Nilachal Carbo Metalicks (NCML) is set to tap the capital markets through its IPO, aiming to raise about INR 56.10 crore via a mix of fresh issue and offer for sale (OFS). The proceeds are primarily earmarked for capacity expansion and modernisation of existing plants, both of which are critical to sustaining its growth trajectory.
In this Nilachal Carbo IPO review, you’ll get a clear understanding of the company’s business model, revenue streams, and future growth drivers. We’ll explore how NCML, a specialised supplier of Low Ash Metallurgical (LAM) Coke to India’s ferro-alloy and steel industries, has positioned itself in a niche yet essential segment.
#1 Company Overview
Nilachal Carbo Metalicks (NCML) is in the business of manufacturing Low Ash Metallurgical (LAM) Coke, a critical input for the ferro-alloy and steel industries. LAM Coke is valued for its low ash, low phosphorus, and high reactivity, making it essential in smelting and alloy-making processes.
The company has carved out a niche in producing Ferro Alloy Grade Coke, which is supplied to leading ferro chrome manufacturers across India. Alongside its core product, NCML also monetises by-products like Coke Fines, widely used in iron ore pellet plants, sinter plants, and steel melting shops. This dual revenue stream ensures that even the residual output of its manufacturing process generates value.
Manufacturing & Capacity
- Owned Plant (Jajpur, Odisha): 60,000 MTPA capacity, strategically close to India’s largest steel hub, Kalinga Nagar.
- Leased Plant (Vizag, Andhra Pradesh): 18,000 MTPA capacity under a lease from Srinivasa Coke Pvt. Ltd., supported by coastal logistics via Vizag Port.
- Contract Manufacturing (Om Avi Carbon Resources): Adds 24,000 MTPA through a long-term tie-up.
Total Current Capacity: 1,02,000 MTPA
Planned Expansion: New 36-oven battery at Jajpur to raise capacity to 1,36,400 MTPA.
By focusing on specialised coke grades (10–30 mm and 10–40 mm) with strict quality control, NCML ensures consistency that ferro-alloy producers rely on. Its location advantage near major steel clusters and ports further strengthens its ability to serve customers efficiently while controlling costs.
#2 Nilachal Carbo Business Model Analysis
Nilachal Carbo business model revolves around a specialised product portfolio, efficient operations, and customer-centric integration.
a) Core Product – LAM Coke:
- Primarily caters to ferro-alloy industries such as ferro-chrome, ferro-manganese, and ferro-silicon producers.
- Specialisation in size fractions (10–30 mm, 10–40 mm) with low ash and phosphorus content, meeting stringent industry requirements.
- High Coke Reactivity Index (CRI) ensures better furnace performance and operational efficiency for clients.
b) By-product Utilisation:
- Coke fines, generated during the production process, are in demand from pellet plants, sinter units, and steel melting shops.
- This by-product stream provides additional revenue and improves overall plant economics.
c) Customer Concentration:
- Over 96% of revenues come from the top 10 customers.
- While concentration poses a dependency risk, it also reflects long-standing, sticky relationships with established players in the ferro-chrome industry.
d) Integrated Operations:
- In-house quality control laboratory ensures that chemical and physical parameters consistently match customer specifications.
- Mechanised handling systems (crushers, conveyors, cutters) improve efficiency and reduce wastage.
- Own logistics fleet supports Just-In-Time (JIT) deliveries, enhancing reliability and strengthening customer trust.
In essence, Nilachal Carbo business model combines specialised product focus, monetisation of by-products, and deeply entrenched customer relationships, providing both revenue visibility and growth potential.
#3 Nilachal Carbo Revenue Streams
Nilachal Carbo revenue streams are anchored in its core product – Low Ash Metallurgical (LAM) Coke – but are complemented by meaningful contributions from by-products, giving the business a degree of diversification within its niche.
Product-wise Revenue
| Particulars | FY23 | % of Revenue | FY24 | % of Revenue | FY25 | % of Revenue |
| Sale of LAM Coke | 238.56 | 89.61% | 237.00 | 89.40% | 191.00 | 94.78% |
| Sale of Coke Fines | 27.43 | 10.30% | 26.14 | 9.86% | 9.05 | 4.49% |
| Others | 0.22 | 0.08% | 1.97 | 0.74% | 1.46 | 0.73% |
| Total Revenue | 266.21 | 100% | 265.11 | 100% | 201.51 | 100% |
Geographical Revenue
| State | FY23 | % of Revenue | FY24 | % of Revenue | FY25 | % of Revenue |
| Odisha | 246.95 | 92.76% | 235.74 | 88.92% | 186.11 | 92.36% |
| Andhra Pradesh | 19.26 | 7.24% | 29.37 | 11.08% | 15.40 | 7.64% |
| Total | 266.21 | 100% | 265.11 | 100% | 201.51 | 100% |
Key Takeaway:
- LAM Coke dominates the topline, contributing ~90–95% of revenue across the last three years. This reflects NCML’s specialised positioning in ferro-alloy grade coke.
- Coke Fines, a by-product, added ~10% of revenue in FY23 & FY24, though its share fell to 4.5% in FY25 due to weaker demand from pellet & sinter plants.
- Geographical concentration is very high – Odisha alone contributes over 90% of revenues, thanks to proximity to Kalinga Nagar (India’s largest steel hub). Andhra Pradesh accounts for the rest.
- While the business is narrowly focused, the high concentration ensures stable demand visibility given entrenched customer relationships with ferrochrome and pellet manufacturers.
