Hindustan Oil Exploration Company Limited will seek shareholder approval at its 42nd Annual General Meeting to raise its borrowing limit from ₹750 crore to ₹1,000 crore, funding a near-to-medium-term upstream capital programme across its hydrocarbon asset portfolio.

The AGM is scheduled for Friday, September 25, 2026, at 11:00 am via video conferencing or other audio-visual means. The company also submitted its Annual Report for FY 2025-26 to the stock exchanges on September 2, 2026, in compliance with SEBI Listing Regulations.

Capital Programme and Borrowing

The proposed borrowing limit enhancement supersedes a resolution passed at the 40th AGM held on September 26, 2024, which had authorised borrowings up to ₹750 crore. The company is entering an important phase of investment aimed at scaling up production, enhancing resource recovery, and expanding its reserve base.

The planned capital projects span the following assets:

While exploration and development activities have historically been funded through internal accruals, the scale, timing, and contractual requirements of this capital programme necessitate access to external funding to ensure financial flexibility.

Special Resolutions

Shareholders will vote on several special resolutions at the AGM:

• Borrowing limit increase from ₹750 crore to ₹1,000 crore under Section 180(1)(c) of the Companies Act, 2013.
• Creation of charges on movable and immovable properties, both present and future, to secure borrowings under Section 180(1)(a).
• Authority to make investments, give loans, guarantees, and security in excess of limits specified under Section 186 of the Companies Act, 2013, up to a limit of ₹300 crore.

An ordinary resolution will also be placed before shareholders to ratify the remuneration of ₹2,50,000 plus applicable taxes and out-of-pocket expenses payable to Mr. K. Suryanarayanan, Cost Accountant, as Cost Auditor for FY 2026-27.

Ordinary Business and Director Re-appointment

The ordinary business agenda includes adoption of audited standalone and consolidated financial statements for FY 2025-26. Shareholders will also consider the re-appointment of Mr. Ashok Kumar Goel as a director, who retires by rotation and is eligible for re-appointment.

Key details on Mr. Goel's profile are as follows:

FY 2025-26 Financial Performance

The company's audited financial statements for FY 2025-26 reflect the following key consolidated metrics:

On a standalone basis, revenue from operations decreased to ₹24,986.28 lakhs from ₹30,606.91 lakhs in the previous year, primarily because oil in stock from Block B-80 was not sold during the year. Standalone profit after tax stood at ₹10,961.06 lakhs against ₹14,747.29 lakhs in the previous year.

The company's consolidated cash and cash equivalents as on March 31, 2026 stood at ₹2,017.96 lakhs, compared to ₹1,457.40 lakhs in the previous year. The Board has not recommended any dividend for FY 2025-26, citing the company's ongoing growth trajectory and capital requirements.

Voting and Eligibility

The cut-off date for determining voting eligibility is Friday, September 18, 2026. The register of members and share transfer books will remain closed from Saturday, September 19, 2026, to Friday, September 25, 2026.

Remote e-voting via Central Depository Services (India) Limited (CDSL) opens on Sunday, September 20, 2026, at 9:00 am and closes on Thursday, September 24, 2026, at 5:00 pm. Members who have cast remote votes may attend the AGM but cannot vote again during the meeting.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE345A01011/71017570-30df-4415-b399-0dac97095f09.pdf

Hindustan Oil Exploration reported a significant operational and financial rebound in the first quarter of FY27, with standalone revenue from operations rising to ₹117.5 crore. This marks a sharp recovery from the previous quarter’s negative revenue of ₹194 crore, which was distorted by the reversal of an HPCL sale. The improvement was primarily driven by higher crude production from the Kharsang field and favorable Brent crude prices, alongside the commencement of liquidation for B-80 crude inventory.

Financial Performance

The company’s top-line growth was supported by improved volume and price realizations. Standalone net revenue, after accounting for profit petroleum and revenue sharing (PPRS) of ₹9.83 crore, stood at ₹107.6 crore. On a consolidated basis, revenue from operations reached ₹124 crore, with net consolidated revenue at ₹114.17 crore after PPRS.

Profitability metrics showed mixed signals when comparing operating performance against total income. Standalone profit before tax and exceptional items was ₹12.54 crore, down from ₹30.4 crore in the prior quarter. This decline in operating profit is attributed to cost offsets related to higher crude inventory levels in the previous quarter following the HPCL sale reversal. However, the bottom line was heavily influenced by substantial other income.

What the Numbers Show

A critical observation from the Q1FY27 results is the disproportionate contribution of non-operating income to the company’s overall profitability. While operating profit before tax stood at ₹12.54 crore on a standalone basis, other income amounted to ₹19.37 crore. This means that non-recurring items—specifically the release of an escrow balance for cost recovery (~₹8 crore), an admitted insurance claim (₹2 crore), and topping up of the Adbhoot acquisition (₹2.3 crore)—contributed approximately 60% of the combined pre-tax earnings. Investors should note that the reported financial health is currently bolstered by these one-off gains rather than pure operational leverage, highlighting the importance of upcoming operational milestones like the Dirok pipeline connectivity to sustain organic growth.

Operational Updates

Management highlighted progress across key assets:

• Kharsang: Production increased from approximately 12,300 barrels to 17,400 BOE. Average crude realization improved to $95.5 per barrel from $70.8 in the prior quarter. Workovers on additional wells are ongoing, with a second phase of drilling imminent.
• B-80: Production was impacted by higher water cut, but compressor configurations have been adjusted to sustain output. Workovers for two wells are scheduled for October 2026, with rig mobilization expected this month. Crude stored at HPCL tanks is being sold to third parties, with full clearance expected by November 2026.
• Dirok: Pipeline capacity restoration via hot tapping by Assam Gas Company Limited is targeted for completion by December 2026. This aims to restore capacity to 2.5 MMSCMD from the current degraded level of 1.1–1.5 MMSCMD.
• PY-1: Rig-less intervention contracts have been awarded to boost short-term production. Drilling of two new wells is contingent upon securing take-or-pay gas agreements with IOCL or GAIL.

Balance Sheet and Outlook

The company maintains a low gearing ratio of 0.04, with only ₹20 crore in bank loans. Management indicated that internal cash flows will fund immediate workovers, while debt may be raised to support the larger B-80 development program involving three new wells. The focus remains on strict capital allocation discipline and maximizing the potential of existing reserves through operational execution.