Petronet LNG Limited ($PETRONET)

Ladies and gentlemen, good day and welcome to Petronet LNG Limited's Q4 FY '26 Earnings Conference Call hosted by Ashika Institutional Equities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Krishna Doshi from Ashika Institutional Equities. Thank you and over to you, Ms. Doshi.

Thank you, ma'am. Good morning, and very warm welcome to everyone. On behalf of Ashika Institutional Equities, I welcome you all to Petronet LNG Limited Q4 FY '26 Earnings Conference Call. Today, we have with us the management represented by Mr. Saurav Mitra, Director, Finance and CFO; Mr. Rakesh Chawla, Executive Director, F&A; Mr. Gyanendra Kumar Sharma, GGM and President Marketing; Mr. Vivek Mittal, GGM and President, Marketing; Mr. Debabrata Satpathy, General Manager, F&A; Mr. Vikash Maheswari, Deputy General Manager, F&A. We thank Petronet LNG Limited for giving us the opportunity to host the call. And we will now like to hand over the floor to the management for their opening remarks, post which we will open the floor for Q&A. Thanks, and over to you, sir.

Yes. Good morning, everybody. I'm Saurav Mitra, Director Finance and CFO. Thank you all for joining us for the earnings call for the quarter and financial year ended 31st March 2026. I'm pleased to share that the company has delivered a strong financial and operational performance during the current quarter despite the challenging external environment arising from the ongoing crisis in the Gulf region. The performance reflects the resilience of our operations, the commitment of our teams and the continued trust of our customers and stakeholders. Coming to the operational performance. During the current quarter, the overall LNG volume processed by the company stood at 219 TBTU as against 233 TBTU in the previous quarter and 205 TBTU in the corresponding quarter. At the Dahej terminal, LNG throughput during the quarter stood at 201 TBTU compared to 214 TBTU in the previous quarter and 189 TBTU in the corresponding quarter. With regard to the operational performance of the Dahej terminal, I must mention that despite the uncertainties in the region, the Dahej terminal continued to operate at strong utilization levels with capacity utilization at 90.1% during the current quarter as against 93.8% in the previous quarter and 85.2% in the corresponding quarter. I'm also happy to share that the Kochi terminal achieved its highest ever annual volume throughput of 68 TBTU during FY '25-'26, which is an encouraging milestone for the company. On the financial front, the company reported the highest ever quarterly profit before tax and profit after tax in its history during the current quarter. PBT for the quarter stood at INR 1,795 crores as against INR 1,144 crores in the previous quarter and INR 1,446 crores in the corresponding quarter. PAT for the quarter stood at INR 1,338 crores compared to INR 848 crores in the previous quarter and INR 1,070 crores in the corresponding quarter. For the financial year ended 31st March 2026, the company reported PBT of INR 5,158 crores and PAT of INR 3,843 crores as against PBT of INR 5,275 crores and PAT of INR 3,926 crores in the previous financial year. At the consolidated level, PAT for the current financial year stood at INR 3,913 crores compared to INR 3,973 crores in the previous financial year. During the current quarter, the customers also made payment of outstanding use of pay dues amounting to INR 630 crores pertaining to calendar year 2022. Overall, the performance during the year was supported by operational efficiency, disciplined execution and the continued focus of the company on ensuring reliable as well as efficient operations across both terminals. Considering the robust performance, the Board of Directors has recommended a final dividend of INR 3 per share for the financial year 2025-'26. With this, we now open the floor for the Q&A session. Thank you.

[Operator Instructions] The first question is from the line of Probal Sen from ICICI Securities.

[Audio Gap]

Mr. Sen, I am sorry, you were not audible.

Is this better?

Yes. Please go ahead.

I just wanted to ask, sir, with respect to firstly, the quarter volumes, how has March actually looked in terms of volumes? You talked about utilization of 90%, of course, in the quarter. But if I can just understand in terms of what it was in Jan and Feb and what was the volume shortfall, if any, in March? Hello?

Are we audible?

