UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                QUARTERLY REPORT
                            UNDER SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934 For
                    the quarterly period ended March 31, 1997


                         Commission file number 0-19767


                       THE HOME-STAKE ROYALTY CORPORATION
        (Exact name of small business issuer as specified in its charter)


              Oklahoma                                 73-0288040
   (State or other jurisdiction of                  (I.R.S. Employer
    incorporation or organization)                 Identification No.)


                         15 East 5th Street, Suite 2800
                              Tulsa, Oklahoma 74103
                    (Address of principal executive offices)


                                 (918) 583-0178
                          Registrant's telephone number



     Check whether the issuer (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes |X|  No | |


     The number of shares outstanding of the Registrants's  common stock, all of
which  comprise a single  class with $40 par value,  as of April 30,  1997,  the
latest practicable date, was 69,808.




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                       THE HOME-STAKE ROYALTY CORPORATION

                                   FORM 10-QSB
                                 MARCH 31, 1997

                                TABLE OF CONTENTS

                                                                     Page
PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

          Consolidated Condensed Balance Sheets ...................    4

          Consolidated Condensed Statements of Income and Retained
            Earnings for the Three Months ended March 31, 1997 ....    5

          Consolidated Condensed Statements of Cash Flow ..........    6

          Notes to Consolidated Condensed Financial Statements ....    7

Item 2.   Management's Discussion and Analysis ....................    8


PART II - OTHER INFORMATION

Item 1.   Legal Proceedings .......................................    9

Item 2.   Changes in Securities ...................................    9

Item 3.   Defaults upon Senior Securities .........................    9

Item 4.   Submission of Matters to a Vote of Security Holders .....    9

Item 5.   Other Information .......................................    9

Item 6.   Exhibits and Reports on Form 8-K ........................    9

SIGNATURES ........................................................   11

                                      - 2 -

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                         PART I - FINANCIAL INFORMATION

                                      - 3 -

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                       THE HOME-STAKE ROYALTY CORPORATION
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (Unaudited)

                                     ASSETS

                                                 March 31,         December 31,
                                                   1997               1996
                                                   ----               ----
Current assets:
  Cash......................................  $      708,927     $      626,864
  Accounts receivable.......................         927,544          1,469,877
  Receivable from affiliate.................          94,035             66,213
  Prepaid expenses..........................         107,802            255,957
                                              --------------     --------------
         Total current assets...............       1,838,308          2,418,911

Investments (Note 2)........................       3,673,538          3,592,495

Property and equipment, at cost:............      24,171,888         25,235,245
    Less accumulated depreciation, 
     depletion and amortization.............      15,483,637         16,437,277
                                              --------------     --------------
         Net property and equipment.........       8,688,251          8,797,968

Other assets................................          24,120             24,119
                                              --------------     --------------
                                              $   14,224,217     $   14,833,493
                                              ==============     ==============


                      LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
  Accounts payable and accrued liabilities..  $      886,656     $    1,514,282
  Dividends declared........................          62,827             62,827
  Income taxes payable......................         179,543             75,198
  Bonus Payable.............................          14,850             20,253
  Current notes payable (Note 3)............         401,775            964,260
                                              --------------     --------------
         Total current liabilities..........       1,545,651          2,636,820

Long-term notes payable (Note 3)............              -             401,775

Deferred income taxes.......................         952,226            773,200

Contingencies (Note 4)

Stockholders' equity:
  Preferred stock, $1 par value -
    200,000 shares authorized; none issued
  Common stock, $40 par value -
    100,000 shares authorized and issued....       4,000,000          4,000,000
  Additional paid-in capital................       6,000,000          6,000,000
  Retained earnings.........................       5,090,504          4,385,862
                                              --------------     --------------
                                                  15,090,504         14,385,862

  Less treasury stock, 
     at cost - 30,192 shares................       3,364,164          3,364,164
                                               -------------     --------------
         Total stockholders' equity.........      11,726,340         11,021,698
                                               -------------     --------------
                                               $  14,224,217     $   14,833,493
                                               =============     ==============
                             See accompanying notes.

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                       THE HOME-STAKE ROYALTY CORPORATION
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                              AND RETAINED EARNINGS
                   Three months ended March 31, 1997 and 1996
                                   (Unaudited)



                                                      1997              1996  
                                                      ----              ----
Revenues:
  Oil sales.................................  $   1,302,333      $    1,046,288
  Gas sales.................................        935,686             571,557
  Lease bonuses and rentals.................         20,826               2,760
  Interest and dividends....................          9,530               8,583
  Gain on sales of assets...................         99,708                 (96)
  Income from equity affiliates.............        190,300              68,323
  Other.....................................         51,406              37,721
                                               ------------      --------------
                                                  2,609,789           1,735,136

