Coal India Shares Ignite 3% Rally as Q4 Profit Heats Up Despite Revenue Cooling Down

Shares of Coal India rose as much as 3% on the National Stock Exchange today as the investors sentiment boosted after the company posted a 12% on-year growth in its consolidated net profit for the March quarter. However, this was not revenue-driven as the mining major booked an over 1% fall in its consolidated sales for the quarter under review.

It was the 75% jump in its other income for the period which gave leg-up to the company’s consolidated net. This significant leap pulled its total income 3% higher during the March quarter compared to the year-ago quarter.

The Kolkata-based company’s EBITDA was 41% of net sales for FY25 against 40% in the last year. Coal India has spent Rs 19,410.02 crore as capex in FY25 compared to Rs 23,475.41 crore in FY24. It has contributed Rs 60,959.52 crore to the government exchequer in the recently ended financial year.

Coal India produced 231.69 million tonnes of coal in the last quarter of FY25, down nearly 2% from an year ago. Further, the offtake volume too fell marginally from the base quarter to 201.38 million tones.

The company’s focus on increasing coal-washer capacity will improve its market share in domestic coking and non-coking coal, Motilal Oswal said in its earnings review report. The brokerage has maintained its estimates for FY26 and FY27 and expects some improvement in volumes, which would boost earnings performance.

Motilal Oswal said it expects Coal India to clock an 8% compound annual growth rate in volume during FY25-FY27., which would translate into 11% revenue and 14% EBITDA CAGR during the period. The brokerage has ‘buy’ rating on the stock with a target price of Rs 480.

Meanwhile, the state-owned miner has inked a pact with AM Green Ammonia (India) to supply renewable power to AM Green’s green ammonia project in Kandla or any other facility from its 4.5 GW renewable energy project, Coal India informed the exchanges.

The board has also recommended a final dividend of Rs 5.15 per share in addition to the interim dividend, which is paid, of Rs 21.35, resulting in a total dividend of Rs 26.50 per share.