Yes, sir, you are audible.

Yes, sir.

Yes, sir. Go ahead.

So the Dahej capacity utilization during March was around 53% and Kochi was slightly more than 20%.

Okay. So sir, just as a follow-up, how do we look at basically now FY '27? Of course, you will have the April data with you. But just in terms of this dispute, if it continues to persist, how much of our volumes can be potentially at risk at this point of time?

Okay. So Vivek, if you can.

Sure. So, Probal, while DF just mentioned that March utilization was 53%, but things have been improving since early April or in March and our utilization is steadily going up. This is primarily through third-party cargoes, which were in GAIL, IOCL, BPCL, GSPC, Torrent bring in additional volumes. And the prices are now at reasonable level because immediately after that, the prices spiked to $25 also. Currently, they are moving in sort of $15 to $17. So with the lowering of prices, we are seeing an increased utilization vis-a-vis March. That's all I can say at this point of time. And yes, if the conflict continues, it's slightly challenging, but Indian gas demand continues to grow, so which is -- and power sector is again coming back. So all this is supporting utilization -- increased utilization of our terminal. As you know, we have expanded our capacity from 17.5% to 22.5%. So in a percentage term it may look on a lower side, but absolute utilization vis-a-vis last year, it should be competitive.

Right. So sir, just additional supplies, are the additional supplies that have been spoken about quite a bit, particularly in the U.S., are they actually basically playing the balancing factor in the Asian markets?

Couple of countries, not just U.S. U.S. is one of them, of course. But then Oman, which is very close to India, those supplies continue to come in. Mozambique. There are new countries like Nigeria and Congo. We got a cargo from Congo. We got a cargo from Mauritania and Senegal. So all these new supplies are adding up and this is supporting. And interestingly, you will be aware that a new contract with Exxon, which we signed in 2017, supplies under that contract also started. So in April, we got the first cargo under that contract. So in the first year, though it's 0.5 million tonnes, but that will also support to displace some part of the volume, which has been lost due to the crisis.

Got it. So from -- on a year-on-year perspective, therefore, I mean, we should look at March as just a low base. And from here, it could actually at least improve at the margin from the March lows. That's how we should look at it, at least the next 2 quarters?

That's what we believe, Probal.

Sir, the second question was with respect to the -- just a housekeeping on balance sheet. The big adjustments that have happened in the receivables and the payables, they are all the adjustment made due to the UOP dues and settlement, almost a INR 2,000 crore reduction that you see in both numbers for FY '26 versus FY '25?

The receivables and payables actually -- because you see March, our own volumes from Qatargas were not coming in March. That's why both sides, the receivable and payable are staying lower. Because majorly that is the LNG payable and the receivable is with respect to the [ RLNG ] correspondingly.

Got it, sir. Last question, if I may. Any inventory gains that we have recorded this quarter and the third-party regas revenue for this quarter, if you can kindly let us know?

The regas revenue is INR 879 crores for this quarter. And the inventory gain is INR 95 crores.

INR 95 crores is the inventory gain.

Yes.

The next question is from the line of Puneet Gulati from HSBC.

Congrats on good performance in this tough quarter. My first question is, have you had any communication with Qatar so far as to what is the status of the trains from which you buy? And when the war ends, how soon can they start supplying?

Okay. So we are in constant touch with QatarEnergy. And we are hopeful that the moment this conflict comes to an end within 3 to 4 weeks, supply should resume.

Okay. So no impact on your trains at all, right? That's very clear now.

Yes, that's what we believe.

Okay. And secondly, on your project on the petrochemical side, are you getting your supplies properly? Is that on track? Or is that slightly slower?

So far as the project activity for petrochemical plant is concerned, the project is absolutely on track because the capital equipment generally don't come from the Gulf region. So whatever imports are there, they come from Japan, Korea, China and from Europe and U.S. So that way, so far as supply of equipment plant and machinery are concerned, there's no issue.

The next question is from the line of Pranitha from Morgan Stanley.

