Coal India shares gain nearly 2% on this development; check details

The block in Andhra Pradesh, spread over 209.62 sq km, was awarded pursuant to a tender issued by the Ministry on March 30, the company said in a regulatory filing.

The exploration licence deed is to be executed within one year of issuance of the Letter of Intent by the state government.

CIL had earlier secured a significant graphite and vanadium block in the fifth round of critical mineral auctions held in May.

“These initiatives mark CIL’s entry into the exploration of rare earth and critical minerals, which are vital for clean energy technologies and advanced manufacturing,” a senior company official had told news agency PTI.

Following this, shares of Coal India had touched an intraday high of ₹402.45 apiece on the National Stock Exchange (NSE), rising 1.68%. At 10:15 AM, shares of the company were up 0.92% at ₹399.45 apiece.

Coal India’s production had increased 9.4% year-on-year in August 2025, recording 50.4 million tonnes against 46.1 million tonnes in the same month last year.

The company’s offtake for the month has increased 7.6%, reaching 56.7 million tonnes as compared to 52.7 million tonnes in August 2024, as per the provisional data mentioned in the exchange filing.

Coal India, primarily the world’s largest coal producer, has been seeking to diversify beyond fossil fuels in line with India’s strategy to build self-reliance in critical and rare earth elements needed for electric mobility, renewable energy and defence applications.

Coal India Limited had reported a 20% year-on-year (YoY) decline in its consolidated net profit for the quarter ended June 30, 2025. The net profit stood at ₹8,743 crore, compared to ₹10,959 crore in the same period last year.

The company’s revenue from operations fell 4% YoY to ₹35,842 crore, as against ₹37,504 crore a year ago. EBITDA for the quarter came in at ₹12,521 crore, down 13% from ₹14,338 crore last year. EBITDA margin slipped to 35% from 38% in the corresponding quarter of the previous year, reflecting a 330 basis point drop.

The margin contraction was largely due to a rise in total expenses, which increased 2% YoY to ₹25,893 crore from ₹25,327 crore last year. In the first quarter, Coal India reported a total income of ₹37,458 crore, down from ₹39,388.47 crore in the year-ago quarter.

As per the company filing, its sales fell to ₹31,880 crore from ₹33,170 crore in the April-June quarter of FY25. The company’s expenses also inched up to ₹25,893 crore against ₹25,327 crore in the same period a year ago. Depreciation for the quarter stood at ₹2,307 crore, up 18% from ₹1,952 crore last year.