Equal · Financial Report

Indika Energy

INDY/FY2021–FY2025/Educational Analysis/USD/Data source · 2026-07-08

ROE = tax × interest × margin × turnover × leverage

	FY2021	FY2022	FY2023	FY2024	FY2025
Tax burden	0.11x	0.47x	0.62x	0.13x	0.11x
Interest burden	0.84x	0.91x	0.70x	0.49x	0.46x
Operating margindriver	20.4%	24.3%	9.2%	6.5%	5.8%
Asset turnover	0.83x	1.21x	0.97x	0.83x	0.69x
Leverage (equity mult.)	4.18x	2.68x	2.26x	2.19x	2.18x
= Return on Equity (consolidated)	6.5%	33.8%	8.7%	0.7%	0.4%
Return on Invested Capital (ROIC)	4.7%	37.2%	8.5%	1.0%	0.7%

Consolidated (pre-minority-interest) basis; the headline ROE in the ratio grid is owners’ basis.

Liquidity

	FY2021	FY2022	FY2023	FY2024	FY2025
Current Ratio(Current Assets / Current Liabilities)	1.84x	1.70x	1.51x	2.15x	1.98x
Quick Ratio((Current Assets − Inventory) / Current Liabilities)	1.77x	1.63x	1.44x	2.03x	1.87x
Cash Ratio(Cash / Current Liabilities)	0.76x	0.98x	0.46x	0.77x	0.89x
Working Capital(Current Assets − Current Liabilities)	$ 956 M	$ 824 M	$ 502 M	$ 680 M	$ 541 M

Leverage & Solvency

	FY2021	FY2022	FY2023	FY2024	FY2025
Debt to Equity (DER)(Total Debt / Total Equity)	1.65x	0.82x	0.80x	0.80x	0.81x
Liabilities to Equity(Total Liabilities / Total Equity)	3.18x	1.68x	1.26x	1.19x	1.18x
Debt to Assets(Total Debt / Total Assets)	0.39x	0.31x	0.35x	0.36x	0.37x
Net Debt(Total Debt − Cash)	$ 590 M	-$ 59 M	$ 651 M	$ 623 M	$ 603 M
Interest Coverage(EBIT / Interest Expense)	6.08x	10.81x	3.31x	1.96x	1.86x
Equity Multiplier (Assets ÷ Equity)	4.18x	2.68x	2.26x	2.19x	2.18x

Profitability

	FY2021	FY2022	FY2023	FY2024	FY2025
Gross Margin(Gross Profit / Revenue)	29.9%	33.5%	18.2%	13.6%	13.3%
Operating Margin(EBIT / Revenue)	20.4%	24.3%	9.2%	6.5%	5.8%
Net Margin(Net Income / Revenue)	1.9%	10.4%	4.0%	0.4%	0.3%
EBITDA(EBIT + D&A)	$ 793 M	$ 1.2 B	$ 335 M	$ 183 M	$ 147 M
EBITDA Margin(EBITDA / Revenue)	25.8%	28.8%	11.1%	7.5%	7.2%
Return on Assets (ROA)(Net Income / Total Assets)	1.6%	12.6%	3.8%	0.3%	0.2%
Return on Equity (ROE)(Net Income (Owners) / Equity (Owners))	7.6%	38.1%	9.7%	0.8%	0.5%
Tax Burden (Net ÷ Pretax)	0.11x	0.47x	0.62x	0.13x	0.11x
Interest Burden (Pretax ÷ EBIT)	0.84x	0.91x	0.70x	0.49x	0.46x
Return on Invested Capital (ROIC)	4.7%	37.2%	8.5%	1.0%	0.7%

Operations & Efficiency

Turnover	FY2021	FY2022	FY2023	FY2024	FY2025
Asset Turnover(Revenue / Total Assets)	0.83x	1.21x	0.97x	0.83x	0.69x
Inventory Turnover(COGS / Inventory)	27.99x	34.16x	34.39x	30.25x	27.52x
Receivables Turnover(Revenue / Receivables)	6.29x	8.04x	8.34x	5.61x	5.46x
Payables Turnover(COGS / Payables)	7.23x	8.42x	8.90x	7.00x	6.57x

