilient business model, which benefits from operational efficiencies and trading gains in a high-price environment and is protected by long-term contracts in a low-price environment. The commitment to maintaining dividend per share despite significant capex outflows was reiterated.