Synopsis:
Coal India posted a 20 percent YoY decline in Q1 FY26 net profit, alongside lower revenue and coal output. The company declared a Rs. 5.5 interim dividend, with a record date set for 6th A
During Friday’s trading session, shares of a ‘Maharatna’ company involved in the business of mining and production of coal are in focus on the stock exchanges, after the company reported muted results for Q1 FY26.
At 11:42 a.m., the shares of Coal India Limited were trading in the red at Rs. 373 on BSE, down by around 1 percent, as against its previous closing price of Rs. 376.45, with a market cap of Rs. 2.29 lakh crores. The stock has delivered negative returns of around 31 percent in the last one year, and has fallen by over 4 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, Coal India Limited announced the financial results for Q1 FY26 on Thursday after market hours. For Q1 FY26, Coal India reported a consolidated revenue from operations of Rs. 35,842 crores, marking around a 5 percent QoQ marginal decline compared to Rs. 37,824.5 crores in Q4 FY25, and a year-on-year decrease of about 4 percent from Rs. 37,504 crores recorded in Q1 FY25.
The company’s net profit for the quarter stood at Rs. 8,734.2 crores, reflecting a fall of around 9 percent QoQ compared to Rs. 9,592.5 crores in Q4 FY25, and a year-on-year decline of about 20 percent from Rs. 10,943.5 crores recorded in Q1 FY25.
Further, the company’s Board has declared the 1st interim dividend for FY26 at Rs. 5.5 per equity share on the face value of Rs. 10 each. The record date to determine eligible shareholders has been set for Wednesday, 6th August 2025, and the dividend will be disbursed on or before 30th August 2025.
As of Q1 FY26, Coal India’s debt-to-equity ratio stood at 0.1, Return on Average Equity was 8 percent and Return on Average Capital Employed at 5 percent. On the operational front, the coal production declined by 3 percent YoY, reaching 183.32 MT from 189.28 MT in Q1 FY25.
Coal India Limited (CIL), a Maharatna company under the Ministry of Coal, is primarily involved in the business of mining and production of coal. The major consumers of the company are the power and steel sectors. Consumers from other sectors include cement, fertilisers, brick kilns, etc.
The company has ten wholly-owned subsidiaries in India, out of which seven subsidiaries are coal producing, one subsidiary is engaged in mine planning, designing, and related consultancy services, and two subsidiaries are engaged in manufacturing the solar value chain (ingot-wafer-cell module) and renewable energy business.
Written by Shivani Singh
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