In short, Nilachal Carbo revenue streams are specialised – driven by core LAM Coke sales, complemented by monetisation of coke fines, and geographically anchored in Odisha’s strong industrial ecosystem.
#4 Nilachal Carbo IPO Analysis: Financial Performance
| Particulars | FY23 | FY24 | FY25 |
| Revenue from Operations | 266.21 | 265.11 | 201.51 |
| EBITDA | 22.32 | 24.98 | 27.13 |
| EBITDA Margin (%) | 8.38% | 9.42% | 13.46% |
| Profit After Tax (PAT) | 14.82 | 15.82 | 14.02 |
| PAT Margin (%) | 5.57% | 5.97% | 6.96% |
| ROE % | 30.57 | 24.61 | 17.90 |
| ROCE % | 27.90 | 23.54 | 22.74 |
| EPS (INR) | 6.64 | 7.08 | 6.28 |
| Debt-to-Equity Ratio | 0.39 | 0.41 | 0.30 |
Analytical Summary (Neutral-to-Positive View):
- Consistent EPS levels and growing net worth show that NCML has been able to sustain shareholder value creation even in a phase of softer demand.
- Despite a drop in revenue in FY25, NCML successfully improved its profitability profile, with EBITDA margins rising to 13.5% and PAT margins touching 7%.
- The company’s debt-to-equity ratio improved to 0.30x, reflecting balance sheet strength and prudent financial management.
- Return ratios remain robust – though ROE moderated due to higher net worth, ROCE at 22.7% indicates strong capital efficiency.
#5 Nichal Carbo IPO Review: Key Strengths
NCML’s ability to survive in a competitive and capital-intensive industry comes from a combination of operational advantages and strategic positioning.
- Strategic Location of Plants
- Jajpur unit’s proximity to Kalinga Nagar Industrial Complex ensures a ready customer base.
- Vizag unit’s closeness to Vizag Port provides logistical advantages for both domestic and export markets.
- Strong Promoter & Experienced Management
- Led by Mr. Bibhu Datta Panda, with over 20 years of industry experience, the company benefits from deep sector knowledge and strong supplier-customer networks.
- High-Quality Production Standards
- Specialisation in ferro alloy grade coke with low phosphorus and ash levels.
- In-house laboratory ensures consistent quality monitoring – from raw material to finished product.
- Established By-product Market
- Coke fines are supplied to iron ore pellet plants and steel units, ensuring stable additional revenue streams.
- Own Logistics Fleet
- Dedicated Ashok Leyland tippers allow Just-In-Time delivery, reducing dependency on third-party logistics and ensuring customer satisfaction.
- Flexible Operations
- Capability to produce customized coke sizes (10–30 mm, 10–40 mm) catering to specific customer KPIs.
- This flexibility strengthens customer stickiness and provides pricing power in niche segments.
#6 Nilachal Carbo IPO Review: Growth Strategies
NCML’s roadmap reflects a focus on capacity enhancement, modernisation, and product innovation:
- Capacity Expansion: Installation of a new 36-oven battery at Jajpur, adding 34,400 MTPA capacity, taking the total to 1,36,400 MTPA.
- Modernisation of Existing Facilities: Investments in automation, lean manufacturing, and energy efficiency to reduce costs and enhance output quality.
- Product Innovation: Development of Ultra-Low Phosphorus (ULP) Nut Coke to substitute imports, already generating customer interest.
- Operational Efficiency: Leaner cost structure and lower per-unit fixed cost expected post-expansion.
- Sustainability Initiatives: Emphasis on recycling, rainwater harvesting, and plans for waste heat recovery to align with environmental standards.
#7 Risks & Challenges
Despite strengths, investors should be mindful of key risks:
- Raw Material Dependency: Heavy reliance on imported coking coal exposes the company to price volatility, forex fluctuations, and global supply disruptions.
- Customer Concentration: With ~96% revenues coming from top 10 customers, loss of a major client could materially impact revenues.
- Capital Intensity: Expansion projects require significant upfront investment, which could pressure cash flows if demand remains subdued.
- Regulatory Environment: Coke manufacturing faces strict environmental norms, which could raise compliance costs.
- Competitive Pressures: Both domestic integrated steel-coke players and international suppliers could affect pricing power.
While these risks are inherent to the sector, NCML’s operational efficiency and entrenched customer relationships provide resilience.
#8 Nilachal Carbo Metalicks IPO Details
- IPO Dates: 8–11 September 2025
- Issue Price: INR 85 per share
- IPO Size: 66,00,000 shares (INR 56.10 crore)
- Fresh Issue: 26,00,000 shares (INR 22.10 crore)
- OFS: 40,00,000 shares (INR 34.00 crore)
- Lot Size: 1,600 shares (INR 1,36,000)
- Allocation: 50% Retail, 50% Others
- Listing: BSE SME
Utilisation of Net Proceeds
- Capacity Expansion (new coke oven battery): INR 13.46 crore (70%)
- Modernisation of existing plant: INR 3.03 crore (16%)
- General corporate purposes: INR 2.67 crore (14%)
This indicates that IPO proceeds are largely growth-oriented, rather than balance sheet repair.
Conclusion
Nilachal Carbo Metalicks presents itself as a specialised metallurgical coke manufacturer with a strong focus on ferro alloy grade products. Its strategic plant locations, entrenched customer relationships, and by-product monetization model provide resilience in a cyclical sector.
Financially, the company has demonstrated margin expansion and disciplined leverage management, even during periods of lower utilisation. The IPO proceeds are being deployed towards capacity expansion and modernisation, which should support long-term scalability.
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