Caliber Mining and Logistics Ltd. IPO

Caliber Mining and Logistics

• Caliber Mining and Logistics is coming out with a 100% book building; initial public offering (IPO) of 1,11,94,029 shares of face value Rs 10 each in a price band Rs 402-424 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on July 17, 2026 and will close on July 21, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 40.20 times of its face value on the lower side and 42.40 times on the higher side.
• Book running lead manager to the issue is DAM Capital Advisors
• Compliance officer for the issue is Riddhi Harish Varma.  

Profile of the company 

The company is mining operator managing overburden removal, coal extraction and coal logistics together as an integrated services provider. The company offers its customers end-to-end services including coal extraction, overburden removal, coal loading and unloading, road transportation and coordination of rail transportation, making it a one-stop coal mining and logistics provider. Its mining and overburden removal operations are located in Maharashtra, Madhya Pradesh and Chhattisgarh; however, it does not own any of the mines. 

In logistics, it focuses on coal loading, unloading and road transportation using its fleet of 1,811 owned (and 100 leased) vehicles, plant and machinery as of April 30, 2026. The company has been in the logistics business since Fiscal 2016 and have developed a one-stop logistics solution that focuses on coal loading, unloading and road transportation. The company also began providing logistics solutions for iron ore customers in Fiscal 2023. In cases where coal is to be delivered by rail, it assists its customers by loading of coal onto rail rakes, and it also offers coordination services to ensure meeting customer delivery schedules. 

Proceed is being used for: 

• Repayment/ prepayment, in full or part, of certain borrowings availed by the company 
• Funding capital expenditure for purchase of commercial vehicles, plant and machinery
• General corporate purposes

Industry overview

Coal is the main source of energy for the world (26% for year 2024) and for India (56% share for year 2024) and will remain so in the future. It is the backbone for many end-use and manufacturing industries (power, steel, sponge iron, cement, paper, brick kilns and other industries) in India. Coal is found in abundance across the globe, with total proven reserves estimated at over 1,074,108 MT as of 2020. India currently stands fifth in terms of coal reserves, accounting for 10% of the total world reserves at around 111,052 MT, after the US, Russia, Australia and China.

Coal is used in multiple industries, including power, CPP, steel, cement, sponge iron, bricks and paper. The coal logistic chain involves extraction of coal from the mine, which is loaded onto railway wagons, trucks or conveyor belts at the dispatch points. End-users such as steel, power and cement plants utilise the coal for production of required resource. In a few cases, coal is transported to washery plants to remove impurities or upgrade the coal to a higher calorific value and reduce ash. The volume of coal dispatched in fiscal 2024 (973 MT) by different modes was driven by rail (47%, 461 MT domestic coal), followed by road (34%, 329 MT), MGR (13%, 127 MT) and conveyor belt and others (6%, 56 MT) in fiscal 202473. Railways contributed 47% of total domestic coal supplied in the country last fiscal, which is expected to increase to 73% by fiscal 2030, according to Integrated Coal Logistics plan for Coal Mines/Blocks.

Owing to the continuous increase in demand for steel, demand for iron ore is expected to increase rapidly. Steel production is expected to increase from 144 MT in fiscal 2024 to 222 MT in fiscal 2030, while iron ore production is expected to increase from 280 MT to 396 MT over the same period77. Demand needs to be fulfilled by the capacity expansion of iron ore mines and steel plants. In fiscal 2024, 274 MT of iron ore was dispatched, of which rail transported 67%, roads 20%, coastal 5% and slurry 9%78. Although there is a focus on reducing road transport and increasing rail, roads will continue to be the preferred mode for a while due to increase in volumes of minerals and delay in rail projects. In fiscal 2030, 388 MT iron is expected to be dispatched, of which rail expected to transport 66%, road 15%, pipeline 9%, and coastal and slurry 5% each.

Pros and strengths 

Fast growing, end-to-end coal mining and logistics solution provider: The company is a mining operator managing overburden removal, coal extraction and coal logistics together as an integrated services provider. The company has a fleet of 1,911 vehicles, plant and machinery (including 100 that are leased vehicles, plant and machinery) as of April 30, 2026 comprising of 883 tippers, 64 loaders, 162 excavators and 362 tip trailers. Its revenue from operations grew at a CAGR of 32.67% from Rs 95,311.60 lakh in Fiscal 2024 to Rs 1,67,766.09 lakh in Fiscal 2026. The company offers its customers end-to-end services including coal extraction, overburden removal, coal loading and unloading, road transportation and coordination of rail transportation, making it a one-stop coal mining and logistics provider.

Proven track record of growth with robust financial performance: Its operational efficiency, productivity and low operating costs as well as owning its own fleet and equipment are inherent strengths of the company. It has a consistent track record of delivering operating profitability. Its revenue from operations grew at a CAGR of 32.67% from Rs 95,311.60 lakh in Fiscal 2024 to Rs 1,67,766.09 lakh in Fiscal 2026. Its Operating EBITDA (excluding exceptional expenses) has grown by 77.23% from Rs 24,314.43 lakh in Fiscal 2024 to Rs 43,091.96 lakh in Fiscal 2026. Its profit after tax has grown by 64.65% from Rs 9,590.16 lakhs in Fiscal 2024 to Rs 15,790.04 lakhs in Fiscal 2026. This is attributable to its continued focus on productivity, competitive pricing and cost rationalization.

