For investors, deciding whether the Bharat Coking Coal (BCCL) IPO is a good investment or not can be quite challenging. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Bharat Coking Coal (BCCL) IPO. This will help you analyze the strengths, risks, and financial details of the Bharat Coking Coal (BCCL) IPO, enabling you to make a more informed investment decision.
About Company
Founded in 1972, Bharat Coking Coal is India’s largest coking coal, non-coking coal, and washed coal producer, holding 58.50% of the market share of domestic coal production. BCCL consists of 34 operating miles of coal, serving the steel and power industries. The company runs its business with mines located at Jharia, Jharkhand, and Raniganj, West Bengal coalfields.
In FY25, the company’s coal production increased to 40.50 million tonnes. Furthermore, in FY25, the company has produced nearly 58.5% of India’s domestic coking coal. They operate their business with open and underground mines, coal washeries, reopening discontinued underground mines, and coal washeries that are stopped or lying unused for some time.
Strengths
- Bharat Coking Coal Limited is the largest producer of coking coal in India. As of April 1, 2024, the company has 791 million tonnes of coal resources, making it the primary source of coking coal production in India.
- The demand for coking coal in India is expected to rise significantly, increasing from 67 million metric tonnes in FY25 to 138 million metric tonnes by FY35.
- The strong parentage of Coal India Limited gives it a strategic technological and financial strength for sustainable growth.
- The company is almost debt-free.
Weaknesses
- The company has contingent liabilities of ₹4,930 crore, representing potential future obligations that may arise in the future, can affect the business, cash flow, and financial condition.
- BCCL generates 87% of its revenue from its top 10 customers, and losing any of its key customers can adversely affect the business, financial condition, and cash flow.
- The IPO is entirely an Offer for Sale (OFS) with no fresh issue component, which means the proceeds will go to exiting shareholders and will not be used for the company’s growth
- Other income of ₹598 crore comes from non-core activities.
- Debtor days have increased from 39.1 to 48.2 days.
Bharat Coking Coal (BCCL) IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Ashika Research | |
| Axis Capital | |
| Canara Bank Securities Ltd | Apply |
| Capital Market | May Apply |
| ICICI Direct | |
| Marwadi Shares and Finance Ltd | Apply |
| SBICAP Securities Limited | Apply |
| Sushil Finance Ltd | Apply |
| Swastika Investmart Ltd | Apply |
Bharat Coking Coal (BCCL) IPO Details
| IPO Open Date: | January 9, 2026 |
| IPO Close Date: | January 13, 2026 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹21 to ₹23 Per Share |
| Issue Size: | ₹1,071 Crores |
| Offer-for-Sale | Up to 46,57,00,000 Equity Shares |
| Registrar | Kfin Technologies Ltd. |
| IPO Lead Managers | IDBI Capital Markets Services Ltd. ICICI Securities Ltd. |
| Basis of Allotment | January 14, 2026 |
| IPO Listing Date: | January 16, 2026 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars (in ₹ Cr) | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 |
| Total Income | 6,311.51 | 14,401.63 | 14,652.53 |
| EBITDA | 459.93 | 2,356.06 | 2,493.89 |
| EBITDA Margin | 7.29% | 16.36% | 17.02% |
| PAT | 123.88 | 1,240.19 | 1,564.46 |
| PAT Margin | 1.96% | 8.61% | 10.68% |
| Net Worth | 5,830.89 | 6,551.23 | 5,355.47 |
| Reserves & Surplus | 1,006.52 | 1,805.73 | 664.72 |
| Borrowings | 1,559.13 |
Key Performance Indicator
| KPI | Values |
| RoNW | 20.83% |
| ROCE | 30.13% |
| PAT | 8.61% |
| Price to Book Value | 1.63 |
| EBITDA Margin | 16.36% |
| Market Cap | ₹10,711.10 Cr. |
Peer Comparison with the Company
| Name of the Company | Face Value(₹) | Basic EPS (₹) | Diluted EPS(₹) | RONW (%) | P/E Ratio | NAV(₹) |
| Bharat Coking Coal Limited (BCCL) | 10 | 2.66 | 2.66 | 20.83% | 8.65 | 14.07 |
| Global Listed Peers | ||||||
| Alpha Metallurgical Resources, Inc | $0.01 | 1,233.78 | 1,222.65 | 11.48% | 14.87 | 11,182.10 |
| Warrior Met Coal, Inc. | $0.01 | 410.12 | 410.12 | 12.82% | 19.44 | 3,423.71 |
Promoters & Track Records, if any
- Coal India Limited holds 4,657,000,000 Equity shares, representing 100% of the equity share capital.
Bharat Coking Coal (BCCL) IPO Valuation – Is It Priced Fairly?
At the upper price band of ₹23, Bharat Coking Coal (BCCL) IPO is valued at a P/E of around 8.56x based on its FY25 earnings.
When compared with listed global peers, like Alpha Metallurgical with a P/E ratio of 14.9x and Warrior Met Coal with a P/E ratio of 19.4x, indicating that Bharat Coking Coal (BCCL) is priced below the sector average.
Verdict: The IPO valuation appears reasonable, considering the company’s leadership in India’s coking coal production.
Bharat Coking Coal (BCCL) IPO – Should You Apply or Not?
Bharat Coking Coal (BCCL) IPO benefits from India’s largest coking coal producer with strong industry positioning, steady demand from steel & power industries, and strong parentage of Coal India Limited, which supports long-term stability.
On the risk side, the business remains dependent on its top 10 customers, contingent liabilities, high employee costs, and limited pricing flexibility, which could impact profitability and cash flows.
As of January 9, 2026, the GMP of the Bharat Coking Coal (BCCL) IPO is ₹11, indicating a listing gain of around 45% to 48%. Short-term investors may consider applying for the IPO, supported by PSU backing and positive market sentiment.
Long-term investors must evaluate risks related to cost pressure, high dependence on a few customers, and government control before subscribing to the IPO.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article uses information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
