Thanks, [Seema?] .

A good day, ladies and gentlemen. On behalf of PhillipCapital (India) Limited, I welcome everyone to today's earnings call.

From the management team of Petronet LNG, we have the pleasure of having with us today Shri Saurav Mitra, Director (Finance) & CFO; Shri Rakesh Chawla, Executive Director (Finance & Accounts); Shri Gyanendra Kumar Sharma, GGM & President (Marketing); Shri Vivek Mittal, GGM & President (Marketing); Shri Debabrata Satpathy, General Manager (F&A); Shri Vikas Maheshwari, Deputy General Manager (F&A). I will now hand over the floor to the management for their opening remarks, which shall be followed by a question-and-answer session.

Over to you, sir.

Good morning. I'm Saurav Mitra.

Thank you for joining us for the earnings call for the quarter ended 31st December 2025. I am pleased to share that the company has delivered a strong operational and financial performance during the current quarter, supported by improved capacity utilization and operational efficiencies.

During the quarter, the overall LNG volume processed by the company stood at 233 TBTU, reflecting a growth of 2% over both the previous quarter and the corresponding quarter, where volume stood at 228 TBTU each. At the Dahej terminal, volume throughput during the current quarter was 214 TBTU compared to 211 TBTU in the previous quarter and 213 TBTU in the corresponding quarter.

Capacity utilization at Dahej improved to 94%, up from 92% in the previous quarter and 93% in the corresponding quarter. At Kochi terminal, PLL achieved the highest-ever capacity utilization of 29% during the current quarter.

On the financial front, the company reported PBT of ₹1,144 crore for the quarter, registering a 5% growth over PBT over the previous quarter, which stood at ₹1,083 crores. The PBT of the corresponding quarter stood at ₹1,169 crore.

Profit after tax for the quarter stood at ₹848 crore, reflecting a 5% growth over PAT of ₹806 crore in the previous quarter. The PAT in the corresponding quarter was ₹867 crore.

For the nine months ended 31st December 2025, Dahej processed 632 TBTU as compared to 686 TBTU during the corresponding nine months. The overall LNG volume processed by the company during the current nine months stood at 682 TBTU, as against 729 TBTU in the corresponding period.

During the current nine months, the company reported a PBT of ₹3,363 crore compared to ₹3,829 crore in the corresponding nine months. Profit after tax for the current nine months stood at ₹2,505 crore, as against ₹2,856 crore in the corresponding period.

With this, we open the house for the Q&A session. Thank you.

Thank you so much for the opportunity. My first question is if you can talk a bit about your contracts that you signed with ONGC for ethane, etc.

What are the broad terms of those? It would be helpful.

Okay. I won't be able to share the commercial terms because those are sensitive information which I cannot disclose in the public.

Far as the broad contours of the agreement, I would request Mr. Vivek Mittal, Group General Manager, to speak about it.

I presume you are referring to the regasification agreement which we signed recently. It's a master regas agreement, which is a framework agreement wherein if ONGC brings cargo, then the terms and conditions, which includes the storage period, what would be the regas charges, what would be the penal provisions or the use-or-pay provisions, all those contours are covered under this agreement.

It is a standard agreement like any other regas agreement which we have signed with the long-term capacity holders. Aim is also that we convert this into a long-term capacity agreement with ONGC, in that direction we have signed this framework agreement.

Second question is on the UOP charges. Is it fair, my understanding correct, that another ₹48.9 crores were due still stand due end of CY '25?

Yes. It is ₹49 crore as you said.

That has arisen in CY '25.

What is the update on the liquidation of the balance dues? Any progress?

See,

as you know that the CY '21 has already been paid off. For the CY '22 dues, the due date was 31st December.

However, the bank guarantees are valid till 31st of March. The receipts can be done before 31st of March.

Endeavor is being done for that. CY '23, it is onset has not arrived yet as per the settlement agreement.

Sorry, there is no bank guarantee for '23 you said?

'23 also, most of the customers we have received the bank guarantees and the contracts.

Okay. By March, the '22 liability should be settled then, right?

Yes.

Lastly, just if you can give that number for service income and any capex project that you want to talk about.

