Caliber Mining & Logistics Limited (May Subscribe)

Highlights

Caliber Mining and Logistics Limited (CMLL), incorporated in 2014, is engaged in the business of providing integrated coal mining operations and comprehensive logistics services, establishing a prominent position in the contract mining industry. The company is one of India’s leading integrated mining operators, catering to the mining and power sectors that require robust end-to-end solutions for efficient extraction, handling, and transportation of resources.

Their business is primarily classified as: (i) contract coal extraction and overburden removal; (ii) coal logistics and road transportation; and (iii) rake loading, rail coordination, and coal trading. The company executes large-scale open-cast mining projects utilizing an extensive fleet of heavy excavators, loaders, and tippers, offering integrated operations designed to meet stringent output and delivery requirements across the coal value chain.

Caliber Mining & Logistics provides integrated contract mining services across coal, limestone, iron ore, and other mineral segments. Its operations include mine development, drilling, blasting, excavation, loading, transportation, crushing, and waste removal. The company serves customers across multiple states in India and has developed long-term relationships with mining companies, cement manufacturers, and government entities through its operational expertise and execution capabilities.

They also offer specialized execution solutions for the broader energy and infrastructure sectors, with comprehensive capabilities that include end-to-end coal handling, real-time coal monitoring, dedicated iron ore logistics, and direct open-market coal trading, alongside dedicated in-house equipment maintenance and repair services.

The IPO comprises a fresh issue of equity shares aggregating up to Rs. 4000 mn and an offer for sale (OFS) of equity shares aggregating up to Rs. 500 mn by the existing promoters/selling shareholders. From the net proceeds of Rs. 4000 mn, Rs. 2080 mn is for used for repayment of certain borrowings availed by the company and Rs. 1670 mn will be used to fund capital expenditures, for purchase of commercial vehicles, plant and machinery. The remaining Rs. 250 mn will be deployed toward general corporate purpose.

Key Highlights

• The Indian contract mining and mineral logistics industry is expected to see robust growth, with the contract mining market projected to expand from ~Rs. 297.29 bn in FY25 to Rs. 663.93 bn by FY30 (17.4 pct CAGR). Growth is largely driven by rising domestic coal demand-projected to reach 1,463 MT by FY30-and the increasing trend of state-owned miners outsourcing their excavation and transportation operations.
• The company is strategically positioned to benefit from the Indian Government’s push to reduce import dependency and expand domestic coal production, specifically under Coal India Limited’s (CIL) 1 BT Plan, which targets 1,000 MT of raw coal production by FY27. Government initiatives such as the National Infrastructure Pipeline (NIP), PM Gati Shakti, and commercial coal mining reforms.
• CMLL relies on a highly robust domestic market, generating the vast majority of its sales from Indian state-owned enterprises rather than international commercial markets. The company’s largest clients are mine-owning subsidiaries of Coal India Limited, specifically Western Coalfields Limited (WCL) and Northern Coalfields Limited (NCL), which together contributed 85.11 pct of its FY26 sales.
• CMLL’ key growth strategies include (i) Continued focus on cost optimization and cost control measures. (ii) Continued working toward operation excellence and premium quality customer service. (iii) Expand their logistics business into iron ore. (iv) Expand their mining business into new geographies.
• Sales of the company have grown by 32.7 pct CAGR sales over FY24-26 while EBITDA and profit registered 33.1 pct CAGR and 28.3 pct CAGR over same period. In FY26, the company posted sales of Rs. 16,777 mn, up 17.3 pct YoY, EBITA increased by 23.2 pct YoY to Rs. 4,309 mn and profit rose to 1,579 mn, showing growth of 20.1 pct YoY.

Key Risk

• CMLL derive a significant portion (90.11 pct in FY 2026) of their sales, indicates client concentration risk. Loss of any of their top customers could adversely affect the business.
• Mining operations are exposed to risks such as flooding, equipment failures, and shortages of diesel or water, which may disrupt operations and increase production costs.
• They are dependent on the award of large-scale mining contracts (over Rs. 10,000 mn) which represented 76.12 pct of sales in FY 2026 and may represent a significant part of their Order Book in the future, increasing the potential volatility of their results of operations and cash flows and exposure to individual contract risks.

Financial Performance

Source: – RHP.

Peer Comparison based on FY26 Financials

Valuation

CMLL is a top-10 integrated coal mining and logistics operator, providing end-to-end services overburden removal, coal extraction, loading/unloading, road transport and rail coordination-across Maharashtra, Chhattisgarh and Madhya Pradesh. They serve major Coal India subsidiaries, primarily WCL and NCL, and expanded their contract mining market share from under 1 pct in FY20 to 3.5 pct in FY24. At the upper end of the price of Rs. 424, the issue quotes at PE of 17.6x on post issue capital. The issue looks fully priced. Only high-risk investors may subscribe this issue for listing gains.

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.