Am I audible?

Yes, ma'am.

Yes.

I was just wondering with all the conflicts and the force majeures, I wanted to understand how are you thinking about gas sourcing in terms of diversification and the storage infrastructure for LNG on a medium-term perspective?

So I'm not sure if you have had a look at the -- certain news clippings today morning or the yesterday press meet which we had. So yes, diversification from an India perspective is definitely on anvil, and we have been over last 2 or 3 years, you would have seen India has signed close to 10 million to 12 million tonnes of long-term deals from the allied sources. So that diversification has always been part of India's strategy. In fact, some of our capacity holders have been the major buyer of this LNG, which includes GAIL, Indian Oil, BPCL, GSPC. All of them have gone out in the market in last 2 years and sourced LNG from portfolio players, U.S.-based companies, Australia-based companies. So that diversification is already on the anvil and is taking place. As far as our capacity for storage is concerned, yes, on a strategic side, now we are definitely thinking India as a whole, as well as Petronet, to develop more tanks so that in times of crisis those volumes are available for the market, so that immediately there is no impact. And on a longer-term basis, we will be working on it and definitely come back to you once we have investment approvals in place for it.

And I just wanted a clarification on the earlier comment you made, on the Exxon contract. This is the Gorgon contract which you're expecting in Kochi, sometime this year, right? It's the same contract?

Yes, it's the new contract with the ExxonMobil Asia Pacific Pte. Limited. It's not a Gorgon contract. It's -- Exxon has a contract -- a right to supply from their portfolio, where Gorgon is also one of the primary sources. So it's that contract which has started in April this year. And this is in addition to the existing 1.42 million tonne contract with Exxon, which is already in place.

The next question is from the line of Nitin Tiwari from PhillipCapital.

My first question is actually a clarification on the UOP accounting treatment. So we received about INR 630 crores. The reversal in P&L for provision is about INR 495 crores. So is it right to understand that the rest of about INR 130 crores is booked in revenue?

See the reversal, actually for CY '22, whatever provision we had done, that reversal we did, and some provision was written in the current quarter itself for CY '23 and CY '24 as well. So adjusting that and then the reversal adjusted by the current provision, this number has come, INR 496 crores.

If you can help me with that breakdown, sir, I mean, like how much was reversed and how much incremental provision is made in this quarter, that would be very helpful.

See, just a minute. Just give me a minute.

Sure, sir. Sure, sir.

In the meantime, Nitin, if you have any other question, you may continue to ask while we go through.

Sure, sir. Sir, secondly on basically CapEx projects. So, if you can help us understand that what was our total capital expenditure in FY '26 and what is the plan for '27? How much -- and the capacity expansion that we have commissioned, have you capitalized that or we are going to capitalize that in the first quarter? So I mean, those things -- I mean if you can give some color on that.

Okay. So far as the capitalization is concerned, yes, we have commissioned the project apart from a particular facility. So excluding that particular facility, which will be commissioned in this current quarter, the entire expansion capacity has been commissioned and capitalized.

So any amount that you can help us understand, which has been capitalized in this quarter?

We have capitalized INR 390 crores. And balance around INR 100- odd crores will be capitalized in the next quarter, in this current quarter.

So, Nitin, coming to this provision question. The reverse is INR 550 crores for CY '22. And for CY '23, the provision is INR 35 crores. And CY '24 the provision is about INR 6 crores, INR 5.86 crores.

Sorry, how much was that, sir? For CY '24 you mentioned?

About INR 6 crores, you can take. And there is also a waiver because of higher volume brought, waiver of about INR 13 crores in the current quarter. So if you adjust the INR 35 crores, INR 6 crores, and the INR 13 crores from the INR 550 crores, you will get the number of INR 496 crores.

Understood, sir. And lastly, if I may, like just ask a clarificatory question on the question asked earlier on utilization levels. So you mentioned that the March utilization level was at 53% and some offset has been, like brought in from some other locations. So what is a ballpark utilization number that we should consider for the year ahead, I mean, for FY '27 if this problem continues? If suppose the volume from Qatar doesn't come back, I mean, for 1 quarter or 2 quarters, what is a broad ballpark number we can look at?

