CMPDI (Central Mine Planning & Design Institute) IPO

It earns very strong margins from its consultancy business. In FY25, its Operating EBITDA margin was a solid 40%, while its net profit margin came in at 30.6%. That tells you the company runs quite efficiently and is able to keep a big share of what it earns.

The company has absolutely no borrowings, which simply means it has no debt burden to worry about. Because of that, along with efficient operations, it delivered an impressive Return on Capital Employed of 48.6% and a Return on Equity of 36.7% in FY25. In simple words, it is generating strong returns from the money invested in the business.

It is the biggest coal and mineral consultancy company in India, with a commanding 61% market share in FY25. It also serves as the main consultant to its parent company, Coal India Limited, which gives it a very strong position in the mining space. That kind of backing gives it an advantage that is hard for others to match.

Its financial track record shows steady growth over the last few years. Operating revenue rose from ₹1,386.09 crore in FY23 to ₹2,102.76 crore in FY25. Net profit also more than doubled over the same period, reaching ₹666.91 crore, which shows the growth is not just on paper but also flowing through to earnings.

Even though it still depends heavily on its parent group, it is gradually building business from outside clients too. Its total client base increased from 38 in FY23 to 76 by December 2025. During first nine months of FY26, it earned ₹506.36 crore (34.0%) from clients outside the parent group, which is a good sign of broader demand for its services.

The company depends heavily on a very small set of customers. Its top 10 clients brought in a huge 93.8% of total operating revenue in the nine months ended December 2025. So, if it loses even one major client, the hit to revenue and profit could be quite serious.

A large part of its business is closely linked to its parent, Coal India Limited, and other group companies. These entities contributed 66.0% of operating revenue in the nine months ended December 2025. That means if Coal India cuts production or slows spending, the company’s revenue could get affected almost immediately.

The company also depends a lot on outside vendors for important exploration work such as drilling and testing. Its top 10 vendors made up 30.9% of total expenses, or ₹301.41 crore, in the nine months ended December 2025. If there is any disruption on the vendor side, projects could slow down or get delayed.

It also has possible future payment obligations because some disputes are still unresolved. As of December 2025, contingent liabilities, which means potential liabilities that may arise depending on the outcome of cases, stood at ₹210.83 crore. If these cases, mostly related to taxes, go against the company, it may have to pay out a meaningful amount of cash.

Another issue is slow collection of payments, which puts pressure on working capital, meaning the cash needed for day-to-day operations. By December 2025, trade receivable days had risen to 229 days. On top of that, ₹283.50 crore of receivables had been overdue for more than six months.