Bharat Coking Coal shares rally as Q2 revenue jumps 39% in profit turnaround

Bharat Coking Coal shares rallied as much as 6.5% on Monday, snapping a six-session losing streak after the company swung back into profitability for the quarter ended 30 September.

The state-run miner, a subsidiary of Coal India Limited, posted a consolidated net profit after tax of ₹123.74 crore for the second quarter. That marks a sharp turnaround from a net loss of ₹53 crore recorded during the corresponding period a year earlier. Revenue from operations expanded 39% year-on-year to ₹4,412.58 crore, up from ₹3,173.25 crore.

The recovery was anchored by sustained operational momentum across its mining belts, reflecting steady demand from domestic steelmakers and core heavy industry. Raw coal production during the quarter rose to 7.22 million tonnes, improving on both an annual and sequential basis.

Coal dispatches followed a similar upward trajectory, with total offtake reaching 8.89 million tonnes in the September quarter as industrial activity gained pace.

Key quarterly operational metrics

For the first half of the financial year, total production stood at 13.78 million tonnes compared with 15.75 million tonnes in the previous year, while total offtake reached 16.61 million tonnes against 17.05 million tonnes.

Market reaction and outlook

Investors responded swiftly to the operational improvement. Bharat Coking Coal shares opened at ₹31.36 on the BSE before touching an intraday peak of ₹31.73, up 6.5% from the previous close of ₹29.78, taking the company's market capitalisation to approximately ₹14,525 crore.

The company was recently listed on domestic bourses through an offer for sale by parent entity Coal India Limited. The quarterly performance underlines ongoing efforts across public sector resource majors to streamline operations, maximise extraction efficiency, and maintain secure domestic raw material supply chains for the country's expanding manufacturing base.

Market analysts noted that while the earnings turnaround provides near-term fundamental support, the stock faces resistance at higher chart bands. Vipin Kumar, assistant vice-president of research at Globe Capital Market, identified immediate downside support between ₹28 and ₹29, noting that pullbacks towards the ₹33.50 to ₹35.50 zone could encounter selling interest.

Aditya Thukral, founder of AT Research and Risk Managers, observed that the stock has been consolidating below its key moving averages, with fresh resistance established near ₹32.50. Shareholding data shows foreign institutional investors held 0.06% at the end of September compared with 0.38% in June, while domestic mutual fund holdings stood at 0.30%.