Update shared on 12 Dec 2025
Fair value Increased 2.08%Narrative Update on Petronet LNG
Analysts have nudged their price target on Petronet LNG up by ₹5 to ₹245, citing a modestly lower discount rate and improved profit margin expectations that more than offset slightly weaker revenue growth assumptions and a marginally lower future P/E multiple.
What's in the News
- Petronet LNG and ONGC sign a long-term ethane handling term sheet linked to a new multi fuel jetty at Dahej, expected to generate about ₹5,000 million in gross revenue over 15 years starting FY 2028 to 2029 (company disclosure)
- The under construction third jetty at Dahej will be capable of handling ethane, propane and LNG, positioning Petronet LNG as a first of its kind import infrastructure provider for multiple feedstocks in India (company disclosure)
- ONGC secures approximately 600 KTPA of reserved capacity at Petronet LNG's Dahej ethane facilities to ensure feedstock supply for ONGC Petro Additions Limited's large petrochemical complex at Dahej, Gujarat (company disclosure)
- Board meeting scheduled on November 7, 2025 to consider and approve unaudited financial results for the quarter and half year ended September 30, 2025, interim dividend for FY 2025 to 2026 and extension of tenure of Director Technical Shri Pramod Narang (company filing)
- Separate board agenda set for November 7, 2025 to determine shareholder entitlement to an interim dividend of ₹7.00 per share for FY 2025 to 2026, highlighting continued capital return (company filing)
- Special or extraordinary shareholders meeting to be conducted via postal ballot in India on January 10, 2026, indicating forthcoming shareholder decisions on key corporate matters (company filing)
Valuation Changes
- Fair Value: increased slightly from ₹240.0 to ₹245.0, reflecting a modest upward revision in the intrinsic value estimate.
- Discount Rate: reduced marginally from 12.89 percent to 12.76 percent, indicating a slightly lower perceived risk or cost of capital.
- Revenue Growth: revised down materially from about 1.42 percent to approximately minus 0.86 percent, implying expectations of mild revenue contraction instead of growth.
- Net Profit Margin: raised noticeably from roughly 7.19 percent to about 8.44 percent, signalling improved profitability assumptions.
- Future P/E: trimmed modestly from around 13.95x to about 13.45x, incorporating a slightly lower valuation multiple on forward earnings.
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