Hindustan Oil Exploration Company Limited is targeting a production growth of 7x by 2027, aiming for 25,000 BOE/d net, driven by a multi-well drilling campaign across its asset portfolio. The company reported a 34.4% decline in consolidated revenue to ₹301.3 Cr for the financial year ended March 31, 2026, with Profit After Tax (PAT) falling 57.4% to ₹62.8 Cr. The performance was impacted by a reversal of sales to HPCL and lower production volumes, though the company successfully liquidated its outstanding long-term loan of ₹20 crore via internally generated cashflows, resulting in a gearing ratio of 0.04.

The board meeting was held on June 11, 2026, to review the performance for Q4FY26 and FY26. An earnings conference call was hosted on June 12, 2026, led by Mr. Baroruchi Mishra, Managing Director & CEO, and Mr. Allen Joseph Andrade, Chief Financial Officer. Management highlighted that the company stands at a pivotal inflection point with 3P reserves exceeding 100 MMBOE and a clear line of sight for significant upsides. The company plans to fund its capital expenditure through internal accruals and bank facilities, maintaining sharp capital discipline.

Financial Highlights

Operational Updates

HOEC addressed a dispute with HPCL regarding crude oil quality raised in September 2026. The matter, which held up sales revenue of approximately ₹260 crore, is on a path to resolution. A structured reconciliation and settlement process is underway, and HOEC has initiated the resale of treated crude volumes to alternate buyers. The company has reversed the invoice for the HPCL sale and is currently realizing proceeds from third-party buyers, a process expected to complete over 2 to 3 months.

In the North East, the Kharsang block saw the completion of a 9-well campaign, ramping up oil production by 2x. The Dirok block’s revised Field Development Plan (FDP) was approved, extending the block till 2035. However, production at Dirok continued at approximately one-third of potential due to the lack of gas evacuation infrastructure. Management is actively engaging with stakeholders, including Oil India and NRL, to secure connectivity to the National Gas Grid, with expectations to unlock significant capacity within 1 to 2 months.

Asset Performance

The company targets a production growth of 7x by 2027, aiming for 25,000 BOE/d net. HOEC holds a portfolio of 10 oil and gas blocks with discovered resources and one exploratory block across four producing basins in India.

Hindustan Oil Exploration Company Limited accepted the retirement of Independent Director Mr. Pronip Kumar Borthakur effective from the end of the day on June 14, 2026. This transition follows the completion of his tenure, having served two consecutive terms of five years each in the capacity of Non-Executive Independent Director. The Board of Directors acknowledged his contributions and recorded its appreciation for his service during this period.

In conjunction with this departure, the Board has reconstituted its sub-committees to ensure compliance with the Companies Act, 2013 and SEBI Listing Regulations. The reorganization, effective June 14, 2026, impacts the composition of the Audit, Nomination & Remuneration, Corporate Social Responsibility, and Risk Management committees.

The Audit Committee now comprises Mr. Suresh Kumar Jain as Chairperson, along with members Mr. Jagadip Narayan Singh and Mr. Rohit Rajgopal Dhoot. The Nomination & Remuneration Committee is chaired by Ms. Preeti Grover, with Mr. Suresh Kumar Jain and Mr. Ashok Kumar Goel serving as members.

The Corporate Social Responsibility Committee includes Ms. Preeti Grover as Chairperson, Mr. Ashok Kumar Goel, and Managing Director & CEO Mr. Baroruchi Mishra. The Risk Management Committee is chaired by Mr. Jagadip Narayan Singh and includes members Mr. Ashok Kumar Goel, Mr. Baroruchi Mishra, Mr. Krishnan Raghavan, and Mr. G. Janakiraman.

Committee Composition Details