Service income has been six- seven- ₹855 crores in the

Okay. Very helpful.

Thank you so much and all the best.

Hi, sir. Am I audible?

Sir, latest and long-term data shows that the rival terminals in the similar vicinity to Dahej are not able to ramp up volumes versus PLL's Dahej. Sir, is it because of PLL Dahej having long-term contracts due to better network connectivity or is it the pricing power?

If you can give a sense of this dynamics, and if any customer wants gas in that area, why the incremental volumes come to Dahej versus the rival terminals? This is question number one, sir.

Okay. Shall we go by question by question?

Okay.

Yes,

sir. See, you have already answered the question that you have raised.

PLL, Dahej terminal enjoys some critical advantages in terms of evacuation because any terminal simply having the regas capacity cannot function to its fullest capacity and efficiency. Dahej terminal, the present capacity is 17.5 MMTPA, and we are ramping it up to 22.5 MMTPA by the end of this financial year.

It already has an evacuation capacity of 35 million metric tons. This gives an added advantage to Dahej over other competitor terminals.

Number one. Number two, as you have already said, the pricing.

We are one of the lowest cost operator and our charges are also one of the lowest in the industry. The third factor is the storage factor.

Dahej gives a unique facility to all its customers of not only regasification at a very low rate, but also provides them with huge storage capacity. We have eight tanks over there, and none of the terminals in India are having so much of storage capacity, which gives flexibility to the offtakers in its operations.

Got it, sir. Sir, can you give a sense of how much time it would take for this incremental 5 MMT ramp up utilization?

I have already told, we will be mechanically completing the construction by end of this financial year. So 31st March is our target to complete its mechanical completion.

Sir, what I meant by that is how much time it would take for that 5 MMT to get utilized? Let's say 80% or 90% or 100%?

Okay. See, LNG business it's a mix of a long-term agreement as well as spot agreements.

It is neither good for any consumer or a country to 100% depend on the long-term agreements or the spot contracts. We have kept our facilities for both spot cargoes as well as long-term cargoes.

In this regard, we are already talking to many of the customers, and these are all at advanced stages. We have already experienced that in the last IEW, we have signed agreements with MGL for servicing their cargoes and buying cargoes on their behalf.

Slowly and slowly, we will try to match the ramped up capacity with lining up customers for better utilization of the terminal.

Sir, just one follow-up here. Is it safe to understand or assume that whatever this 5 MMT capacity utilization would come from incremental import in India versus taking market share from rival terminals in the similar vicinity?

Is it

No, you are correct. There's an increasing gas demand, which is evident from the performance of our both the terminals at Dahej and Kochi.

With favorable gas prices, which we are expecting in the coming years because of a lot of liquefaction facilities coming up in Middle East, US, Mozambique, there will be affordable LNG in the market, and it will definitely increase the gas consumption in the country. We are actually sprucing up our facilities to cater to the incremental demand.

Got it, sir. Sir, my second question is on the EBITDA or let's say the PBT contribution from these new investments in petchem, Gopalpur, and the third jetty.

Could you give a sense of what could be a broad line numbers for these with respect to financials, we all know the investment and the timelines, but how much contribution at EBITDA level or at gross margin level are we expecting from these new investments?

See, we have maintained that for this petrochemical, we are yet to finalize the commercial contracts. You have seen in the past that we have done a 600 KTPA contract with ONGC.

Now these contracts are being made. These details are sensitive, and we are not sharing it in any of the forums.

That is the reason why it is not being shared. As and when all the commercial contracts will be done in due course of time, we'll come out with the numbers.

Got it.

Thanks for taking my question. Sir, couple of questions.

₹49 crore use-or-pay will become a part of receivable or it will be treated separately? Need small clarification on this, sir.

See, as on 31st December, it is not part of receivable. It is, as that the use-or-pay charges are charged as a penalty or a LD.

We recognize the revenue. This revenue has been recognized right now, and the due date has not arrived yet because we have just issued the invoice, etc., communication, etc.

Sir. Fair enough.

Second question on the capital expenditure, how much capex we have done in a nine months, and what is plan for FY '26, '27, and '28, if you could throw some light on this number?