Conversion Period	FY2021	FY2022	FY2023	FY2024	FY2025
Days Inventory Outstanding (DIO)(365 × Inventory / COGS)	13.0 days	10.7 days	10.6 days	12.1 days	13.3 days
Days Sales Outstanding (DSO)(365 × Receivables / Revenue)	58.0 days	45.4 days	43.8 days	65.1 days	66.8 days
Days Payable Outstanding (DPO)(365 × Payables / COGS)	50.5 days	43.4 days	41.0 days	52.2 days	55.6 days
Cash Conversion Cycle (CCC)(DIO + DSO − DPO)	20.5 days	12.7 days	13.4 days	25.0 days	24.5 days

Cash Flow

	FY2021	FY2022	FY2023	FY2024	FY2025
Free Cash Flow(Operating Cash Flow − Capex)	$ 412 M	$ 854 M	-$ 316 M	-$ 158 M	$ 9.3 M

Valuation

price as-of 2026-07-31fundamentals: FY2025FX 18,058 IDR/USD (2026-07-31)

Price Rp 2,631 · market cap Rp 14 T ($ 758 M at the cited rate; statements are filed in USD)

Multiple	INDY	Peer median	vs median
P/E	125.69x	16.25x(15/16)	+674%
P/B	0.63x	1.68x	-62%
P/S	0.37x	1.92x	-81%
EV/EBITDA	10.27x	10.31x	-0%
EV/EBIT	12.87x	14.25x	-10%
EV/Sales	0.74x	2.27x	-67%
FCF Yield	1.23%	0.01%	+11,614%
Dividend Yield	0.67%	5.27%(11/16)	-87%

EV = mkt cap $ 758 M + debt $ 1.1 B − cash $ 488 M + minority interest $ 150 M = $ 1.5 B

What the price implies

At today’s price, the market is paying for 40.3%/yr FCF growth (34.9% at 9.3% to 45.0% at 13.3% discount rates). Delivered over the last 4 years: -61.2% FCF · -9.8% revenue.

Reverse DCF: single-stage FCF, terminal growth 2.5%, discount band 9.3–13.3% (β=1; build cited in Methodology). Not a forecast.

Forward DCF (glass-box)

This model projects the operating cash the whole business generates, discounts it back at the blended cost of capital, and subtracts net debt. What remains is the equity value, stated per share. Every input below comes from the company's own audited record or from cited market data, and you can adjust each one yourself.

Cyclical normalization: Commodity/cyclical name: the trailing years are a sample drawn from the price cycle, not a trend. Defaults are therefore normalized, using the full-window mean margin with no cycle-position growth extrapolation. That normalized margin is itself the embedded commodity-price assumption.

Assumption	Value	Basis
Rf (risk-free)	4.66%	US 10Y Treasury, 30 Jul 2026
ERP (Rm − Rf)	6.69%	Damodaran Indonesia, Jul 2026 (Baa2, CRP 2.46%)
β	0.96 → 1.86	Metals & Mining (unlevered) relevered at own D/E 1.44
Cost of equity	17.10%	Rf + β × ERP
Cost of debt	7.17%	median interest coverage 3.3x (EBIT ÷ interest, FY2021–FY2025) implies a A3/A- synthetic rating and a 0.89% default spread, over a 6.28% base (US 10Y 4.66% + Indonesia's 1.62% sovereign spread). Its BOOK rate is 5.8%, which is what past debt actually costs; the gap is legacy or subsidised borrowing, not the rate on new debt. Spread table: A. Damodaran, Ratings, Interest Coverage Ratios and Default Spread, January 2026 data update (large non-financial service firms)
Tax rate	35.0%	median effective rate FY2021–FY2025 computed to 45.5%, CLAMPED to 35%: above that ceiling the pretax approximation is carrying minority interests, which are already deducted separately from enterprise value, rather than tax
WACC	9.76%	41% E × CoE + 59% D × Kd × (1 − t)
Revenue growth (yr 1, fading)	2.5%	terminal growth from year 1, cyclical normalization: the delivered 4-yr CAGR (-9.8%) reflects cycle position, not a trend
EBIT margin	13.2%	full-cycle mean EBIT margin, FY2021–FY2025 (cyclical normalization: this margin is the embedded commodity-price assumption)
D&A / revenue	1.4%	mean D&A/revenue, last 3 FYs
Capex / revenue	3.9%	mean capex/revenue, last 3 FYs, for the explicit years. The terminal year instead FUNDS ITS OWN GROWTH: in stable growth g = reinvestment rate x return on capital, and returns are assumed to converge to the 9.8% cost of capital, so the perpetuity reinvests 25.6% of NOPAT and terminal capex is 3.5% of revenue against depreciation of 1.4%. Both simpler rules are wrong in opposite directions: holding the historical ratio charges a build phase in perpetuity, while setting capex equal to depreciation hands the company 2.5% growth forever for no new capital. Because returns converge to the cost of capital, terminal growth here is value-neutral
ΔNWC / Δrevenue	4.9%	median ΔNWC/Δrevenue across the seeded years (NWC = AR + inventory − AP)
Terminal growth	2.5%	BI inflation-target midpoint (2.5% ± 1%)

