Mumbai: State-owned Coal India Limited (CIL) reported a 16% year-on-year decline in consolidated net profit to ₹7,166 crore for Q3 FY26, impacted by a one-time provision of ₹2,201 crore for executive pay scale upgrades. Despite this, the Maharatna PSU declared a third interim dividend of ₹5.50 per share, taking total dividends for FY26 so far to ₹15.50 per share, surpassing the full-year FY25 dividend of ₹14 per share.
Key Financial Highlights
- Net Profit: ₹7,166 crore, down 16% YoY from ₹8,491 crore in Q3 FY25. Sequentially, profit rose 5.4% from ₹6,800 crore in Q2 FY26.
- Revenue from Operations: ₹34,924 crore, down 5% YoY.
- Net Sales: ₹30,818 crore, a 5% decline from the previous year.
- EBITDA: ₹10,285 crore, down 25% YoY; margins narrowed to 33% from 43% in Q3 FY25.
- Earnings Per Share (EPS): ₹11.63 (quarterly, not annualized) vs ₹13.79 YoY.
- Employee Expenses: ₹13,220 crore, up 22% due to the pay revision provision.
- Finance Cost: ₹321 crore, up 42% due to higher working capital loans.
- Other Income: ₹2,392 crore, aided by IT refunds and interest on DVC tariff refunds.
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Operational Performance: Production & Offtake
- Coal Production: 200.05 million tonnes (MT), down 1% YoY. Nine-month production at 529.19 MT, a 3% decline.
- Coal Offtake: 188.66 MT in Q3, down 3% YoY; nine-month offtake at 545.74 MT, down from 561.68 MT.
- Overburden Removal: 546.87 million cubic metres (down 2% QoQ) in Q3 and 1,402.65 million cubic metres (down 3%) for nine months.
- Contractual Coal Share: 69% of total production in Q3.
- Inventory: 89.94 MT as of December 31, 2025, up 28% YoY but down 16% from March 2025.
Price Realisations: E-Auction & FSA
- Overall Average Realisation: ₹1,645 per tonne, marginally down 1% YoY.
- FSA Realisation: ₹1,504 per tonne, up 2.3%, with a 13 MT volume drop.
- E-Auction Realisation: ₹2,356 per tonne, down 6.3%.
- Washed Coal & Other: ₹3,402 per tonne, down 10.5%.
- Performance Incentive Income: ₹930 crore vs ₹1,580 crore YoY, a sharp decline of ₹650 crore.
GST Hike Unlocks ₹2,634 Crore ITC
The GST on coal was increased from 5% to 18% effective September 22, 2025, resolving the inverted duty structure. This allowed CIL to utilise ₹2,634 crore of accumulated Input Tax Credit (ITC), providing significant working capital relief.
Subsidiary Performance: Mixed Trends
- NCL: PBT ₹10,745 crore, +14% YoY
- MCL: PBT ₹10,302 crore, -3% YoY
- SECL: PBT ₹3,663 crore, +2% YoY
- CCL: PBT ₹2,357 crore, -48% YoY
- WCL: PBT ₹1,448 crore, -47% YoY
- BCCL: PBT ₹130 crore, -92% YoY
- ECL: PBT -₹762 crore vs +₹67 crore YoY
- CMPDIL: PBT ₹569 crore, +10% YoY
Note: NCL and MCL together contributed 77% of CIL’s consolidated PBT in the nine-month period.
Strategic Developments
- BCCL Listing: Bharat Coking Coal Limited listed on BSE & NSE on January 19, 2026.
- Critical Minerals: Secured Kawalapur Rare Earth Element Block in Maharashtra and signed MoU with Hindustan Copper Limited for copper and critical minerals.
- Renewable Energy: Set up CIL RAJASTHAN AKSHAY URJA LIMITED; signed MoU for 500 MW solar project in Uttar Pradesh.
- Thermal Power: Joint venture with DVC for 1,600 MW supercritical power project at Chandrapura, Jharkhand.
- Dividend from HURL: ₹404.37 crore received as maiden dividend.
Financial Position Strengthens
- Net Worth: ₹1.06 lakh crore, up 7% from March 2025.
- Book Value per Share: ₹172.61
- Current Ratio: 1.67, improved from 1.49
- Debt-to-Equity Ratio: 0.14
- ROE (Annualized): 20% vs 39% in FY25
Market Reaction
CIL shares closed at ₹486.75 on the NSE, down 2.1% from the previous close. The stock has declined 8% in the past month but is up 12% YTD. 52-week range: ₹415.20 – ₹612.80.
Outlook
CIL aims for 838 MT production in FY26, with strong Q4 performance expected. The company plans to continue ITC utilization, advance critical minerals and renewable projects, and explore further subsidiary listings following the successful BCCL listing.
About Coal India
Coal India Limited, a Maharatna PSU under the Ministry of Coal, is the world’s largest coal producer, contributing over 80% of India’s coal output. Operating through eight subsidiaries and more than 350 mines across eight states, CIL is diversifying into renewable energy, critical minerals, and thermal power, aligning with India’s energy security and net-zero goals.
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