Long operational track record and experienced management
The directors of the company Mr. Vinod Kumar Jain, Mr. Vishal Kumar Jain, Mr. Arvind Kumar Jain and Mr. Pramod Jain have experience of more than a decade in the business of coal washeries through other group companies. The long-standing experience of the directors has helped the company to establish comfortable relationship with their customers such as Tirupati Minerals Private Limited, Maharashtra State Mining Corporation, JK Lakshmi Cement Ltd, Hindalco Industries Limited among others as well as suppliers such as South Eastern Coalfields Limited, MP Power Generating Company Limited, Sonadih Cement Plant and among others.

Improvement in Revenue and Profitability 
The revenue of the company stood at Rs. 446.00 Cr. in FY2025 as against Rs. 381.03 Cr. in FY2024, the improvement is due to increase in sales volumes. The company has utilized ~87% of its total installed capacity during FY2025 (PY: 85 %), and ~90% till H1 FY2026 mainly due to high demand from the power sector during the period. The company has booked revenue of Rs.284.44 Cr. in H1FY2026 (PY: Rs. 227.88 Cr. in H1FY2025). Further, the company is targeting revenue of ~ Rs.556 Cr. for FY2026. The company has orders of Rs.286.98 Cr. in hand as of October 2025 which are to be executed in next 3 months. The orders received by the company are rotating in nature with new orders being added and delivered on a continuous basis.
 
The operating margin of the company remained healthy and improved to 22.05% in FY2025 as against 20.60 % in FY2024 and 17.12 % in FY2023. The net profit margins of the company stood at 16.05% in FY2025 as compared to 14.45 % in FY2024.  The company's margins are primarily driven by increased contribution from transportation services and reduced power cost with the captive use of power plant by the company.  The company majorly has geographical presence in Chhattisgarh and Orissa. Acuite believes that the operating performance of the company will remain healthy on account of steady demand from the domestic market. 

Healthy Financial Risk Profile
The financial risk profile of the company remained healthy marked by healthy net worth, low gearing and strong debt protection metrics. The tangible net worth stood at Rs. 304.45 Cr. as on 31 March 2025 as against Rs.232.86 Cr. as on 31 March 2024. The total debt of the company stood at Rs.49.49 Cr. includes Rs.10.93 Cr. of long-term debt, Rs.31.06 Cr. of short-term debt, and Rs.7.50 Cr. of CPLTD as on 31 March, 2025. The gearing (debt-equity) stood low at 0.16 times as on 31 March, 2025 as against 0.23 times as on 31 March, 2024. The debt service coverage ratio (DSCR) and interest coverage ratio (ICR) remained healthy at 7.52 times and 20.46 times in FY2025 as compared to 8.60 times and 17.74 times in FY2024 respectively. Total outside Liabilities/Total Net Worth (TOL/TNW) stood at 0.54 times as on 31 March, 2025 as against 0.72 times as on 31 March, 2024. Net Cash Accruals to Total Debt (NCA/TD) stood at 1.64 times for FY2025 as against 1.15 times for FY2024. Acuite believes that the financial risk profile of the company will remain healthy on account of steady net cash accruals and absence of any major debt funded capex plan.

Logistical advantage
Cost and efficiency of logistical expenses play a key role in the coal beneficiation business. MCWPL has continuously invested and built their own logistical infrastructure for optimum utilization of available capacity. The company had 1 private railway siding in Baloda used to transport coal. Now, the company has one more coal washery unit and a private railway siding in Kanhaiband which is also based out of Chhattisgarh, having capacity of 2.50 million tonnes per annum. Having railway siding is beneficial to the company as it provides an opportunity for delivery of coal in a time bound manner and save major cost of logistics thereby improving its operating margins. Further, the company also owns a large fleet of 150 trucks and has around 200-300 trucks on hire for coal transportation throughout the country.

Moderately intensive working capital operations
The operations of the company remained working capital intensive nature marked by gross current asset (GCA) days of 209 days for FY2025 as against 188 days for FY2024. The elevated GCA days is primarily on account of high other current assets which majorly includes loans & advances, receivables and recoveries, advance tax paid etc. The average credit period allowed by suppliers is 30-45 days. The creditor days stood at 738 days in FY2025 as against 622 days in FY2024. The debtor days stood at 54 days in FY2025 as against 97 days in FY2024. The company has reputed clientele like Gujrat State Electricity Corpn. Ltd.,  Jindal Steel & Power Ltd., Sambhv Steel Tubes Ltd., Maharashtra State Mining Corpn. Ltd. etc. The average credit period allowed to customers of 15 – 30 days. The inventory holding period of the company stood at 84 days in FY2025 as against 27 days in FY2024. The average utilization of the fund based stood high at 89 per cent, and non-fund-based facilities of the company remained moderate at 34 per cent in last six months ended September 2025. Acuite believes the operations of the company would remain working capital intensive due to nature of business.

End user sector challenges and high entry barriers
Coal washed, transported and traded by MCWPL find their end use by companies involved in power generation, cement manufacturing and steel and metal plants. The consumers that MCWPL caters to are also under high regulation from the government. Increasing cost of supply as against environmentally friendly and economically attractive options of solar and wind power has led to significant reduction in energy consumption from power plants, putting the power plants under financial distress. Loss of supply linkages between the cement industry and coal availability has been a developing challenge in India over lack of infrastructure. Further, capital intensive steel and metal plants have been under low potential utilization and have been experiencing reduced productivity amidst a global competition and slowdown in domestic economic conditions. Any policy changes affecting the highly regulated coal industry or its end users will impact the financial risk profile of MCWPL. The ability of MCWPL to grow in such conditions and maintain its profitability will be key monitorable in the future. The coal beneficiation business in India is highly regulated and falls under the purview of Ministry of Coal, Government of India as well as Ministry of Environment, Forest and Climate Change, Government of India. Such high level of regulation from multiple government authorities creates entry barriers for new players. This provides an advantage to the existing players by keeping the competition low. With limited number of companies present in the coal washeries business, Acuité believes the existing players in the market will benefit from its established presence.