Bharat Coking Coal IPO: In-Depth Analysis & Review

India’s largest coking coal producer, Bharat Coking Coal Ltd (BCCL), is gearing up for a highly anticipated Rs 1,071-crore IPO, with the subscription window closing on January 13. The IPO has already sparked significant excitement, with the issue oversubscribed 3.14 times by 11:50 am on its opening day.

But with this IPO being a pure offer-for-sale, the big question remains: does the valuation live up to the hype and should long-term investors jump on board?

Before you decide, explore our in-depth IPO analysis covering growth prospects, financials and potential red flags here.

Bharat Coking Coal IPO Details 

• Issue Details: Mainstream
• Offer for Sale: Rs 1,071 crore
• Price Band: Rs 21 – Rs 23
• Lot Size: 600 shares

Bharat Coking Coal: Business Overview

• BCCL, headquartered in Dhanbad, is a subsidiary of Coal India and the largest producer of coking coal in India. It specializes in the production of both coking and non-coking coal, as well as washed coal. The firm operates in the coking coal-rich regions of Jharkhand’s Jharia Coalfield and West Bengal’s Raniganj Coalfield.
• As of September 30, 2025, BCCL manages a network of 34 operational mines, with its primary product being coking coal, which serves the steel and power industries. As of April 1, 2024, its estimated coking coal reserve stands at approximately 7,910 MMT.

Bharat Coking Coal Key Strengths

• Market Leadership: BCCL is India’s largest coking coal producer in FY25, accounting for 58.5% of the country’s total coking coal production. The company has significantly expanded its operations over the years, with coal production increasing from 30.51 MMT in FY22 to 40.50 MMT in FY25, reflecting a ~33% growth.
• Strong Parentage: As a subsidiary of Coal India, the world’s largest coal producer with a ~74% market share in FY25, BCCL benefits from strategic support, advanced technologies, skilled professionals and robust financial backing.
• Financial Performance: BCCL has shown impressive growth from FY23 to FY25, achieving a 5% CAGR in operating revenue, 63% growth in EBITDA and an impressive 37% increase in net profit.
• Healthy Return Metrics: BCCL exhibits decent return ratios, with a Return on Net Worth (RoNW) of 20.83% and Return on Average Capital Employed (ROACE) of 30.13% as of FY25.

Bharat Coking Coal Risk Factors

• Poor H1FY26 Performance: BCCL faced a significant downturn in the first half of FY26, with revenue dropping by ~17% YoY. EBITDA fell drastically to Rs 460 crore, a sharp decline from the Rs 1,373 crore profit in the same period the previous year, reflecting a ~67% fall—a concerning sign for the company’s financial health.
• Client Concentration: BCCL’s revenue is highly concentrated, with the top ten clients contributing to 89% of operating revenue in FY25. Any loss or reduction in business from these key clients could severely impact the company’s financial stability and revenue generation.
• Contingent Liabilities: As of September 30, 2025, BCCL had contingent liabilities of ~Rs 3,599 crore, which represents about 62% of the company’s net worth. While contingent liabilities are not guaranteed, they could materialize into actual costs if the related legal cases or obligations do not resolve in BCCL’s favor.
• Coking Coal Dependency: Around 75% of BCCL’s revenue comes from raw coking coal. A decline in demand for raw coking coal could negatively affect the company’s financial performance.

Final Thoughts: Should You Subscribe to Bharat Coking Coal’s IPO?

• BCCL is India’s largest producer of coking coal, accounting for 58.5% of domestic production in FY25. The company has seen steady financial growth with a Revenue/EBITDA/PAT CAGR of 5%/63%/37% from FY23 to FY25.
• Despite some volatility in margins due to pricing and cost factors, BCCL remains a cash-generative, debt-free business benefiting from its scale and regulated demand. However, the weak performance in H1FY26 and FY25 highlights its exposure to cyclical steel demand and regulated pricing.
• BCCL’s profitability is sensitive to global coal prices. The firm benefited from record-high coking coal prices during the Ukraine crisis in FY24, posting a record net profit of Rs 1,564 crore. However, as prices softened in FY25, profits fell by ~21% to Rs 1,240 crore with EBITDA margins declining from FY24 levels.
• In terms of valuation, the IPO is reasonably priced at a P/E of 8.6 based on FY25 earnings, offering fair valuation relative to its earnings profile.
• Given these factors, investors with a risk appetite may consider subscribing for near-term listing gains. However, long-term investors should monitor operational efficiency and the broader steel cycle before making an investment commitment.

For a deep dive into other IPOs, explore: IPO Corner on Liquide