Synopsis: Investec sees a 43% upside in Petronet LNG, pointing out to a sharp rise in global LNG supply in 2026, softer spot prices, revival in India’s demand, and advantages from Dahej’s expanded capacity.
The shares of this leading importer and supplier of liquefied natural gas (LNG) are in focus after Investec sees a massive 43 percent upside in its share, citing favourable macro trends, its upcoming plant and more. In this article, we will delve further into the details.
With a market capitalisation of Rs 42,600 crore, the shares of Petronet LNG Ltd. are closed at Rs 284 per share, up 1.52 percent from its previous day’s closing price of Rs 279.60 per share. Over the past five years, the stock has delivered a poor return of nearly 14 percent, underperforming NIFTY 50’s return of 85 percent.
Leading brokerage house Investec has assigned a target price of Rs 400 per share on Petronet LNG, signalling an upside potential of 43 per cent from its previous day’s closing price of Rs 279.60 per share.
Investec believes that the global LNG market is about to fall in Petronet LNG’s favor. In 2026, they expect global LNG supply to jump by around 7 percent, which is about 40 bcm (billion cubic meters), marking the fastest growth since 2019. Most of this extra gas will come from the US, Canada, Qatar, and a few African countries. Since supply is outpacing demand, spot LNG prices are already feeling the squeeze, and they’re set to stay low for a while.
This works out well for India. LNG imports dropped in FY25, mostly thanks to some short-term hiccups, but Investec says those are clearing up now. With prices falling, you can expect price-sensitive industries in India to ramp up their LNG buying again, probably starting early 2026.
Petronet LNG stands to gain the most here. Investec added that they’ve just finished expanding their Dahej terminal to 22.5 MMTPA, got long-term contracts that shield them from the worst, and their pipeline network is strong enough to handle more spot cargoes. After an 18 percent dip in its stock price over the past year, Investec sees Petronet LNG trading below its usual valuation—so the risk-reward looks pretty appealing right now.
Petronet LNG Ltd has reported an operating revenue of Rs 11,009 crore in Q2 FY26, representing a 15 percent decline compared to Rs 13,024 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 7 percent from Rs 11,880 crore.
Regarding its profitability, it reported a net profit of Rs 830 crore in Q2 FY26, representing a 5 percent decline compared to Rs 871 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 1.5 percent from Rs 842 crore.
Petronet LNG Limited stands out in India’s energy sector. The company mainly brings in and manages liquefied natural gas, LNG, for short. Petronet built India’s first LNG terminal at Dahej, Gujarat, and runs another one in Kochi, Kerala.
Together, these two sites can handle up to 22.5 million tonnes of gas each year. That’s a big deal, considering Petronet supplies about a third of all the natural gas India uses and handles around 74 percent of LNG imports in India.
Petronet does more than just keep the gas flowing. It’s busy setting up the Dahej terminal, working on a brand new terminal for the east coast, and building a petrochemicals plant right at Dahej. The company started as a joint venture, backed by the Indian government and major public sector players like BPCL, GAIL, IOCL, and ONGC.
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