Coal India shares jump 2% after Maharatna firm signs critical mineral exploration MoU; check details

The Maharatna PSU, Coal India Limited, and Chhattisgarh Mineral Development Corporation Ltd (CMDC), a Chhattisgarh State Government undertaking, have signed a non-binding Memorandum of Understanding (MoU) to collaborate on the exploration and extraction of critical minerals and other minerals of mutual interest.

Following the development, shares of Coal India emerged as one of the top gainers on the NIFTY50 index. At 10:20 AM, the stock was trading at ₹386.30 apiece, rising 1.15%.

Further, CIL on October 1 had reported a 3.9% decline in production to 48.97 million tonnes (MT) in September. The drop in production comes in spite of the government making efforts to increase coal output to bring down the import of dry fuel.

The company's output was 50.94 MT in the corresponding month of the previous fiscal year. However, no reasons were given by the company for the decline.

CIL subsidiaries, which registered a drop in production in September, are Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd (CCL), Western Coalfields Ltd (WCL), and Mahanadi Coalfields Ltd (MCL).

There was a decline in production in Northeastern Coalfields (NEC), a unit of Coal India.

Coal production during the April-September period also dropped to 329.14 MT, from over 341.35 MT in the year-ago period.

CIL accounts for over 80% of domestic coal output.

Coal India Ltd is targeting a production of 875 MT and a dispatch target of 900 MT for 2025-26. This ambitious production goal aims to meet rising power demand and reduce reliance on imported coal.

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 ₹37,458.05 crore, down from ₹39,388.47 crore in the year-ago quarter.