Bharat Coking Coal shares in focus after announcing February business update

Synopsis: Bharat Coking Coal Ltd reported flat February output, while cumulative production for April to February fell 14% year-on-year. Weak offtake and lower coking coal volumes weighed on performance, pushing the stock down over 3%.

The shares of this company are engaged in coal mining and allied activities and play a key role in India’s coal sector, producing a major share of the country’s coking coal are in focus after it fell by 3 percent in today’s session following its production performance report

With a market capitalisation of Rs. 14,776 cr, the shares of Bharat Coking Coal Ltd were trading at Rs. 31.70 per share, decreasing 3.3% from its previous close of Rs. 32.78 per share. Since its listing on January 19 at Rs. 45 per share on NSE, the stock has declined by 29.5%.

Production Performance

Bharat Coking Coal Limited (BCCL) has reported its provisional production performance for February 2026 and the cumulative period from April 2025 to February 2026. The disclosure has been submitted to both the Bombay Stock Exchange and the National Stock Exchange of India.

For February 2026, BCCL recorded raw coal production of 3.50 million tonnes (MT), marginally higher by 0.1% compared to 3.49 MT in the same month last year. However, on a cumulative basis (April 2025–February 2026), production stood at 31.1 MT, reflecting a 14% decline from 36.2 MT in the corresponding period of the previous year.

Coking coal production during February 2026 came in at 3.26 MT, down 1.6% year-on-year, while non-coking coal output rose sharply by 30% to 0.24 MT. For the April–February period, coking coal production declined 15.3% to 29.5 MT, whereas non-coking coal output increased 19.8% to 1.62 MT, indicating a shift in production mix.

Mine-wise, underground production in February fell 12.5% to 0.08 MT, with cumulative output down 30% year-on-year at 0.70 MT. Opencast mines remained the primary contributor, producing 3.42 MT during the month (up 0.4%), though cumulative output declined 13.6% to 30.40 MT compared to last year.

Washed coking coal production remained largely stable at 0.15 MT in February, though it registered a 5.8% decline cumulatively at 1.42 MT. Overburden removal (OBR) stood at 13.67 million cubic metres (MCuM) during the month, down 5.7%, while cumulative OBR fell 8.3% to 152.39 MCuM.

Offtake of raw coal during February 2026 declined sharply by 28.7% to 2.16 MT compared to 3.02 MT a year ago. For the April–February period, offtake fell 12.5% to 30.39 MT, indicating softer dispatch momentum despite relatively stable monthly production.

Bharat Coking Coal Limited (BCCL) was incorporated in January 1972 after the Government of India took over coking coal mines in the Jharia and Raniganj coalfields in October 1971 to ensure planned development of scarce coking coal resources.

A Public Sector Undertaking, BCCL is engaged in coal mining and allied activities and plays a key role in India’s coal sector, producing a major share of the country’s coking coal, which is essential for steel manufacturing.

In Q3FY26, the company reported total income of Rs. 2,853.24 crore, down from Rs. 3,756.86 crore in Q3FY25. Revenue from operations declined to Rs. 2,782.80 crore compared to Rs. 3,688.23 crore in the previous year, while total expenditure stood at Rs. 2,922.34 crore versus Rs. 3,242.23 crore. 

The company posted a pre-tax loss of Rs. 69.10 crore, compared to a profit of Rs. 514.63 crore in the corresponding quarter last year. It reported a net loss of Rs. 22.88 crore against a net profit of Rs. 424.99 crore in Q3FY25. EBITDA fell sharply to Rs. 104.16 crore from Rs. 634.73 crore. Sales per tonne (SPT) declined to Rs. 3,047, while cost per tonne (CPT) increased to Rs. 3,177.90 from Rs. 3,112.04 year-on-year.

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