*Since the issue is entirely an Offer For Sale, the company will not receive any funds from the IPO.

*There is a specific benefit for existing Coal India shareholders. Investors who hold at least one equity share of Coal India Limited as of the record date are eligible to apply under the Shareholder Reservation Portion of the BCCL IPO, subject to the terms mentioned in the offer document. (Source: RHP)

Bharat Coking Coal Limited was incorporated in 1972 and operates as a wholly owned subsidiary of Coal India Limited. The company was granted Miniratna status in 2014.

BCCL’s primary business is the mining, beneficiation, and supply of coking coal and non-coking coal. Its operations are concentrated in the Jharia coalfield in Jharkhand and the Raniganj coalfield in West Bengal, regions known for high-quality coking coal reserves.

The company supplies coal mainly to:

• Steel manufacturers
• Power producers
• Cement and fertilizer companies

BCCL also operates coal washeries that reduce ash content, making coal suitable for industrial use.

India aims to increase its crude steel capacity to 300 million tonnes per annum by FY31, up from around 180 MMT currently. This expansion will significantly increase demand for coking coal. At present, India imports a large portion of its coking coal requirements, exposing the economy to:

• Volatile global prices
• Currency risk
• Supply chain disruptions

Domestic availability of prime coking coal is limited, which makes BCCL strategically important. Increased domestic production helps reduce imports, save foreign exchange, and support self-reliance goals. However, the coal industry also faces long-term challenges due to climate commitments, energy transition, and environmental regulations. These factors must be considered alongside demand growth.

(Source: Chittorgarh)

What stands out

• FY24 and FY25 were strong earnings years: The company reported robust profitability in FY24 and remained profitable in FY25, indicating a solid earnings base before the recent slowdown.
• PAT dropped sharply in the half-year ended September 2025: Profit after tax declined significantly in H1 FY26, pointing to near-term pressure on margins and earnings momentum.
• Revenue scale remains intact, but growth has flattened: Total income stayed broadly stable across FY24 and FY25, suggesting scale stability without meaningful top-line expansion.
• Earnings are clearly cycle-dependent: The sharp variation in EBITDA and PAT across periods highlights sensitivity to industry cycles, realizations, and cost conditions.
• Net worth has strengthened materially over time: Net worth has grown steadily over the years, reflecting accumulated profits and balance sheet resilience despite recent earnings volatility.

Opportunities

• BCCL is India’s largest domestic producer of coking coal
• The company holds significant coking coal reserves
• Demand for coking coal is driven by steel production
• Operations are supported by Coal India Limited

Risks

• The IPO is a 100% Offer for Sale and does not raise fresh capital
• Revenues are largely dependent on coking coal
• Mining operations are concentrated in specific coalfields
• The company has disclosed contingent liabilities and litigation

The Bharat Coking Coal IPO represents exposure to a strategically important PSU operating at the heart of India’s steel supply chain. Market leadership, large reserves, a debt-free balance sheet, and Coal India backing provide stability.

At the same time, the Offer For Sale structure, moderate growth profile, operational concentration, and long-term energy transition risks warrant a measured approach.

This IPO is best viewed as a stability-oriented, policy-linked offering, rather than a momentum or growth-driven opportunity. Investors should evaluate it in line with their risk tolerance and long-term objectives. 

Investors who wish to participate can apply via clicking on Arham Wealth IPO link.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. | This article is for informational and educational purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell securities. The information is based on the Red Herring Prospectus and publicly available sources. Investors should read the Red Herring Prospectus carefully and consult their financial advisor before making any investment decisions. | Name of member: Arham Wealth Management Private Limited | SEBI Registration: INZ000189034, DP: IN-DP-456-2020 | Read Full Disclaimer: https://www.arhamwealth.com/disclaimer

Source: RHP | Inhouse Research