Synopsis: The Maharatna PSU received a Letter of Award from Bundelkhand Saur Urja Limited for setting up 600 MW of solar power capacity at Jalaun Solar Park in Uttar Pradesh, with an estimated project cost of Rs. 2,831.11 crore .
India’s largest coal producer is making a serious move into solar and this latest contract from a Uttar Pradesh-based solar park developer marks one of the more significant renewable energy commitments from the Maharatna PSU, as it works to diversify its energy portfolio beyond fossil fuels.
With a market capitalization of Rs. 2,68,849 crore, the shares of Coal India Limited were trading at Rs. 436 per share, with a 52-week range of Rs. 491.25 to 368.65, and it is trading at a P/E of approximately 8x.
Order Update
Coal India Limited has received a Letter of Award (LOA) from Bundelkhand Saur Urja Limited, a domestic entity, for setting up 600 MW of solar power capacity structured as two blocks of 300 MW each at Jalaun Solar Park in Uttar Pradesh. The tariff has been fixed at Rs.2.73 per kWh, and the estimated project cost stands at Rs. 2,831.11 crore. The execution timeline is 18 months from the date of signing of the Power Purchase Agreement (PPA).
As per the LOA, Coal India is required to submit the necessary documents and thereafter sign the PPA, Implementation Support Agreement (ISA), and Land Rights and Usage Agreement (LRUA), along with payment of upfront solar park development charges prior to signing of the ISA. The order is a domestic transaction and does not involve any related party interest.
The win is a meaningful step in Coal India’s energy transition strategy, marking its entry into utility-scale solar project development alongside its core coal mining operations.
Financial Snapshot & Business Overview
Coal India Limited is India’s largest coal producer and one of the world’s largest mining companies, operating as a Maharatna Central Public Sector Enterprise under the Ministry of Coal. The company supplies coal to power utilities, steel plants, cement companies, and other industrial consumers across India through its subsidiaries spanning multiple coalfields.
On a consolidated basis for FY26, the company reported revenue from operations of Rs.1,68,400 crore, up from Rs.1,43,369 crore in FY25 a jump of nearly 18%. Operating profit stood at Rs.41,242 crore against Rs. 47,064 crore in FY25, with OPM declining from 33% to 24% as expenses rose sharply.
Net profit for FY26 came in at Rs. 31,071 crore compared to Rs. 35,302 crore in FY25. The Q4 FY26 quarter, however, was the standout period of the year, with revenue of Rs. 46,490 crore, operating profit of Rs.12,673 crore at 27% margin, and net profit of Rs.10,908 crore the strongest quarter of FY26.
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