Growth path

year 1 → fading to terminal over 5 yrs2.5%

EBIT margin13.2%

WACC9.8%

Terminal growth2.5%

Explicit years5

FCFF drivers

FCFF = NOPAT + D&A − capex − ΔNWC

Each default is the company's own historical average, which describes the phase it happened to be in. Switch a driver to Per-year when that phase is ending: a company mid-build does not spend at its peak rate forever, and one in a capex pause does not stay there. The terminal year keeps its own ratios, so a taper you enter here changes the explicit window and leaves the perpetuity coherent.

Capex

% of revenue3.9%

D&A

% of revenue1.4%

ΔNWC

% of the CHANGE in revenue4.9%

Year	+1	+2	+3	+4	+5	T∞
Growth	2.5%	2.5%	2.5%	2.5%	2.5%	2.5%
Revenue	$ 2.1 B	$ 2.1 B	$ 2.2 B	$ 2.2 B	$ 2.3 B	$ 2.4 B
EBIT	$ 275 M	$ 282 M	$ 289 M	$ 297 M	$ 304 M	$ 312 M
NOPAT	$ 179 M	$ 184 M	$ 188 M	$ 193 M	$ 198 M	$ 203 M
+ D&A	$ 30 M	$ 31 M	$ 31 M	$ 32 M	$ 33 M	$ 34 M
− Capex	$ 82 M	$ 84 M	$ 86 M	$ 88 M	$ 90 M	$ 83 M
− ΔNWC	$ 2.5 M	$ 2.6 M	$ 2.6 M	$ 2.7 M	$ 2.8 M	$ 2.8 M
FCFF	$ 125 M	$ 128 M	$ 131 M	$ 134 M	$ 138 M	$ 151 M
PV	$ 114 M	$ 106 M	$ 99 M	$ 93 M	$ 86 M	$ 1.3 B

Check it yourself: revenue × margin = EBIT · NOPAT = EBIT × (1 − tax) · FCFF = NOPAT + D&A − Capex − ΔNWC · PV = FCFF ÷ (1+WACC)^yr · TV = FCFF(T∞) ÷ (WACC − g), discounted from year 5 · equity = EV − net debt − minority · per share = equity ÷ shares outstanding

EV = PV(explicit) $ 498 M + PV(TV) $ 1.3 B = $ 1.8 B · TV 72% of EV · − net debt $ 603 M − minority $ 150 M = equity $ 1.0 B ÷ shares outstanding · per share is in USD, shown in IDR at 18,058

Model output: Rp 3,640/share (+38% vs price Rp 2,631)· exit-multiple check (10.3x): Rp 6,690

Under these assumptions the model lands 38% above today's price. The market, in other words, is paying for slower growth, a thinner margin, or a higher discount rate than the inputs here assume.

Sensitivity (per share, Rp)

g \ WACC	8.8%	9.8%	10.8%
2.0%	4,176	3,287	2,602
2.5%	4,656	3,640	2,871
3.0%	5,218	4,045	3,175

Model output under the stated assumptions. Every input above comes from the company's own audited record or from cited market data, and every one can be adjusted. This is not a price target and not advice.

Educational analysis. Multiples pair today’s price with the latest audited fiscal year (trailing-FY convention); peer figures are the covered peer sample, not the whole market. Never a price target.

