Bharat Coking Coal (BCCL) IPO Review, GMP, Strengths, Risks: Apply or Avoid?

​Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited, is India’s biggest maker of coking coal (the key “fuel” that steel plants need to turn iron into steel). Its IPO is open from Jan 9 to Jan 13, 2026, at ₹21-₹23 per share, and shares are expected to list on Jan 16, 2026. The IPO’s GMP (an unofficial indicator, not a guarantee) is around ₹10 per share, which traders read as a positive mood. Ahead of the IPO, BCCL raised ₹273.13 crore from anchor investors, including LIC and Societe Generale, which signals institutional interest.

In this blog, you’ll get the IPO basics, how BCCL earns money, where the IPO money actually goes, the biggest strengths and risks with numbers, peer comparison, valuation, and a simple analyst view to help you think clearly.

IPO Overview

• IPO Date: Jan 9 to Jan 13, 2026
• Total Issue Size: ₹1,071 Cr
• Price Band: ₹21 to ₹23
• Minimum Investment: ₹13,800
• Lot Size: 600 Shares
• Tentative Allotment Date: Jan 14, 2025
• Listing Date: Jan 16, 2025 (Tentative)
• GMP: The GMP for the Bharat Coking Coal IPO is ₹10, reflecting a 43.48% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Bharat Coking Coal Makes Money

• Dig coal from two “coal cities”: BCCL mines mainly in Jharia (Jharkhand) and Raniganj (West Bengal) across about 288.31 sq. km, using a large network of 34 operational mines.
• Upgrade raw coal for steel customers: Steel makers want cleaner coal, so BCCL runs coal washeries (plants that “wash” coal by removing waste like ash and rocks). This matters because cleaner coal helps steel plants get better output from the same fuel.
• Move heavy coal using rails and hubs: A big part of the job is logistics, getting coal from mines to customers using rail-linked loading points and other movement systems. If movement slows, sales and cash collections can also slow.​
• Sell mostly to large, stable buyers: BCCL earns mainly by selling coking coal for steel and also non-coking/washed coal for other uses, largely to big steel and power customers. In FY25, it produced 40.5 million tonnes vs 30.51 million tonnes in FY22, showing a scale-up in output.

Objectives of the IPO

• This IPO is 100% OFS (Offer for Sale): The entire issue is an OFS by Coal India, meaning existing shares are being sold and the cash goes to the selling shareholder, not into BCCL’s bank account.
• Listing-related benefits: Because it is getting listed on BSE and NSE, the company expects standard listing benefits like stronger market visibility and public-market discipline (more regular disclosures and investor scrutiny).

Strengths:

• Leadership and huge resource base: BCCL accounted for 58.50% of India’s domestic coking coal production in FY25, and it has an estimated coking coal reserve of about 7,910 million tonnes. In simple words, it is a “big supplier with a long shelf of stock”, which supports long-term supply to steel plants.​
• Strong FY25 profitability ratios: FY25 ROCE was 30.13%, and RoNW was 20.83%. In simple terms, ROCE ~30% means that for every ₹100 used in the business (machines, mines, working money), it generated about ₹30 of operating profit; RoNW ~21% means ~₹21 profit for every ₹100 of shareholders’ money.​
• Institutional interest and scale track record: BCCL raised ₹273.13 crore from anchor investors (including LIC and Societe Generale) at ₹23 per share, showing serious institutions were willing to commit money before the public bid. Also, production rose from 30.51 million tonnes (FY22) to 40.50 million tonnes (FY25), showing execution strength in growing output.​

Risks:

• Profits turned weak in the latest half-year: Profit after tax dropped to ₹123.88 crore for the six months ended Sep 30, 2025, vs ₹1,240.19 crore for FY25. When profits fall this hard, the business has less “cushion” to handle a bad year in coal prices, costs, or disruptions.
• Cash collection slowdown can strain day-to-day cash: Trade receivables (money customers owe) rose to ₹2,202.52 crore by Sep 2025, and receivable days increased to about 60 days vs 25 days in FY24. That means if a customer earlier paid in ~25 days and now takes ~60, the company may need extra borrowing to run daily operations.
• New borrowings and big “maybe” liabilities: Total borrowings stood at ₹1,559.13 crore by Sep 30, 2025 (after being at zero in recent years), and contingent liabilities were disclosed at ₹3,598.59 crore. Contingent liabilities are “possible future bills”; if they become real, they can hit profit and cash flow.

For detailed information, visit Bharat Coking Coal’s official IPO page at INDmoney.

Peer Comparison

In India, there isn’t a directly comparable listed company of the same nature and scale as Bharat Coking Coal. Its international listed peers include Alpha Metallurgical Resources and Warrior Met Coal.

Source: RHP, internal calculation

Financial Performance

The company’s numbers have turned a bit uneven lately, even though its asset base continues to grow steadily. Revenue from operations touched a high of ₹14,246 crore in FY24, but slipped to ₹13,803 crore in FY25. The slowdown became more visible in the first half of FY26, when revenue fell nearly 17% year-on-year to ₹5,659 crore.

Profits have moved in the same stop-start pattern. They rose sharply in FY24, dipped in FY25, and then dropped steeply by over 83% to just ₹124 crore in the latest six-month period. The fall in FY25 was mainly because heavy rainfall disrupted mining operations, leading to lower coal production and sales.

Profitability has also tightened meaningfully. Net profit margins have fallen to 1.96% in the recent half-year from over 10% a year earlier. Weaker sales combined with rising costs weighed on performance, with finance costs jumping more than 86% due to higher borrowing and accounting charges. Additional adjustments related to stripping activity, the removal of soil and rock to access coal, further reduced reported profits.

IPO Valuation

At the upper price of ₹23, the pre-IPO market cap is shown around ₹10,711 crore. The P/E ratio (price-to-earnings - how much investors pay for ₹1 of yearly profit) looks very different depending on which profit period is used. The P/E is around 8.64x on FY25 earnings base, but when considering the annualised H1 FY26 profits (a weaker recent half-year), it stands much higher at 43.23x.

In simple terms, a P/E of 43 means buyers are paying ₹43 for every ₹1 of annual profit (based on that weak recent profit pace), which looks pricey if profits stay low. But if profits bounce back closer to stronger periods, that P/E can fall quickly even if the share price doesn’t move much.

Analyst View

BCCL looks like a classic “core commodity PSU” bet: big assets, strategic importance to steel, and strong FY25 return ratios like ROCE 30.13% and RoNW 20.83%. But the recent numbers show why investors must stay alert. Profit after tax fell to ₹123.88 crore in the half-year ended Sep 30, 2025, and borrowings stood at ₹1,559.13 crore, which signals pressure from weaker profitability and slower cash collection. Also, remember: the IPO is 100% OFS, so you are not directly funding new washeries or new mines through fresh money in this issue. For patient investors who can handle cycles, it can fit a long-term, cash-surplus portfolio approach, provided they track profits, receivable days, and debt trend after listing.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Bharat Coking Coal's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.