Coal India, the largest coal mining corporate globally in coal production and an important public sector undertaking, announced its quarterly results for the period ended June 30, 2025 (Q1 FY26), which brought to light serious pressure on profits and revenues driven by lesser demand and operational issues. The PSU declared its first interim dividend of ₹5.50.
Coal India's consolidated net profit in Q1 FY26 fell steeply by 20.2% year-on-year (YoY), standing at ₹8,743.38 crore from ₹10,959.47 crore during the corresponding quarter of the last year. Revenue from operations also fell by 4.4% YoY at ₹35,842.19 crore, versus ₹37,503.87 crore in Q1 FY25. This profitability pinch is due to lower offtake and price realizations of coal since overall demand eased off.
The EBITDA of the company also depicted this trend, decreasing by 15% YoY to ₹13,165 crore from ₹15,478 crore in the previous year. The earnings per share (EPS) also followed the downward trend, coming down to ₹14.19 in June 2025 from ₹17.78 in June 2024.
Coal India's coal output declined by around 3% YoY in Q1, at 183.32 MT compared with 189.28 MT in Q1 of last year. The firm's e-auction sale average realization for coal fell to ₹2,331 a tonne, from ₹2,410 a tonne in the same period last year[6]. At the same time, the overall average price realization of coal dispatched under long-term agreement rose marginally by ₹2 per tonne over last year, providing limited respite.
This decline in production and sales levels was further exacerbated by softer demand for Indian coal-fired power. A less severe summer and advance monsoon onset caused a virtually 3% decline in power generated from coal-fired sources, directly affecting Coal India's shipment volumes and price power.
In spite of the tough quarter, Coal India announced a first interim dividend of ₹5.50 per equity share for FY26, with August 6, 2025, chosen as the record date. The dividend will be paid to eligible shareholders on August 30, 2025, reflecting the company's consistent commitment towards rewarding its shareholders even during lean periods.
The Q1 figures highlighted the challenges Coal India is facing, ranging from volatile power demand to rising cost of operations. Management does stay positive about stabilizing production and capitalising on new mine and renewable projects for future growth[8]. Cost optimization and efficiency gains will be important for maintaining profitability as the company drives through weak demand and price pressure.
In short, Q1 FY26 was a tough quarter for Coal India with declining profits and revenues in the face of muted demand for coal. Subsequent quarters will depend upon a recovery in power consumption and effective implementation of strategic programs.
