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UoP provisioning and waiver weigh on 2Q performance

* PLNG’s 2QFY26 revenue was in line with our estimate at INR110b.

* EBITDA fell 7% YoY to INR11.2b (4% below our estimate).

* The company booked additional provisions of INR1.3b against UoP dues during the quarter. UoP trade receivables of INR289m were waived off during 2Q. EBITDA adjusted for UoP provisioning and waiver stood 10% above our estimate.

* Reported PAT was in line with our estimate at INR8.1b, down 5% YoY, supported by higher-than-expected other income.

* PAT adjusted for UoP provisioning, and the waiver stood 23% above our estimate.

* Spot LNG prices declined sequentially in 2Q, averaging USD11.8/mmbtu (USD12.4 in 1Q).

* Operational performance:

* Total volumes came in line with our estimate at 228tbtu. No spot volumes were recorded during the quarter.

* Dahej utilization was in line with our estimates, while Kochi utilization stood 12% above our estimates.

* As of Sep'25, provisions on UoP dues stood at INR7.4b.

* UoP dues of INR13.9b (net of provision: INR6.6b) were included in trade receivables as of Sep'25. PLNG has obtained bank guarantees from some customers to recover UoP charges. While some customers have not given balance confirmations toward these dues, management is confident of recovering such charges.

* The Board declared an interim dividend of INR7/sh (FV: INR10/sh).

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