According to Motilal Oswal's research report dated May 05, 2026, Petronet LNG delivered a robust 4QFY26 performance that significantly exceeded analyst expectations. The company's revenue, EBITDA, and PAT surpassed estimates by 7%, 77%, and 64% respectively, driven by strong operational metrics and favorable unit of production (UoP) adjustments. As reported by Motilal Oswal, the adjusted EBITDA and PAT figures, when accounting for UoP provisioning and waiver, would have been 30% and 19% above estimates respectively.
The company's volume outperformance of 219 tbtu, representing 12% above estimates, was primarily attributed to higher Dahej terminal utilization at 91% capacity. According to Motilal Oswal's analysis, the Kochi terminal maintained performance in line with expectations. The strong volume performance was a key driver behind the company's ability to exceed profitability estimates significantly.
Motilal Oswal's research report positions Petronet LNG as attractively valued at 12x FY27E P/E ratio with a ~3.3% dividend yield. The brokerage's DCF-based target price of ₹360 is based on a WACC of 11.5% and terminal growth rate of 2%. As reported by Motilal Oswal, the valuation assumes a 5% tariff cut at Dahej terminal in FY28, followed by a 4% rise for both terminals. The analysis incorporates full capex for the petrochemical plant but values it conservatively at 0.5x FY29E P/B ratio, which is discounted back to FY27.