So we should not be -- unnecessarily be pessimistic about the entire year. We have the numbers of April as well as May. So we would like to restrict ourselves in these 2 months only. And we hope that this ongoing situation in the Gulf will end very soon. And as I have told you earlier that the moment it stops, QatarEnergy would be able to start the operations in the 3 to 4 weeks' time. And so we are confident that maybe from the first week of June, the entire supply will come as per the annual delivery plan. And we are also talking to Qatar so that whatever volumes we have lost, if they can make good during the current year itself, that will be great for the company as well as for the country also. And I think you had also asked about the proposed CapEx budget for the current financial year. So it's around INR 9,000 crores.

We'll take the next question from the line of Yogesh Patil from Dolat Capital.

Again continuing with the same question on the CapEx. If you could provide the breakup of INR 9,000 crores CapEx for this FY '27, that would be helpful. This is one. Second is related to the tariff hike at Kochi terminal from April. What was the tariff hike quantum on that side? Was it a 5% or lower?

5%. That's constant. And so far as the proposed CapEx budget for the current financial year is concerned, the major amount will be spent on the petchem project only. So that's about INR 7,500 crores odd, plus/minus you can assume 10%. So we are targeting to achieve around INR 7,500 crores. So let's see. That's -- and we are more or less confident that we'll be able to achieve that target. And the rest are all like the third jetty that we are constructing, so around INR 600-odd crores on the third jetty. And Gopalpur terminal also, we are planning to start our activities, construction activities in this current year. So there also we plan to spend around INR 300 crores to INR 400- odd crores. So this is the broad breakup. Rest are all small additional facilities, the routine CapEx. We also have a plan to put up the -- our fifth small-scale LNG plant at Kochi, for which land has already been acquired. And we are planning to spend around INR 70-odd crores in that particular project. So I think these are the broad numbers.

Okay, sir. Small observation on the cash flow statement side. As you guided around INR 3,000 crores kind of CapEx for FY '26 in earlier call, but the cash flow statement is indicating INR 2,500 crores for the FY '26. And secondly, a small question on the CapEx side again. Can we assume the same kind of a CapEx or quantum for FY '28, INR 9,000 crores?

Sorry, can you please come out once again with your questions?

Yes, sir. So observation on the cash flow statement side. In earlier call, Q3 FY '26, you had guided that kind of a INR 3,000 crores kind of a CapEx for FY '26 while if we look down into the cash flow statement, it is indicating INR 2,500 crores. Is there any delay in the CapEx for particular project? If it is, if you could clarify on that side, that's one thing. Secondly, just wanted to take a guidance on the FY '28 CapEx. Can we assume on a tentative side, a INR 9,000 crores kind of a CapEx for FY '28?

Yes, Yogesh Ji, see what happens is the cash flow statement depicts the actual cash flow that is done. It doesn't take into account the provisioning. So the provisioning are different, and the cash, what has been spent is INR 2,511 crores that -- so we can say that, I mean, the -- whatever has had been projected, it is going according to the plan. And again the same principle will also apply for FY '27 as well. There would be -- out of this INR 9,000 crores, there would be at the end of the year, some would be done in cash and some would be in the provisioning level.

The next question is from the line of Bineet Banka from Nomura.

Sir, in terms of potential offtaker for the spot LNG that we are bringing in, so who could be the potential offtaker at this price, $15 to $17 per MMBtu?

We are not -- as Petronet, we are not bringing spot, other than the customers like ONGC for whom we are making endeavors to bring. It's being brought by our capacity holders for onward supply to various consuming sectors, which include CGD, fertilizers, refinery petchem.

Okay. And sir, so Gujarat Gas has guided around 5 to 6 MMSCMD additional gas demand from May onwards. So assuming that all of this demand flows through Petronet LNG, I think incremental volume could be around 1.5 million tonnes per annum, which is close to 6%, 7% of their -- of your current volume. So is it the right understanding?

