Whalesbook
FY26 Performance Hit by One-Time Costs
Central Mine Planning & Design Institute Limited (CMPDIL) reported a 10% increase in revenue for fiscal year 2026, largely driven by its exploration segment. This segment grew 14% and now makes up 48% of total sales. Other areas like environment and geomatics also saw positive growth.
However, this revenue growth didn't boost the bottom line, with net profit falling 8%. The profit drop stemmed from a 21.5% rise in operating expenses, mainly a 22% jump in employee benefits. This was caused by booking a Rs 90.13 crore one-time charge for executive pay revisions. As a result, the operating profit margin (OPM) fell to 32.06% from 38.40% last year. Without this one-off charge, the OPM would have been 35.9%.
Strong Operations and Entry into Rare Earths
CMPDIL demonstrated strong operational performance. It exceeded its drilling target, completing 11.505 lakh meters (105% of goal) – a 14% year-on-year increase. Seismic surveys also hit 101% of the target, showing effective scaling of operations.
In a significant strategic shift, CMPDIL has secured a Letter of Intent for the Nawatala Devigarh Rare Earth Elements (REE) block in Rajasthan. This move into critical minerals diversifies the company beyond coal and serves as a long-term play amid the energy transition. CMPDIL plans to spend an estimated Rs 24.88 crore on exploration over five years.
Outlook and Valuation
CMPDIL has shown strong growth, with a 19% 3-year revenue CAGR since FY23 from exploration and geomatics. Although the recent 10% growth rate is slower, future results will show if this trend continues. The stock trades at 10 times EV/EBITDA for FY28, considered a reasonable valuation. With a 61% market share in India's mineral consultancy and its role in critical minerals, CMPDIL is noteworthy in the changing resources market.