Hindustan Oil Exploration Company Ltd

NSE:HINDOILEXP

Revenue Surge: Stand-alone revenue jumped to INR 321.51 crores from INR 83.48 crores last quarter, mainly due to crude oil sales from the B-80 field.

Profitability: Stand-alone profit after tax rose to INR 19.04 crores (from INR 15.69 crores), but consolidated profit after tax fell sharply to INR 2.83 crores (from INR 11.35 crores), as subsidiary losses and shutdowns weighed.

B-80 Production Impact: Production at the B-80 offshore block dropped due to monsoon disruptions, causing lower gas revenue, but management expects stabilization after upcoming workovers and drilling three new wells.

Northeast Gas Grid Progress: The Northeast gas grid is nearing completion, expected to be operational by early FY '27, which should significantly boost gas sales volumes and unlock value in the Dirok and Kharsang fields.

CapEx and Drilling: The company remains committed to its INR 1,500 crore capital expenditure plan, with ongoing aggressive drilling across multiple blocks to expand production and reserves.

Debt Management: Management does not plan to borrow beyond the already secured INR 250 crores for capex, aiming to fund growth largely through internal accruals.

HPCL Payment Issue: A major crude sale to HPCL (INR 259 crores) is yet to be received due to a quality dispute, but management maintains they have no liability and are seeking amicable resolution.

Outlook: Management targets reaching 6,000 barrels oil equivalent per day by FY '27 and expects margin resilience even at lower oil prices, citing low-cost operations and favorable contract structures.