Petronet LNG's financial performance for Q2 FY25 has shown a significant decline, with EBITDA falling to Rs 12 billion, a decrease of 23.2% quarter-on-quarter, and PAT dropping 25.8% to Rs 8.5 billion.

The decrease in the total volume of LNG handled by 8.8% QoQ to 239 TBtu is attributed to lower regasification volumes, despite the Dahej terminal operating at a high capacity utilization of 98%. The management expects the Dahej terminal to continue performing strongly, with utilization rates projected to be between 95% and 100%. However, analysts have expressed concerns about the stock's high valuations and potential competition from new LNG terminals. Challenges also include increasing domestic gas supply and the underutilization of the Kochi terminal. Additionally, the margins are expected to be negatively impacted by capital expenditures related to a new petrochemical project.

Prabhudas Lilladher has maintained a 'Sell' rating on Petronet LNG, setting a target price of Rs 272, based on a valuation of 10 times the average EPS for FY26-27.