If that happens, you yourself have calculated numbers, and the numbers seem to be correct. But it all depends whether it is on a perpetual basis or a month-on-month basis. Primarily, I think they are targeting Morbi market which is incremental of 5 to 6 MMSCMD, which is what I think Gujarat Gas has mentioned.

Okay, sir. Sir, lastly, in terms of utilization, I think you said, for the quarter it was around 90%, and March it was 53%. So I'm now trying to get what would be the utilization implied for Jan, Feb, it's over 100%, right?

It was on an average about 108%.

Yes. 108% for Jan and Feb.

The next question is from the line of Adarsh Hinduja, an individual investor.

I think my questions have been answered already. But I wanted to understand one thing from you. There's a lot of different natural gas markers like the JKM, TTF. There's the U.S. Henry Hub natural gas. So when you buy spot cargoes, on what -- typically what rates do you negotiate these contracts at?

The spot cargoes in India typically are linked to JKM and -- or there is a specific index called as West India Marker, which is also very closely related to JKM Marker, which is the price of the Indian market.

And could you comment on what your -- in the month of March, what your spot cargo prices were, the purchase prices?

The spot prices were around $20 in the month of March.

The next question is from the line of Hardik from ICICI Securities.

Sir, just want to check on there is a substantial increase in noncurrent assets and the other financial assets. So can you just explain on that part?

See, other financial assets, when it has increased from INR 406 crores to INR 1,319 crores, that is mainly due to classification of fixed deposit, which is more than 1 year old, that has been classified into other financial assets. And which are below INR 1,000 crores that are coming under cash and cash equivalents. So this is maybe a grouping issue. And as far as the noncurrent assets are concerned, these are -- these also include the capital advances of about INR 906 crores, which pertains to our ongoing CapEx programs.

Okay. And can you please share what was the CapEx that was spent on the petchem project in FY '26?

CapEx for petchem project in FY '26. Petchem projects, FY '26 was INR 720 crores. It is around INR 1,650 crores, including advances and CWIP, total net impact is INR 1,650 crores.

The next question is from the line of Pritesh Chheda from Lucky Investments.

Just 1 question. So based on your assumption of post-May, we should be seeing largely normalization of cargo. So sum total for the year what kind of utilization do you see at the aggregate level for your assets? And considering that there is a Equinor cargo, which is additional, starting May. So sum total, what kind of a utilization one should assume for your assets?

See, we -- firstly, we never said that May onwards things will be back to normal because it all depends on the conflict in the Middle East region, how it pans out and what happens and when Qatar resumes supplies. So it is very difficult to give a number at this point of time. But yes, you're right, the contract with Equinor will also start wherein Performance Chemiserve, which is a part of Deepak Fertilisers Group, will start bringing their cargo, and their first cargo is scheduled for arrival on 12th of May.

Okay. So we have 2 additional contracts, right, the Equinor and the Exxon?

That's right. Yes.

These 2 volumes, which are additional is what number?

Roughly 1 million tonnes in this year.

Sum total?

Yes, sum total.

Okay. And so just for theoretical purposes, considering what you would have some assessment of April and May, and theoretically, if from June the Qatar cargoes normalize, then considering that assumption, what is the utilization one should consider for your assets, along with these 2 new contracts that you have? I mean the theoretical...

Very theoretical, you rightly mentioned.

Yes, yes. Theoretically, yes.

See, we -- as we have already spoken, we are optimistic about the future and from June things may start looking normalized. But whatever numbers will happen, it is very difficult to put any number at this point of time. And what indications you can calculate, we have already informed you what has been the March utilization level, what has been the January, February. So let us see what happens with numbers, please -- then you can calculate whatever the assumptions you already explained.

So I would request you to wait till the end of this quarter and see how things pan out.

Is there a substantial improvement in the April and May utilizations?

No, no, no. It's -- no. More or less at the same level.

As March?

