Hindustan Oil Exploration Company LimitedEnergyHINDOILEXP
Q1 FY27 concall · earnings callHindustan Oil Exploration Company Limited
The quarter delivered a solid revenue rebound driven by higher Kharsang production and favorable Brent prices, but ongoing operational challenges at key assets and a need for external funding to execute the B-80 development plan highlight the path-dependent nature of future growth.
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone Revenue from Operations | ₹117.5 Cr | compared with negative of ₹194 Cr in the previous quarter | |
| Net Standalone Revenue (after profit petroleum) | ₹107.6 Cr | — | |
| Consolidated Revenue from Operations | ₹124 Cr | — | |
| Standalone Profit Before Tax & Exceptional Items | ₹12.54 Cr | compared with ₹30.4 Cr in the previous quarter | |
| Kharsang Production (BOE) | 17,400 BOE | increased from approximately 12,300 barrels | |
| Average Crude Realization (Standalone) | $95.5 a barrel | compared with approximately $70.8 per barrel in the previous quarter | |
| Average Gas Price Realization | $12 MMBTU | compared with 9.8 MMBTU in the previous quarter | |
| B-80 Gas Realization | $16.5 per MMBTU | — |
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| 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 |
Revenue and production have improved materially this quarter, reversing the negative revenue of the prior period. However, the guidance for resolving the Dirok pipeline issue remains 'by December', and the need for debt to fund B-80 is now explicitly confirmed, shifting from a plan to a firm requirement. The expected loss on B-80 crude resale is now quantified at 7-10%.
- Revenue recovered significantly due to higher Kharsang production and strong Brent prices.
- B-80 production impacted by high water cut; workovers planned for November/December and three new wells by June 2027.
- Dirok gas evacuation remains constrained; pipeline capacity restoration targeted for December.
- The company expects losses of 7-10% on the resale of B-80 crude inventory previously sold to HPCL.
- Debt will be required to fund the B-80 development program as internal cash flows are insufficient.
“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.”
| Topic | What management said |
|---|---|
| Dirok Pipeline Timeline | Management reiterated the DNPL pipeline capacity restoration is targeted for December, dependent on hot-tapping work by Assam Gas Company, with confidence stemming from regulatory push and new technical solutions to avoid an NRL shutdown. |
| B-80 Crude Inventory Loss | Management confirmed losses of INR 4-6 crores on 15% of the inventory sold so far, expecting a total loss of 7-10% on the full resale, which will be completed by end October/early November. |
| B-80 Development Plan & Funding | The workover of two wells is on track for November/December 2026, with three new wells to be brought on production by June 2027. The company stated it 'will have to rely on debt' to fund this program, as internal cash flows are insufficient. |
| Confidence in B-80 Fix | When pressed on past failures, management attributed delays to the HPCL invoice issue (a 'Black Swan event') and expressed confidence in the current rig-based workover plan, citing remaining 2P reserves and improved operational flexibility. |
| Dirok Ramp-Up Post-Connection | Management indicated that once the pipeline is connected to the national grid, gas could be sold on the exchange 'in three days time', allowing for a quick production ramp-up without needing long-term firm buyers. |
| Priority of Capex | Kharsang and PY-1 rig-less interventions are self-funded and proceeding. The B-80 program is dependent on raising debt, and new PY-1 wells are contingent on securing gas sales agreements to avoid past mistakes of drilling without offtake. |
- Expect to complete Dirok pipeline capacity restoration by December 2026.
- Target selling entire B-80 crude inventory by end October/early November 2026.
- 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.
- Kharsang gas pipeline project could be completed by December 2027, subject to regulatory approvals.
Summary written from the transcript filed by Hindustan Oil Exploration Company Limited for the call held on 13 Aug 2026; published 20 Aug 2026, 17:57 IST.
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