Hindustan Oil Exploration Company Limited has issued a postal ballot notice dated February 25, 2026, seeking shareholder approval for key board appointments and leadership changes following the earlier announced transition plan.

Postal Ballot Details and Timeline

The company has engaged Central Depository Services (India) Limited (CDSL) to provide remote e-voting facility to shareholders. The postal ballot notice was issued on February 27, 2026, with the cut-off date set as February 20, 2026 for determining eligible voters.

Key Resolutions for Shareholder Approval

The postal ballot seeks approval for three critical resolutions that will shape the company's leadership structure. The first resolution proposes the appointment of Dr. Jagadip Narayan Singh as Non-Executive Independent Director and Chairman for a five-year term from January 23, 2026 to January 22, 2031.

Board Designation Changes

The second resolution addresses the change in designation of Mr. Baroruchi Mishra from Non-Executive Independent Director to Non-Executive Non-Independent Director, effective February 25, 2026. This change is necessary as he prepares to assume executive responsibilities as Managing Director and CEO.

The third resolution seeks approval for Mr. Baroruchi Mishra's appointment as Managing Director and CEO for three consecutive years beginning April 1, 2026. His remuneration package includes ₹2.25 crores per annum with additional variable pay and ESOP incentives ranging from ₹60 to 90 lakhs annually.

Leadership Profiles and Experience

Dr. Jagadip Narayan Singh, aged 66 years, brings extensive experience as former Chief Secretary of Gujarat with over 35 years in leading large-scale state enterprises. He has contributed substantially to gas and petroleum sectors, spearheading financial turnarounds at GSPC and expansion of GSPL gas transportation network.

Mr. Baroruchi Mishra, aged 58 years, is a techno-commercial leader with over 35 years of experience in Oil & Gas and New Energies sector. He currently serves as Partner and Group CEO of NET Enterprise Group and was shortlisted for Chairman and Managing Director position of ONGC by the Public Enterprise Selection Board in 2022.

Regulatory Compliance and Voting Process

The postal ballot notice has been sent electronically to shareholders whose email addresses are registered with the company, depositories, or depository participants. Physical copies are not being distributed in compliance with MCA Circulars. The resolutions, if passed by requisite majority, will be deemed effective from the last date of remote e-voting on March 29, 2026.

The leadership transition represents a planned succession strategy ensuring continuity in operations and strategic direction as Hindustan Oil Exploration Company moves forward with new management under the proposed appointments.

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.