Macro backdropfull backdrop + sensitivity map →

BI Rate 5.75%IDR/USD 18,05810Y government bond yield 7.26%Inflation 3.34%(as-of 2026-07-31)

Coal ↑(H)Nickel ↑(H)Rupiah weaker(H)Oil ↑(M)

Income Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	$ 3.1 B	$ 4.3 B	$ 3.0 B	$ 2.4 B	$ 2.0 B
Cost of Goods Sold	$ 2.2 B	$ 2.9 B	$ 2.5 B	$ 2.1 B	$ 1.8 B
Gross Profit	$ 918 M	$ 1.5 B	$ 552 M	$ 333 M	$ 270 M
Operating Income (EBIT)	$ 626 M	$ 1.1 B	$ 278 M	$ 159 M	$ 117 M
Interest Expense	$ 103 M	$ 97 M	$ 84 M	$ 81 M	$ 63 M
Net Income	$ 58 M	$ 453 M	$ 120 M	$ 10 M	$ 6.0 M
Net Income Attributable to Owners	$ 58 M	$ 453 M	$ 120 M	$ 10 M	$ 6.0 M
Depreciation & Amortization	$ 167 M	$ 198 M	$ 57 M	$ 24 M	$ 30 M

Balance Sheet

	FY2021	FY2022	FY2023	FY2024	FY2025
Cash & Equivalents	$ 867 M	$ 1.2 B	$ 449 M	$ 455 M	$ 488 M
Accounts Receivable	$ 488 M	$ 539 M	$ 363 M	$ 436 M	$ 372 M
Inventory	$ 77 M	$ 84 M	$ 72 M	$ 70 M	$ 64 M
Current Assets	$ 2.1 B	$ 2.0 B	$ 1.5 B	$ 1.3 B	$ 1.1 B
Total Assets	$ 3.7 B	$ 3.6 B	$ 3.1 B	$ 3.0 B	$ 2.9 B
Accounts Payable	$ 298 M	$ 343 M	$ 278 M	$ 302 M	$ 268 M
Current Liabilities	$ 1.1 B	$ 1.2 B	$ 982 M	$ 591 M	$ 550 M
Total Liabilities	$ 2.8 B	$ 2.3 B	$ 1.7 B	$ 1.6 B	$ 1.6 B
Total Interest-Bearing Debt	$ 1.5 B	$ 1.1 B	$ 1.1 B	$ 1.1 B	$ 1.1 B
Total Equity	$ 884 M	$ 1.3 B	$ 1.4 B	$ 1.4 B	$ 1.3 B
Equity Attributable to Owners	$ 763 M	$ 1.2 B	$ 1.2 B	$ 1.2 B	$ 1.2 B

Cash Flow Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Operating Cash Flow	$ 485 M	$ 926 M	-$ 199 M	-$ 55 M	$ 84 M
Capital Expenditure	$ 73 M	$ 72 M	$ 117 M	$ 103 M	$ 75 M

Company Deep Analysis

Reviewed: 2026-07-31

Analyst Verdict

INDY gross margin: 29.9 % (2021) → 33.5 % (2022) → 18.2 % (2023) → 13.6 % (2024) → 13.3 % (2025). OPM: 20.4 % → 24.3 % → 9.2 % → 6.5 % → 5.8 %. Net margin: 1.9 % → 10.4 % → 4.0 % → 0.4 % → 0.3 %. EBITDA margin: 25.8 % → 28.8 % → 11.1 % → 7.5 % → 7.2 %. ROE: 7.6 % → 38.1 % → 9.7 % → 0.8 % → 0.5 %. ROIC: 4.7 % → 37.2 % → 8.5 % → 1.0 % → 0.7 %. Asset turnover: 0.83× → 1.21× → 0.97× → 0.83× → 0.69×. D/E: 1.65× → 0.82× → 0.80× → 0.80× → 0.81×; L/E: 3.18× → 1.68× → 1.26× → 1.19× → 1.18×. Net debt swung from USD 590 M (2021) to net CASH of USD 58.5 M (2022, the supercycle peak) back to USD 651 M (2023), USD 623 M (2024) and USD 603 M (2025). Interest coverage: 6.08× → 10.81× → 3.31× → 1.96× → 1.86×; the lowest trough of any coal name in this roster (ITMG still covers interest 28× even at its own 2025 low). FCF (USD): 412 M → 854 M → −316 M → −158 M → 9 M; two years of cash burn as coal cash flow shrank faster than capex and diversification spend. Revenue (USD): 3.07 B → 4.33 B → 3.03 B → 2.45 B → 2.03 B. Net margin sits far below operating margin every year: the interest, tax and minority-interest waterfall from EBIT down to net income is unusually wide for this batch, most visible in 2021 (OPM 20.4 % vs NM 1.9 %). INDY rode the same 2022 coal supercycle as its peers, but its post-peak margin and coverage compression is the steepest and thinnest of the group: a structurally more diversified, but currently more fragile, coal name than BYAN, ITMG, ADRO or PTBA.

