Hindustan Oil Exploration Company Limited (HINDOILEXP) Financial Results — Revenue ₹288 Cr

Investor Takeaways

3P reserves increased to 109 million barrels of oil equivalent from 60 million barrels in 2P

Production growth targets set for 2027 (10,000-11,000 barrels) and 2029 (22,000-32,000 barrels)

HPCL revenue reversal impacted Q4 PAT by INR14 crores

DNPL pipeline capacity expanded to 2.5 million units

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹288 Cr	N/A
Net Profit	₹70.61 Cr	N/A
EBITDA	N/A	N/A
EPS	₹5.34	N/A
OPM	25.02%	N/A

What Changed

The filing reveals significant reserve growth and infrastructure progress, though near-term execution risks remain. 3P reserves rose to 109 million barrels of oil equivalent from 60 million barrels in 2P, providing a stronger foundation for future production. Management has set clear production growth targets of 10,000-11,000 barrels by 2027 and 22,000-32,000 barrels by 2029, contingent on pipeline allocation. Infrastructure upgrades include DNPL pipeline capacity expansion to 2.5 million units and ongoing workovers on B-80 wells to optimize PY-1 reservoir performance. However, current output of 0.3-0.4 million standard cubic meters/day remains constrained by Assam pipeline limitations affecting gas evacuation. Valuation gains were recorded as exceptional items, with HPCL revenue reversal negatively impacting Q4 PAT by INR14 crores, introducing volatility in reported profitability. The company maintains disciplined capital allocation, targeting phased production increases while exploring equity financing alongside internal accruals and bank loans. Current fundamentals show a market cap of ₹2,238.29 Cr and P/E ratio of 13.42, reflecting moderate valuation relative to peers.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Hindustan Oil Exploration Company Limited	13.42	Not available	Not available	2,238.29
Reliance Industries Limited	21.73	9.87%	11.18%	1,808,488.47
Oil & Natural Gas Corporation Limited	9.93	11.04%	14.13%	376,590.66
Coal India Limited	9.54	30.13%	37.18%	284,841.30

Hindustan Oil Exploration Company Limited trades at a lower P/E multiple than Reliance Industries Limited but higher than ONGC and Coal India Limited, reflecting market positioning within the oil sector.