IPO closes on 24 Mar'26
Central Mine Planning & Design Institute Ltd
Minimum Investment
₹ 13,760 / 80 shares
Our Verdict:
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- Central Mine Planning & Design Institute Ltd (CMPDI) has delivered consistent revenue and earnings growth over the past three years and stands out as a profitable, debt-free, government-backed entity with strong return ratios.
- At ~18.5x FY25 earnings, the IPO appears reasonably priced considering its strong financial profile. While the absence of direct listed peers makes benchmarking difficult, it also reflects the firm’s niche positioning and market dominance.
- That said, broader market sentiment remains volatile and IPOs launched in such environments have historically seen muted listing performance. This may limit near-term upside and affect the immediate risk-reward balance.
- Additionally, global capital is gradually turning cautious on coal-linked businesses. However, CMPDI is actively diversifying into solar and environmental consultancy, which could help mitigate this over time.
- India holds the third-largest rare-earth reserves globally, most of which remain unexplored. With its existing infrastructure, technical expertise and institutional relationships, CMPDI is well-positioned to participate in this long-term opportunity.
- Overall, the investment case appears stronger from a long-term perspective rather than for listing gains. Investors with a longer investment horizon and the ability to navigate near-term market volatility may consider subscribing to the issue.
- After listing, investors should monitor whether the company can sustain revenue growth beyond Coal India—which currently contributes 66% of its revenue—and maintain its strong EBITDA margins of 40%+ as the business mix evolves.
About the company
Founded in
1 Nov'75
Managing director
Chaudhari Shivraj Singh
- CMPDI is a mine lifecycle consultant, providing services from exploration to mine closure, including geological studies, mine planning, environmental assessments and surveys.
- It operates on a fee-based model, earning revenue based on work done (for example, per metre drilled), independent of mining success.
- The company’s revenue is diversified across 4 key verticals: (i) Geological Exploration and Resource Evaluation – 46%; (ii) Mine Planning and Design Services – 20%; (iii) Environment Services - 18%; and Geomatics and Survey Services - 16%.
STRENGTHS
- Dominant Market Position: CMPDI is among India’s largest coal and mineral consultancy firms, commanding a ~61% market share in FY25. It acts as the principal technical advisor to Coal India and remains the preferred partner for complex government mining projects.
- Strong Track Record: CMPDI has delivered robust financial performance, with revenue growing at a CAGR of 23% between FY23–25. EBITDA and net profit have grown significantly faster at CAGRs of 52% and 50%, respectively.
- Expanding Profitability: Margins have improved materially, with EBITDA margin rising from 28.3% in FY23 to 42.1% in FY25. Net profit margin has also expanded from 21.2% to 30.6% over the same period, reflecting strong operating leverage.
- Healthy Return Ratios: CMPDI exhibits strong capital efficiency, with Return on Average Equity (RoAE) at 36.7% and Return on Average Capital Employed (RoACE) at 48.6% in FY25—well above most listed peers (noting differences in business models).
- Diversifying Client Base: While Coal India remains the anchor client, CMPDI is expanding its footprint across the mining ecosystem. Its client base has nearly doubled from 38 (March 2023) to 76 (December 2025), indicating improving diversification.
RISK FACTORS
- High Revenue Concentration: The top 10 clients contribute ~94% (9MFY26) and 95% (FY25) of total revenue. Any loss or reduction in business from these clients could materially impact revenue, profitability and cash flows.
- Dependence on Coal India: A significant portion of revenue is derived from Coal India and its subsidiaries (66% in 9MFY26 and 67% in FY25). While this ensures a guaranteed order book, it limits pricing power.
- Reliance on Government Funding: Core drilling and exploration activities are dependent on allocations from the Ministry of Coal and Ministry of Mines. Any budget cuts or reallocations could delay or reduce project execution.
- Government-Linked Revenue Exposure: A large share of business is conducted with government entities (96% in 9MFY26 and 97.8% in FY25), exposing the company to risks such as regulatory oversight and delays in receivables.
- Contingent Liabilities: CMPDI has contingent liabilities of Rs 210.8 crore as of December 31, 2025. If these materialise, it could adversely affect financial position and cash flows.
- Legal & Regulatory Risks: CMPDI and its corporate promoter are involved in ongoing legal and regulatory proceedings. Adverse outcomes could impact operations, financial performance and overall business stability.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 1,842 crore
Fresh Issue
₹ -
OFS
₹ 1,842 crore
Price range
₹ 163 - 172
Lot size
80 shares
Issue Objective
This issue is entirely an Offer for Sale (OFS), meaning the company itself will not receive any funds from the proceeds. Instead, all proceeds will go directly to the selling shareholders.
Dates
Bidding open
20 Mar'26
Bidding close
24 Mar'26
Allotment date
25 Mar'26
Refund date
27 Mar'26
Listing
30 Mar'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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