Hindustan Oil Exploration Company Ltd

Q2 FY26Oil

Hindustan Oil Exploration Company Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹156

Market cap₹2.0K Cr

P/E80.1

Updated23 Aug 2026

Read4 min read

The short version

Targeting a net production level of at least 6,000 barrels of oil equivalent per day (BOEPD) by FY27. Company targets reaching net production of at least 6,000 BOEPD by FY27, indicating growth potential.

From Hindustan Oil Exploration Company Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Targeting a net production level of at least 6,000 barrels of oil equivalent per day (BOEPD) by FY27. (Page 20)
Continuous drilling program underway with plans for 45 wells at Kharsang and 4 wells at Dirok, plus more rigs depending on Greater Dirok success. (Page 20)
Expect improved gas offtake in Q4 FY26 and beyond, linked to completion of DNPL pipeline and integration with the National Gas Grid. (Pages 19, 21)
Offshore drilling campaign to start with 10 wells planned across offshore blocks to unlock value. (Pages 6, 8)
Revenue growth from crude oil sales notably increased in recent quarters due to B-80 field ramp-up. (Page 7)
Substantial value unlocked through continued drilling and better gas grid connectivity expected to boost monetization and revenue. (Pages 8, 13)
No major debt increase planned; capital expenditure funded via secured Rs. 250 crores loan and internal accruals. (Pages 6, 10)

Profitability & Margins

Company targets reaching net production of at least 6,000 BOEPD by FY27, indicating growth potential.
Continued drilling programs planned: 45 wells in Kharsang, 4 wells in Dirok, and 10 offshore wells, expected to unlock substantial value.
Gas grid connectivity in Northeast expected by Q4 FY26 or early FY27 will enhance gas offtake and reduce demand constraints, enabling better monetization.
Management expects PAT margins to be moderately impacted by crude price fluctuations (~3% impact per $10 price change) once ramp-up is complete.
Profits influenced by subsidiary losses currently but anticipate improvement as field production stabilizes and B-80 performance improves.
Natural hedging strategy and limited borrowings support stable operating profits even amid price volatility.
Overall, the company anticipates sustained EBITDA and PAT growth driven by increased production, cost management, and infrastructure ramp-up by FY27.

See what Hindustan Oil Exploration Company Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Planned total CAPEX remains unchanged at Rs. 1500 crores focused on continuous drilling programs.
Onshore drilling: 45 wells planned in Kharsang with ongoing operations; 4 wells planned in Dirok; exploration in Greater Dirok.
Offshore drilling: 10 wells planned across three blocks—3 wells in PY-1, 3 in B-80, and 4 in B-15.
Term loan of Rs. 250 crores secured exclusively for CAPEX, mainly for offshore operations.
Development plan underway for Mumbai Offshore B-15 block with expected production commencement within two years.
PY-1 block drilling planned for FY27, involving 2 infill wells, 1 appraisal well on existing platform, and 1 exploration well off-platform.
Continuous efforts on workover activity for B-80, targeting Q4 FY26.
Emphasis on monetizing reserves and expanding production tied to gas grid connectivity in Northeast.

Top-ranked in Oil

Ranked on what management guided this quarter

5x potential

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2Deep Industries Ltd₹5.0K Cr

Rev 2Mar 2

3₹2.9L Cr

Rev 3Mar 3

4₹79.7K Cr

Rev 3Mar 3

5₹948 Cr

Rev 4Mar 3

Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

- The company has secured a debt capital of Rs. 250 crores to meet planned capital expenditure, exclusively for drilling and development activities (Page 6, 10, 20). - Management has expressed no intention to borrow beyond the already secured Rs. 250 crores (Page 10). - There is no mention of any planned or ongoing equity fundraising in the provided text. - The firm anticipates generating sufficient internal accruals and cash flows from operations to support growth and meet obligations without additional borrowing (Page 7). - Discussions about realizing Rs. 259 crores from HPCL are ongoing, which would support cash flow and reduce the need for further debt (Pages 21, 23). In summary, Hindustan Oil Exploration Company Limited currently plans to rely on the existing secured debt and internal accruals, with no announced new fundraising through debt or equity.

See what Hindustan Oil Exploration Company Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided transcript and document pages do not contain specific information on Hindustan Oil Exploration Company Limited's current or expected order book or pending orders. The focus is primarily on operational updates, production details, contract discussions, drilling activities, financials, and issues related to crude oil sales and payments. There is no direct mention of order books or pending orders available in the text on pages 5 through 23.

Hindustan Oil Exploration Company Ltd — Quarterly revenue & net profit

Revenue Net profit

Sep 2024

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Reported quarterly figures (₹ Cr). Latest: revenue ₹75 Cr, net profit ₹8 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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What Hindustan Oil Exploration Company Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Hindustan Oil Exploration Company Ltd Q2 FY26 results?

What is Hindustan Oil Exploration Company Ltd share price analysis?

Hindustan Oil Exploration Company Ltd currently shows a neutral. The stock trades at a P/E of 80.1 with a market cap of ₹2,011 Cr. Investors should review the full earnings analysis for detailed insights.

Is Hindustan Oil Exploration Company Ltd planning capital expenditure?

Planned total CAPEX remains unchanged at Rs.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.