Business Model

INDY is the listed holding company atop a diversified group organised into Energy Resources, Energy Services, Logistics & Infrastructure, Green Business, Mineral, Digital Ventures and Other segments. Its core cash engine remains coal mining through majority-owned Kideco Jaya Agung (East Kalimantan, low-strip thermal coal), Kideco alone contributed ~77.6 % of group revenue in 6M25, sold to Asian utilities (export) and domestically under DMO. Tripatra, its engineering/energy-services arm, is the second-largest contributor (~12.0 % of revenue), providing EPC and O&M services largely to the energy sector. Beyond these, INDY is building smaller Logistics, Green-Business and Digital-Ventures units as deliberate, capital-allocated diversification away from coal, with a stated goal of 50 % non-coal revenue by 2028 and net-zero emissions by 2050. This makes INDY structurally different from pure-play peers (BYAN, ITMG, ADRO, PTBA): it is a coal-cash-funded conglomerate build-out, not a single-commodity miner; with the financial complexity (segment mix, minority interests, cross-subsidy) that model implies.

Segments

Coal (via Kideco) is still overwhelmingly dominant, 82 % of revenue in Q1 2025, down from 91.5 % a year earlier, but the direction of travel is real: non-coal revenue grew 28.8 % YoY to USD 186.4 M in 6M25, lifting its share of group sales from 12 % to 19 % in a single year. Tripatra's energy-services work is the largest non-coal contributor. The Green Business and Digital Ventures segments are the newest and smallest legs, aimed squarely at capturing energy-transition and technology-adjacent growth as coal's long-run role shrinks. Unlike ITMG or BYAN: where diversification is a small side bet on a still-overwhelmingly-coal earnings base; INDY's non-coal mix is already large enough to matter to consolidated margins, part of why its earnings waterfall (segment costs, minority interests) is more complex and its net margin more compressed than a single-mine peer's.

Value Chain & Positioning

Kideco: overburden removal → open-pit thermal coal mining (Paser, East Kalimantan) → crushing/blending → barge → export terminal (India/China/ASEAN utilities) or domestic sale to PLN under DMO. Tripatra: engineering design → procurement → construction → operations & maintenance services, mostly for energy-sector clients (including, at times, group affiliates). Newer legs (logistics, green business, digital ventures) are still scaling and each contributes a smaller, less-established value chain. Group capital allocation increasingly directs coal-generated cash toward these non-coal build-outs.

Competitive Forces (Porter’s 5)

Supplier powerLow

How much leverage input/funding providers have over pricing.

INDY controls its own coal reserves via Kideco (concession owner, not a contractor), and its Tripatra arm gives it in-house EPC/engineering capability rather than relying entirely on third-party contractors: an integration advantage shared with few peers. Mature-mine cost inflation is a geological, not supplier, pressure.

Implication → Cost pressure is internal/geological for coal, and execution-dependent for the newer segments (logistics/green/digital), which are still sub-scale and may face real supplier/technology dependency as they grow.

Buyer powerHigh

How much leverage customers have to push prices down.

Thermal coal (Kideco) is benchmark-priced and DMO-capped domestically, the same price-taker dynamic as every other listed coal miner; Tripatra's EPC/O&M contracts are also competitively bid, typically to a concentrated set of large energy-sector clients.

Implication → Revenue on both the coal and services side is buyer/benchmark driven, not fully within INDY's control: the diversification legs (green/digital) are where INDY could eventually build differentiated buyer relationships, but they are too small yet to matter.

Threat of new entryLow

How easily new competitors can enter the market.

Low for coal (IUP/RKAB/AMDAL barriers, financing constraints), but INDY itself is effectively "the entrant" in its Green Business and Digital Ventures segments, competing against better-capitalised, more-focused specialists in EV/tech-adjacent spaces.

Implication → Coal incumbency doesn't protect the diversification bet: those units must earn their place against dedicated competitors, a genuine execution risk not present in the core coal business.

Threat of substitutesHigh

Risk that alternative products/services replace demand.

The same secular thermal-coal substitution pressure (LNG/solar/wind/hydro/geothermal, JETP-linked retirement targets) as every coal peer; this is precisely the risk INDY's diversification strategy is designed to answer, and, unlike ITMG's still-nascent solar/NICE dabble, INDY's response is already a measurable ~19 % of revenue and growing.

