Hindustan Oil Exploration Company Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Hindustan Oil Exploration Company Ltd filed with BSE on 19 Jun 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 Company reported negative revenue, EBITDA and PAT for FY26, impacted mainly by an HPCL crude sale that was invoiced and later reversed; standalone net sales for the year were Rs 274 crores. Management outlined production targets rising from current levels of about 1,500 barrels of oil equivalent per day to 10,000-11,000 barrels by mid-2027, 22,000 by 2028, and 32,000 by 2029, driven by drilling campaigns across B-80, B-15, PY-1, Dirok and Kharsang. The company also discussed ongoing efforts to resell the reversed HPCL crude to third-party buyers linked to Brent pricing, and pipeline evacuation constraints in Assam that limit current Dirok gas production.
Numbers mentioned
Standalone net sales: Rs 274 crores (FY26)
p. 9
“So, the net sale for the year is INR274 cores.”
Allen Joseph Andrade, page 9 of the filed PDF · View the filing
Standalone revenue (prior year): INR344 crores (FY25)
p. 9
“On a stand-alone basis, HOEC has made INR288 crores compared with INR344 crores that we did last year.”
Allen Joseph Andrade, page 9 of the filed PDF · View the filing
Standalone revenue (current year, before adjustment): INR288 crores (FY26)
p. 9
“On a stand-alone basis, HOEC has made INR288 crores compared with INR344 crores that we did last year.”
Allen Joseph Andrade, page 9 of the filed PDF · View the filing
Lifting cost: $28.4 per barrel (FY26)
p. 9
“If you look at the lifting cost, it's $28.4 a barrel actually, which compares well with the previous year, which is again $28.6 a barrel.”
Allen Joseph Andrade, page 9 of the filed PDF · View the filing
Exceptional item (fair value gain): INR32 crores (FY26)
p. 9
“One impact that has come in the year is the exceptional item, which is the result of the acquisition stake and the booking of the unusual profit of INR32 crores.”
Allen Joseph Andrade, page 9 of the filed PDF · View the filing
Revenue that would have been recognized absent HPCL reversal: INR559 crores (FY26)
p. 9
“Should that sale have gone through, our revenue would have been INR559 crores.”
Allen Joseph Andrade, page 9 of the filed PDF · View the filing
Key return ratios: 4.5% and 2.5% (FY26)
p. 9
“Our key return ratios continue to remain 4.5% and 2.5%, similar to what we did in the previous year.”
Allen Joseph Andrade, page 9 of the filed PDF · View the filing
2P reserves: 60 million barrels of oil equivalent
p. 8
“So, our 2P reserves are 60 million barrels.”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
3P reserves: 109 million barrels of oil equivalent
p. 8
“Then there are substantial upsides for the 3P, which is the P10 reserves, which is around 109 million barrels of oil equivalent.”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Current production: 1.5 thousand barrels of oil equivalent
p. 8
“We currently are 1.5 thousand barrels of oil equivalent, plus roughly 0.4 to 0.6 or 0.7 million barrels or 1,000 barrels of oil equivalent locked in because we don't have the infrastructure.”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Overall opex: $28 per barrel of oil equivalent
p. 24
“Our current opex is on a company-wide basis is $28 per barrel of oil equivalent.”
Baroruchi Mishra, page 24 of the filed PDF · View the filing
Dirok current gross production: 0.3 to 0.4 million standard cubic meters per day
p. 7
“As we speak, we have -- we are producing around 0.3 million to 0.4 million standard cubic meters per day.”
Baroruchi Mishra, page 7 of the filed PDF · View the filing
B-80 2P reserves: 26 million barrels of oil equivalent
p. 5
“So, just to put things in perspective, we have 2P reserves of 26 million barrels of oil equivalent in this field, out of which we have just produced 1 or thereabouts.”
Baroruchi Mishra, page 5 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.
