Caliber Mining and Logistics Ltd

Incorporated in 2014 (formerly Caliber Mercantile Pvt Ltd), Caliber Mining and Logistics Ltd (CMLL) is a contract coal-mining and logistics services provider - it is hired by mine owners to strip overburden (OB), extract coal at open-cast mines, and transport it. It does not own any mines or coal reserves.

Coal mining services (coal extraction + OB removal) formed ~86% of FY26 revenue and logistics ~12%, with its dominant customers being Coal India subsidiaries — Western Coalfields (WCL) and Northern Coalfields (NCL). It runs a fleet of 1,911 vehicles/machines across Maharashtra, Madhya Pradesh and Chhattisgarh, and reported an order book of ₹9,551 cr as of 15 May 2026.

DRHP filed: 30 December 2024

IPO open & close: July 17, 2026 to July 21, 2026

BRLM: DAM Capital Advisors Ltd

Auditor: Kailash Chand Jain & Co.

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Delta’s View:

May Subscribe for Listing Gains | Track

CMLL has delivered ~37% revenue CAGR over FY23-FY26, driven by rapid scale-up in coal OB removal, supported by a strong ₹9,551 cr order book (~5.7x FY26 revenue) and favorable outsourcing trends at Coal India. Despite operating in the lower-realisation OB-removal segment, the company has consistently maintained ~25% EBITDA margins through operating efficiencies and an owned fleet. However, the business has elevated leverage (net D/E 1.62x) and heavy capex requirements (over 1,150 cr spent on capex in last 3 years). While the IPO valuation of ~9x EV/EBITDA and ~18x P/E appears reasonable, we would prefer to track the company’s growth trajectory and wait for a more attractive entry point.

One can expect decent listing gains as per current GMP ~17% (21 July 26), provided the GMP sustains.

•    Revenue grew at ~37% CAGR from ₹655 cr (FY23) to ₹1,678 cr (FY26), led by coal + OB removal. CMLL entered coal mining only in FY2021 and scaled it to ₹1,444 cr (~86% of revenue) in FY26; market share rose from ~3.4% (FY24) to ~5.1% (FY26).

•    Growth is overwhelmingly OB-removal-led, with the OB volume rising from 68 Mcum to 128 Mcum (FY24 -FY26) while coal extraction actually fell (5.5 → 4.5 MT). OB removal is lower-realisation than coal extraction or MDO. CMLL has the largest fleet (1,911) yet the lowest revenue/vehicle among peers (~₹0.9 cr vs BGR ~₹3.7 cr), i.e., it moves the most volume but earns less per unit.

•    Despite this, EBITDA margins held ~25% every year (25.5% / 24.5% / 25.7%, FY24 - FY26), well above the peers even though contracts are won via L1 (lowest-bid) tenders. The edge appears to be its Opex-lean coal-OB model (vs capex-heavy MDO), owned fleet + in-house maintenance, advance diesel from refineries, and a tight 40 km operating cluster.

•    Its Order book of ₹9,551 cr (May-26; ~5.7x FY26 revenue) gives good visibility over 5-6 years. However, it is anticipated (not certain). The Parsa contract has been suspended since Sept 2023, a live example that a slice can stall, and several contracts (Dhoptala, Lalpeth, Pouni) are maturing.

•    Coal India’s ~1 BT production target (781 → ~1,075 MT by FY30) and rising outsourcing (coal ~63%→70%, OB ~89%→94%) presents with industrial tailwind. CRISIL sizes the contract-mining market growing ~19% CAGR to ₹66,393 cr by FY30 (vs ~8–10% recently), with OB the faster slice on rising strip ratios.

•    The FY26 capex of ₹635 cr exceeded operating cash flow of ₹411 cr, so free cash flow was negative (-₹224 cr in FY26; -₹319 cr in FY24). The business had spent over 1,150 cr on capex in the last 3 years and Total borrowings increased to ₹1,058 cr (FY26); net D/E 1.62x and net debt/EBITDA 2.44x, far above peers (D/E median ~0.3x). The IPO uses ₹208 cr to repay debt.

