Hindustan Oil Exploration Company Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Hindustan Oil Exploration Company Ltd filed with BSE on 20 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Hindustan Oil Exploration reported standalone revenue of INR117.5 crores for Q1 FY27, recovering from a negative INR194 crores in the prior quarter that had been impacted by an HPCL sale reversal. Management described continued production challenges at the B-80 offshore field due to water cut, progress on the Kharsang field where production nearly doubled, and updates on the Dirok gas evacuation pipeline connectivity expected around December. Management also discussed the ongoing HPCL crude inventory dispute, capex plans for B-80 workovers and new wells, and funding through a mix of internal accruals and market debt.
Numbers mentioned
Standalone revenue from operations: INR117.5 crores (Q1 FY27)
p. 6
“the company recorded standalone revenues from operations of INR117.5 crores compared with negative of INR194 crores in the previous quarter”
Allen Joseph Andrade, page 6 of the filed PDF · View the filing
Net standalone revenue: INR107.6 crores (Q1 FY27)
p. 6
“After accounting for profit petroleum and revenue share of INR9.83 crores, the net revenue stands at INR107.6”
Allen Joseph Andrade, page 6 of the filed PDF · View the filing
Consolidated revenue from operations: INR124 crores (Q1 FY27)
p. 6
“The consolidated revenue from operations for the quarter was INR124 crores, and after profit petroleum and revenue sharing, the net consolidated revenue stands at INR114.17 crores”
Allen Joseph Andrade, page 6 of the filed PDF · View the filing
Kharsang production: increased from approximately 12,300 barrels of oil to 17,400 BOE (Q1 FY27 vs previous quarter)
p. 7
“the production from Kharsang has been most encouraging, where production increased from approximately 12,300 barrels of oil to 17,400 BOE”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
Average crude and condensate realization: $95.5 per barrel (Q1 FY27)
p. 7
“The average realization of crude and condensate improved significantly to about $95.5 a barrel, compared with approximately $70.8 per barrel in the previous quarter on a standalone basis”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
Average gas price realization: $12 per MMBTU (Q1 FY27)
p. 7
“the average gas price realization improved to $12 MMBTU, compared with 9.8 MMBTU in the previous quarter”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
Standalone profit before tax and exceptional items: INR12.54 crores (Q1 FY27)
p. 7
“the standalone profit before tax and exceptional items was INR12.54 crores for the quarter compared with INR30.4 crores in the previous quarter”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
Consolidated profit before tax and exceptional items: INR6.5 crores (Q1 FY27)
p. 7
“On a consolidated basis, the profit before tax and exceptional items was INR6.5 crores compared with INR9.01 crores in the previous quarter”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
Standalone other income: INR19.37 crores (Q1 FY27)
p. 7
“The other income for the quarter was INR19.37 crores on a stand-alone basis and INR20 crores on a consolidated basis”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
Standalone total expenses: INR114 crores (Q1 FY27)
p. 7
“Stand-alone total expenses for the quarter at INR114 crores included depletion of INR51 crores, royalty and other statutory dues of INR13 crores and stock adjustments of INR41 crores”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
Consolidated total expenses: INR128 crores (Q1 FY27)
p. 7
“On a consolidated basis, the total expenses were INR128 crores with costs, including depletion at INR58 crores, royalty, cess and other statutory dues at INR15 crores and stock adjustments of INR41 crores”
Allen Joseph Andrade, page 7 of the filed PDF · View the filing
B-80 average gas realization: $16.5 per MMBTU (Q1 FY27)
p. 13
“if you want the B-80 realization on an average is $16.5 per MMBTU. The Dirok is 12.5”
Allen Joseph Andrade, page 13 of the filed PDF · View the filing
Gearing (net debt to equity): 0.04
p. 17
“Our gearing is very low at this stage. It is 0.04.”
Baroruchi Mishra, page 17 of the filed PDF · View the filing
Bank loan outstanding: INR20 crores
p. 17
“we have a INR20 crores loan from the bank. That is it.”
