Bharat Coking Coal returns to profit as revenue grows

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Bharat Coking Coal Limited (

), a subsidiary of Coal India Limited, reported a net profit of ₹123.74 crore in Q2 FY27 against a net loss of ₹52.99 crore a year earlier. Revenue from operations increased 39.1% year-on-year to ₹4,412.58 crore. What happened? Raw coal production increased 7.6% year-on-year to 7.22 million tonnes, while coal offtake rose 9.6% to 8.89 million tonnes. EBITDA stood at ₹200 crore, with an EBITDA margin of 4.5%. Higher revenue, production and dispatch volumes supported the return to profitability. However, the relatively thin operating margin leaves limited room for cost pressures. Why does it matter? The results indicate an improvement in operating performance after the company reported a loss in the previous year's quarter. As a coking coal producer, BCCL plays a role in supplying a key raw material to the steel industry. Sustained production and efficient dispatches will be important for maintaining this recovery. My view The return to profitability is encouraging, but one strong quarter does not establish a sustained turnaround. The focus should be on operating margins, production consistency and cost control over the coming quarters. What I am watching next I would track production and offtake volumes, EBITDA margins, operating costs and whether profitability continues through the second half of FY27. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Bharat Coking Coal Limited.