Double Digit GMP: Bharat Coking Coal IPO
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The first IPO of 2026 is out, and I thought, let’s cover it as it looked interesting. If you want to stay updated on IPOs, quarterly results, and more around investing, please subscribe to the newsletter.
19 Jan Update: The BCCL got listed at 93% premium on Monday morning. However, after listing the stock price fell by 5% and was trading around Rs 43 per share.
About Bharat Coking Coal Limited (BCCL)
They are the largest coking coal producer in India in FY25 in terms of coking coal production, which accounted for 58.50% of the domestic coking coal production in Fiscal 2025.
Their primary product is coking coal, with an estimated reserve of approximately 7,910 million tonnes, as of April 1, 2024, making us one of the largest coking coal reserve holders in India.
They produce various grades of coking coal, non-coking coal and washed coals for applications primarily in the steel and power industries. BCCL is a wholly-owned subsidiary of Coal India Limited (“CIL”) and were conferred with Mini Ratna status in 2014. We were incorporated in 1972 to mine and supply coking coal concentrated in mines located at Jharia, Jharkhand and Raniganj, West Bengal coalfields.
Bharat Coking Coal: Financials
Below is a summary of the financials:
What the numbers are telling us
Revenue growth has moderated in FY25. After a strong jump from FY23 to FY24, revenue dipped slightly in FY25, indicating a slowdown rather than a collapse. The business is still operating at a much higher base than FY23.
Profit peaked in FY24 and cooled off in FY25. PAT more than doubled from FY23 to FY24, showing a sharp improvement in operating efficiency and margins. The decline in FY25 suggests margin pressure or higher costs, not a breakdown in the business model.
ROCE and RoNW tell the real story. Both ratios surged in FY24, reflecting exceptional capital efficiency, and then normalized in FY25. While lower than FY24, FY25 ROCE (30%+) and RoNW (20%+) are still very healthy and comfortably above FY23 levels.
Overall interpretation: FY24 looks like a peak efficiency year, while FY25 appears to be a normalization phase. The business is still structurally stronger than FY23, but investors should track whether margins and capital efficiency stabilize or continue to slide.
If we attribute FY26 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at negative P/E of 43.40. Based on FY25 earnings the P/E stands at 8.65
Bharat Coking Coal Limited: Strength
Now, let me cover some of the company’s strengths at a high level:
Largest coking coal producer in India with access to large reserve
Strategically located mines with large washeries
Well positioned to capitalize on demand for coking coal in India
Strong parentage of Coal India Limited
Bharat Coking Coal Limited: Growth Strategies
If you are interested in the business, you need to understand the growth strategies:
Utilize resources effectively to sustain and expand operations, driving growth and maximizing efficiency
Transform discontinued mines into profitable ventures through resource monetization, and strategic repurposing
Monetize, modernize, and renovate washeries
Implement energy conservation methods to enhance operational efficiency and reduce environmental impact
Bharat Coking Coal Limited: Risks
The company’s mines and washeries are concentrated in Jharia, Jharkhand and Raniganj, West Bengal and the eventual exhaustion of coal reserves in these areas or their inability to successfully exploit existing reserves may adversely affect the business, results of operations, financial conditions and cash flows.
A significant portion of revenues is derived from production of raw coking coal, which accounted for 77.20%, 74.13%, 75.72%, 75.75% and 74.79% of their revenue from operations in the six months period ended September 30, 2025 and 2024 and Fiscals 2025, 2024 and 2023, respectively. Any decline in demand for raw coking coal could have an adverse impact on their business, results of operations, financial condition and cash flows.
They are dependent upon the pricing and continued supply of raw materials, the costs and supply of which can be subject to significant variation due to factors outside their control.
Bharat Coking Coal Limited: GMP
As of 10 December 2026, the company is commanding a Grey Market Premium of 43%. Please comment if you are investing in the IPO. If so, for listing gain or long-term? Feel free to ask a question in the comment about the comment, and I would be more than happy to answer to the best of my knowledge.
“AMAGI IPO - Next Zomato?” is ALSO LIVE. You can find the details on the homepage of my newsletter.
Bharat Coking Coal: Allotment
Bharat Coking Coal IPO results are out. Unfortunately, I have not been allotted the shares. Tell me in the comments if you have, and what are your plans - sell or hold?
You can check the allotment status here.
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I have applied in this IPO... Partially for listing gains and partially for Long Term