1. At a Glance – Coal India’s Favourite Child Having a Mood Swing
Bharat Coking Coal Ltd (BCCL) is that government PSU kid who usually tops the class, but this quarter walked in late, forgot homework, and blamed the weather. With a market cap of ₹18,046 crore, a current price of ₹38.7, and a ROCE of ~28.9%, BCCL looks like a disciplined miner on paper. FY25 numbers were solid: ₹13,803 crore revenue, ₹1,237 crore PAT, and a chunky EPS of ₹266. But then came the latest quarter and boom—PAT of -₹22.9 crore, operating margin collapsing to 1%, and investors collectively scratching their helmets.
This is not a broken company. This is a cyclic PSU miner reminding everyone that coal is not FMCG shampoo. Costs fluctuate, realizations wobble, and one bad quarter doesn’t kill a reserve base of ~7,910 MMT of coking coal. Still, when your stock trades at 22.9x earnings while your parent Coal India chills at single-digit P/E, questions are inevitable. Is BCCL overvalued? Or is this just a temporary coal cough?
2. Introduction – PSU Coal, But Make It Coking (And Complicated)
Bharat Coking Coal Limited was incorporated in 1972, long before ESG became a PowerPoint slide. It exists for one core reason: feed India’s steel industry with coking coal. And in that niche, BCCL is not just important—it is unavoidable.
India doesn’t have the luxury of abundant high-quality coking coal. Steel plants need it like chai needs sugar. Imports are expensive and geopolitically risky. That’s where BCCL steps in, supplying ~58.5% of India’s domestic coking coal production in FY25. If BCCL sneezes, steelmakers catch a cold.
But being essential doesn’t mean being immune. BCCL operates in Jharia and Raniganj coalfields, areas notorious for legacy issues—fires, land acquisition problems, underground mines, rehabilitation headaches, and constant cost pressures. This is not Australia with open flat mines and Instagram sunsets.
So when you see volatile quarterly profits, remember: this is a resource PSU with geological baggage, not a SaaS startup with predictable subscriptions.
3. Business
Model – WTF Do They Even Do?
In simple terms: BCCL digs coal, washes it, and sells it—mostly to power and steel plants.
But let’s break it down like we’re explaining it to a sleepy investor at 2 a.m.
BCCL operates 34 mines as of September 2025:
- 26 opencast mines (the money makers)
- 4 underground mines (the headache)
- 4 mixed mines (best of both worlds, worst of both problems)
Once coal is extracted, not all of it is usable. That’s where washeries come in. BCCL currently operates 5 washeries, with 3 more under development, adding 7 MTPA capacity. Washing improves coal quality, reduces ash, and increases realizations—critical for steel-grade coal.
Revenue streams are divided into:
- Raw coal (78%)
- Washed coal (14.5%)
- Other by-products (7.5%) like middlings and slurry
Sales routes are also diversified:
- FSAs (68.5%) – boring but stable
- MoUs with steel players (14.5%)
- Linkage auctions (11.5%)
- E-auctions (5%) – volatile but juicy
Translation: predictable base revenue with some optionality for upside when auctions behave.
4. Financials Overview – The Table That Ruined Everyone’s Mood
Quarterly Performance (Figures in ₹ Crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 2,783 | 3,688 | 2,572 | -24.6% | +8.2% |
| EBITDA | 34 | 566 | -384 | -94.0% | NA |
| PAT | -22.9 | 425 | -53 | -105% | Improvement |
| EPS (₹) | -0.05 | 91.26 | -0.11 | -100% | Improvement |
Yes, this quarter was ugly. Revenue fell sharply YoY, margins collapsed, and depreciation plus interest did not show mercy. But QoQ? There is a faint
