Coal India Profit Jumps 57% to 6,547 Crore Rupees Despite Missing Forecasts and Cost Pressures
Key Facts
Coal India reported consolidated net profit of 6,547 crore rupees in the quarter from July to September of fiscal 2026-27, up 57% from 4,167 crore rupees in the same period a year earlier. The annual increase coincided with a 21% rise in consolidated total income to 46,833 crore rupees from 38,694 crore rupees. But profit remained below the analyst average estimate of 70.61 billion rupees, according to data compiled by LSEG and cited by Reuters. Revenue from operations was 44,179 crore rupees, up 21% from 36,553 crore rupees a year earlier. The quarter-on-quarter comparison was weaker: net profit fell 26% from 8,849.81 crore rupees in the June quarter, and revenue declined 4.5% from 46,254.80 crore rupees.
Raw coal production rose 3.8% to 151.37 million tonnes in the quarter, compared with 145.82 million tonnes a year earlier, while offtake or deliveries grew faster, up 12.2% to 186.34 million tonnes from 166.10 million tonnes. For the first half of the fiscal year, production was 321 million tonnes, down from 329.14 million tonnes in the corresponding period. By contrast, first-half offtake rose 7.6% to 384.20 million tonnes from 357.05 million tonnes. This operational performance came against a backdrop of 13% year-on-year growth in India's coal-based power generation during the quarter, Reuters reported. The average price realised in e-auctions also rose to 3,082.21 rupees per tonne from 2,973.32 rupees a year earlier, while auctions accounted for about 10% of the company's sales.
Earnings before interest, tax, depreciation and amortisation rose 28% to 11,447 crore rupees from 8,943 crore rupees, with the margin increasing to 26% from 24%. Those figures, however, did not prevent cost pressures from featuring in market assessments. Reuters said the net profit margin narrowed to 17% from 22% a year earlier, as total expenses increased 17% to 383.98 billion rupees. The agency attributed the rise in expenses to employee cost pressures, access to deeper and newer mines, and infrastructure investment. Brokerage Equirus estimated that unit costs rose 6.4% year on year to 1,974 rupees per tonne, driven by higher input costs, employee expenses and other operating expenses.
Equirus said adjusted earnings before interest, tax, depreciation and amortisation were 73.9 billion rupees, up 29% year on year but 30% below its estimate. In the Oct. 30 session, Coal India's shares fell 4.4% to an intraday low of 380.70 rupees before paring losses to close down 1.03% at 389.45 rupees. Elara Securities maintained its buy recommendation and target price of 522 rupees per share, citing 51% year-on-year growth in e-auction sales volumes. The overall realised selling price also rose 7% to 2,346.21 rupees per tonne. By contrast, Motilal Oswal cut its estimate for earnings before interest, tax, depreciation and amortisation for the current fiscal year by 5% after the quarterly results.
The board approved a second interim dividend of 10.25 rupees per share for fiscal 2026-27, setting Nov. 4 as the record date, with payment to be made no later than Nov. 27, 2026. Motilal Oswal expected volumes to recover in the second half and costs to stabilise, despite lowering its annual earnings estimate. The brokerage also forecast compound annual volume growth of between 3% and 4% during fiscal years 2026-2028. These estimates remain part of broker assessments following the results, while first-half figures showed annual production declining to 321 million tonnes. Against the backdrop of monitoring India's coal market, EL7 published a report on Sept. 21 about coal stocks at Indian power plants.