South Eastern Coalfields IPO

Strengths · 7

• 01SECL produced 176.29 million tonnes of coal in FY2026, 16.94% of India's total coal production.
• 02It runs 53 producing mines as of 30 September 2026, across three coalfields in Central India.
• 03Revenue from operations was Rs 32,956.52 crore in FY2026, up 9.86% from the previous year.
• 04Net worth rose from Rs 14,563.50 crore in FY2024 to Rs 20,303.26 crore in FY2026.
• 05Cash flow from operations was Rs 8,979.94 crore in FY2026, against profit after tax of Rs 4,754.59 crore.
• 06Trade receivables were only 14 days of revenue in FY2026, and the current ratio was 1.89.
• 07Power-sector customers gave 66.39% of the sale of products in FY2026, with the rest spread over aluminium, cement, sponge iron and fertilizer users.

Risks · 10

• 01Revenue fell 8.50% in FY2025 and profit after tax fell to Rs 4,540.42 crore from Rs 6,930.77 crore in FY2024. FY2026 coal production of 176.29 million tonnes is still below 187.38 million tonnes in FY2024.
• 02Raw non-coking coal was 100.00% of the sale of products in FY2026, so the company depends on one product.
• 03The power sector gave 66.39% of the sale of products in FY2026, so trouble in that sector would hurt sales.
• 04The top 10 customers gave 52.31% of revenue from operations in FY2026.
• 05The company is a wholly-owned subsidiary of Coal India, and all executive employees are on secondment from it, so conflicts of interest can arise.
• 06The offer is 100% offer for sale. The company receives no money from it, and Coal India's weighted average cost of acquisition is only Rs 1.02 per share.
• 07Total borrowings rose from Rs 4,985.45 crore in FY2024 to Rs 7,137.80 crore in FY2026, and Rs 8,097.29 crore at 30 September 2026.
• 08The top 10 contractual vendors gave 66.71% of contractual expenses in FY2026, up from 55.56% in FY2024.
• 09Coal mining is hazardous, and the document lists railway rake and siding shortages as a risk to coal evacuation.
• 10Resource and reserve figures are estimates under Indian Standard Procedure guidelines, which differ from international standards.

South Eastern Coalfields Limited (SECL) is a coal miner based in Bilaspur, Chhattisgarh. It is a wholly-owned subsidiary of Coal India Limited. In FY2026 it produced 176.29 million tonnes of coal, which is 16.94% of India's total coal production, according to the CRISIL report quoted in the document.

As of 30 September 2026 the company had 53 producing mines, made up of 19 opencast mines and 34 underground mines. They sit in the Central India, Korba and Mand-Raigarh coalfields. Opencast mines gave 93.64% of FY2026 production and underground mines gave 6.36%.

SECL sells raw (unwashed) non-coking coal in grades from G3 to G16. Raw non-coking coal was 100.00% of its sale of products in FY2026. There is only one business, coal mining, so the company reports no separate segments.

Most of the coal goes to the power sector: central and state generating companies, independent power producers and captive power plants. This sector gave 66.39% of the sale of products in FY2026. The rest goes to aluminium, cement, sponge iron and fertilizer users. Coal is moved by rail, MGR systems, belt conveyors and road. The top five customers gave 36.25% of FY2026 revenue from operations and the top 10 gave 52.31%.

The company had 36,451 employees at the end of FY2026, down from 39,640 at the end of FY2024. Output per manshift was 16.47 tonnes in FY2026. All executive employees are on secondment from Coal India. The promoters are the President of India, acting through the Ministry of Coal, and Coal India Limited.

The industry

The industry report by CRISIL says coal supplies around 70% of India's electricity generation. Demand for thermal coal in India was 1,176 million tonnes in Fiscal 2025. Non-coking coal demand is projected to rise to 1,564 million tonnes by Fiscal 2036, although it may decline after that as renewable energy emerges as an alternative. The report says thermal power will continue to balance the grid and keep supply reliable even as renewable capacity grows.

Customer concentration: Top 5 customers gave 36.25% of FY2026 revenue from operations (36.58% in FY2025) and the top 10 gave 52.31% (53.47% in FY2025).