**Dilip Buildcon Boosts Profits with Coal Mining Ventures**
Dilip Buildcon Ltd, recognized as India’s eighth-largest engineering, procurement, and construction (EPC) firm, has significantly increased its reliance on coal mining, now accounting for over 25% of its total business and approximately one-third of its profits. This strategic shift has allowed the company to mitigate the impact of a slowdown in its roadway construction sector. By the end of the financial year 2025, the Bhopal-based company reported ₹3,626 crore in mining projects within a total order book of ₹14,923 crore, a notable rise from just 5% in the FY24 order book.
In FY25, Dilip Buildcon achieved a net profit of ₹840 crore, with ₹265 crore derived from coal mining operations. The mining segment has proven essential, especially as three other key areas—roads and highways, irrigation, and water supply—experienced a downturn in the previous financial year. Despite this growth in mining, the overall order book has decreased from ₹25,395 crore in FY23. Rohan Suryavanshi, head of strategy and planning at Dilip Buildcon, indicated during the May 9 earnings call that the company expects a further decline in standalone revenue this financial year, as the execution of new orders in core sectors will require time.
Analysts predict that the mining sector’s contribution to Dilip Buildcon’s overall business will continue to rise, particularly as the company faces challenges in its primary segments. Parikshit Kandpal, vice president of institutional research at HDFC Securities, noted that the ramp-up of the Siarmal Coal Mine is enhancing the company’s coal business performance and profitability. The Siarmal mine is projected to increase its capacity to over 50 million metric tonnes of coal annually by 2029, positioning it among the largest coal mines globally.
Dilip Buildcon operates mining developer-cum-operator (MDO) projects, which enable comprehensive control over mine development and operations. While Adani Enterprises dominates the coal MDO market in India with a capacity of 63 MMTA as of March 31, 2025, few listed EPC companies engage in such projects. Dilip Buildcon and NCC Ltd from Hyderabad are among the few that have ventured into this domain.
Founded in 1987 by Dilip Suryavanshi, who currently serves as chairman and managing director, Dilip Buildcon is predominantly promoter-owned, with approximately 70% of shares held by its founders. As of May 23, the company’s market capitalization stood at ₹7,000 crore. The firm secured its first mining contract in 2018, winning the ₹32,156-crore Pachhwara Central Coal Block project in Jharkhand for a duration of 55 years, with a peak capacity of 7 million tonnes per annum. Its most significant achievement came in 2021 with the Siarmal coal mine in Odisha, awarded by Mahanadi Coalfield Ltd, a subsidiary of Coal India Ltd, for a 25-year term.
**FAQ**
**What is the significance of coal mining for Dilip Buildcon?**
Coal mining has become a crucial segment for Dilip Buildcon, contributing significantly to its profits and helping to offset declines in other construction sectors.
