Coal India Profit Jumps 57% to 6,547 Crore Rupees Despite Cost Pressures
Key Facts
Coal India’s consolidated net profit jumped 57% in the quarter ended September 2026 to 6,547 crore rupees, compared with 4,167 crore rupees in the same period a year earlier, according to results announced by the company after trading closed on Thursday. The increase came as revenue from operations rose 21% to 44,179 crore rupees from 36,553 crore rupees a year earlier. But profit fell short of the average analyst estimate of 70.61 billion rupees cited by Reuters, coming in at 65.16 billion rupees. The results pair strong sales growth with cost pressures that limited profits from reaching expectations. The company’s shares fell more than 3% in Friday trading, reaching an intraday low of 380.40 rupees a share.
Revenue growth was accompanied by an expansion in operating activity during the quarter: coal production rose 4% to 151 million tonnes, while offtake increased 12% to 186 million tonnes, according to Business Standard. Reuters reported production growth of 3.8% and a 12% increase in sales to customers from July to September, with sales growth outpacing the increase in production. Coal-fired power generation in India also rose 13% year over year during the quarter, pointing to strong demand for fuel used in power plants. In the first half of fiscal year 2026-27, total offtake reached 384.2 million tonnes, compared with 357.0 million tonnes in the same period of the previous year, an increase of 7.6%, according to India’s coal ministry. First-half offtake growth puts the reported 2% decline in coal production in the context of a broader increase in supply volumes.
Improved revenue per tonne realized helped support results, alongside higher other income, according to Business Standard’s account of the company’s comments. The average price realized at e-auctions for coal was 3,082.21 rupees per tonne in the quarter, compared with 2,973.32 rupees a year earlier, Reuters reported. Average billed realization per tonne rose 7%, according to a correction to the initial coverage, alongside the increase in offtake. This reflects contributions from both prices and volumes to revenue growth, rather than attributing the increase to a single factor. Sales rose as demand for coal for power generation increased during the quarter.
The company’s total expenses rose 17% to 38,398 crore rupees in the quarter, according to Business Standard. Employee benefit expenses increased 8% to 11,777 crore rupees, while contractual expenses rose 18% to 7,326 crore rupees. Reuters attributed cost pressures to higher employee expenses, increased spending to access coal at deeper and newer mines, and growing investment in railways and mine infrastructure. These items help explain the widening gap between revenue growth and profit growth, as well as why net profit fell short of analyst estimates. Costs to access newer and deeper mines and infrastructure investment also coincided with growth in demand and sales.
The company announced a second interim dividend of 10.25 rupees per share for fiscal year 2026-27 and set November 4, 2026, as the record date. The dividend is scheduled to be paid no later than November 27, 2026, according to Moneycontrol. On first-half supplies, the coal ministry said Coal India reduced coal stocks at mineheads by 63 million tonnes. Coal shipments to the power sector rose to 302.8 million tonnes from 285.4 million tonnes in the same period, an increase of 6.1%. Offtake and shipment data show that larger volumes continued to flow to customers and the power sector during the period, while the upcoming dividend dates remain set by the announced record date and payment deadline.