Petronet LNG's EBITDA for 2QFY25 declined by 9% to INR12 billion, which was below expectations.

The utilization of the Dahej terminal decreased by 9 percentage points quarter-on-quarter to 102%, while the utilization of the Kochi terminal remained unchanged at 22%.

The company's reported PAT of INR8.5 billion met expectations, but it included additional provisions of INR1.1 billion for use-or-pay charges.

The expansion of the Dahej terminal from 17.5 mmtpa to 22.5 mmtpa is expected to be completed by March 2025, with a projected minimum throughput of 20 mmtpa for FY26.

However, securing anchor customers for the expanded capacity has been challenging.

Management anticipates Dahej's capacity utilization to remain between 95% and 100% for the second half of FY25.

The recent commissioning of two additional tanks at Dahej has increased the total to eight, enhancing the facility's storage and processing capabilities.

Motilal Oswal has set a target price of INR385 for Petronet LNG, valuing the company at 12 times the estimated EPS for December 2026, and maintains a Neutral rating on the stock.