Highlights
| Issue Size – 170,100,000 shares | Issue Open/Close – 20 Mar / 24 Mar, 2026 |
| Price Band (Rs.) 163 – 172 | Issue Size (Rs.) ~ 18,421 mn |
| Face Value (Rs) 2 | Lot Size (shares) 80 |
Central Mine Planning & Design Institute Limited (CMPDI), incorporated in 1975, offers consultancy and support services for the entire spectrum of coal and mineral exploration and mine planning and design services.
The company’s services also include infrastructure engineering, environmental management,
geomatics, specialized technology services, and management systems, primarily for the coal industry as well as for other minerals. The company is one of the largest coal and mineral consultancy companies in India in terms of market share (61 pct in FY2025) and is the preferred consultant for Coal India Limited.
CMPDI was incorporated as a wholly owned subsidiary of Coal India Limited and was conferred the status of Mini Ratna (Category II) company in 2009 and was further upgraded to the status of Mini Ratna (Category I) company in 2019.
The company will not receive any proceeds out of the ~Rs. 18,420 mn offer, and all the offer proceeds will be received by the selling shareholders, as the company expects that the listing of the equity shares will enhance their visibility and brand image.
Key Highlights
- Coal production in India in terms of value for FY24 came to be around Rs. 1.27 tn, up from Rs. 0.86 tn in FY19, growing at a CAGR of 8.11 pct, and is expected to reach Rs. 2.59 tn in FY30, up from Rs. 1.42 tn in FY25, growing at a CAGR of 12.77 pct.
- CMPDI supports the planning needs of Coal India Limited to expand its operations and adopt new technologies following detailed evaluations. Their collaboration places a strategic emphasis on optimizing resource utilization and ensuring environmental sustainability. The company’s business is underpinned by assured business from Coal India Limited and its subsidiaries, providing constant support and stability.
- With almost 50 years of experience and having published over 320 project reports in the last decade, the company has continuously adapted to the changing landscape of the industry, integrating advanced technologies and practices that enhance operational efficiency and safety.
- The company’s core strategies include (i) (i) Strategic diversification in other minerals by leveraging its experience in the coal sector (ii) Continue to upgrade its infrastructure to maintain operational excellence. (iii) Focus on development of clean energy initiatives within both the coal and mineral sectors. (iv) Diversify its client base and expand its international operations by leveraging experience in exploration and planning.
- Sales of the company have grown by 23.2 pct CAGR over FY23-25, and EBITDA and profit grew by 48.2 pct CAGR and 49.9 pct CAGR over the same period. During FY25 the sales of the company jumped by 21.4 percent YoY to Rs. 21,027 mn. While EBITDA of the company grew by 15.7 pct YoY to Rs. 8,409 mn and EBITDA margin contracted by 196 bps to 39.9 pct YoY in FY25. During FY25, the company reported a profit of Rs. 6,669 mn, which grew 32.5 percent YoY.
Key Risk
- CMPDI’s top 10 clients contributed to over 95 percent of the company’s total sales. The loss of any of these clients could have an adverse effect on the company’s business.
- The company’s significant portion of sales comes from Coal India Limited, coming in at 67.1 pct in FY25. Any decline in demand for services from Coal India Limited and/or its subsidiaries could have an adverse impact on the company’s business.
- The company faces a risk of reduced demand for its services due to the emergence of renewable energy as an alternative source of energy. A significant shift towards sustainable energy solutions may have an adverse impact on its business, results of operations, financial conditions, and cash flows.
Financial Performance
| (In Rs. mn, unless otherwise stated) | FY23 | FY24 | FY25 | 9MFY25 | 9MFY26 |
| Sales | 13,861 | 17,327 | 21,028 | 13,624 | 14,897 |
| EBITDA | 3,830 | 7,270 | 8,409 | 5,077 | 5,396 |
| EBITDA Margin % | 27.6% | 42.0% | 40.0% | 37.3% | 36.2% |
| Profit | 2,967 | 5,032 | 6,669 | 3,900 | 4,254 |
| Profit Margin % | 21.4% | 29.0% | 31.7% | 28.6% | 28.6% |
| ROE % | 26.8% | 35.8% | 36.7% | 23.2% | 20.3% |
| ROCE % | 33.2% | 52.2% | 48.6% | 31.0% | 27.1% |
Peer Comparison
| Peer Comparison | CMPDIL | RITES | EIL | MECL | MECON |
| Revenue from Operations (Mn) | 21,028 | 22,178 | 30,876 | 3,706 | 11,495 |
| EBITDA (Mn) | 5,077 | 5,272 | 5,123 | 856 | -367 |
| EBITDA Margin % | 24.1% | 23.8% | 16.6% | 23.1% | -3.2% |
| Profit (Mn) | 6,669 | 4,237 | 5,798 | 818 | 290 |
| Profit Margin % | 31.7% | 19.1% | 18.8% | 22.1% | 2.5% |
| ROE % | 36.7% | 15.0% | 24.0% | 11.0% | 7.0% |
| ROCE % | 48.6% | 21.0% | 26.0% | 17.0% | 11.0% |
Valuation
Central Mine Planning and Design Institute Limited is a provider of consultancy and support services across coal and mineral exploration, mine planning, and mine design. The company’s services cover the lifecycle of mining operations, including geological exploration and resource evaluation, mine planning and design, environmental planning and monitoring, geomatics, remote sensing, and survey services. At the upper end of the price of Rs. 172, the issue quotes a PE of 21. 6x on FY26 annualized earnings. The issue looks fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
