Dirok gas sales volume
13 mmscfd
-1 mmscfd QoQ
Sales volume declined from 14 mmscfd in Q2 due to limited demand.
HINDUSTANOILEXPLORATION
Energy
13 Feb 2026
Hindustan Oil Exploration Company Limited — Q3 FY26
Hindustan Oil Exploration reported consolidated Q3 FY26 EBITDA of ₹30.99 crore (up from ₹25.15 crore QoQ) and PAT of ₹8.28 crore (up from ₹2.83 crore QoQ), driven by steady gas production from Dirok and improved output from the Cambay basin.
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2-Minute Summary
✦ AI-Generated from Full Transcript
Hindustan Oil Exploration reported consolidated Q3 FY26 EBITDA of ₹30.99 crore (up from ₹25.15 crore QoQ) and PAT of ₹8.28 crore (up from ₹2.83 crore QoQ), driven by steady gas production from Dirok and improved output from the Cambay basin. However, revenue fell sharply to ₹81.04 crore from ₹156 crore YoY, primarily due to lower offtake at Dirok (13 mmscfd vs 14 mmscfd) and the ongoing HPCL payment dispute blocking ₹259 crore in receivables. Management expects the northeast gas grid connectivity to be completed by Q1 FY27, which could triple Dirok production to 40-45 mmscfd. The company plans to drill 18 shallow and 3 deep wells in Assam, but offshore drilling (PY1, B8) is delayed until post-monsoon due to cash constraints. Key risk: the HPCL dispute may delay capex and drilling timelines further.
Key Numbers
Dirok oil sales volume
5,614 barrels
-244 barrels QoQ
Oil sales decreased from 5,858 barrels in Q2.
B8 gas production
41 mmscf
+12 mmscf QoQ
Production increased from 29 mmscf in Q2, recovering from monsoon disruptions.
Carson wells drilled
8 wells
+1 well QoQ
Ninth well in progress; five oil wells and one gas well completed.
Management Guidance
Dirok production to triple to 40-45 mmscfd
Once northeast gas grid connectivity is completed by Q1 FY27, Dirok production can increase threefold from current 13 mmscfd.
Management guidance growthCarson production target of 1,000+ bopd
With new wells and workovers, Carson is expected to produce over 1,000 barrels of oil per day.
Management guidance growthOffshore drilling campaign post-monsoon 2026
PY1 and B8 drilling will commence after the monsoon season (October 2026 onwards), subject to rig availability and funding.
Management guidance capexEBITDA margin target of ~60%
Management expects EBITDA margins to improve to around 60% in FY27 as production ramps up.
Management guidance marginsKey Risks
HPCL payment dispute
HPCL has withheld ₹259 crore for crude oil sold in September 2025, citing contamination. Management is seeking amicable resolution but may need to resort to arbitration, delaying cash flows.
high · analyst_questionNortheast gas grid connectivity delays
The DNPL line hookup, expected by March 2026, may slip further, delaying the ramp-up of Dirok production.
high · management_commentaryOffshore drilling delays due to cash constraints
The HPCL dispute and limited cash (₹30 crore) may force the company to delay offshore drilling or seek additional debt/equity.
medium · analyst_questionCarson partner approval risk
Drilling of additional wells in Carson requires partner (Oil India) approval, which is pending.
medium · management_commentaryNotable Quotes
We are not happy about it. That is for sure. Even because you are able to produce you are not able to sell and second thing you are continuing with the capital commitments and the BAT is not performing as expected.
We want an amicable settlement. They are after all our big brother. We have to deal with them in the subsequent period also. We don't want to be in a litigation mode in life.
Change is the law of life.
Frequently Asked Questions
What was Hindustan Oil Exploration's revenue in Q3 FY26?
Hindustan Oil Exploration reported revenue of ₹75 Cr in Q3 FY26, representing a — change compared to the same quarter last year.
What guidance did Hindustan Oil Exploration management give for FY27?
Dirok production to triple to 40-45 mmscfd: Once northeast gas grid connectivity is completed by Q1 FY27, Dirok production can increase threefold from current 13 mmscfd. Carson production target of 1,000+ bopd: With new wells and workovers, Carson is expected to produce over 1,000 barrels of oil per day. Offshore drilling campaign post-monsoon 2026: PY1 and B8 drilling will commence after the monsoon season (October 2026 onwards), subject to rig availability and funding. EBITDA margin target of ~60%: Management expects EBITDA margins to improve to around 60% in FY27 as production ramps up.
What are the key risks for Hindustan Oil Exploration in FY27?
Key risks include HPCL payment dispute — HPCL has withheld ₹259 crore for crude oil sold in September 2025, citing contamination. Management is seeking amicable resolution but may need to resort to arbitration, delaying cash flows.; Northeast gas grid connectivity delays — The DNPL line hookup, expected by March 2026, may slip further, delaying the ramp-up of Dirok production.; Offshore drilling delays due to cash constraints — The HPCL dispute and limited cash (₹30 crore) may force the company to delay offshore drilling or seek additional debt/equity.; Carson partner approval risk — Drilling of additional wells in Carson requires partner (Oil India) approval, which is pending..
Did Hindustan Oil Exploration meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Hindustan Oil Exploration Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.