šŸ’° Financial Performance

Revenue Growth by Segment

Net Revenue from Operations for Q2 FY26 was INR 55.13 Cr, representing an 8.89% growth compared to Q1 FY26 (INR 50.63 Cr), but a 20.01% decline compared to Q2 FY25 (INR 68.92 Cr) due to lower average sales volumes of 1107 boepd vs 1252 boepd.

Geographic Revenue Split

Not explicitly disclosed by percentage, but operations are concentrated in India with crude oil sales to Indian Oil Corporation Limited and gas operations involving Assam Gas Company Limited (AGCL).

Profitability Margins

Net Profit Ratio increased in FY25 due to higher PAT and net sales. For Q2 FY26, the Net Profit Margin was 21.42% (INR 11.81 Cr profit on INR 55.13 Cr net revenue), compared to 29.22% in Q2 FY25.

EBITDA Margin

EBITDA margin for Q2 FY26 was 57.59% (INR 31.75 Cr), slightly lower than the 58.20% (INR 40.11 Cr) recorded in Q2 FY25. The company maintains high core profitability despite volume fluctuations.

Capital Expenditure

Capital Work-in-Progress (CWIP) was INR 158.43 Cr as of September 30, 2025, with Oil and Gas assets valued at INR 282.18 Cr, reflecting significant investment in infrastructure to extend field life.

Credit Rating & Borrowing

The company has no outstanding debt as of March 31, 2025, resulting in a Debt-Equity Ratio of 0.00. Interest rate sensitivity is minimal, primarily related to lease liabilities of INR 3.79 Cr.

āš™ļø Operational Drivers

Raw Materials

The primary 'cost of production' inputs are Royalty and Cess, which accounted for INR 10.38 Cr (18.83% of net revenue) in Q2 FY26, and Operating Expenses of INR 4.58 Cr (8.31% of net revenue).

Import Sources

Not applicable as an extraction company; however, the company recruits skilled professionals and industry leaders on consulting assignments to address organizational gaps.

Key Suppliers

Not applicable for raw materials; however, the company utilizes Assam Gas Company Limited (AGCL) for gas-related infrastructure/processing and sells crude to Indian Oil Corporation Limited.

Capacity Expansion

Current production capacity is reflected in average sales of 1107 boepd in Q2 FY26. Planned expansion is supported by INR 158.43 Cr in CWIP focused on extending the life of old fields and developing small fields.

Raw Material Costs

Royalty and Cess costs were INR 10.38 Cr in Q2 FY26, a 25.48% decrease from INR 13.93 Cr in Q2 FY25, directly correlating with lower production volumes and revenue.

Manufacturing Efficiency

Average sales increased 4.14% QoQ from 1063 boepd in Q1 FY26 to 1107 boepd in Q2 FY26, indicating successful efforts to curb annual decline rates.

Logistics & Distribution

Handling and processing charges were INR 0.91 Cr in Q2 FY26, representing 1.65% of net revenue, down from INR 1.04 Cr in Q2 FY25.

šŸ“ˆ Strategic Growth

Growth Strategy

Growth is targeted through boosting output from existing fields, curbing decline rates, re-negotiating gas prices, and leveraging the Lead Joint Operator status for new work programmes.

Products & Services

Crude Oil (sold to Indian Oil Corporation Limited) and Natural Gas.

Brand Portfolio

Antelopus, Selan Exploration Technology.

Market Expansion

Focus on extending production of old fields and developing small fields which require access to existing infrastructure.

Strategic Alliances

The company acts as Lead Joint Operator for specific work programmes and maintains a relationship with Indian Oil Corporation Limited for crude sales.

šŸŒ External Factors

Industry Trends

The industry is characterized by high investment, high risk, and long gestation periods. Trends show a focus on enhancing existing reserves and infrastructure to maintain economic viability.

Competitive Landscape

Operates in a high-entry-barrier sector requiring significant capital and technical expertise; competes for resources and infrastructure access.

Competitive Moat

Competitive advantage lies in the technical expertise required to extend the life of mature fields and the 'social license' maintained through community partnerships, which are difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to global crude oil and gas prices, which are influenced by macro-economic indicators and geo-political situations.

Consumer Behavior

Not applicable for B2B upstream oil and gas operations.

Geopolitical Risks

Geo-political situations prevailing across the world are cited as a primary driver of volatile commodity prices affecting the company's top line.

āš–ļø Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI Listing Regulations; royalty and cess are paid to the government as per statutory requirements.

Environmental Compliance

Environmental Impact Assessments are conducted periodically and must be approved by authorities before any project execution.

Taxation Policy Impact

Provision for current tax was INR 1.55 Cr in Q2 FY26 on a PBT of INR 15.77 Cr. Deferred tax liabilities (net) stand at INR 75.71 Cr.

Legal Contingencies

The company has disclosed the impact of pending litigations as of March 31, 2025, in Note 40(B) of the financial statements; no material foreseeable losses on long-term contracts were reported.

āš ļø Risk Analysis

Key Uncertainties

Resource Risk: Failure to discover new reserves or enhance existing ones could negatively affect prospects. Geological and technical uncertainties are inherent in reserve estimation.

Geographic Concentration Risk

Operations are localized, making the company dependent on support and healthy relationships with specific local communities to maintain its social license to operate.

Third Party Dependencies

Dependency on Indian Oil Corporation Limited for crude oil sales and on government authorities for project approvals and environmental clearances.

Technology Obsolescence Risk

Risk that geological and economic assumptions used for reserve estimation may change significantly as new information becomes available.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio improved 19.40% to 7.40 in FY25, indicating healthy collections; trade receivables stood at INR 34.40 Cr as of Sept 2025.