Hindustan Oil Exploration Company Ltd Q4 FY26 Earnings Analysis

- Expecting a threefold increase in production in FY 2027-28, primarily driven by Northeast gas grid connectivity (Page 6, 7). - Kharsang field expected to ramp up by approximately 2,000 barrels per day; Dirok production anticipated to triple current levels (Pages 11, 12). - Dirok gas production expected to reach 40-45 million cubic feet per day with grid connection by Q1 FY 2027 (Pages 7, 8). - Targeting over 1,000 barrels per day from new wells in Kharsang block (Page 11). - Plans to drill multiple wells offshore and onshore across various fields for unlocking potential and increasing output (Page 6). - Development timeline aims for B-15 field to be put on production approximately 2 years after submission of the development plan (Page 15). - EBITDA margins projected around 60% for FY 2027-28, indicating strong profitability alongside growth (Page 11).

- Management expects production to increase significantly, especially with Northeast grid connectivity for Dirok, targeting about a threefold rise in production by FY 27-28. - EBITDA margins are projected around 60% for FY 27-28. - Consolidated profit after tax for the current quarter was Rs. 8.28 crores, showing improvement from previous quarters. - New wells in Kharsang and Dirok are expected to enhance output, with Kharsang aiming for over 1,000 barrels of oil. - Offshore drilling for 10 wells planned in PY-1, B-80, and B-15 fields to unlock reserves (~100 million barrels oil equivalent). - Management aims to progress drilling programs and monetize reserves to drive value creation. - Some challenges like delays in workovers and fund blockages (e.g. HPCL issue) may impact short-term growth. - Overall, growth in earnings and profits is anticipated driven by improved production and operational efficiencies over the next 1-2 years.

- Capex budget proposed for drilling 9 new wells and 1 deeper well at Kharsang, awaiting partner approvals (65% pending). - Plans for workover of B-80 well to improve production, delayed until post-monsoon due to resource constraints and rig availability. - Development plans for B15 field underway; awaiting mining lease approval to submit development plan to Government of India; production expected within about 2 years post-approval. - Drilling activities ongoing: monthly wells at Kharsang, pending rig for North Dirok and extensions awaiting government approvals. - No immediate borrowing planned for onshore development, relying on internal accruals and continued production. - Offshore campaign delayed due to funding impact from HPCL payment blockage. - Strategic focus on expanding production via grid connectivity completion for Dirok, expected to triple gas production by FY 27-28.

- The company is open to both debt and equity options for fundraising; the choice is at the board's discretion. - No definitive decision has been made, but both options remain on the table for raising capital as needed. - Existing borrowings are being managed, with Rs. 55 crores debt and Rs. 30 crores cash as of the date of discussion. - The company does not intend to borrow for onshore development immediately, relying on internal accruals and continued production. - If the HPCL payment issue causes revenue blockage, alternative funding sources, including raising funds through debt or equity, will be considered. - The management is actively managing capital expenditure and financial obligations with available resources.

The transcript from pages 5 to 18 of the Hindustan Oil Exploration Company Limited call on February 18, 2026, does not explicitly mention details about current or expected orderbook or pending orders. However, relevant operational plans include: - Drilling plans: - 18 shallow and 3 deep wells in Kharsang - 4 wells in Dirok, 2 in Greater Dirok - 2 wells each in Asjol and Palej onshore assets - 10 offshore wells planned: 3 in PY-1, 3 in B-80, and 4 in B-15 blocks - Development plans: - B-15 development plan preparation ongoing; production expected in about 2 years post-approval - Drilling scheduled post-monsoon for B-80 workover and additional wells - Continuous drilling and appraisal activities in Kharsang to unlock resources - Financial caution: - Plans dependent on partner approvals and funding, with potential delays due to HPCL payment issues No explicit orderbook or pending orders quantification was provided.