•    Coal India subsidiaries comprise ~85% of FY26 revenue, top-3 customers ~90%, and large >₹1,000 cr contracts ~76% of FY26 revenue. Loss, suspension or non-renewal of any single one materially hits results.

•    Promoters are 4 brothers of the Chadda family (second generation promoters). They held ~88.75% pre-IPO (~74% post-listing). Some governance flags might need to be watched out for - unequal family stakes, related-party sub-contracting (KSR Freight Carriers, a promoter entity, ~5% of FY26 revenue), and promoter personal/cross-guarantees on company debt. No fraud or regulatory red flags; two promoter road-accident (negligence) cases are pending.

•    It’s IPO ask valuation is ~9x EV/EBITDA and ~18x P/E. It raised 50 cr through Abakkus Four2Eight Opportunities Fund in Sept 2024 and had marquee names such as Anchorage Capital, Baring PE India & Scarlet Ventures among investors in the pre-IPO round

Business

•    CMLL is a contract coal-mining and logistics operator; it does not own mines but is hired to strip overburden, extract coal at open-cast mines, and transport it. Revenue for FY26 comprise of coal mining services 86.1%, logistics 12.4%, and coal trading / rake loading / rail coordination together ~1.5%.

•    Mining = OB removal + coal extraction at open-cast sites, paid on a fixed rate per volume; Logistics = road/rail loading, unloading and transport of coal and iron ore. Smaller lines: coal trading (buy-and-resell), rake loading, rail coordination.

•    Customers are concentrated and government-linked — WCL and NCL drive the business (~85% of FY26 revenue from CIL subs; top-3 ~90%; WCL alone ~41%). All revenue is domestic; end-use is power generation. Private clients include GMR Warora, Dhariwal Infrastructure and Adani Power. Volumes are jointly surveyed monthly and billed by tonnes (coal) and cubic metres (OB).

•    The key input is high-speed diesel ~53% of total expenses (~85,227 kl in FY26), bought a month ahead directly from local refineries. Other inputs: tyres, steel, lubricants and spares.

•    FY26 output ~4.48 MT coal extracted and 128 Mcum OB removed across 7 open-cast mines. Fleet of 1,911 units (883 tippers, 162 excavators, 64 loaders, 362 tip trailers). Sites cluster within ~40 km; in-house maintenance at Chandrapur and at mining sites.

Issue Details

Total issue ~₹450 cr = Fresh Issue ₹400 cr + Offer For Sale ₹50 cr.

•    Fresh Issue proceeds: ₹208 cr repayment of borrowings, ₹167 cr capex (85 new vehicles/machines), balance for general corporate purposes.

•    Offer For Sale (OFS) of ₹50 cr by four promoters (₹12.5 cr each - Mohit, Anuj, Manish and Rahul; Priya is not selling). The company receives nothing from the OFS.

Promoters and Leadership

•    CMLL is a second-generation family business that grew out of the family’s transport firm (Chadda Roadlines / KSR Freight Carriers, a partner since 2008). It entered contract mining in FY2021 and converted to a public company in 2024.

•    Mohit Satishkumar Chadda is Chairman & Managing Director; Manish, Rahul and Priya Anuj Chadda are Whole-Time Directors; Anuj Krishanlal Chadda is a promoter and heads maintenance & procurement (stepped off the board in Nov 2024). The four executive principals studied at Nagpur University.

Shareholding Pattern

•    Promoters: ~88.75% pre-IPO (~90.91% with promoter group) → ~74% post-listing (~76% with group). Mohit 34.0%, Anuj 24.1%, Rahul 18.5%, Manish 11.9%, Priya 0.2% (pre-offer).

•    Key investors: Abakkus Four2Eight Opportunities Fund (3.72%), Anchorage Capital Fund (2.53%), plus Baring PE India Fund 6 and Scarlet Ventures (pre-IPO, <1% each).

Financials