Bharat Coking Coal Ltd (MAINBOARD)(tentative price)

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Company Financial (In ₹Crore) 

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About Company

Incorporated in 1972, Bharat Coking Coal Limited (BCCL) is a wholly-owned subsidiary of Coal India Limited, engaged in the production of coking coal, non-coking coal, and washed coal. As of March 31, 2025, the company operates 32 mines—including 25 opencast, 3 underground, and 4 mixed mines—located across Jharia (Jharkhand) and Raniganj (West Bengal), covering a leasehold area of 288.31 sq. km.

BCCL’s primary product is coking coal, used mainly by the steel and power sectors. As of April 1, 2024, the company had an estimated coking coal reserve of ~7,910 million tonnes. In Fiscal 2025, it contributed 58.50% of India’s total domestic coking coal production.

The company’s operations include opencast and underground mining, coal washeries, monetisation of idle washeries under the WDO model, reopening discontinued underground mines through the MDO model, and solar power monetisation via self-consumption and grid supply.

Coal production increased steadily from 30.51 million tonnes in FY 2022 to 40.50 million tonnes in FY 2025. In FY 2024, BCCL produced 39.11 million tonnes of coking coal and 1.99 million tonnes of non-coking coal.

Strength

Largest Coking Coal Producer with Extensive Reserves: BCCL is India’s largest coking coal producer, contributing 58.50% of domestic production in FY 2025. The company holds 7.91 billion tonnes of coking coal resources, making it the only source of prime coking coal in India (CRISIL Report). These substantial reserves ensure a reliable supply to key industries such as steel, power, cement, and fertilizers, while providing strong economies of scale.

Strategically Located Mines with Leading Washery Capacity: The company’s mines are located in the resource-rich Jharia and Raniganj coalfields, giving it direct access to large coal reserves. BCCL also has the largest coking coal washery capacity in India at 13.65 MTPA, which enhances operational efficiency, reduces logistics costs, and enables consistent production of high-quality coal.

Strong Position to Benefit from Rising Coking Coal Demand: India’s coking coal demand is projected to grow from 67 million tonnes in FY 2025 to 104 million tonnes by FY 2030 (CRISIL Report), driven mainly by the expansion of the steel industry. With its large reserve base and dominant market share, BCCL is well positioned to capitalize on this rising demand and maintain long-term market leadership.

Weakness

Geographic Concentration of Mines and Reserves: BCCL’s operations are entirely concentrated in the Jharia (Jharkhand) and Raniganj (West Bengal) coalfields. Any exhaustion of reserves or inability to fully exploit existing deposits in these regions could significantly impact production and adversely affect the company’s business, financial condition, and cash flows.

Dependence on a Limited Vendor Base: The company relies on a small number of key vendors for critical inputs and services such as diesel, explosives, overburden removal, coal production, transportation, and washing. Any disruption in these vendor relationships—due to operational issues, financial stress, regulatory changes, or external events—could affect operational continuity and overall performance.

High Reliance on Third-Party Contractors: A major portion of coal extraction and handling is carried out through third-party contractors (78.47% in FY 2025). This exposes the company to risks related to cost fluctuations, service quality, delays, and operational inefficiencies. Any failure by contractors to deliver consistently may adversely impact mining output, logistics, and overall financial performance.