See, we are expecting to have the approximate capex of by March around ₹3,000-plus crore in this year. See, we have targeted a slightly more than that, but due to petchem orders in process, we will be restricting our capex during the year around ₹3,000 crore.

Next year, we are targeting to spend around ₹9,000 crore. Main outgo will be on account of petchem and then followed by jetty.

Others are very small items, total capex outflow will be around ₹9,000 crore.

In FY '28, it would be the same in the range of ₹9,000 crore?

No. See, by FY '28, the additional item will be Gopalpur.

We are expecting by that time Gopalpur construction will also start, and right now, it will be difficult to estimate the correct number because most of the capex will be cash outflow will be over in case of petchem, and the addition will be Gopalpur.

In

a nutshell, today I can tell you only about the next financial year, but overall capex should not be more than this even in next year.

Last one from my side. Any discussion or updates on the 7.5 MMTPA capacity for the regas tariff negotiations with the offtaker?

When can we expect the final conclusion on this matter? Any timeline if you could provide?

See,

we are working on various business models for it. As of now, I cannot give you a firm timeline, but we are hoping that next six to eight months will have a better clarity, and hopefully, we could have done some agreements as part of that 7.5 million ton negotiation.

There are number of offtakers. You have started negotiations, and the things are

It is not separate individual negotiation, we are already in discussion with all of them, and they are not multiple. They are only three: GAIL, IOC, and BPCL, which is the existing agreement also.

In line with that, we are having some discussions. Certain commercial elements have already been frozen.

Certain agreements are yet to be executed.

Thanks a lot, sir, and all the best. Thank you.

Just to add on the ₹49 crores use-or-pay dues, that is the revenue has been recognized, the cash is yet to be received. That's

Really helpful, sir. Really helpful.

Good morning, sir. Thank you for taking my question.

I just wanted to understand, on the expanded capacity, when you're having discussions with the potential clientele, is there discussions on they are looking for a longer-term contracts or are they looking for something more spot in the near term? Or is there any discussions on the regas charge what you put in?

I wanted to understand the impact of competition there specifically. That's my first question.

As Dahej has always been offering competitive tariffs. Our aim and endeavor will always continue to be that.

In this regard, yes, we are having discussion both on spot, short-term, mid-term, and long-term basis with the existing capacity holders as well as new capacity holders. In that direction only we recently signed agreement with ONGC, which was currently for spot short-term, but eventually we aim to convert it into a long-term capacity agreement.

Regas charges, we have standard regas charges, but there could be certain incentives if they do additional volume. We are still working on the arrangement.

Right, sir. Thank you.

I just wanted to understand any updates on the Gopalpur terminal what you're setting up? Any updated timelines on those?

I'm sorry, I missed the earlier part of your Yeah.

It's okay. No problem.

Gopalpur, we are actually in discussion with the Ministry of Environment for environment clearance, and we expect they had sought certain more clarifications which we have already submitted, and we expect the positive results to come out very soon.

Sir. Thank you.

I just wanted an update on petrochemical capex as well. I know that you're doing a bulk of the capex next year.

Is this timelines what we had discussed earlier still stand?

Sorry. Can you please come out with the question once?

Oh, 1 minute. Hello, sir.

Am I clearer right now?

Yes.

In regard to the petrochemical capex, the PDH-PP plant, any update on that commissioning of those projects?

The plant construction is on track, and we expect bulk of the capex during the financial year '26-'27.

Commissioning, sir, what is the target right now?

Sure. Thank you.

Thanks for the opportunity, sir. Sir, first question on the annual escalation that we take in Dahej.

For this year, Jan, that's been taken? If you could just confirm on that.

Yes, it has been taken.

Got it, sir. Sir, also on the utilization front, Kochi, we have been seeing improvement.

It has moved almost to 30% now. Hello, if you could just help us with details in terms of reasons for the increased offtake, and also the Kochi-Bangalore pipeline, the status, and what is your expectation for next year?

Kochi terminal, as you rightly mentioned, there has been increase in offtake, primarily as the prices softened, there was incremental offtake from the existing customers, which primarily include MRPL, FACT, OMPL, and Kochi refinery. Primarily on that account, this incremental offtake was there.