Growing share of business in mining industry and from Coal India subsidiaries: In the contractual mining market, its business from Coal India subsidiaries is growing. Its revenue from coal mining services has increased 118.22% from Rs 66,179.74 lakh in Fiscal 2024 to Rs 1,44,417.52 lakh in Fiscal 2026. Its growing business in the contractual mining market is supported by its strong order book. Its order book was Rs 9,55,089.08 lakh (including advance work orders) as of May 15, 2026, of which 95.90% comprised coal mining services and overburden removal services and 4.10% comprised logistics services contracts and work orders. Its order book (including advance work orders) was Rs 5,66,829.69 lakh as at March 31, 2026, of which 93.27% comprised contract coal mining services and overburden removal services and 6.73% comprised logistics services contracts and work orders.

Execution experience and operational efficiency: The company has been able to grow its business, win new tenders and grow its order book largely due to its execution experience and operations efficiencies that have allowed it to offer competitive rates in its tenders for new projects and contracts. The company has focused on reducing its operational expenses related to high-speed diesel and maintenance of equipment. Its mining operations are located within a 40 km radius which allows it to efficiently operate and maintain its trucks, equipment and machines across its mining operations. Further, this relatively small operating radius allows it to transport diesel to five sites from which it fills its vehicles or fuel tankers to reduce transportation time and cost to all its mine sites. To reduce its maintenance expenses, it has developed its own in-house maintenance and preventive maintenance team to service its fleet of trucks, equipment and machines. It has a maintenance workshop equipped at Chandrapur in Maharashtra, where all its vehicles are serviced.

Risks and concerns

Reliance on top three customers for majority of revenue: The company relies and expects that it will continue to be reliant on its top 10 customers for a substantial portion of its revenue. The company's top three customers contributed 90.11%, 85.10%, and 71.51% of revenue from operations in Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. The loss of any of its top 3 customers for any reason including due to loss of, or failure to renew existing arrangements; regulatory changes, disputes with a customer; adverse changes in the financial condition of its customers, such as possible bankruptcy or liquidation or other financial hardship or a reduction in the demand for its products by any of its top customers could have a material adverse effect on its business, results of operations and financial condition.

Dependence on large-scale mining contracts: The company is dependent on the award of large-scale mining contracts (over Rs 100,000 lakh) which represented 76.12% of its revenue from operations in Fiscal 2026 and may represent a significant part of its order book in the future, increasing the potential volatility of its results of operations and cash flows and exposure to individual contract risks. Further, the award of future mining services contracts is subject to uncertainty and its failure to win future awards could adversely impact its business, results of operations and financial condition.

Geographic concentration of operations in Maharashtra and Madhya Pradesh: The company’s mining operations are concentrated in Maharashtra and Madhya Pradesh. The company has mining operations for coal extraction and overburden removal at mines and coal reserves owned by its customers located in Maharashtra, Chhattisgarh and Madhya Pradesh. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, it derived 55.49%, 56.13% and 79.52% of its income from its operations, respectively, in Maharashtra, which includes customers or its mining and logistics businesses. Its remaining customers are in the states of Madhya Pradesh and Uttar Pradesh and it has planned expansion in Odisha and Jharkhand. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Maharashtra and Madhya Pradesh could have an adverse effect on its business, results of operations and financial condition.

Failure to obtain or maintain required approvals, licenses and permits: Its mining operations require various approvals, licenses and permits which its mining customers must obtain or secure and any failure to obtain these approvals, licenses or permits in a timely manner may adversely impact on its business, results of operations and financial condition. The company is responsible for obtaining labour licenses and for approvals for the storage of diesel from the Indian Petroleum Explosive Safety Organisation (PESO). If it and its customers do not comply with all necessary licenses, permits and approvals required for its mining activities in a timely manner or at all its business results of operations and financial condition could be materially and adversely affected.

Outlook  

Caliber Mining and Logistics is a prominent mineral-contracting company that specialises in overburden and mineral extraction (coal and iron ore), along with handling logistics operations, and loading and unloading services. Its mining and overburden removal operations are located in Maharashtra, Madhya Pradesh and Chhattisgarh; however, it does not own any of the mines. On the concern side, it operates in a competitive industry and may not be able to maintain its market position. Competitors in its peer group are both larger and smaller in size and scope of business, some are present in multiple sectors and its competitors may have better margins than it and may perform better than it in terms of key financial ratios. If it is unable to compete successfully with competitors in its peer group, its business, results of operations, cash flows may be adversely affected.

The issue has been offering 1,11,94,029 shares in a price band of Rs 402-424 per equity share. The aggregate size of the offer is around Rs 450.00 crore to Rs 474.63 crore based on lower and upper price band respectively. On performance front, its total income increased by 17.35% to Rs 168,465.60 lakh for Fiscal 2026 from Rs 143,556.53 lakh for Fiscal 2025. Its profit for the year increased by 20.03% to Rs 15,790.04 lakh for Fiscal 2026 from Rs 13,154.88 lakh for Fiscal 2025.

Meanwhile, the company will continuously seek to attain operational excellence in its mining and logistics processes by ensuring premium quality customer service, training of its employees and consistent upgradation in its vehicles, plant and machinery. Further, it will continue to evaluate best practices in its industry and adopt the practices best suited to the company. Its approach to ensuring commercial viability revolves around optimizing every aspect of the mining process to maximize productivity while minimizing costs. Additionally, In Fiscal 2026, it derived 55.48% of its revenue from its operations in Maharashtra which includes customers or its mining and logistics businesses. It also has operations in Madhya Pradesh and Chhattisgarh. The company is looking to expand its footprint in Odisha and Jharkhand and are participating in tenders in these states.