Coal India Q2 FY26 Earnings Results

Coal India Ltd, India’s largest coal miner, reported a substantial drop in Q2 FY26 profitability, reflecting sectoral headwinds and rising expenses despite steady operational activity.

Financial Results

• Revenues declined by 3.19% to ₹30,187 crore compared to ₹31,182 crore in Q2 FY25.
• Total expenses rose 7.1% to ₹26,422 crore from ₹24,671 crore a year ago.
• Consolidated net profit fell sharply by 32.06% to ₹4,263 crore from ₹6,275 crore.
• Earnings per share (EPS) decreased 30.75% to ₹7.07 from ₹10.21 last year.

Highlights

• The drop in revenue was driven by slightly weaker coal realizations and moderated offtake, especially amidst higher monsoon disruption.
• Rising expenses were largely attributed to increased wage costs, overburden removal, and higher fuel charges for mining operations.
• Margins contracted as total costs grew faster than revenues, squeezing operating profitability.
• Coal India maintained robust supply to the power and steel sectors, its main consumers, but faced subdued demand from other industrial users.
• The company continues investing in mechanization and evacuation projects to improve long-term efficiency and reduce per-unit costs.

Outlook

Coal India is aiming for cost optimization, technology upgrades, and volume stability as avenues for rebuilding profitability. The near-term outlook remains challenging, with future profit recovery hinging on better demand, cost containment, and operational upgrades.

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