Coal India shares rise 2% despite decline in production in April-August period; check details

The company witnessed a decline in production even as the government aimed to raise the output to reduce the import dependence. The dip in production can also be attributed to monsoon-related disruptions, which can hinder mining operations and dispatch to power plants.

Coal India (CIL) output was 290.4 MT in the April-August period of the previous fiscal year.

Coal India subsidiaries which registered negative growth are Central Coalfields Ltd (CCL), Bharat Coking Coal Ltd (BCCL), Eastern Coalfields Ltd (ECL), Western Coalfields Ltd (WCL), and Mahanadi Coalfields Ltd (MCL).

However, the company's coal output was 50.4 MT last month, over 46.1 MT in August last financial year, according to the provisional data.

Following this, shares of Coal India were trading higher on Tuesday. Last seen, the stock was trading at ₹384.45 per share on the National Stock Exchange, rising 1.73%. It was one of the top-performing stocks on the NIFTY50 index.

In the financial year 2024-25, CIL produced 781.1 MT of coal, nearly 7% less than the company's target for the financial year.

Coal India Ltd (CIL) accounts for over 80% of domestic coal output. Its coal production target for 2024-25 was 838 million tonnes.

Coal India Ltd is targeting a production of 875 million tonnes and an offtake of 900 MT in the 2025-26 fiscal year.

The PSU firm 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.

Its 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 had reported a total income of ₹37,458.05 crore, down from ₹39,388.47 crore in the year-ago quarter.