Weak Demand
Coal India Jun sales fall 7.4% on yr, output falls 8.5% on weak coal demand
This story was originally published at 13:01 IST on 1 July 2025
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--Coal India Jun provisional production 57.8 mln tn, down 8.5% on year
--Coal India Jun provisional offtake 60.4 mln tn, down 7.4% on year
--Coal India Apr-Jun provisional production 183.3 mln tn, down 3.2% on year
--Coal India Apr-Jun provisional offtake 190.1 mln tn, down 4.5% on year
KOLKATA – Coal India Ltd.'s sales and production in June took a beating as demand for coal remained muted. The world's largest coal miner reported a 7.4% on-year decline in its coal dispatches, or sales volume, at 60.4 million tonnes in June, and production dipped a sharper 8.5% on year to 57.8 million tonnes.
On a cumulative basis, Coal India's sales during Apr-Jun declined 4.5% on year to 190.1 million tonnes, and production dipped 3.2% to 183.3 million tonnes, the company said in a notice to bourses on Tuesday.
The Maharatna company had reported a sales volume of 65.2 million tonnes and production of 63.1 million tonnes in June 2024.
In the recent past, company officials had repeatedly cited that demand conditions in the country continued to remain tepid and increasing production from captive mines is leading to a decline in demand even from core sectors like power. At the same time, the company is laden with a huge inventory of around 100 million tonnes, which limits Coal India's ability to step up production.
Coal India's largest subsidiary Mahanadi Coalfields Ltd. fared better than most other subsidiaries in June. Its sales fell 1.2% on year to 17.3 million tonnes, and output was down 0.8% at 17.7 million tonnes last month.
The second-largest subsidiary, South Eastern Coalfields Ltd., which had been facing some issues at some of its major mines for some time, reported a 0.8% on-year fall in sales to 15.3 million tonnes in June, but production declined 5.1% to 13.3 million tonnes.
Another subsidiary, Bharat Coking Coal Ltd., which is headed towards getting listed on exchanges and is about to float an initial public offering, reported a sharp 17.6% on-year fall in sales to 2.7 million tonnes and production tanked 25.2% to 2.6 million tonnes.
Sector analysts were anticipating Coal India to continue to report stress on sales volume due to coal surplus in the country. Moreover, global coal prices remained tepid in June leading to lower sales and realisations by Coal India from its e-auctions. Usually, when global prices inch up, coal importers resort to substituting imported coal with domestic coal and procure it from Coal India's auctions.
At 1233 IST, shares of Coal India traded 0.28% lower at INR 390.85 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Avishek Rakshit
Edited by Tanima Banerjee
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