Coal India profit jumps 57% to 6,547 crore rupees; dividend set at 10.25 per share
Key Facts
Coal India raised consolidated net profit 57% to 6,547 crore rupees in the second quarter of fiscal 2026-2027, which ended in September, and approved a second interim dividend of 10.25 rupees per share. Livemint reported that consolidated revenue from operations also increased, while data cited by Reuters showed profit fell short of analyst estimates. The results put profit growth and the cash dividend in focus alongside cost pressures that limited net performance. Consolidated profit was 4,167 crore rupees in the corresponding quarter of the previous fiscal year. The dividend is for fiscal 2026-2027 and applies to shares with a face value of 10 rupees.
Consolidated revenue from operations rose 20.8% to 44,179 crore rupees, compared with 36,553 crore rupees in the year-earlier period, according to Livemint. By contrast, analysts polled by LSEG estimated net profit at 70.61 billion rupees, above the reported result. Reuters said the miss came despite strong demand. Annual revenue growth therefore coincided with profit below market estimates. The gap between revenue growth and profit highlights the effect of costs on the income the company retained during the quarter.
Total expenses rose 17% to 383.98 billion rupees in the July-to-September quarter, according to Reuters. Pressures included employee expenses and the cost of accessing coal in deeper, newer mines, as well as infrastructure investments. The net profit margin narrowed to 17% from 22% a year earlier, despite higher revenue and improved demand. The year-on-year comparison shows that expense growth was accompanied by a decline in the share of revenue converted into net profit. These pressures contributed to profit falling short of analysts' estimate of 70.61 billion rupees.
The results came in a quarter when India's coal-based power generation rose 13% year on year, according to Reuters. Coal India's sales to customers increased 12%, faster than production growth of 3.8%. The figures mean sales growth outpaced production growth during July to September, while demand linked to coal-fired power generation increased. The average price realised at e-auctions also rose to 3,082.21 rupees per tonne, from 2,973.32 rupees a year earlier. E-auctions account for about 10% of the company's sales, according to the report, making them one part of its sales mix rather than the whole.
Coal India recorded capital expenditure of 7,965.67 crore rupees in the first half of the current fiscal year, according to Livemint, amid the company's investments and growth initiatives. This spending comes alongside Reuters' reference to infrastructure investments among the factors weighing on quarterly costs. On production, the Indian Coal Ministry's dashboard showed the company's cumulative output at 375.57 million tonnes through October 25, against a phased target of 404.06 million tonnes, or 92.95% of the target. The production target for fiscal 2026-2027 remained at 814.85 million tonnes. The ministry's figures provide a production reading through a specified date after the quarter, while the capital expenditure figure covers the first half of the fiscal year.
For shareholders, the board set November 4, 2026, as the record date for the dividend, according to Livemint. That date determines which shareholders qualify for the second interim payment of 10.25 rupees per share, with a face value of 10 rupees. The company said payment would be made no later than November 27, 2026. The timeline completes the dividend announcement issued with the quarterly results, setting the eligibility date and the latest payment date. The announced dividend remains tied to fiscal 2026-2027.