Hindustan Oil Exploration Company Limited (BSE: 500186 / NSE: HINDOILEXP) reported lower consolidated earnings for the quarter ended December 31, 2025, as reduced revenue and higher operating costs offset production gains from key fields, according to its Q3 FY26 disclosures.
Consolidated revenue from operations declined to ₹81.04 crore in Q3 FY26 from ₹156.12 crore in Q3 FY25. Net profit for the quarter stood at ₹8.28 crore, compared with ₹43.32 crore in the year-ago quarter.
Business overview
HOEC is engaged in the acquisition, exploration, development and production of crude oil and natural gas in India across offshore and onshore blocks. Its portfolio includes producing and development assets in Mumbai Offshore, Assam, Cambay Basin and Cauvery Offshore.
The company reported presence across 10 out of 11 blocks with discovered or producing resources and operations in four out of seven producing basins in India.
Financial performance — Q3 FY26
Total consolidated income for Q3 FY26 stood at ₹79.11 crore versus ₹150.19 crore in Q3 FY25. Total expenses were ₹72.25 crore, resulting in profit before tax of ₹6.86 crore compared with ₹52.47 crore a year earlier. Net profit for the quarter came in at ₹8.28 crore, while earnings per share declined to ₹0.63 from ₹3.28 in Q3 FY25.
For the nine months ended December 31, 2025, consolidated revenue rose to ₹491.86 crore, with net profit at ₹54.98 crore compared with ₹96.05 crore in the corresponding period last year.
Production and operating metrics
Gross production increased to 5,123 barrels of oil equivalent per day (BOEPD) in Q3 FY26 from 4,788 BOEPD in Q2 FY26, while net production rose to 2,491 BOEPD from 1,939 BOEPD.
Key field performance included:
- Dirok: Average gas production of 12.83 mmscfd with condensate output of about 227 barrels per day.
- B-80 Mumbai Offshore: Average output of 4.57 mmscfd gas and 497 barrels of oil per day.
- Kharsang: Oil production averaged 767 barrels per day.
- Cambay: Production of 0.38 mmscfd gas and 71 barrels of oil per day.
Key developments
HOEC increased participating interest in the B-80 Mumbai offshore field to 100% and continued production from two wells. The company also signed a Revenue Sharing Contract for Block B-15, where development planning is underway for drilling four wells. In Dirok, civil work for development wells and pipeline infrastructure progressed, while the North-East Gas Grid is expected to be completed around March–April 2026.
Balance sheet and operational factors
During the period, HOEC reported an exceptional gain of ₹32.52 crore related to fair value remeasurement of previously held participating interest after taking over additional stake in Block B-80.
The company also disclosed outstanding receivables from crude sales to Hindustan Petroleum Corporation Limited (HPCL), with quality-related discussions ongoing.
Risks and constraints
Company filings indicate that performance is influenced by crude pricing, production mix, realization timing, regulatory approvals and infrastructure readiness such as pipeline connectivity. Labour code implementation also had incremental cost impact during the quarter.
Outlook
Management stated that development plans across B-80, B-15, Dirok and PY-1 redevelopment are aimed at increasing production and monetization of discovered resources, supported by ongoing drilling and infrastructure expansion.