Hindustan Oil Exploration Company LtdEnergyHINDOILEXP
Q1 FY26 earnings callHindustan Oil Exploration Company Ltd
The quarter saw improved revenue from higher production at Kharsang and favorable prices, but several key assets faced operational delays and the company must raise debt to fund critical work at its flagship B-80 field.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone Revenue from Operations | INR117.5 crores | — | |
| Net Standalone Revenue (after profit petroleum) | INR107.6 crores | — | |
| Consolidated Revenue from Operations | INR124 crores | — | |
| Standalone Profit Before Tax & Exceptional Items | INR12.54 crores | — | |
| Kharsang Production (BOE) | 17,400 BOE | — | |
| Average Crude Realization (Standalone) | $95.5 a barrel | — | |
| Average Gas Price Realization | $12 MMBTU | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹146.52 Cr-18.2% YoY+54.5% QoQ | ₹43.32 Cr-7% YoY+300.7% QoQ | ₹3.28-6.8% YoY+300% QoQ |
| Q2 FY25 | ₹94.81 Cr-16% YoY-30.4% QoQ | ₹10.81 Cr-75% YoY-74.2% QoQ | ₹0.82-74.8% YoY-74.1% QoQ |
| Q1 FY25 | ₹136.15 Cr-18.8% YoY-53% QoQ | ₹41.92 Cr-36.6% YoY-40.6% QoQ | ₹3.17-36.6% YoY-40.6% QoQ |
| Q4 FY24 | ₹289.61 Cr+65.4% YoY+61.7% QoQ | ₹70.61 Cr-33.8% YoY+51.6% QoQ | ₹5.34-33.7% YoY+51.7% QoQ |
| Q3 FY24 | ₹179.08 Cr+5.4% YoY+58.7% QoQ | ₹46.57 Cr+24.7% YoY+7.9% QoQ | ₹3.52+24.8% YoY+8% QoQ |
TL;DR
- Revenue improved due to higher Kharsang production and favorable Brent prices.
- Production at flagship B-80 field was impacted by high water cut; workovers and new wells planned.
- Dirok gas production remains constrained by pipeline evacuation issues; resolution targeted by December.
- The company plans to raise debt to fund B-80 development program.
- Losses expected on resale of B-80 crude inventory previously sold to HPCL.
Said on the call
“Globally, $400 billion are spent every year to keep the production plateau, not from declining, not for growing production. That unfortunately, we could not do for various reasons.”
From the Q&A
| Topic | What management said |
|---|---|
| Dirok Pipeline Timeline | Management targets December for completion of hot taps to restore pipeline capacity, enabling gas flow from Dirok to the national grid. |
| B-80 Crude Inventory | Sale of crude inventory (previously sold to HPCL) to third parties is slower than expected; entire inventory expected to be sold by end October/early November, with an expected loss of 7% to 10%. |
| B-80 Workover and Drilling Plan | Workovers on two wells planned for November/December 2026, with three new wells to be drilled by June 2027; funding for this program requires raising debt. |
| Confidence in B-80 Fix | Management expressed confidence in the workover plan using a rig for subsea wells, citing remaining 2P reserves, but acknowledged inherent reservoir uncertainties. |
| Gas Price Realizations by Asset | CFO provided average realizations: B-80 gas at $16.5 per MMBTU and Dirok at $12.5 per MMBTU, agreeing to provide asset-wise splits in future presentations. |
| HPCL Dispute and Liability | Management stated they have an agreed position with HPCL to offtake the crude and will proceed with an amicable conciliation process, rather than passing the loss liability to HPCL. |
| Kharsang Gas Pipeline | A 24 km pipeline to monetize Kharsang gas is planned; route survey tender closing, with completion estimated in 14 to 18 months due to forest clearances. |
Guidance
- Expect to complete Dirok pipeline capacity restoration by December.
- Target selling entire B-80 crude inventory by end October/early November.
- Plan workovers on two B-80 wells by November/December 2026 and bring three new wells on production by June 2027.
- Will need to raise debt to fund the B-80 development program.
Source
Summary written from the transcript filed by Hindustan Oil Exploration Company Ltd for the call held on 13 Aug 2026; published 20 Aug 2026, 16:35 IST.