Mukesh Agrawal, the Director of Finance at Coal India, mentioned that employee-related costs—historically a major concern for public sector enterprises—are also expected to taper off over time.
The company’s workforce, currently around 31,400 employees, is projected to fall to about 22,000 by 2030 due to natural attrition.
Although a wage revision is slated for June 2026, likely leading to a 15–20% increase, management believes that the overall employee cost impact will be partially mitigated by the reduced headcount. Consequently, employee expenses are anticipated to drop by approximately 10% in the short term, even after factoring in the wage hike.
Bharat Coking Coal Limited (BCCL) is primed to launch the first mainboard initial public offering of 2026. The public issue will open for subscription today, Friday, January 9, and close on Tuesday, January 13.
Currently, BCCL produces about 40.5 million tonnes of coal annually. Management expects this production to increase significantly in the coming years, propelled by capacity expansion and enhanced mining practices.
Manoj Kumar Agarwal, Chairman and Managing Director (CMD) of BCCL, stated, “At present, we are producing 40.5 million tonnes, and by 2030 we aim to reach 56 million tonnes.”
The growth will stem from both expanding open-cast mines and revitalizing underground operations through modern technologies like continuous miners.
The company is also capitalizing on old, inactive underground mines and consolidating smaller open-cast mines into larger, more efficient operations to address space limitations.
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A key element of this growth strategy is the enhanced focus on washed coking coal, which is vital for the steel industry and commands a significantly higher price.
Manoj Kumar Agarwal explained that washing can reduce the ash content in their coal from 39-40% down to 18-19%. This allows steel manufacturers to blend it with low-ash imported coal to achieve the desired quality. This value addition can lead to a considerable price increase of around ₹3,500 per tonne.
Mukesh Agarwal quantified the impact on profitability, stating, “Normally it is ₹400 to ₹500, but once washed, it can rise to ₹1,700 EBITDA per tonne.” This significant jump in EBITDA per tonne is projected to drive future earnings.
This strategic pivot is anticipated to result in a remarkable financial transformation for BCCL. By 2030, the company aims for a top line of ₹20,000 crore. More importantly, management predicts a net profit of approximately ₹2,900 crore and an EBITDA exceeding ₹5,000 crore by 2030.
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