Coal India signs MoU with Konkan Railway Corporation for rail infrastructure; stock trades lower

CIL, which accounts for over 80% of domestic coal output, is actively strengthening its rail infrastructure to improve coal transportation.

The non-binding memorandum of understanding (MoU) was signed between both companies in Kolkata.

"Coal India Ltd and Konkan Railway Corporation Ltd have executed a non-binding memorandum of understanding on August 18, 2025...with an intent of development of rail infrastructure of CIL and its subsidiaries," the company said in a regulatory filing.

CIL had earlier entered into a pact with Indian Port Rail & Ropeway Corporation Ltd to develop a rail infrastructure for the coal behemoth and its arms. In FY25, CIL produced 781.1 million tonnes (MT) of coal, nearly 7% less than the company's annual target of 838 MT.

Coal India Ltd is targeting a production of 875 MT and an offtake of 900 MT in FY26.

Following this, shares of Coal India were mostly trading lower on Tuesday. Last seen, the stock was down 0.58% at ₹385.55 apiece on the National Stock Exchange. It had touched an intraday low of ₹384.25 per share.

The state-owned firm has 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.

Coal India’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.