Petronet LNG, India’s biggest liquefied natural gas importer, has sought shareholder approval to continue paying commission to its directors at up to 1 per cent of annual profits for five years from FY27 to FY31. The proposal is included in the notice for the company’s forthcoming general meeting.

The proposed arrangement would allow distribution of up to 1 per cent of profits calculated under Section 198 of the Companies Act, 2013, among directors in amounts and proportions determined by the board. Shareholders last approved the arrangement at the annual general meeting on September 28, 2021, for FY22 to FY26. Similar approvals were granted in 2007, 2011 and 2016.

Petronet said the continuation was being sought because of its healthy financial position. For the year ended March 31, 2026, the company paid its managing director and chief executive officer Akshay Kumar Singh, along with other whole-time directors, commission of Rs. 2.65 mn each, compared with Rs. 2.55 mn in the previous year. Singh’s total remuneration rose to Rs. 36.4 mn from Rs. 30.3 mn.

Independent directors received Rs. 1 mn each in profit commission in FY26, in addition to sitting fees, against Rs. 0.98 mn in FY25. Whole-time directors, including the managing director and CEO, were eligible for a maximum commission of Rs. 7.95 mn, while independent directors could receive up to Rs. 5.5 mn, taking the combined ceiling to Rs. 13.45 mn.

Petronet reported a net profit of Rs. 38.43 bn on revenue of Rs. 434.95 bn in FY26, compared with profit of Rs. 39.26 bn and revenue of Rs. 509.8 bn in FY25. Singh, who joined the company as CEO in February 2020, has an extended term until May 2027 and will superannuate on May 12 that year. A search for his replacement has begun. Indian Oil Corporation, GAIL, Oil and Natural Gas Corporation and Bharat Petroleum Corporation each hold a 12.5 per cent stake in Petronet.