Costs and expenses:
  Lease operating expenses..................        450,969             505,172
  Production taxes..........................        184,977             133,045
  Depreciation, depletion and amortization..        338,083             351,393
  Dry hole costs............................        188,102               2,331
  Condemned and abandoned properties........         27,198              (6,943)
  General and administrative expense........        258,744             248,806
  Interest expense..........................         26,733              69,888
  Property, franchise and other taxes.......         32,443              28,705
                                               ------------      --------------
                                                  1,507,249           1,332,397

Income before provision for income taxes....      1,102,540             402,739

Provision for income taxes:
  Current...................................        156,045              56,350
  Deferred..................................        179,026              31,259
                                               ------------      --------------
                                                    335,071              87,609
                                               ------------      --------------

Net income..................................        767,469             315,130

Retained earnings at beginning of period....      4,385,862           2,855,837

Cash dividends ($ .90 per share - 1997;
     $1.35 per share - 1996)..............          (62,827)            (94,241)
                                               ------------      --------------

Retained earnings at end of period........     $  5,090,504      $    3,076,726
                                               ============      ==============

Weighted average number of common 
     shares outstanding...................           69,808              69,808
                                                     ======              ======

Net income per common share...............           $10.99               $4.51
                                                     ======               =====

                             See accompanying notes.

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                       THE HOME-STAKE ROYALTY CORPORATION
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
               For the three months ended March 31, 1997 and 1996
                                   (Unaudited)



                                                   1997                1996
                                                   ----                ----

Operating activities:
  Oil and gas sales, net of 
     production taxes.......................   $    2,106,683    $    1,437,520
  Lease bonuses and rentals.................           20,826             2,760
  Interest and dividends....................            9,530             8,583
  Other.....................................           51,406            37,721
                                               --------------    --------------
                                                    2,188,445         1,486,584

  Cash paid to suppliers and employees......          725,131           983,135
  Interest expense..........................           26,733            69,888
  Property, franchise and other taxes.......           32,443            28,705
  Income taxes paid.........................           51,700             5,735
                                               --------------    --------------
                                                      836,007         1,087,463
                                               --------------    --------------
    Net cash provided by operating 
     activities.............................        1,352,438           399,121


Investing activities:
  Proceeds from sales of property and 
     equipment..............................          228,488             3,082
  Acquisition of property and equipment.....         (486,972)         (107,600)
  Distributions from equity affiliate.......           15,169            21,307
                                               --------------    --------------
   Net cash used in investing activities...          (243,315)          (83,211)


Financing activities:
  Note payments.............................         (964,260)         (241,065)
  Cash dividends paid.......................          (62,800)          (93,444)
                                               --------------    --------------
    Net cash used in financing activities...       (1,027,060)         (334,509)
                                               --------------    --------------

Net increase (decrease) in cash.............           82,063           (18,599)

Cash at beginning of period.................          626,867           564,875
                                               --------------    --------------

Cash at end of period.......................   $      708,930    $      546,276
                                               ==============    ==============








                             See accompanying notes.

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                       THE HOME-STAKE ROYALTY CORPORATION
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1 - General

The unaudited financial  information provided in this report includes all normal
recurring  adjustments  which are, in the opinion of  management,  necessary  to
fairly  present the financial  position,  result of operations and cash flows of
the Company.  Certain information and footnote  disclosures normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have been  omitted  or  condensed.  The  Company  believes  that the
disclosures   herein  are  adequate  to  make  the  information   presented  not
misleading;  however,  these financial  statements should be read in conjunction
with the audited financial  statements and related notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1996.

The results for interim periods are not  necessarily  indicative of trends or of
results to be expected for the full year.

Note 2 - Summarized financial information of equity investees

Summarized  income  statement  information  for the three months ended March 31,
1997 and 1996 for The Home-Stake  Oil & Gas Company  ("HSOG") and Alden Pipeline
Company is presented below:

                                                 1997             1996
                                                 ----             ----
Income statement data:
         Revenues......................      $ 2,425,317      $ 1,739,069
         Income before income taxes....          963,054          397,414
         Net income (1)................          656,334          309,802

      (1)Includes   $119,123  and  $70,507  in  1997  and  1996,   respectively,
         attributable to the equity earnings of the Company recorded by HSOG.

During the first  quarter of 1997,  the  Company  sold its  interest in the N.E.
Alden Field,  including Alden Pipeline Company.  This sale was effective January
1, 1997. Accordingly,  1997 information presented above does not include amounts
attributable to the operations of Alden Pipeline  Company;  amounts included for
1996 operations are not material to the totals shown.

Note 3 - Notes payable

Notes payable at March 31, 1997,  represents the amounts due under the Company's
financing agreement which is due May 1, 1998 and provides for monthly maturities
of $80,355, plus interest at bank prime. In addition,  the Company has a line of
credit in the amount of $700,000  available until May 1, 1997 which provides for
monthly payments of interest on the outstanding borrowings at bank prime.

The notes payable and the line of credit described above are  collateralized  by
certain of the Company's producing properties.

Note 4 - Contingencies

The Company is involved in various legal actions arising in the normal course of
business. In the opinion of management,  the Company's  liabilities,  if any, in
these  matters  will not  have a  material  effect  on the  Company's  financial
position or the results of operations.