As far as pipeline connectivity is concerned, GAIL has been still maintaining March 2026, but we believe by June 2026, we should be connected to national gas grid through Kochi-Kootanad-Bangalore-Mangalore pipeline.

Got it, sir. Last questions on this 5 MMT expanded capacity.

Based on whatever contracts or discussions that you had so far, what is our expectation in FY '27 in terms of utilization of this capacity?

We don't give that at this point of time. As and when the contract is firmed up, we'll, of course, be sending notification to SEBI and NSE and BSE.

At this point of time, we cannot guess that.

Okay. Sir, trading gain and inventory gain or loss in this quarter?

There has been no trading gain, and inventory gain is ₹27 crore.

Thanks, sir. Thank you.

Thanks. Some of the questions got answered.

Was Kochi, you said June is the pipeline connectivity expected. Thanks for that.

Second thing is given the large capex and chem plant for next year also, is it fair to assume that we will still be able to maintain around 40% dividend payout?

Can you please repeat the question? No,

I think our dividend payout has been very healthy in the range of 40% to 50% of profits. Given that you said ₹9,000 crores capex in petchem would happen in FY '27, in FY '27 also, despite that, we'll be able to manage 40% payout on dividend?

See,

we have a healthy cash balance carrying in our books, we expect to maintain the similar range of dividends.

Okay. Thank you, sir.

Gopalpuram, is it fair to assume that when you will start the construction, we'll have some visibility about the evacuation connectivity of pipeline and also at least in-principle demand from the offtakers?

Okay. That's what we are working on.

In fact, aim is to tie up at least some part of the capacity before we start construction. As far as pipeline connectivity is concerned, there is already Srikakulam-Angul pipeline, which is around 30 kilometers from the proposed location.

For that, the connectivity will be done by Petronet, this 30 kilometers, but rest of it is already in place.

Okay. Thanks, Vivek.

Thank you. Thanks for your questions, gentlemen.

That answers.

Thanks for the opportunity, sir. Just want to check on what was the petchem capex till date?

You mentioned that the next year petchem capex will be Mr.

Solanki, you are not audible.

Hope now I'm audible.

It's better. Yeah.

Please go ahead.

Hi, can you hear me okay?

Yes.

Hello?

Yes, please go on.

Hello?

Firstly, congratulations on the great performance. My questions are regarding the Economic Times article.

First question was that with the US trade deal, Petronet might buy LNG from US. Given that we already have long-term existing contracts, do we have bargaining power on the price or will we be buying this at a higher price?

Second question: for the gas energy plants in India, at what price does it become feasible for them to use LNG as from the article, the usage is pretty low, less than 25% if I'm not wrong. Third question is regarding the Dahej expansion.

At India Energy Week, I was made aware that the 5 MMTPA additional storage is already in place. We can expect it to finish by the end of this financial year?

Okay. Thank you for the compliment.

Secondly, I will come to the point of buying LNG from US. Yesterday, during the press meet, our MD has already clarified that such a deal is only possible if LNG is available at an affordable price.

What was the second question? Can you please repeat?

Regarding the domestic gas plants, they're not buying a lot of LNG because of the price. At what price point it'll become favorable for them?

Okay. I cannot give an exact number over this call, but definitely it has to be competitive with respect to the other alternative fuel options.

Definitely, when I'm telling alternative energy options, I'm not comparing it with coal, but yes, maybe if you take the pricing available today of other alternate fuels, something around $7 to $8 per MMBTU would be, I think, affordable for the power industry to get up and running.

Got it. Sounds good.

Then the Dahej terminal expansion, we're expecting it by the end of this year? End of this financial year?

I have already announced that we will be mechanically completing it by end of this financial year.

Amazing. Thank you so much, and best of luck.

Just one question from my side. Sir, third-party regasification charges for Q3 FY '27, how much it was?

₹779 crore.

Sorry, sir?

₹779 crore.

Okay. Thanks a lot, sir.

That's all from my side.

Thanks for the opportunity. Sir, what will be the capex for the petchem we have spent till date?

As you mentioned that ₹9,000 crore will be spent in next year. How the ₹21,000 crore will be spent in next couple of years?