Net production — 10,000 to 11,000 barrels of oil equivalent per day · by June 2027
stated conditionally by Baroruchi Mishra
p. 10
“We are targeting to get to 10,000 to 11,000 barrels by June of next year.”
Baroruchi Mishra, page 10 of the filed PDF · View the filing
Production growth trajectory — 22,000 barrels of oil equivalent per day · by 2028
stated as an aspiration by Baroruchi Mishra
p. 8
“and then by 2028, 22,000 barrels of oil”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Production growth trajectory — 32,000 barrels of oil equivalent per day · by 2029
stated as an aspiration by Baroruchi Mishra
p. 8
“and then by 2029, to 32,000 barrels of oil equivalent.”
Baroruchi Mishra, page 8 of the filed PDF · View the filing
Dirok gas production — 70 million SCFs · in 2 to 3 years
stated conditionally by Baroruchi Mishra
p. 21
“I've said that already. The target would be 70 million SCFs, but there are upsides from North Dirok and from Greater Dirok.”
Baroruchi Mishra, page 21 of the filed PDF · View the filing
Assam gas production — 45 million standard cubic feet
stated conditionally by Baroruchi Mishra
p. 10
“but we do hope that we will triple the production to 45 million standard cubic feet.”
Baroruchi Mishra, page 10 of the filed PDF · View the filing
Kharsang production — double current production
stated conditionally by Baroruchi Mishra
p. 10
“So, we will look to double our production in Kharsang again.”
Baroruchi Mishra, page 10 of the filed PDF · View the filing
B-80 workover completion — complete workover of 2 wells · post-monsoon, by June of next year
stated conditionally by Baroruchi Mishra
p. 14
“But our target is to start working on this completely in real earnest and get everything, the entire work program liquidated by June of next year.”
Baroruchi Mishra, page 14 of the filed PDF · View the filing
Debt and EBITDA outlook — next quarter
stated firmly by Baroruchi Mishra
p. 11
“In the next quarter, we'll give you the details because otherwise, you and I will run the danger of believing in a number and things might turn out to be slightly different.”
Baroruchi Mishra, page 11 of the filed PDF · View the filing
Dirok pipeline connectivity resolution — 1 to 2 months
stated conditionally by Baroruchi Mishra
p. 13
“But given what we have been, through there will be an opportunity to complete it in 1 to 2 months, 2 months maybe.”
Baroruchi Mishra, page 13 of the filed PDF · View the filing
Capex funding approach — internal accruals and bank facilities
stated firmly by Baroruchi Mishra
p. 8
“So, at this stage, allow me only to say that we will fund it both with our internal accruals and with facilities that we'd like to get from the banks to raise capital.”
Baroruchi Mishra, page 8 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 gave a range of targets by field, tied to specific well campaigns and timing risks, aiming for above 8,000 barrels but planning for 11,000.
Answered by Baroruchi Mishra
Asked by Harshit Khadka: What is the FY27 net production target and split by field?
p. 10
“So in sum, we are in the line of sight of getting to definitely above 8,000 barrels, but our planning is to get to 11000.”
Baroruchi Mishra, page 10 of the filed PDF · View the filing
Management said crude is being sold to third parties from HPCL storage and proceeds are expected over 2 to 3 months.
Answered by Baroruchi Mishra
Asked by Mehul Panjuani: When will HPCL crude sale revenues be realized?
p. 12
“So our best guess is 2 to 3 months, we should be able to sell all the crude.”
Baroruchi Mishra, page 12 of the filed PDF · View the filing
Management explained the technical steps needed to connect the replaced 55km pipeline segment back to the DNPL line and said resolution could take 1-2 months.
Answered by Baroruchi Mishra
Asked by Mehul Panjuani: Update on the pipeline connectivity issue that has been pending for several quarters.
p. 12
“Yes. So that is a question of which I might have an answer, but it may not satisfy you.”
Baroruchi Mishra, page 12 of the filed PDF · View the filing
Management said wells could theoretically reach 1.1-1.2 million standard cubic meters but realistically expects 0.8-0.9 million once pipeline access is available.