As March.

The next question is from the line of Sarthak from DSP AMC.

So I just have one question regarding the storage facility that is available and how much CapEx do we need to do? Because I -- there was a highlight on the press release yesterday also that we need to be very vigilant as a nation that storage facilities are very lower. So how much -- how, as a company, we are looking at our facilities and increasing storage facilities in the various assets that we have, and how much extra CapEx that we will need to do? Just wanted to -- some clarity on that.

Okay. So for our Gopalpur project, we have already announced that we'll be constructing 2 tanks, and we are also planning to set up 1 more tank in Kochi. So that's -- right now, we can say, our current plan is all about increasing the storage. However, as mentioned by our CEO yesterday in the press conference that some more tanks are also being planned at Dahej, and we are looking for land because land is an issue. Availability of land is an issue in Dahej. But we are actively scouting for some additional land parcel wherein we'll be able to put up some 3 to 4 additional tanks. But regarding these additional storage tanks at Dahej, right now there is no immediate plans. It's -- definitely, we wish to put up additional storage facilities out there. But immediately we can say that, yes, Gopalpur, which is a Board-approved project, there we'll be putting up 2 tanks. And one more tank, we are actively considering for our Kochi terminal.

Just one small follow-up. Any CapEx number in your mind for the 1 additional tank in Kochi?

It's about around INR 1,200 crores.

The next question is from the line of Maulik Patel from Equirus.

Just one question. Any update on the extension of contract from 2028? Have you made -- have you entered into agreement with any offtakers on that?

I think I would only say that discussions are ongoing with offtakers and once those contracts are done, we'll definitely inform investors as well as stock exchanges.

Okay. And just our contract with Qatar is from the train #3, right? Is that correct?

Can you please come out with the question? Can you please repeat the question once again?

Our contract with Qatar for the current existing contract of 8 million tonne, is the train #3 of the South Field, right?

Yes, Maulik, this information, we are not sharing actually. We do not share.

The next question is from the line of Vivekanand Subbaraman from AMBIT Capital.

Just extending on Maulik's question on the negotiations with the offtakers for the back-to-back contract. Now, I understand that it's from 2028, but you have signed a contract which is now DES, right? So which...

Yes.

Which was earlier FOB from Qatar. So from a commercial standpoint, do you expect any meaningful changes in the nature of the contract based on the discussions that you've had so far? That's my first question. The second one is on the contracts that you had been signing for the expansion in Dahej, which is with the Deepak Group and ONGC. Is there any further discussion that you have had with your customers that you can update us on in terms of new business models like ethane storage handling or, say, monetization of that CapEx?

Yes. So regarding the future business plans, as and when we sign definitive agreements with the customers, we'll definitely reach out to our different stakeholders, including the stock exchanges. And so far as your first question is concerned, regarding the change in terms of cargo from FOB to DES, we don't see any need for renegotiating the Incoterms.

The next question is from the line of Nitin Tiwari from PhillipCapital.

Just a bookkeeping question. What is the Ind AS impact for the fourth quarter and also for FY '26 as a whole?

Yes. The Ind AS impact is for the fourth quarter, INR 119 crores positive at gross margin. Then there is a ForEx loss of INR 91 crores and positive INR 8 crores at OpEx level. And then depreciation, INR 77 crores and interest expense on lease liability INR 59 crores. This is for the quarter. And for the year, at gross margin level, positive INR 629 crores. The ForEx loss is INR 199 crores. The OpEx level positive is INR 30 crores, then depreciation INR 322 crores and finance cost INR 228 crores.

The next question is from the line of Varatharajan Sivasankaran from Antique Limited.

Sir, on the trading gains part, do we have any numbers we can share?

Yes. It's INR 118 crores.

Okay. Secondly, on these parcels which are being procured from other regions like Nigeria and so on and so forth, what is the general spot availability what we see which has potential to be diverted to India? In general, if you look at the volumes flowing currently, what proportion of it would be contract and like what proportion would be spot?

