Synopsis:
Coal India issues bids for 3 GW solar and 2 GW wind power plants to diversify revenue streams; targets 9.5 GW solar by 2030.
During Thursday’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 issued tenders to build 5 GW of renewable power capacity.
At 12:40 p.m., the shares of Coal India Limited were trading in the green at Rs. 390.5 on BSE, up by around 0.24 percent, as against its previous closing price of Rs. 389.55, with a market cap of Rs. 2.4 lakh crores. The stock has delivered negative returns of around 23 percent in the last one year, but has gained by over 4 percent in the last one month.
What’s the News
Coal India Limited has floated tenders for setting up 3 gigawatts (GW) of solar and 2 GW of wind power plants, marking its significant step so far toward diversifying revenue streams amid concerns over slowing coal demand, according to sources. The deadline for bid submissions is 16th September. At present, the company has an installed solar capacity of about 0.2 GW and aims to scale this up to 3 GW by 2028 and 9.5 GW by 2030. Coal India, which contributes nearly 75 percent of the nation’s coal output, reported a 3.5 percent drop in production during the first five months of FY26.
Financials & more
Coal India reported a marginal decline in its revenue from operations, showing a year-on-year decrease of around 2 percent from Rs. 36,465 crores in Q1 FY25 to Rs. 35,842 crores in Q1 FY26. Likewise, its net profit decreased during the same period from Rs. 10,944 crores to Rs. 8,734 crores, representing a fall of about 20 percent YoY.
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, with a dividend yield of 6.82 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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
