Bharat Coking Coal IPO: Should you apply?

Summary: Bharat Coking Coal, the largest coking coal producer in India, is set to go public on January 9, 2026. In this story, we analyse the company’s valuations, past financial performance and risks to help you decide whether the IPO is worth your money. Bharat Coking Coal, a subsidiary of Coal India Limited, will launch its IPO (initial public offering) on January 9, 2026 and close on January 13, 2026. The total issue size, worth Rs 1,071 crore, will be raised entirely through an offer for sale (OFS). Below is a detailed breakdown of the coking coal manufacturer’s strengths, weaknesses, financials and past valuations to help you make an informed investment decision. What the company does Bharat Coking Coal is India’s largest producer of coking coal, accounting for nearly 59 per cent of domestic output in FY25, according to CRISIL. It holds one of the country’s largest coking coal reserves, estimated at about 7,910 million tonnes as of April 2024, and supplies various grades of coking, non-coking and washed coal mainly to the steel and power sectors. A wholly owned subsidiary of Coal India Limited, the company operates primarily in the Jharia and Raniganj coalfields and has steadily scaled up production over recent years. Coal output rose from 30.5 million tonnes in FY22 to 40.5 million tonnes in FY25, driven by capacity additions and greater use of heavy earth-moving machinery. Production hit record highs in FY24, with coking coal output surpassing earlier peaks, underscoring the company’s central role in India’s steel supply chain. Track record and valuation When it comes to financials, Bharat Coking Coal has been on steady ground. During FY23-25, the company’s EBIT (earnings before interest and tax) and PAT (profit after tax) grew at an impressive 148 per cent and 37 per cent, respectively. However, its revenue saw modest growth at 4.6 per cent during the three-year period. At the upper end of the price band (Rs 23), Bharat Coking Coal’s stock is expected to be valued at 17.4 times its TTM (trailing twelve months) earnings and 1.9 times its book value. It has no listed Indian peers for comparison. Bharat Coking Coal IPO details Total IPO size (Rs cr) 1,071 Offer for sale (Rs cr) 1,071 Fresh issue (Rs cr)   Price band (Rs) 21-23 Subscription dates January 9-13, 2026 Purpose of issue Offer for sale (OFS) Post-IPO M-cap (Rs cr) 10,711 Net worth (Rs cr) 5,664 Promoter holding (%) 90 Price/earnings ratio