Allen Joseph Andrade, page 17 of the filed PDF · View the filing
B15 reserve level: 16 MMBOE
p. 4
“The reserve levels are 16 MMBOE, which will be reappraised after we have done some more processing and after the first well, we are hopeful that we'll see an upside”
Baroruchi Mishra, page 4 of the filed PDF · View the filing
B-80 2P reserves: 26 million, of which 1.5-2 million produced
p. 11
“We believe our 2P reserves are still there, 26 million, of which 1.5-2 million has been produced so far”
Baroruchi Mishra, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
HPCL crude inventory clearance — entire crude inventory sold · end of October, early November
stated conditionally by Baroruchi Mishra
p. 8
“we hope that by end of October, early November, the entire crude inventory will be gone from the HPCL refinery in Chembur in Mumbai”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Dirok pipeline connectivity via hot tapping — completion of hot taps and grid connection · December
stated conditionally by Baroruchi Mishra
p. 10
“we are hoping that in December, the hot taps would be completed and we should be able to get higher capacity in these lines and then be able to flow to the national gas grid”
Baroruchi Mishra, page 10 of the filed PDF · View the filing
B-80 workover wells (D1, D2) on production — two workover wells on production · November-December 2026
stated conditionally by Baroruchi Mishra
p. 9
“the plan remains that by June of next year, we'll bring three wells on production. By November and December of this year, which is 2026, we will have two wells that we have worked over on production”
Baroruchi Mishra, page 9 of the filed PDF · View the filing
B-80 new wells on production — three new wells on production · June of next year
stated conditionally by Baroruchi Mishra
p. 9
“the plan remains that by June of next year, we'll bring three wells on production”
Baroruchi Mishra, page 9 of the filed PDF · View the filing
Kharsang gas pipeline right of way and completion — 24 kilometer pipeline completed · December next year
stated as an aspiration by Baroruchi Mishra
p. 21
“If it were to be an ideal situation, we would believe that by the end of next year, December next year, the pipeline could be completed”
Baroruchi Mishra, page 21 of the filed PDF · View the filing
PY-1 new well drilling — drill two new wells
stated conditionally by Baroruchi Mishra
p. 18
“we'll drill those only after we have a firm gas sales agreement”
Baroruchi Mishra, page 18 of the filed PDF · View the filing
B-80 production target — 11,000 barrels per day · June 2027
stated as an aspiration by Baroruchi Mishra
p. 16
“when I say 11,000, it could be 8,900 or it could be 13,000. But that's the range that we're looking at on the basis of the technical work that have been done on the reservoir”
Baroruchi Mishra, page 16 of the filed PDF · View the filing
B-80 crude sale volumes — 120,000 to 130,000 barrels · October
stated conditionally by Baroruchi Mishra
p. 14
“In October, we'll have sufficient volumes for a small tanker to be able to take it and we'll be able to sell, but that would be around 120,000 to 130,000 barrel of crude we'll be able to sell in October”
Baroruchi Mishra, page 14 of the filed PDF · View the filing
B-80 cash flow sufficiency for B-15 — cash flows sufficient to fund B-15 growth · November, December 2027
stated conditionally by Baroruchi Mishra
p. 16
“By the quarter four of by November, December of next year, 2027, our cash flows will be sufficient to fund our growth for B-15”
Baroruchi Mishra, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said hot tapping work is expected to complete by December, resolving the pipeline capacity constraint.
Answered by Baroruchi Mishra
Asked by Dhruv Sitlani: What is the status and timeline for Northeast grid connectivity for Dirok?
p. 8
“So our take is that by December, this should be completed.”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Management said crude sales to third parties continue and they expect the HPCL inventory to be cleared by end of October or early November.
Answered by Baroruchi Mishra
Asked by Dhruv Sitlani: What is the status of B-80 production and the HPCL dispute resolution timeline?
p. 8
“we hope that by end of October, early November, the entire crude inventory will be gone from the HPCL refinery in Chembur in Mumbai”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Management estimated losses of INR4-6 crores so far on 15% of crude sold, with a possible 7-10% loss on the remainder, cautioning it is not guidance.
Answered by Baroruchi Mishra
Asked by Shubham Jain: What was the mark-to-market impact on P&L from inventory losses?
p. 8
“we have incurred some losses, which is an range of INR4 crores to INR5 crores, maybe INR6 crores”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Management said a rig will now allow full water zone shutoff and re-perforation, unlike prior chemical treatments, giving higher confidence.
Answered by Baroruchi Mishra
Asked by Riddhesh Gandhi: What gives confidence B-80 can be fixed this time given past failed remediation attempts?
p. 11
“now we are getting a rig to be able to completely shut off the water zone through rig intervention. So the level of confidence in making an improvement towards higher production is high.”
Baroruchi Mishra, page 11 of the filed PDF · View the filing
Management said it reflects contingency for rig scarcity rather than committed spend, to be drawn down as needed.
Answered by Baroruchi Mishra
Asked by Riddhesh Gandhi: Why did the capex budget increase versus the Q4 presentation?
p. 12
“The rigs have come in very short supply now. As the oil prices increase, everybody wants to drill. So we have to have some increase in the contingency”
Baroruchi Mishra, page 12 of the filed PDF · View the filing
Management attributed delays to the HPCL invoice dispute and said they are raising funds to execute the workovers and drilling, while acknowledging reservoir uncertainty.