Can you just give a timeline on that? Okay.

See, till March '26, which is current year ongoing, total petchem outflow will be approximate say ₹2,300 crore. Next year's budget year, which is March '26 say ending March '27, petchem we are expecting around 7,500.

Here, it becomes total around ₹10,000 crore. Total capex cash outflow may not be ₹20,000 crore because it includes soft cost including interest during construction period, etc.

Balance will be outflow in next two financial years because certain payment will continue even after commissioning because certain part is stalled. Till March '27, we're expecting around ₹10,000 crore total petchem capex.

When I say ₹9,000 crore total budget, it takes care of jetty and other miscellaneous capex as well. So 7,500 around for petchem and balance for other activities.

Okay. Even if we assume, instead of ₹20,000 crore if the capex is ₹15,000 crore, the next ₹5,000 crore would be in FY '28, right?

See, right now exact breakup, I am not giving anything, but it is around say balance will not be even 10,000. I told you it includes interest during construction also,

another soft cost. Got it.

Sir, in terms of the renewal of the contract, I just want to know whether the tariff escalation clause will be applicable? See,

these are commercial sensitive information. We cannot disclose it over this call.

Okay. Thank you.

It is expected it should be there and but we cannot give you any further item from this at this point of time.

Okay. Yeah.

Thanks.

Sir, can you give a broad sense of this 70- 17 MMT at Dahej? How much of this volumes would be price sensitive versus non-price sensitive?

Also, though I understand that either they have use-or-pay or take-or-pay, but sometimes they don't take the volumes and move to alternative fuels. Can you give a broad sense of this dynamic?

We have already, as we already have two major agreements. One is for 7.5 million tons and another for 8.25 plus recently we signed 0.5 million tons.

So 16.25 million ton is already committed on long-term basis or mid-term basis on firm use-or-pay or take-or-pay basis. In addition to this, we do on spot short-term basis capacity booking, which is on top of the 16.25 out of the 17.5 existing capacity.

These long-term contracts are if I'm not wrong till 2028, is it?

As the RasGas SPA, which is with Qatar, is till 2028, which has now been renewed for another 20 years, it runs to 2048. Most of these capacity agreements are till 2036.

Got it. Okay.

Thanks.

Hi, sir. Just a clarification on the petchem capex that you've said.

Just want to know the total project capex if you could just repeat, and also that ₹7,500 crores, the breakup that you said, if you could just repeat.

See, total capex approved by the board for petchem project is ₹20,685 crore. Okay.

Now this takes care of escalation, rupee depreciation, and interest during construction, etc. What we are expecting, we have placed almost all the orders for all the long lead items.

We will be spending money wherever deliveries are being received or advance against capital orders in next 1 year starting from April. We are expecting that we will be making cash outflow around ₹7,500 crore in next financial year on account of petchem.

Sir, by end of FY '27, we would have spent ₹10,000 crores out of this ₹20,000 crores? Out of approx.

Yes,

approx. Approx.

The remaining has to be in FY '28, '29. That's what you were referring.

See,

remaining will be FY '27-'28 and '28-'29 because even after commissioning, certain payments remain pending, which are kept on hold for certain tests, etc. The balance payment will spill over in next two financial years.

Got it, sir. Thanks for this clarification.

Sir, also on other projects, specifically Gopalpur, if you could just help us the expected capex there, and the cash outflow will begin from FY '28 onwards?

See, as already told by our Director (Finance) that Gopalpur construction will start immediately after certain clearances are pending. The cash outflow will start immediately thereafter.

Within this ₹9,000 crores of capex for FY '27, ₹7,500 is for petchem, and what is the expectation for Gopalpur in FY '27?

Balance is approximate ₹800 crore is budgeted for jetty, third jetty, which is under construction. This will also be completing during this year.

Can you hear? Hello.

Understood, sir. You're saying 800 for the balance portion of the jetty and then

nine

for Gopalpur in FY '27. Just looking at the total capex for Gopalpur and the majority of that will start in maybe FY '28.

Is that a right understanding?

Major capex on account on Gopalpur will be in FY '28.

The total project capex, sir, if you could just

Exactly, you can rectify. It is around ₹600 crore, not 800, budgeted for '26-'27.

