India’s largest liquefied natural gas importer, Petronet LNG Ltd, has announced a bold capital expenditure plan of ₹50 billion for the fiscal year 2025–26 (FY26), signaling its intent to fortify infrastructure and expand its footprint in the country’s energy landscape. The announcement was made by Akshay Kumar Singh, Managing Director and CEO of Petronet LNG, during the company’s Q1 FY26 earnings briefing.
The capex will be directed toward terminal expansion, new regasification capacity, and a greenfield LNG terminal on the east coast, as Petronet aims to meet rising domestic demand and capitalize on favorable global LNG supply dynamics.
Gopalpur Terminal Gets Green Light
A major chunk of the investment will go into the development of a 5 million metric tonnes per annum (MMTPA) land-based LNG terminal at Gopalpur, Odisha, replacing the previously approved floating storage and regasification unit (FSRU) model. The revised project cost stands at ₹6,354.8 crore, with an incremental investment of ₹4,048.8 crore approved by the board.
This will be Petronet’s first greenfield terminal on India’s east coast, expected to be operational within three years, and financed through a mix of debt and equity.
Q1 FY26 Performance: Profit Dips, Expansion Persists
Despite the aggressive capex outlook, Petronet reported a 25% year-on-year drop in consolidated net profit for Q1 FY26, falling to ₹824.44 crore from ₹1,100.76 crore in the same period last year. Sequentially, profit declined 23% from ₹1,067.58 crore in Q4 FY25.
Revenue from operations also dipped 11% to ₹11,879.86 crore, while EBITDA margins narrowed to 9.7% from 12.2%3. The company attributed the decline to lower LNG prices and reduced offtake volumes.
Strategic Outlook: Capacity Ramp-Up & Global Sourcing
Petronet is ramping up its Dahej terminal capacity from 17.5 MMTPA to 22.5 MMTPA, while maintaining operations at its 5 MMTPA Kochi terminal. The company continues to source LNG from long-term contracts with Qatar’s RasGas and other global suppliers.
Singh emphasized that FY25 was a strong year for the gas market, with LNG imports rising 10% and nationwide gas utilization up 4%, setting the stage for record volumes in FY26.
Market Reaction & Investor Sentiment
Shares of Petronet LNG closed 1.8% lower at ₹302.10 on July 25, reflecting investor caution amid declining quarterly performance. The stock has dropped 13% year-to-date, though analysts remain divided—14 recommend ‘buy’, 10 ‘hold’, and 11 ‘sell’, according to Bloomberg data.
Despite short-term headwinds, the company’s long-term strategy and infrastructure investments are expected to strengthen its leadership in India’s LNG sector, which currently accounts for 74% of the country’s LNG imports.
Leadership Commentary
“We are investing not just in infrastructure, but in India’s energy future,” said Singh. “The Gopalpur terminal will be a game-changer for eastern India, and our expanded capacity will ensure energy security and affordability for millions.”
Sources: .Financial Express, CNBC TV18, bing.com, NDTV Profit, DSIJ
Petronet LNG consolidated net profit falls 25% in Q1