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Item 2.     Management's discussion and Analysis.

Results of Operations - First quarter 1997 compared with first quarter 1996

Net income for the first  quarter  increased  $452,339  from $315,130 in 1996 to
$767,469 in 1997. The principal reasons for this increase are as follows:

Oil sales  increased  $256,045 (24%) due to an increase in the average oil price
from $17.64 per barrel to $21.45 per barrel,  coupled  with a small  increase in
production from 59,321 barrels to 60,729 barrels.

Gas sales  increased 64%  ($364,129) due to an increase in the average gas price
from $1.88 in 1996 to $3.12 in 1997, partially offset by a small decrease in gas
production from 303,759 Mcf to 299,888 Mcf.

Gain on sales of assets  increased  $99,804 in 1997 following the Company's sale
of their  interest in the N.E.  Alden Field.  There were no comparable  sales in
1996.

Income  from  equity  affiliates  increased  $121,977  in  1997.  The  Company's
principal equity investee, The Home-Stake Oil & Gas Company, reported net income
of  $656,334  in the first  quarter of 1997 and  $246,634  in the same period of
1996. In addition,  the Company's  ownership in The Home-Stake Oil & Gas Company
increased from 31.7% to 33.9% in November, 1996.

Lease operating  expenses decreased $54,203 (11%) due primarily to environmental
remediation expenses incurred in 1996 associated a property in which the Company
has a 9% working interest.

Dry hole costs increased $185,771 in 1997 resulting from the higher incidence of
dry holes, coupled with the Company's higher ownership interests.

Condemned and abandoned property expense increased $34,141 in 1997. 1997 expense
included the non-recurring  abandonment of acreage costs associated with the dry
holes described  above.  1996 results  included a net credit of $6,943 which was
primarily  the result of  salvage  credits  of  $12,488  received  on a property
abandoned during the quarter.

Interest  expense  decreased  $43,155 in 1997  reflecting  the  Company's  lower
average borrowings.

Financial Condition and Liquidity

The Company's operating activities have traditionally been self-financed through
internally  generated cash flows.  The principal use of cash flows has generally
been to fund the Company's  exploration  and  production  activities and for the
payment of dividends to  stockholders.  The use of borrowed  funds has generally
been limited to the acquisition of producing oil and gas properties where future
revenues from such purchases are expected to fund the debt.

The Company has an exploration and development  budget for 1997 of $1.7 million.
During the first  quarter  the  Company  spent  approximately  $500,000  and has
current  commitments  of $600,000 for the remainder of the year.  The Company is
also actively pursuing opportunities for the acquisition of producing properties
whenever possible.

Product  prices have  decreased 20% to 25% since the first of the year.  Despite
these decreases, the Company expects to finance its budgeted 1997 operations and
drilling  through  internally  generated cash flows. In addition,  the Company's
line of credit is expected to be extended into 1998.

Statement  of Financial  Accounting  Standards  No. 128,  Earning Per Share will
become  effective for periods ending after  December 15, 1997.  Adoption of this
statement will not have a material effect on the Company's result of operations.




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Forward-looking Statements

This Management's Discussion and Analysis of Results of Operations and Financial
Condition contains certain statements which are not historical in nature and are
considered "forward looking  statements",  including  statements  concerning the
Company's anticipated capital expenditures,  cash flows, financial condition and
liquidity.  These forward looking statements are based on current  expectations,
estimates and  assumptions  of  management  and are subject to certain risks and
uncertainties.  Actual results and developments man differ  materially from what
is expressed  in the forward  looking  statements  as a result of changes in the
prices of oil or gas,  operating  expenses,  federal and state  regulations  and
other factors beyond the control of the Company.

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                           Part II. Other Information

Item 1.    Legal Proceedings.

           There is a complete  discussion of legal proceedings  included in the
           Company's  Annual  Report on Form 10-KSB for the year ended  December
           31,  1996.  Since the date of that report there have been no material
           changes in the status of such matters.

Item 2.    Changes in Securities.

           None.

Item 3.    Defaults Upon Senior Securities.

           None.

Item 4.    Submission of Matters to a Vote of Security Holders.

           None.

Item 5.    Other Information.

           None.

Item 6.    Exhibits and Reports on Form 8-K.

           (a)  Exhibits.

                 None.

           (b)  Reports on Form 8-K.

                No reports on Form 8-K were filed during the quarter ended March
                31, 1997.

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                                   Signatures



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                     The Home-Stake Royalty Corporation
                                         (Registrant)


Date:  May 15, 1997                  By: /s/  Robert C. Simpson
                                         -------------------------
                                          Robert C. Simpson
                                          Chairman of the Board, C.E.O.,
                                          President and Treasurer


Date:  May 15, 1997                  By: /s/  Chris K. Corcoran
                                         -------------------------
                                          Chris K. Corcoran
                                          Executive Vice President,
                                          Chief Financial Officer and
                                          Corporate Secretary

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