Sir. The Gopalpur capex, the total capex for Gopalpur?

See, Gopalpur total capex scheme approved is around ₹6,000 crore.

Okay. Got it, sir.

Thank you.

Am I audible?

Yes.

Yeah. Just one clarification, I missed that part.

Capex in FY '26 end will be ₹3,000 crores?

Approx, yes.

Yeah. Another question, can you please provide some guidance in terms of volume in FY '27 and FY '28 if possible?

See, volume, as of now, you know the firm contracts, which we have already given in the previous question. As of now, our guidance is based on the capacity booked.

However, we are making endeavors to book additional capacity, and as prices soften, we are very hopeful that volume should increase.

Sir. Thank you.

Sir, thanks for taking the follow-up. Sir, in case this pipeline near Kochi terminal gets resolved and the connectivity opens up, where do you see the incremental demand coming from?

Is it the CGDs near Bangalore or is it the industrial sectors near that area? Can you give a broad sense of how much offtake increasing at Kochi terminal because of this bottleneck getting resolved?

Mr. G.K.

Sharma, please reply.

Thank you. Your question is quite valid, but let me give a perspective to it.

Once it is connected with the national gas grid, number one part of the question you yourself has answered. One, it is the CGD demand, as you know.

It is going to be minimum four to five fold in next four to five years. Apart from that, you may be aware of for CGDs, major flywheel of CNG and domestic PNG demand, irrespective of where they are, the Zone 1 tariff of ₹54 will be applicable.

It doesn't matter which CGD in which part of the country is, the demand needs to be met. Kochi terminal once connected, it will be catering to the demand of whole country, number one.

Number two, as you and all of us are aware of, it is expected LNG prices are going to soften in the next five to seven years owing to the capacity buildup from supplier side. As we know, other geographical regions across the world are either saturated or maybe not having that economic growth which whole world is talking about around 6% to 8% growth, consistent growth of India, leading to energy consumption, virtually more than 40% incremental energy consumption is expected to come from India.

Because of all these reasons, as we know, it is energy whichever means is cost-effective and ready to propel and fuel the growth, sustainable growth. That kind of lethal combination perhaps India is at the cusp of the opportunity available in the world.

[Hindi phrase / unclear]. Universe is favoring India at this opportune time, and gas demand is expected to more than double in next five to seven years.

Of course CGD will be the major demand center, but given the softening of LNG prices, India itself is having ready-made demand of 25 million ton from power, apart from multiple refineries and petrochemical plants are under expansion, and India's capacity buildup of petrochemical itself is likely to double. As they have the dual facility of either burning their naphtha or gas.

Considering gas prices softening, we are expecting refineries, petrochemical, power, apart from CGD, every sector will contribute hugely, and which India is coming big way, and its growth engine will be fed by gas, LNG, and Petronet will be one of the beneficiary having the infrastructure already readily available and enhancing its infrastructure at Dahej as well as we are coming at Gopalpur. I hope I could answer not only to the point question, the larger context.

India is going to be beneficiary where the Petronet will be the major contributor.

Sir, just one follow-up here is that can you give some specific guidance with respect to let's say Kochi terminal getting connected with the grid, and then incrementally how much will come from CGD assuming it is in Zone 1 and versus let's say LNG where there is still that doubt that if spot LNG prices moderate, then utilizations improve? If some specific guidance with respect to Kochi terminal utilization getting improved, that would be really helpful.

Even the existing capacity of 5 million ton will fall short. As I told you, CGD demand is going to be multiple fold.

I particularly answered this question, fourfold CGD demand increasing. It is the Kochi terminal, even I think, I'm not allowed to say, given the opportunity, we should be in a position to even further expand this terminal.

Of course, I'm not giving any speculation, but India's capacity is going to grow.

Sir. Thanks a lot for the full clarity.

Okay. Thank you for your continued interest and engagement.

We sincerely appreciate the trust and confidence reposed in the company by the shareholders, analysts, and all other stakeholders.

also like to say that we remain committed to operational efficiency, disciplined financial management, and long-term value creation for the investing community. Thank you once again for joining us today.

Look forward to connecting with you in future.