Hindustan Oil Exploration Company Limited reported mixed financial results for Q3 FY26, with revenue declining significantly quarter-on-quarter while maintaining operational momentum across its key assets. The company held its earnings call on February 18, 2026, providing comprehensive updates on drilling activities and production performance.

Financial Performance Overview

The company's standalone revenue for Q3 FY26 dropped to Rs 77.32 crores compared to Rs 321.51 crores in the previous quarter. This substantial decline was primarily attributed to the absence of crude oil sales from the B-80 field, which had contributed Rs 258.78 crores in Q2 FY26.

Despite the revenue decline, consolidated EBITDA showed improvement, rising to Rs 30.99 crores from Rs 25.15 crores in the previous quarter. Field operating expenses increased to Rs 60.34 crores compared to Rs 46.51 crores, mainly due to increased production activities in the B-80 field.

Northeast Operations Progress

The company made significant progress in its Northeast operations, particularly in the Kharsang block where 8 wells have been completed with the ninth well in progress. Out of the completed wells, 5 are producing oil while one has been converted to a gas producer following resolution of well control issues.

The Dirok field maintained production levels with gas sales of 13 million standard cubic feet per day in Q3, slightly down from 14 mmscfd in Q2. The field realized an average gas price of $7.32 per mmbtu compared to $7.8 in the previous quarter. Production constraints continue due to limited demand, despite the field's capacity to produce up to 45 mmscfd.

Offshore Assets Performance

B-80 offshore block showed improved performance with production of 45,742 barrels of oil and 0.4 bcf of gas in Q3, compared to 31,468 barrels of oil and 0.23 bcf of gas in Q2. The block achieved an average gas price of $10.5 per mmbtu during the quarter.

Infrastructure Development and Future Outlook

The Northeast Gas Grid connectivity remains a critical factor for the company's growth prospects. Management indicated that mechanical completion of the DNPL line has been achieved, with connection to the IGGL line expected by end of March 2026. This connectivity could enable Dirok production to reach its full potential of 40-45 mmscfd.

The company faces temporary challenges including Rs 259 crores plus interest pending from HPCL related to crude oil sales, which may impact near-term capital expenditure plans. Management expects EBITDA margins of around 60% for FY27-28, with production potentially tripling at Dirok once grid connectivity is established.

Management Transition and Strategic Direction

The company announced an ongoing search for a new CEO, with Managing Director R. Jeevanandam indicating he will not continue in an executive position once the transition is complete. The Nomination Remuneration Committee and Board are actively working on the appointment process, with the new CEO expected to be announced shortly.

Management remains committed to drilling 18 shallow wells and 3 deep wells across various onshore assets, along with 10 offshore wells to unlock the company's estimated 100 million barrels of oil equivalent reserves.

Hindustan oil exploration Company Limited has announced the resignation of Mrs. Bhavani Balasubramanian from her position as Non-Executive Independent Director, effective February 22, 2026. The resignation was submitted due to personal obligations requiring continuous travel and extended presence outside her usual place of residence.

Director Resignation Details

Mrs. Balasubramanian, holding Director Identification Number (DIN) 09194973, cited personal obligations as the primary reason for her departure. In her resignation letter dated February 22, 2026, she explained that the time commitment and responsibilities associated with the role of an Independent Director, combined with her other commitments, necessitated her decision to step down.

Committee Memberships Affected

Following her resignation, Mrs. Balasubramanian ceased to be a member of several key board committees:

• Audit Committee
• Nomination and Remuneration Committee
• Stakeholders' Relationship Committee

The departing director confirmed that there were no material reasons for her resignation beyond those stated in her letter.

Other Directorships

Mrs. Balasubramanian holds directorships in several other listed entities, where she serves in various capacities:

Board Committee Reconstitution

Effective February 23, 2026, the company has reconstituted its board subcommittees in accordance with the Companies Act, 2013 and SEBI Listing Regulations, 2015. The reconstituted committees include:

Audit Committee:

• Mr. Suresh Kumar Jain, Chairperson (NE-ID)
• Mr. P K Borthakur, Member (NE-ID)
• Mr. Rohit Rajgopal Dhoot, Member (NE-NID)

Nomination & Remuneration Committee:

• Mr. P K Borthakur, Chairman (NE-ID)
• Mr. Suresh Kumar Jain, Member (NE-ID)
• Mr. Ashok Kumar Goel, Member (NE-NID)

Stakeholders Relationship Committee:

• Mr. Suresh Kumar Jain, Chairperson (NE-ID)
• Mr. Rohit Rajgopal Dhoot, Member (NE-NID)
• Mr. Ashok Kumar Goel, Member (NE-NID)

Regulatory Compliance

The company has made the required disclosures under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors has placed on record its sincere appreciation for Mrs. Balasubramanian's contributions during her tenure. All relevant documentation, including the resignation letter and committee reconstitution details, has been submitted to the stock exchanges and made available on the company's website at www.hoec.com .