Answered by Baroruchi Mishra
Asked by Dhruv: When will national grid connectivity for Dirok be resolved and what production could result?
p. 13
“But my view is we might get to 0.8 to 0.9 because that facility might also be shared by other locked in production by other operators.”
Baroruchi Mishra, page 13 of the filed PDF · View the filing
Management said sales are linked to Brent minus a discount, initially at a firm price before switching to a Brent-linked formula.
Answered by Baroruchi Mishra
Asked by Manprit Aurora: At what price is the reversed HPCL crude being sold to third parties?
p. 15
“There's a Brent minus X, and let me keep that because it could be confidential.”
Baroruchi Mishra, page 15 of the filed PDF · View the filing
The CFO explained the amount is a non-cash fair valuation gain from the Adbhoot acquisition and said the disclosure was reviewed with auditors.
Answered by Allen Joseph Andrade
Asked by Manan Mundra: Why was the INR32 crore exceptional gain not reduced from operating cash flow, unlike in a prior disclosure?
p. 17
“Extensive discussion we've had with our auditors, KPMG as to the exact nature of the disclosure.”
Allen Joseph Andrade, page 17 of the filed PDF · View the filing
Management said sampling over recent months shows zero contamination originating from the wells.
Answered by Baroruchi Mishra
Asked by Nirbhay Mahawar: Is there any issue with B-80 reservoir quality given past contamination concerns?
p. 24
“But the first part, every second week, we have taken a sample in the last or third week, in the last few months, and we have established that there is zero contamination from the wells.”
Baroruchi Mishra, page 24 of the filed PDF · View the filing
Risks flagged
Delays in monetization initiatives due to inability to complete commercial settlement on crude sales
p. 4
“We had delays in certain monetization initiatives, which essentially means drilling wells, doing workovers, etcetera.”
Baroruchi Mishra, page 4 of the filed PDF · View the filing
Pipeline infrastructure constraints in the East limiting gas evacuation
p. 4
“Infrastructure constraint, especially in the East, pipeline infrastructure constraints, and we are happy to talk about those as well.”
Baroruchi Mishra, page 4 of the filed PDF · View the filing
Rising operating costs from diesel and other commodity price increases in offshore operations
p. 5
“So, the cost of running your operations, especially if you are relying on diesel and other stuff in the offshore, the prices of those commodities have really shot up.”
Baroruchi Mishra, page 5 of the filed PDF · View the filing
Rig availability constraints due to high oil prices increasing demand for drilling equipment
p. 10
“But as I said, there is a lot that needs to be done, especially from the financing perspective and the weather perspective, the availability of the rigs because with the oil prices high, the rigs are in short supply.”
Baroruchi Mishra, page 10 of the filed PDF · View the filing
Financial constraints from funds tied up in crude sale invoices delaying B-80 workovers
p. 14
“But because of financial constraints, INR260 crores tied up in invoices for our crude sales, we couldn't take that up.”
Baroruchi Mishra, page 14 of the filed PDF · View the filing
Diesel shortages affecting buyers' ability to transport purchased crude
p. 11
“We are trying to do it ASAP, but given that there's a huge shortage on diesel, etcetera, it is becoming a little bit of a slow process, but we'll catch up very soon.”
Baroruchi Mishra, page 11 of the filed PDF · View the filing
Uncertainty over pipeline capacity allocation for Dirok gas among multiple stakeholders
p. 21
“It is dependent upon what capacity we get.”
Baroruchi Mishra, page 21 of the filed PDF · View the filing
Weather and seasonal constraints on offshore drilling timing at B-80
p. 14
“But nature has to be kind and allow us to drill in November, and there has to be funds to do that.”
Baroruchi Mishra, page 14 of the filed PDF · View the filing
Uncertainty in subsea well intervention outcomes at B-80
p. 20
“So, there is always a risk in well intervention.”
Baroruchi Mishra, page 20 of the filed PDF · View the filing
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