Bharat Coking Coal Limited Q1 2026 Results Show Dip in Profitability Amid Operational Upgrades
Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited and a government undertaking, reported its results for the first quarter ended June 30, 2026. The company saw performance declines across physical metrics while benefiting from the commercial start of new operational units, as detailed in the quarterly financial results presentation.Operational and Capacity Highlights
BCCL expanded its washing capacity with the commencement of operations at the newly constructed Bhojudih washery. This unit has a capacity of 2.0 Million Tonnes Per Annum (MTPA) and began commercial operations on May 26, 2026, bringing BCCL's total washing capacity to 17.35 MT, including 1.70 MT from TSL.
Furthermore, the ASGKCC mine in the Katras area, which operates on an MDO revenue-sharing basis, started production during this quarter. The company receives 9% of the revenue generated by this mine, contributing 11,980 Tonnes to the production in Q1 2026-27. Additionally, a surface compatibility test for longwall equipment at Moonidih Colliery was successfully completed during the quarter, which is mandated to provide a Minimum Guaranteed production of 1.5 MT/Y.
Financial Performance Snapshot
The company's financial results for Q1 2026-27 compared against Q1 2025-26 showed mixed outcomes in revenue and profitability. Total Income stood at ₹3,723.24 crore, down from ₹3,901.79 crore in the previous year's quarter. Total Expenditure was reported at ₹3,826.31 crore, an increase from ₹3,654.39 crore in Q1 2025-26.
The margin performance saw a significant decline, with Profit (Loss) before Tax (PBT) hitting (₹103.07) crore, against a PBT of ₹247.40 crore in the preceding year. The subsequent Profit (Loss) after Tax stood at (₹68.09) crore compared to a profit of ₹176.87 crore in Q1 2025-26.
Key operational efficiency indicators for the quarter are summarized below:
| Metric | Q1 2026-27 | Q1 2025-26 |
|---|---|---|
| Revenue from Operations / Operating Income | ₹3,587.27 crore | ₹3,719.59 crore |
| Profit (Loss) before Tax | (₹103.07) crore | ₹247.40 crore |
| EBITDA | ₹71.50 crore | ₹373.28 crore |
| Sales per te (SPT) | ₹3,243.13 | ₹3,256.15 |
| Cost per te (CPT) (net) | ₹3,375.04 | ₹2,975.84 |
| Profit (Loss) per te | (₹131.91) | ₹280.31 |
Physical Performance Analysis
On a Quarter-on-Quarter (QoQ) basis, the company recorded declines in physical performance metrics: Coal Production declined by 27.43%, Offtake fell by 14.03%, and Overburden (OB) Removal decreased by 34.68%.
The physical operational data for Q1 2026-27 against targets and prior period is provided below:
| Particulars | Target Q1 26-27 | Actual Q1 26-27 | Actual Q1 25-26 |
|---|---|---|---|
| PRODUCTION (In MT) | 9.53 | 6.56 | 9.04 |
| OFFTAKE (In MT) | 10.62 | 7.72 | 8.98 |
| OB REMOVAL (In MCuM) | 41.50 | 32.30 | 49.45 |
Sales Breakdown and Revenue Drivers
Total sales for the quarter stood at ₹2,534.07 crore with an Average Realization of ₹3,243.13 per Tonne (₹/te). The revenue streams were diversified across raw coal, washed coal, and other by products.
The breakdown of sales is as follows:
| Category | Quantity (MT) | Net Sales (₹ Crores) | Av. Realization (₹ Per Ton) |
|---|---|---|---|
| Total Raw Coal | 6.19 | 1,699.81 | 2,746.06 |
| Total Washed Coal | 0.43 | 536.01 | 12,360.51 |
| Total Other By Products | 1.19 | 298.25 | 2,506.30 |
| Grand Total | 7.81 | 2,534.07 | 3,243.13 |
The increase in the international prices of coal was noted for Washed Coal (Coking) : PCC and MCC, which contributed ₹309.62 crore and ₹222.20 crore, respectively.
Expense Management and Variances
A review of the variance analysis highlighted several critical changes:
- Revenue from Operations: Decreased by 3.56% (₹132.32 crore), attributed to a reduction in outside dispatch from 8.83 Million Tonnes to 7.81 Million Tonnes.
- Cost of Material Consumed: Increased by 4.61% (₹6.78 crore). This increase was primarily driven by a substantial rise in the cost of Diesel (up 48%) and Explosives (up 27%).
- Total Expenses: Rose by 4.70% (₹171.92 crore), despite the decrease in contract expenses due to lower Hired Coal and OB Production. Other expenses increased by 10.38%, mainly because of rising power expenses following a tariff revision by DVC.
Regarding specific cost areas, POL (Diesel) expenditure rose by ₹21.77 crore due to price increases, offsetting a quantity reduction saving of ₹9.17 crore. Power Expenses saw a notable increase from ₹127.42 crore in Q1 2025-26 to ₹170.41 crore in Q1 2026-27, corresponding to the DVC Energy charge change.
Working Capital and Debtor Analysis
Gross Debtors stood at 2,664.70 crore as of June 30, 2026, down from 3,024.97 crore in Q1 2025-26.
The performance against major customers highlights:
- DVC saw a reduction in its total balance by 39.36%.
- SAIL recorded an increase of 41.20% in its debtors' balance.
- UPRUVNL witnessed a significant increase of 51.92%.
Washery Performance Details
Financial performance from the washeries indicated that the Dept Washeries generated ₹266.43 crore profit, while BCCL Washery Total contributed ₹143.20 crore. The operational efficiency metric (Capacity Utilization) for BCCL Washery Total was 33%.
Key Financial Indicators
The company's KPIs showed varied performance across the analyzed indicators:
| KPI | Q1 2026-27 | FY 2025-26 |
|---|---|---|
| EBITDA as a percentage of Total Income | 1.92% | 5.26% |
| Profit After Tax (PAT) as a percentage of Total Income | (1.83)% | 0.86% |
| Return on Net Worth (RONW) (Annualized) | (4.69)% | 2.07% |
| Trade receivables in days of Revenue from operations | 57 | 67 |
BHARATCOAL Stock Price Movement
As of 11:16 AM, shares of Bharat Coking Coal Limited are slipping by 6.90% in live trading, currently priced at ₹34.92. The stock is seeing active participation, with a total traded volume reaching 23.28 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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