Bharat Coking Coal shares jump nearly 7% after strong Q2 performance; what investors should know

Bharat Coking Coal shares surged around 7% during the morning market hours on Monday, October 26, as investors reacted to the strong financial performance in the July to September quarter of FY27, with an overall increase in production and offtake volumes in the period.

NSE data showed that Bharat Coking Coal shares surged nearly 7% to hit an early market high of ₹31.80 apiece on Monday’s market, in comparison to ₹29.76 apiece at the previous equity market close.

Trading activity surpassed 3.50 crore equity shares during the morning trade, in turn triggering the high-volume gains amid the overall positive cues emerging from the earnings momentum.

On Monday, Bharat Coking Coal trading activity surged more than 10 times its one-week average of 34,30,598 shares, and over 4.6 times its two-week average volume of 75,36,334 equity shares.

The PSU mining company’s stock was reacting during the trading session on October 26, as Bharat Coking Coal announced its September quarter results for FY27 over the weekend on Sunday, October 25.

₹124 crore profit in Q2

On a sequential basis, the company’s profits surged to their September quarter levels, from a ₹68 crore net loss in the first quarter of FY27.

The revenue from core operations advanced 39% YoY to ₹4,413 crore in the July to September quarter of the current fiscal year, in comparison to ₹3,173 crore in the same period a year earlier.

Coal India-owned Bharat Coking Coal’s operating profit, or earnings before interest, tax, depreciation, and amortisation (EBITDA), was at ₹200 crore in Q2 FY27, while the margin was at 4.5% in the period.

The company’s healthy Q2 performance was largely due to the growth in revenues, production volumes, and coal offtake in the period under review.

“The increase in sales is on account of an increase in outside dispatch from 8.03 million tonnes to 8.93 million tonnes. Additionally, the increase is also due to an increase in the average price of washed coal from ₹9,437/Te to ₹12,681/Te,” the company said.

Production vs Offtake numbers

Bharat Coking Coal’s overall production volumes advanced 7.6% year-on-year (YoY) to 7.22 million tonnes in the September quarter of FY27, from 6.71 million tonnes in the same period a year earlier.

While the coal offtake volumes advanced 9.6% YoY to 8.89 million tonnes in Q2, in comparison to 8.11 million tonnes in the corresponding quarter of the previous year.

Coal offtake is a metric which shows the total volume of the produced coal supplied to a customer from the mines, in turn reflecting the actual delivered volumes to a buyer in a particular period.

The company also attributed its current inventory changes to the liquidation of the stock of raw coal by 1.67 MT as against 1.40 MT.

“With persistent persuasion and reconciliation with customers, higher realisations were made possible during the quarter,” the company said in its filing.