Petronet LNG Ltd. has demonstrated remarkable dividend growth over the past two decades, transforming from a modest ₹1 per share payout in 2007 to the current ₹10 per share yield. According to reports from Essential Business Intelligence, the company has maintained an unbroken dividend payment record for 19 consecutive completed calendar years from 2007 through 2025. The dividend reached ₹15 per share in 2020 before settling at ₹10 in each of 2023, 2024 and 2025. The current trailing dividend provides a 3.46% yield, while investors who purchased the stock 10 years ago are receiving a 5.8% yield on their original investment. The yield has moved with both the payout and the stock price, reaching much higher levels during periods when the stock price was under pressure before moderating as the share price recovered.
The company's financial performance has significantly outpaced revenue growth, with profit after tax jumping from ₹929 crore in FY16 to ₹3,843 crore in FY26. As reported by Essential Business Intelligence, this represents a 313.8% increase with a compound annual growth rate of approximately 15.3%. Meanwhile, consolidated revenue from operations grew from ₹27,223 crore in FY16 to ₹43,495 crore in FY26, achieving a 59.8% increase with a CAGR of about 4.8%. This profit growth has substantially outpaced revenue growth, building a stronger earnings base for sustained dividend payments. The progression shows why investors should not look at dividend growth and yield in isolation, as a rising share price can offset payout increases and keep yields lower.
Petronet currently operates 27.5 MMTPA of LNG regasification capacity, comprising 22.5 MMTPA at Dahej and 5 MMTPA at Kochi. According to Essential Business Intelligence, the Dahej expansion to 22.5 MMTPA was completed in March 2026. The company is also pursuing additional growth opportunities, including a greenfield LNG terminal on India's east coast and a petrochemicals project at Dahej, which could drive the next phase of expansion and further support the company's dividend sustainability.
For investors, the appeal extends beyond the current 3.46% yield to include the company's 19-year dividend payment history and the 5.8% yield on cost for 10-year-old investments. As reported by Essential Business Intelligence, the combination of consistent dividend payments, strong profit growth that has outpaced revenue, and ongoing expansion plans makes Petronet an interesting dividend-and-growth investment opportunity. While the stock may not offer ultra-high yields at current valuations, the long payout history, earnings growth trajectory, and growth expansion plans position it as an attractive dividend-focused investment option. The company's ability to maintain dividend payments for 19 years while building substantial earnings growth demonstrates its commitment to shareholder returns and operational excellence.