Very difficult to give an answer because as you know capacity is booked by GAIL, IndianOil, BPCL. So it is their prerogative and they have capacity in other terminals in India also. It is their prerogative which cargo they want to bring to Dahej and which cargo they want to take to their other terminals. So very difficult to give a number like what would be the proportion of spot cargoes vis-a-vis with their terminals.

Yes, I'm more concerned about, like globally and especially in the regions where you just referred to, are there more spot parcels available? And has that spot parcel availability increased post-war?

As and when new facilities come up, so those volumes are typically broadly on spot or with portfolio players. So recently you would have heard that Golden Pass started the export of their cargo to the U.S. So all those volumes will be becoming available to the market on spot basis.

The next question is from the line of Somaiah V from Avendus Spark.

My first question is on the time charter, which you have mentioned in the footnotes. So we'd be able to get back to normalcy if the Strait of Hormuz issue gets resolved and we'll be getting the Middle East cargoes. Is this the right way to understand? So these -- we'd be able to utilize those 3 time charters?

Yes, those time charter vessels are specifically hired for carrying cargo from Qatar to our terminals. So once the supply resumes, these time charter vessels will be again engaged as being done earlier.

Got it. Sir, and what is the existing contract duration for these time charter vessels? Like 6 months, still how many -- in terms of the existing contract, how many more months remain?

It is aligned with our SPA terms. So as and when SPA terminates -- comes to an end, the time charter will also end.

Okay. Sir, in -- I mean, because it's a force majeure kind of a situation, so that's why we believe the INR 90 crores kind of a demand that's been placed for March and subsequent periods also is something that we are not liable to pay. So that's the -- is that the right understanding?

Yes.

Okay. Sir, what would be the run rate for FY '28 in terms of CapEx? So it will be similar to this INR 9,000 crores of '27?

Yes, it's -- see, as has been discussed in the last call also, basically the FY '28 -- FY '27 we are saying INR 9,000 crores, and FY '28 also should be at the same level, around 10%, more or less.

Okay. And sir, in terms of payouts, so the historical payout is expected to continue despite the expansion because of the cash in the balance sheet.

Yes. Short answer is yes. See, I'll not go by the payout percentage, but in absolute terms, the endeavor is to maintain the same level of dividend.

The next question is from the line of Gagan Dixit from Elara Securities.

Sir, what is the status of this Kochi-Bangalore pipeline? What I know, I think that GAIL has pushed the time line to, I think, September '26. So is there any update for this? And what is the capacity utilization...

Whatever [ function is running ], it's perfectly in order.

Okay. Okay. The first half of FY '27.

Yes.

So what is the Kochi utilization that you expect for -- I mean, for FY '28 when the full volume will be available from that pipeline?

When the pipeline is complete, what will be the utilization of Kochi?

So, definitely it's going to go up. There's no doubt about it because it'll be opening for different market and get connected to the national gas grid. So definitely the utilization will go up.

Okay. And sir, my final question is about the swap volume. I think this -- many of the -- I think, especially from the GAIL, many swap volume coming from the U.S. with the Middle East route. So I assume [ from that, that gas got ] stopped actually. So are you still getting the volume directly from the U.S. or from those customers? Or is this the shipping constraint that is hindering the full recovery?

So it is our capacity holders and offtakers who are bringing in these volumes.

The next question is from the line of Falguni Dutta from Mansarovar Financials.

I just had one clarification question. What was the capacity utilization for Dahej for March that you mentioned?

Around 53%.

5-3?

5-3, yes.

And, sir, would it be possible to say that how much is it now as we speak?

I have already shared that it is hovering around the same level.

Ladies and gentlemen, we'll take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you and over to you, sir.

So thank you. Thank you for joining us. And we hope that the situation in the Gulf improves very soon, which is going to have a very positive impact in our operations and -- as well as on the financials. And we also expect to come out with a brighter picture of the financials of the company when we meet next. Thank you so much.

Thank you, members of the management. On behalf of Ashika Institutional Equities, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.