Implication → INDY is ahead of its pure-play coal peers in actually building a substitution hedge, but coal still funds the group today: diversification must keep scaling faster than coal's decline for the strategy to de-risk the group rather than just add complexity.

Competitive rivalryHigh

Intensity of competition among existing players.

Kideco competes on the same seaborne thermal market as Australia, Russia, South Africa and domestic peers (PTBA, ADRO, BYAN, ITMG); Tripatra competes in a separate, crowded EPC/energy-services market. Running both a commodity business and a services/diversification conglomerate means INDY faces rivalry on multiple, unrelated fronts simultaneously.

Implication → Unlike a single-commodity peer, INDY's competitive position must be assessed segment-by-segment: strength in one (or weakness, as coal margins show) doesn't transfer to the others.

Moat / Competitive Edge

INDY has no pricing moat in its core coal business: Kideco is a benchmark-priced, price-taking thermal-coal miner just like its listed peers, and the group's 2022-2025 margin collapse (NM 10.4 % → 0.3 %, interest coverage 10.81× → 1.86×) shows just how exposed that cash engine still is to the coal cycle. Its genuine distinguishing feature is strategic, not financial: a real, already-material diversification into energy services (Tripatra), logistics, green business and digital ventures; 19 % of revenue and growing 28.8 % YoY, the most advanced non-coal pivot of any coal name in this roster. But that pivot currently coincides with, rather than offsets, the coal downturn: net margin and interest coverage are the thinnest in the batch, FCF was negative for two straight years (2023-2024), and net debt swung from a brief 2022 net-cash position back to ~USD 600 M. INDY is best understood as a coal-funded conglomerate-in-transition: genuinely differentiated in strategy, but currently the financially most fragile of its coal peer set.

Key Drivers & Sensitivities

Thermal Coal Benchmark (via Kideco)
The dominant swing factor for the majority of group earnings. Kideco's realised price fell from USD 59.9/t to USD 51.2/t (6M24→6M25, −14.5 %), and the group-wide margin collapse (GM 33.5 % → 13.3 %, ROE 38.1 % → 0.5 %, 2022→2025) tracks the broader coal benchmark decline every peer in this roster has faced. Because Kideco still supplies ~78-82 % of revenue, INDY's earnings remain overwhelmingly a coal-price call despite the diversification narrative.
Non-Coal Diversification Pace (Tripatra/Logistics/Green/Digital)
The strategic offset. Non-coal revenue grew 28.8 % YoY to USD 186.4 M (6M25), lifting its share of group sales to 19 % from 12 % a year earlier, against a stated 50 %-by-2028 target. This is the most advanced, measurable diversification of any coal name in this project: the open question is whether the pace (roughly +7 points of revenue share per year) can plausibly reach 50 % by 2028 without either accelerating sharply or coal continuing to shrink in absolute terms.
Leverage & Interest Coverage
The binding near-term risk. Interest coverage fell from 10.81× (2022) to 1.86× (2025): thin enough that a further coal-price leg-down or a rate increase on floating-rate debt would meaningfully pressure debt service, a materially tighter cushion than ITMG's 28× or BYAN's net-cash position at the same point in the cycle. D/E has been roughly stable at ~0.80-0.82× since 2022, but on a shrinking EBIT base that ratio understates how much thinner the coverage has become.
Working Capital & FCF Swing
FCF swung from USD 854 M (2022 peak) to two consecutive negative years (−USD 316 M in 2023, −USD 158 M in 2024) before a thin USD 9 M in 2025: cash generation compressed even faster than accounting margins as the group kept funding diversification capex through the downturn. Current ratio actually improved through this period (1.51× in 2023 → 1.98× in 2025), suggesting working-capital management rather than liquidity distress, but the FCF swing is the clearest single number showing how much cash cushion has been used up since 2022.

Linkages

Kideco ties INDY to the same seaborne thermal-coal market as PTBA, ADRO, BYAN and ITMG, competing for the same Indian/Chinese/ASEAN utility buyers and subject to the same DMO/RKAB regime. Tripatra links INDY into Indonesia's broader energy-services/EPC market, a different competitive set entirely. INDY's Green Business and Digital Ventures units create early, still-small linkages toward the energy-transition and technology sectors that sit outside this industry's taxonomy altogether: the clearest sign that INDY, alone among this cohort, is deliberately building itself out of a single-industry classification over time.

