Petronet LNG Q2 Results Review - Strong Volume Growth Guidance For FY26; Upgrade To 'Buy': Systematix

Systematix Research Report

Petronet LNG Ltd. has given a strong guidance for FY26E benefiting from the lower spot LNG price and declining domestic gas output. Further, the company started two new storage tanks from October 01, 2024 which would bring more flexibility to achieve 100%+ utilisation at Dahej.

Also, 5% rise in regas tariff every year is expected to continue till the contract period of 2036. Also, the company expects to book part of the expanded capacity before March-25 which would bring revenue visibility.

We raise our FY26E estimates on the back of strong guidance and our bearish view on spot LNG price. We upgrade the stock to Buy from earlier Hold based on 14 times FY26E with a revised target price of Rs 425 from earlier Rs 345.

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