Answered by Baroruchi Mishra
Asked by Nishant Maheshwari: How can investors trust the 11,000 bpd target given repeated delays and declining production?
p. 15
“One of the key reasons why there was a further delay was the stuck-up of our invoice in HPCL, which was a Black Swan event in many ways, where INR260 crores plus, if you add the interest, roughly INR300 crores got stuck.”
Baroruchi Mishra, page 15 of the filed PDF · View the filing
Management said B-80 will rely on debt currently, with internal cash flows expected to suffice for B-15 by November-December 2027.
Answered by Baroruchi Mishra
Asked by Nirbhay Mahawar: When will cash flow be sufficient to fund capex commitments?
p. 16
“So for delivering B-80 program, we will have to rely on debt.”
Baroruchi Mishra, page 16 of the filed PDF · View the filing
Management said they have an agreed resale arrangement and want to preserve a cordial relationship, with formal conciliation ongoing before a High Court-appointed chief justice.
Answered by Baroruchi Mishra
Asked by Riddhesh Gandhi: Why isn't HOEC passing the crude price loss liability onto HPCL given the dispute is HPCL's fault?
p. 21
“going forward, the matter would be in the conciliation, High Court Chief Justice has been appointed, and we are hoping that it would be an amicable conciliation process”
Baroruchi Mishra, page 21 of the filed PDF · View the filing
Management estimated 10-20 days per workover with 500-800 barrels per well and 3-5 million standard cubic feet gas per day.
Answered by Baroruchi Mishra
Asked by Mannan Patel: How long does a B-80 workover take and what production increase is expected per well?
p. 20
“We are looking at 500 to 800 barrels per well, and 3 to 5 million scuffs per day from these wells.”
Baroruchi Mishra, page 20 of the filed PDF · View the filing
Risks flagged
Higher water cut at B-80 producing well impacted production
p. 4
“production during the quarter was impacted by a higher water cut from one of the producing wells resulting in lower output”
Baroruchi Mishra, page 4 of the filed PDF · View the filing
HPCL crude inventory offtake delays by third parties
p. 4
“there were delays in the offtake by road. But that said, the offtake continues, and we are reselling the crude to third parties”
Baroruchi Mishra, page 4 of the filed PDF · View the filing
PY-1 drilling contingent on gas buyers' willingness to sign take-or-pay agreements
p. 5
“the drilling of those two new wells, while we had planned for quarter four of next year, they have become contingent upon the ability of the gas buyers, IOCL / GAIL to lift our gas”
Baroruchi Mishra, page 5 of the filed PDF · View the filing
Lack of evacuation route limiting Dirok production to 50-70% of well capability
p. 5
“we are producing only 50%-70% of the capability from the existing well stock because of the lack of evacuation route”
Baroruchi Mishra, page 5 of the filed PDF · View the filing
Regulatory clearance challenges for Kharsang pipeline route through forest area
p. 6
“There is a challenge there as it goes through a forest area, so regulatory clearances might be an issue”
Baroruchi Mishra, page 6 of the filed PDF · View the filing
Losses on crude inventory sales dependent on Brent price movements
p. 8
“we will suffer a loss. Now how much? I would put my number to around 7% to 10%, but please don't take it as a guidance”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Offshore drilling risk of stuck tubing causing delays
p. 9
“these are offshore wells, stuff happens sometimes the tubing gets stuck, and so there could be delays”
Baroruchi Mishra, page 9 of the filed PDF · View the filing
Reservoir uncertainty in production forecasts
p. 16
“In the offshore, in the reservoir, there are always uncertainties.”
Baroruchi Mishra, page 16 of the filed PDF · View the filing
Funding risk if debt raise for B-80 program does not materialize
p. 16
“Again, there could be a challenge if we don't get the funds, but at least some part of it, we are funding from our own accruals”
Baroruchi Mishra, page 16 of the filed PDF · View the filing
Local protests in Tamil Nadu related to drilling of two wells
p. 15
“there were indeed some protests around drilling these two wells”
Baroruchi Mishra, page 15 of the filed PDF · View the filing
Uncertainty over deliverability of individual new wells due to depth and reservoir variability
p. 18
“we are talking about stuff which is 4 kilometers below the main mud line. So that uncertainty will remain”
Baroruchi Mishra, page 18 of the filed PDF · View the filing
Difficult terrain and forest areas complicating Kharsang pipeline construction
p. 21
“given the difficult terrain and the forest areas to digital pass along the highway and below river, etcetera, we believe 14 to 18 months is the time it will take to lay that”
Baroruchi Mishra, page 21 of the filed PDF · View the filing
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