Recent Developments

The margin has nearly vanished. Net margin ran 1.9%, 10.4%, 4.0%, 0.4% and 0.3%, and ROE 7.6%, 38.1%, 9.7%, 0.8% and 0.5%, so FY2022 is the only year that looks like a normal return. Net income fell 91.6% in FY2024 and a further 40.2% in FY2025, to USD 6.0m on revenue of USD 2.03bn. Operating margin held up better than net, 24.3% down to 5.8%, which places part of the loss below the operating line rather than in the pit. Leverage is the structural fact: debt to equity fell from 1.65× to 0.82× in FY2022 and has barely moved since, sitting at 0.81×, with net debt near USD 600m in four of the five years. Free cash flow returned to roughly break-even at USD 0.01bn after two negative years.

Regulation

Kideco is governed by IUP concession terms, RKAB annual production quotas (ESDM), the 25 % DMO obligation to PLN at a capped price, coal royalties, and AMDAL environmental/mine-rehabilitation obligations. Tripatra's EPC/O&M contracts carry their own regulatory and safety regimes tied to the energy-sector clients it serves. As a diversified holding company expanding into green business and digital ventures, INDY also increasingly touches sector-specific regulation (e.g., EV/renewables incentives, data/digital-services rules) well outside the mining-metals framework: a genuine regulatory-complexity difference from single-segment peers.

ESG & Sustainability

Environmental: Kideco's thermal coal is the group's largest carbon liability (Scope 3 combustion), alongside mine-rehabilitation and water management at East Kalimantan pits. Social: community relations around Kideco's mining areas; employment transition as the group's own strategy shifts weight toward non-coal segments. Governance: a multi-segment conglomerate structure raises normal holding-company considerations (capital allocation across coal and non-coal units, minority-interest treatment at subsidiary level). INDY's stated net-zero-2050 and 50 %-non-coal-by-2028 targets are a real, public commitment, among the more concrete transition pledges in this coal cohort, though execution against them is still early and not yet reflected in consolidated earnings.

Risks

Thermal coal benchmark decline (Kideco realised price USD 59.9/t → 51.2/t, 6M24→6M25): still the dominant swing factor for ~80 % of group revenue
Thinnest interest coverage of any coal name in this roster (1.86× in 2025, down from 10.81× in 2022): limited cushion against a further coal downturn or higher rates
Two consecutive years of negative FCF (2023–2024) as diversification capex outpaced coal cash generation
Execution risk on the 50 %-non-coal-by-2028 target: the current pace (~7 points of revenue-share gain per year) requires either sharp acceleration or continued coal-revenue shrinkage
Multi-segment complexity (seven reporting segments) makes consolidated results harder to read than a single-commodity peer's, and concentrates real risk in Kideco given its ~78-82 % revenue share

Outlook & What to Watch

Base: coal prices stabilise near current lows → group margins stay compressed but positive, non-coal segments continue gaining share, interest coverage stays thin but intact. Bull: a coal-price recovery + accelerating non-coal growth → INDY re-rates on both cyclical margin recovery and structural diversification progress. Bear: coal prices fall further while diversification capex continues → interest coverage breaches 1×, forcing a capex pullback or refinancing at a difficult moment; the scenario the current 1.86× coverage explicitly warns about. INDY is best read as a coal-cash-funded conglomerate build-out that is further along its diversification path than any peer in this cohort, but currently carrying the thinnest financial cushion to fund that transition through a weak coal cycle. (Interpretation, not a forecast.)

Key KPIs

Kideco Realised Coal Price (USD/t): Dominant swing factor for ~80 % of group revenue
Non-Coal Revenue Share: 19 % in 6M25 (from 12 %), vs a 50 %-by-2028 target: the diversification scorecard
Interest Coverage: 1.86× (2025): thinnest in the coal cohort, the binding near-term risk
Free Cash Flow: Swung from +USD 854 M (2022) to two negative years (2023–2024): the cash-cushion tell
Segment Revenue Mix (7 segments): Coal (Kideco) vs Energy Services (Tripatra) vs Logistics/Green/Digital: the conglomerate-transition tracker

Sources

Curated narrative (educational interpretation), backed by the linked sources. The figures above are deterministic. Not investment advice.