Coal India Ltd, the Maharatna PSU under the Ministry of Coal, reported a 20 per cent year-on-year (YoY) decline in consolidated net profit at Rs 8,734 crore for the April-June quarter of the financial year 2025–26 (Q1 FY26), as against Rs 10,943 crore in the corresponding quarter last year. The performance, though muted, was slightly above street estimates pegged around Rs 8,705 crore, according to Zee business estimates
Revenue down, margins shrink
Coal India’s revenue from operations stood at Rs 35,842 crore, lower than Rs 37,504 crore recorded in Q1 FY25. Despite the drop, the topline was better than the Zee Business estimate of Rs 35,509 crore. The revenue performance was supported by steady coal offtake and strong demand from the power sector.
The company’s operating profit fell to Rs 12,521 crore, compared to Rs 14,338 crore a year ago. Operating margins shrank to 34.93 per cent, from 38.23 per cent in the same quarter last year, reflecting cost inflation and lower e-auction realisations.
Coal India declares dividend
Alongside the Q1 results, Coal India’s board announced an interim dividend of Rs 5.50 per share, with a face value of Rs 10 each, for the financial year 2025–26.
“The Board of Directors at its meeting held on 31 July 2025 has declared the 1st interim dividend for FY26 at Rs 5.50 per equity share, as recommended by the Audit Committee,” the company said in an exchange filing.
The record date for the interim dividend has been set as 6 August 2025, and the payment is scheduled to be completed by 30 August 2025.
Outlook
Analysts expect realisation and cost pressure to remain in the near term, even as volumes stay firm. However, dividend visibility remains strong due to the company’s cash reserves and dominant market position.
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