Synopsis: The shares of the PSU company specializing in the exploration, production, and marketing of coal, declined by upto 5 percent following their Q2 results, with a 51 percent decline in the profit QoQ.
With a market capitalization of 2,35,262.15 Crores on Wednesday, the shares of Coal India Ltd declined by upto 4.5 percent, reaching a low of Rs. 381.05 compared to its intraday high of Rs. 399.35.
What Happened
Coal India Ltd, engaged in the exploration, production, and marketing of coal, and it is the world’s largest coal producer and primarily supplies thermal and coking coal to sectors like power, steel, and cement, has announced its Q2 results as follows:
Its revenue from operations declined by 3.1 percent YoY from Rs. 31,181.89 Crores in Q2FY25 to Rs. 30,186.70 Crores in Q2FY26, and it declined by 15.7 percent QoQ from Rs. 35,842.19 Crores in Q1FY26 to Rs. 30,186.70 Crores in Q2FY26.
Its Net Profit YoY declined by 32 percent from Rs. 6,274.80 Crores in Q2FY25 to Rs. 4,262.64 Crores in Q2FY26, and it declined by 51 percent QoQ from Rs. 8,734.17 Crores in Q1FY26 to Rs. 4,262.64 Crores in Q2FY26.
The earnings per share (EPS) for the quarterly period stood at Rs. 7.07, compared to Rs. 14.19 in the previous quarter.
Furthermore, the Board has declared a 2nd Interim Dividend of ₹ 10.25 per equity share (face value ₹10) for FY 2025-26, as recommended by the Audit Committee. The record date is set for November 4, 2025, and the dividend payment will be made by November 28, 2025.
Company Overview & Others
Coal India Limited (CIL), the state-owned coal mining corporation, was established in November 1975. Starting with a modest production of 79 million tonnes (MT) in its inception year, CIL today stands as the single largest coal producer in the world, with the production of 329.14 MT and one of the largest corporate employers, with a workforce of 2,20,242 as of April 1, 2025.
Across eight Indian states, CIL operates in 85 mining areas, managing a total of 310 working mines, consisting of 129 underground, 168 opencast, and 13 mixed mines, and also manages other establishments like workshops, hospitals, and so on.
The company contributes to 80% of total domestic coal production and 75% of total coal-based generation. CIL contributes to 55% of total power generation and meets 40 % of the primary commercial energy requirements of the country.
The company demonstrates strong financial performance with a ROCE of 48.0%, ROE of 38.9%, a low debt-to-equity ratio of 0.09, and a PEG ratio of 0.26. It also offers an attractive dividend yield of 6.96%, reflecting strong shareholder returns.
Additionally, the company has maintained a solid ROE track record with a 3-year average of 48.7% and a healthy dividend payout ratio of 45.1%, showcasing consistent profitability and efficient capital allocation.
Written by Sridhar J
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