In a surprising turn of events following its blockbuster market debut, Bharat Coking Coal Limited (BCCL), popularly known as Bharat Coal, reported a consolidated net loss of ₹22.7 crore (₹220 million) for the third quarter of FY26 (ending December 31, 2025).
The results, announced on February 3, 2026, mark a sharp reversal from the ₹424 crore profit recorded in the same period last year. This is the company’s first earnings report since its January IPO, which saw shares list at a staggering 96% premium.
1. Financial Performance Breakdown
The loss was driven by a significant contraction in the top line and a spike in employee-related liabilities.
| Metric | Q3 FY26 | Q3 FY25 | Change (YoY) |
| Revenue from Operations | ₹2,780 Crore | ₹3,691 Crore | ↓ 24.7% |
| Net Profit/Loss (PAT) | (₹22.7 Crore) | ₹424.0 Crore | ↓ 105.3% |
| EBITDA Margin | 6.2% | 16.4% | ↓ 1020 bps |
- Revenue Decline: A 24.7% drop in revenue was primarily due to lower realization per tonne and a sharp decrease in coal offtake.
- Exceptional Item: The results were heavily impacted by a retroactive executive pay revision across the parent company (Coal India), which is estimated to have a ₹3,400 crore total impact across the group through 2026.
2. Operational Challenges: Offtake & Production
BCCL faced severe operational headwinds during the December quarter, with both extraction and delivery numbers sliding into the red.
- Production Dip: Actual raw coal production for December 2025 stood at 3.3 million tonnes (MT), a 7.2% YoY decline.
- Offtake Crisis: The actual amount of coal lifted by buyers (offtake) plummeted 20.9% to 2.7 MT.
- The “Wagon” Problem: Analysts noted that a shortage of railway wagons and logistics bottlenecks at the Jharia coalfields prevented the company from clearing its mounting pithead stocks, leading to the offtake slump.
3. Strategic “Critical Mineral” Designation
Despite the poor quarterly numbers, the long-term outlook for BCCL remains tied to a major government policy shift announced on January 28, 2026:
- Strategic Status: The Indian Government has officially designated Coking Coal as a “Critical and Strategic Mineral.”
- Incentive Framework: This status is expected to grant BCCL faster environmental clearances and potential tax incentives to boost domestic production of high-grade metallurgical coal, reducing India’s reliance on expensive Australian imports.
- Import Substitution: BCCL currently accounts for roughly 58% of India’s domestic coking coal output. The government’s “Mission 1 Billion Tonne” relies on BCCL ramping up its washery capacity to 13.65 MTPA by 2027.
4. Market Reaction & Stock Performance
The “loss-making” debut report had a cooling effect on the stock’s post-listing rally:
- Share Price: Shares of BCCL (NSE: BHARATCOAL) dropped 1.48% to trade at ₹39.06 following the announcement, down from its January peak of ₹45.
- Institutional View: Despite the Q3 loss, large institutional investors (QIBs) remain focused on the company’s debt-free balance sheet and its monopolistic position in the steel supply chain.
Conclusion: A Temporary Setback?
The ₹22.7 crore loss is a sobering moment for Bharat Coal investors, but it appears to be a “paper loss” driven by one-time pay revisions and temporary logistics issues rather than a fundamental business collapse. With the new “Strategic Mineral” status and the steel industry’s insatiable demand for coking coal, BCCL is expected to return to profitability by Q1 FY27.
