Bharat Coking Coal IPO

It’s the clear leader at home, it’s the biggest producer of coking coal (the kind used to make steel), making up about 58.50% of India’s production in FY25. And since it’s the country’s only source of prime coking coal (higher-grade coking coal), it has estimated reserves of 791 crore tonnes, which puts it in a very comfortable spot versus domestic competitors.

It’s also been improving on the execution side, growing coal production by 32.74% from FY22 to reach 4.05 crore tonnes in FY25. In FY24, it hit its highest-ever coking coal production of 3.91 crore tonnes, which shows it’s been able to scale up to match rising demand.

On the money side, it’s in a much steadier place now; its long-term debt is zero as of September 2025. Its net worth (basically the value left for shareholders after liabilities) is ₹6,551.23 crore in FY25, backed by revenue from operations of ₹13,802.55 crore. Overall, it shows the company has bounced back well after earlier financial restructuring (a cleanup of debt and finances).

Its day-to-day operations are supported by strong logistics and processing, like 18 railway sidings (rail-connected loading points) and large coal handling systems. It also leads the industry in owned coking coal washing capacity at 1.37 crore tonnes per year, which matters because washing removes impurities and helps it supply better-quality washed coal to steel and power customers.

Since it’s a wholly-owned subsidiary (100% owned company) of Coal India Limited, the world’s largest coal producer, it gets real advantages like centralized procurement (bulk buying), financial support, and technical know-how. That kind of backing strengthens its credit profile (how lenders view its risk) and helps it fund big modernization projects without needing to take on outside long-term debt.

It has a big chunk of contingent liabilities, ₹3,598.59 crore as of September 2025. Contingent liabilities are “possible” payments (like legal cases or tax disputes) that may or may not hit later, but if they do turn real, they can seriously hurt the profits and cash flow.

It depends a lot on a small set of customers like Steel Authority of India (SAIL) and National Thermal Power Corporation (NTPC); its top 10 customers brought in 88.88% of total revenue in FY25. That’s great while relationships stay steady, but if it loses a few big clients, especially public sector power and steel companies, its revenue and day-to-day stability could take a sharp hit.

Collection seems to have gotten slower; trade receivable days (how long customers take to pay) rose from 25 days in FY24 to 60 days by September 2025. Total trade receivables climbed to ₹2,202.52 crore, mainly because of disputed performance incentives and delayed payments, which can put pressure on liquidity (short-term cash comfort).

A major part of its mining is in the Jharia coalfield, which has some tough, well-known issues like underground fires and land subsidence (the ground slowly sinking). These risks aren’t just technical problems; they can affect worker safety, damage the environment, and in a worst case, even push the company to shut down certain mining zones, which would directly cut production.

Even though it has large coal processing facilities, its washeries (plants that clean coal by removing impurities) ran at only 28.46% capacity in the six months ended September 2025. This low utilization is linked to raw coal availability and logistics bottlenecks (transport and movement issues), and it usually means higher cost per tonne and less ability to earn what the assets are capable of.

All its mining is concentrated in just two coalfields, Jharia in Jharkhand and Raniganj in West Bengal. With no real geographic diversification (spreading operations across more regions), it’s more exposed to local risks like regulatory changes, labour unrest, or even natural events that could disrupt a big part of total production.