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Informist, Wednesday, Oct. 29, 2025

 

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--Coal India Jul-Sept consol net profit INR 43.54 bln
--Coal India Jul-Sept consol revenue INR 301.87 bln
--Analysts saw Coal India Jul-Sept consol revenue at INR 297.38 bln
--Analysts saw Coal India Jul-Sept consol net profit at INR 52.95 bln
--Coal India Jul-Sept consol PAT INR 43.54 bln vs INR 62.89 bln year ago
--Coal India Jul-Sept consol revenue INR 301.87 bln vs INR 311.82 bln yr ago
--Coal India to pay INR 10.25 per share interim dividend
--Coal India interim dividend record date is Nov 4
--Coal India Apr-Sept consol PAT INR 130.98 bln vs INR 172.49 bln year ago
--Coal India Apr-Sept consol revenue INR 660.29 bln vs INR 686.86 bln yr ago

 

By Sunil Raghu

 

MUMBAI - Coal India Ltd. reported an on-year drop of over 31% in consolidated net profit for the September quarter to INR 43.54 billion, on muted demand for coal because of the prolonged southwest monsoon season across the country and on rising costs. The Maharatna company's net profit was way below analysts' expectation of a profit after tax of INR 53 billion.

 

The company's consolidated revenue, too, was down 3.2% on year to INR 301.87 billion, but it was above the Street's expectation of INR 297.38 billion. The 1% drop in Jul-Sept total sales volumes of Coal India and its subsidiaries to 166.03 million tonnes pulled the company's revenue for the September quarter down. The output for the September quarter, too, fell 4.1% on year to 145.8 million tonnes.

 

Despite the fall in quarterly production, Coal India was unable to cut costs, a failure that hit its profit. The company's total expenses rose a little over 7% on year to INR 264.2 billion, offsetting the gains Coal India had made from a decline in employee costs and an increase in profit contribution from its joint ventures. The company's employee costs for the quarter under review fell 3% on year to INR 107.3 billion, while the profit contribution from its joint ventures was up almost 53% on year at INR 2 billion.

 

The key costs that saw a rise in the September quarter include a 38% on-year rise in inventory expenses to INR 13.3 billion. The finance costs, too, were up almost 38% on year at INR 2.9 billion. The company also recorded an over 40% year-on-year jump in its depreciation costs at INR 26.6 billion in the September quarter.

 

Coal India's sales realisation per tonne from long-term supply contracts, or fuel supply agreements, improved 0.8% on year to INR 1,478.39 a tonne because of grade improvement. The total sales volume under such contracts, however, declined 0.5% on year to 147.46 million tonnes. Fuel supply agreements are the key top-line driver for Coal India. They accounted for nearly 89% of the company's total sales volumes in the September quarter.

 

The world's largest coal miner's sales from e-auctions, which contribute substantially towards its profit, rose 1.5% on year to 15.31 million tonnes, but the price it got at the auctions fell 6.6% on year to INR 2,292.4 per tonne. The company also sold lesser quantity of premium-priced washed coal at lower sales realisations of INR 3,293.63 per tonne. Overall, Coal India's average sales realisation per tonne went down by INR 1 on year to INR 1,621.

 

As a result of the declining sales and profits and an increase in costs, Coal India's consolidated earnings before interest, tax, depreciation, and amortisation declined nearly 15% on year to INR 78.5 billion.

 

The net profit from its most profitable subsidiary, Northern Coalfields Ltd., rose 22% on year to INR 26.2 billion. The net profit from its largest subsidiary, Mahanadi Coalfields Ltd., fell 9% on year to INR 21.3 billion. Coal India's second-largest subsidiary, South East Coalfields Ltd., reported a loss of INR 2.8 billion. In the corresponding period a year ago, the subsidiary had reported a profit of INR 1.8 billion.

 

Bharat Coking Coal Ltd., which has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering to be listed on the country's bourses, also reported a loss of INR 530 million for the September quarter, against a profit of INR 2.4 billion in the year-ago period. Its mining services subsidiary, Central Mine Planning and Design Institute Ltd., which is also headed for a listing on the exchanges, reported 16% year-on-year rise in net profit for the quarter to INR 1.8 billion.

 

Due to lower production in the reporting quarter, Coal India was able to reduce its pithead coal inventory to 78.7 million tonnes as of Sept. 30 from 107.2 million tonnes at the start of the financial year 2025-26 (Apr-Mar). However, the pithead stock is still nearly 24% higher than the closing stock as of Sept. 30, 2024. Increased pithead stock limits the company's ability to scale up production.

 

For the six months ended Sept. 30, Coal India's consolidated net profit fell to INR 130.98 billion, from INR 172.49 billion a year ago. Its revenue for the period was INR 660.29 billion, down from INR 686.86 billion a year ago.

 

Coal India announced the payment of INR 10.25 per share as interim dividend and has fixed Nov. 4 as the record date. Wednesday, shares of the company closed 2.4% lower at INR 382 on the National Stock Exchange. The miner detailed its financial results during market hours.  End

 

Edited by Rajeev Pai

 

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