Mahanadi Coalfields Ltd IPO

The largest coal producer in India, accounting for 21.00% of domestic coal production in Fiscal 2026, with coal reserves sufficient to sustain around 45 years of production at current levels.

We benefit significantly from the strategic support and vast resources of Coal India Limited, the largest coal producing company in the world.

Low-cost, mechanised mining operations in strategically located coalfields, supported by integrated coal evacuation infrastructure.

Favourable rail-led evacuation network that reduces our dependence on road transportation, lowers customer logistics costs, and improves the reliability and speed of our coal evacuation, complemented by port connectivity.

Well-positioned to capitalize on Indias robust, long-term thermal coal demand, backed by vast coal resources, well-developed infrastructure, geographic diversification of our customer base and long-standing relationships.

Strong financial performance, with the highest EBITDA, Operating EBITDA and PAT Margin among coal producers in India for Fiscal 2026.

Experienced Board and management team supported by a large pool of employees, including technically qualified professionals.

Our revenues are primarily derived from the sale of raw non-coking coal, which accounted for 97.38%, 97.13%, 97.41%, 97.10% and 99.94% of our sale of products for the six months periods ended September 30, 2026 and September 30, 2025 and Fiscals 2026, 2025 and 2024, respectively. Any decline in demand for raw non-coking coal could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our business is primarily dependent on the sale of coal to the thermal power sector, with our revenue from sale of products to the thermal power sector (including State, Central GENCO and IPPs) representing 69.64%, 70.35%, 68.62%, 70.60% and 69.41% of our sale of products in the six months periods ended September 30, 2026 and September 30, 2025 and Fiscals 2026, 2025 and 2024, respectively. Any adverse changes in the conditions affecting the thermal power sector could adversely affect our business, financial condition, results of operations and cash flows.

Our revenue from government-owned and controlled power generation companies and utilities contributed 41.68%, 47.64%, 44.81%, 47.53% and 41.89% of our revenue from operations in the six months periods ended September 30, 2026 and September 30, 2025 and Fiscals 2026, 2025 and 2024, respectively, which exposes us to additional regulatory scrutiny and delayed collection of receivables.

Our total contingent liabilities represented 55.86%, 38.09%, 39.80%, 55.18% and 61.56% of our Net Worth as at September 30, 2026, September 30, 2025, March 31, 2026, 2025 and 2024, respectively. These contingent liabilities have not been provided for in our financial statements, and if they materialise, they may have a material adverse effect on our financial condition, results of operations and cash flows.

Our Company is currently wholly owned by Coal India Limited and controlled by the GoI, and we rely on the support and resources provided by Coal India Limited. Any misalignment in strategic priorities or changes in Coal India Limiteds overall strategy could affect our long-term planning and operational stability and may have an adverse effect on our business, financial condition, results of operations and cash flows. In addition, our executive employees are seconded from Coal India Limited and the terms of their secondment may be altered at any time, which may have an adverse effect on our business, financial condition, results of operations and cash flows. Further, some of Coal India Limiteds other subsidiaries are also involved in coal mining and Coal India Limited and conflicts of interest may also arise between our Company and other subsidiaries of Coal India Limited.

Our business largely depends upon our top 10 customers, which accounted for 51.95%, 58.04%, 55.94%, 55.71% and 53.30% of our revenue from operations in the six months periods ended September 30, 2026 and September 30, 2025 and Fiscals 2026, 2025 and 2024, respectively. The loss of any of these customers could have an adverse effect on our business, financial condition, results of operations and cash flows.

We are reliant on third-party contractors to conduct a substantial amount of operating activities, which exposes us to fluctuations in contractual costs and risks relating to the quality of their services. In addition, we depend on a limited number of third-party contractors, with our top 10 contractors representing 63.61%, 56.38%, 60.02%, 47.83% and 42.62% of our contractual expenses in the six months periods ended September 30, 2026 and September 30, 2025 and Fiscals 2026, 2025 and 2024, respectively, and any disruptions in the supply of services from our top contractors could adversely affect our business, financial condition, results of operations and cash flows.

Our mining operations involve activities that are inherently hazardous in nature and are subject to extensive governmental regulation relating to employee safety and health, which may impose significant compliance-related costs on us. A violation of health and safety requirements or the occurrence of accidents could disrupt our operations, increase our operating costs and may result in a suspension of operations and/or the imposition of civil or criminal liabilities, which could adversely affect our business, financial condition, results of operations, and cash flows.

We do not maintain insurance coverage in accordance with applicable industry standards and our insurance coverage may not be adequate or we may incur uninsured losses or losses in excess of our insurance coverage which could have an adverse effect on our business, results of operations, financial condition and cash flows.

Information relating to our resources and reserves base included in this Red Herring Prospectus are estimates, and our actual resources and reserves may differ materially from these estimates. Additionally, certain resources and reserves information provided in this Red Herring Prospectus has been prepared and classified in accordance with Indian Standard Procedure guidelines (the ISP Guidelines), which has not been audited by DMT and differs from international standards.